GCCI Urges Centre: Retain Zero Duty on Ore

The Goa Chamber of Commerce and Industry (GCCI) has issued a desperate plea to the Central Government, urging it to maintain the zero export duty on low-grade iron ore to avert a devastating Rs 800 crore annual revenue hit for the state's fragile mining sector. In a strongly worded letter to Union Minister of Mines G Kishan Reddy dated September 15, 2025, GCCI President Pratima Dhond warned that any new levy would cripple operations, shatter investor trust, and threaten thousands of jobs in a region still reeling from years of mining bans and legal battles.

GCCI's alarm bells are ringing following a high-level stakeholders' meeting on August 26 aimed at ramping up iron ore and steel production, and the subsequent formation of an Advisory Committee on August 28. Speculation swirls around "Item E" in the committee's terms of reference, which hints at slapping export duties on iron ore fines and lumps below 58% iron (Fe) content—a category that encompasses nearly 100% of Goa's output, averaging a paltry 54% Fe.

Unlike the richer deposits from Odisha, Karnataka, Chhattisgarh, and Jharkhand, Goa's low-grade ore is a tough sell domestically. "Higher-grade ores from eastern India are more cost-effective and readily available," GCCI noted, explaining that using local ore jacks up steel production costs through increased coking coal needs and steep logistics expenses. Even Goa's pig iron units lean on imports or high-grade alternatives, leaving low-grade ore with few takers beyond export markets.

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The chamber stressed that India's iron ore self-sufficiency—bolstered by a 30% duty on high-grade exports—has already met the original goals of domestic preservation and revenue generation. As per the Ministry of Mines Annual Report 2025, surplus low-grade ore is exported only after local needs are met, with mine-head stocks accumulating unchecked. Imposing duties now would serve no purpose but harm.

Goa's mining revival hangs by a thread: After Supreme Court-mandated auctions, just three of 12 blocks are operational, with production capped at 20 million tonnes annually—barely 5% of national output. "In this sensitive early phase, an export duty would undermine investor confidence and erode the fragile recovery," GCCI cautioned, projecting over Rs 800 crore in losses from current production alone. Future auctions could falter, operational edges vanish, and the mining-dependent economy could crumble.

GCCI had already looped in Chief Minister Pramod Sawant during his September 8 visit, where he pledged to probe the issue. Citing Goa's "unique structural constraints," the chamber called for retaining the nil duty regime for low-grade ores from Goa and the Konkan region. "Such an approach will support local livelihoods, ensure sector viability, maintain fair trade practices, and avoid destabilising an already fragile industry," the letter concluded, pleading for a lifeline to keep Goa's mining dreams alive.

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