Covid-19 worsened Goa's economic situation, state debt zooms to over Rs 20,000 cr: GMOEA
According to Goa Mineral Ore Exporters Association (GMOEA), an industry body dedicated to promoting, supporting, protecting and increasing Goa's mineral export trade, the Covid-19 pandemic has further worsened the economic and employment situation of Goa because of sudden drop in tourists arrivals.
The contraction in tourism will lead to additional losses for the state and will increase unemployment to the tune of almost 75,000 jobs. Moreover, the state is also witnessing closures of several industries due to the extent of the pandemic.
"The state debt of Goa has reached dangerous levels of over Rs 20,000 crore as per recent state budget figures. This sharp increase in debt levels can be attributed to shutdown of mining activities which has led to revenue loss of Rs 7,000 crore in the last 2 years," the statement said.
Mining in Goa came to a halt in March 2018, after the Supreme Court quashed the renewal of 88 mining leases.
At present it is not possible to restart the tourism industry unless the contagion is overcome globally.
However, mining can be undertaken even during the present period of lockdown with certain safety procedures and practices, the statement said.
It further noted that the suspension of mining has resulted in no provisions/contributions to the District Mineral Funds (DMF) nor the Goa Iron Ore Permanent Fund (GIOPF) and as a result of which the financial capabilities of these funds to undertake any public interest projects.
"Despite not being permitted to work for 70 of the last 96 months, the industry still has paid stamp duties, land revenue conversion payments in excess of Rs 1,500 crore, provisions to the government funds such as DMF and GIOPF in excess of Rs 700 crore and foreign exchange of over USD 1 billion," GMOEA President Ambar Timblo said.
Timblo further said that "all of this when being denied to work 80 pe cent of the period in the last 7 years". SID DRR