New Delhi/Panaji: The Goa Chamber of Commerce and Industry (GCCI) has urged the Centre not to impose export duty on low-grade iron ore, claiming it would result in an annual revenue loss of more than Rs 800 crore from the existing production alone.
Such a move would deal a major blow to Goa's mining sector, destabilise ongoing operations, undermine investor confidence and jeopardise thousands of livelihoods dependent on the industry, the GCCI said in a letter to Union Minister of Mines G Kishan Reddy.
Appealing to the Centre to weigh Goa's "unique structural constraints," GCCI urged that the present NIL export duty regime for low-grade ores from Goa and the Konkan region be retained.
"Such an approach will support local livelihoods, ensure sector viability, maintain fair trade practices, and avoid destabilising an already fragile industry," the chamber said.
The apprehension, it said, stems from deliberations at a high-level stakeholders' meeting held on August 26 to boost iron ore and steel production and strengthen raw material supply chains, followed by the constitution of an Advisory Committee on August 28.
In the letter to Union minister Kishan Reddy on September 15, GCCI President Pratima Dhond flagged reports that the government may consider extending export duty to iron ore fines and lumps below 58 per cent iron (Fe) content.
"Item E" of the committee's Terms of Reference has led to speculation about an export levy on low-grade ores, generating "deep uncertainty" in Goa, where nearly 100 per cent of the ore extracted falls in the below 58 per cent Fe category, the GCCI pointed out.
According to it, the average grade of Goa's iron ore is just 54 per cent Fe, far inferior to ore mined in Odisha, Karnataka, Chhattisgarh and Jharkhand.
The chamber pointed out that Goan ores are largely unsuitable for domestic steelmakers, since higher-grade ores from eastern India are both more cost-effective and readily available.
"Use of Goan ore in steel plants increases production costs significantly due to higher imported coking coal consumption, while higher logistics costs further erode competitiveness compared to export by sea," it said, adding that even pig iron units in Goa rely mainly on high-grade ore or imports.
The chamber noted the original purpose of export duties was to preserve high-grade ore for domestic consumption and secure export revenue - objectives already achieved through the 30 percent duty levied on ores above 58 percent Fe.
"India today is self-sufficient in iron ore, with no shortage of raw material for steelmaking. Only surplus and low-grade ore is exported after fulfilling domestic demand, while mine-head stocks are steadily piling up," GCCI said, citing the Ministry of Mines Annual Report 2025.
On Goa's mining resumption, the chamber said operations are still in a "sensitive early phase" after years of suspension and court battles. Out of 12 blocks auctioned, three have commenced production, while others are expected to begin later this year.
The Supreme Court has also capped extraction at 20 million tonnes per annum, restricting Goa's contribution to less than five per cent of India's total production.
"In this backdrop, an export duty on low-grade ores would not only undermine investor confidence but also result in an annual revenue loss of more than Rs 800 crore from existing production alone," the GCCI cautioned.
Any additional levy could affect competitive bidding in future auctions, reduce operational viability, and erode the fragile recovery of Goa's mining-dependent economy, it added.
The chamber said it had already briefed Chief Minister Pramod Sawant during his visit to GCCI on September 8, where he assured the matter would be looked into.
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