HeraldReview
GOA I SUNDAY 22, JULY, 2012
The Story Behind the News
GOA I SUNDAY,AUGUST 12, 2012
w e b s i t e I w w w. h e r a l d g o a . i n
Clearing the Hurdles
The new mining policy and the selective action against only the small operators sends out the signals that the Manohar Parrikar government is clearing the field for the big players in the industry, reports Pamela D’Mello
pread over the first page of the new mining policy is a picture postcard image of Goa’s lush Western Ghats, rain clouds hanging low over a canopy of verdant green forest. Few would miss the irony of the image on a draft document that permits 45 million tonnes of iron ore to be shipped out annually to China and elsewhere --- volumes that will officially increase once mining corridors and dedicated roads are fast tracked into existence. The corridor alone is slated to mow down a swathe of 27 hectares of forest. “Manohar Parrikar is going totally commercial on mining. The environment is not his consideration at all”, says Independent legislator Vijai Sardessai. Environmentalists who have dozens of petitions against the industry are far more scathing of the chief minister clearing all hurdles for the industry. Manohar Parrikar is doing everything to see that mining goes on and the major firms increase their throughput, says activist and industry watcher Claude Alvares. “Life will be a worse hell for people in the mining areas. Does he not have a heart? Has he forgotten that these people have voted for him, not the five or ten mining families” asks Alvares.
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The draft policy ostensibly puts a “cap” on mining exports at 45 million tonnes per year (a long
way from the 30 million tonnes cap he proposed as Opposition leader), green flags dump han-
Life will be a worse hell for people in the mining areas. Does he not have a heart? Has he forgotten that these people have voted for him, not the five or ten mining families?
Digambar ‘It is criminal for the authorities not Kamat is ‘on the same page’ to permit us to export ore from dumps’ as Parrikar on these Shivanand Salgaocar, president of the Goa Mineral Ore Exporters matters. Kamat now Association tells Pamela D’Mello in this interview. We gave him (the CM) thoughts he mining industry has heads the Public Acon the mining policy. been having a series of counts Committee, The chief minister said he meetings with the chief wanted to auction the dumps. Is minister in the last few days when a previous the ownership of dumps in govover the Stamp Duty for lease ernment land in dispute? Does renewals. How much does it PAC had indicted it belong to the government? come to? him I don’t think so. It is not corWe were shell shocked. It
Too many players rock the boat
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he number of barges navigating the rivers has trebled over the last decade with the mining boom. From the 137 operating in 2001, there are now 400 barges dedicated to mining transportation. This year 42 million tonnes of iron ore have already been moved for export. India’s biggest iron ore exporter Sesa Goa alone has 38 barges, Salgaorcars own 10. For many of the late entrants to the barge business though, the experience has been hardly rewarding. “People who built barges from the year
2009 to 2012 are facing problems in repaying bank loans” said Atrey Sawant of Mandovi Dry Docks. Some even quit jobs abroad hoping to ride the tide of the ore export escalation. Surendra Shirodkar who had put in 20 years as chief engineer invested Rs 2 crore of savings and managed a bank loan for Rs 4.18 crore to get a 2,000 ton vessel. He now wants to sell the barge to go back to his “comfortable, respectable job”. Luckily, he didn’t put money into a second vessel, he says. The generosity of lender banks and the lack of curbs on the mushrooming barge yards – there are currently 72 of them operating in Goa – has hit the industry. Atul Jadev, president Goa Barge Owners’ Association (GBOA) blames the government for not setting the limits. In 2007 when iron ore exports touched 40.53 million tons there were 261 barges operating and they managed 98 runs each annually on average. With too many players in the field currently trips are down to 60 each. --Kimberly Colaço
dling -- despite explicit instructions from the Union Ministry of Mines -- and manifests its irritation at the Centre’s imposition of a 30 per cent export duty and other measures taken by the union government that it says are affecting Goa’s main industry and its GDP. “The National Mineral Policy 2009 made exports a third priority after import substitution and value addition, in that order.” the policy states. Sardessai says the policy amounts to open defiance of the Centre. “The whole idea seems to be to push the blame onto the Indian Bureau of Mines (IBM) and the Centre for issuing environment clearances, while taking a regional stance to safe-
came from leader of Opposition Pratapsing Rane. “One has to see what is in the dumps. If there is ore there, it is a major mineral, and technically would amount to a new mining lease, which has to be approved by the Centre,” Rane told HeraldReview. The invisible script of the draft policy is certainly not lost on the Opposition Congress in Goa, that saw an ignominious exit, thanks largely to the illegal mining accusations of the past five years. Quotas for party fund collections for the 2014 general elections are a political reality, especially for State governments in power. For an industry like mining, where government policies can swing fortunes either way by thousands of crores of rupees, it becomes an accessible source. The Opposition sees a lot of significance that Parrikar initially threatened that government would auction dumps, but mysteriously nothing more is being said on this. Last week, mining majors and the chief minister were ensconced in a series of meetings before the policy announcement and the Stamp Act amendment was passed. Also keenly watching the scenario are some of the bigger players among the now ousted traders. Clause 7.5 of the policy which allows for “case to case permits for clearance of old/existing dumps for leases that are not current” is seen as an opportunity by some of the bigger traders, still keen to negotiate the Goan minescape. “Dump handling was declared illegal earlier. Now the government will make illegal mining legal” commented one trader, who has shifted operations to Rajasthan, when the current regime clamped down on the 433 traders. Down to just 43 of the established names in the Goa industry, this regulation and clean up has brought the CM accolades. Will the absence of traders bring down Goa’s exports? Not at all, say insiders. Exports reduced 30 per cent last year because of the ban on handling dumps post the Shah Commission visit to ¯¯ Pg3 Goa.
guard the interest of Goan mineowners.” Sardessai also alleges that former CM and long time mines minister Digambar Kamat is “on the same page” as Parrikar on these matters, pointing to Kamat now heading the Public Accounts Committee, when a previous PAC had indicted him! Proposals in the policy that State authorities will classify dump sites and decide the optimum level of fresh mining that can be undertaken, “seek to make the IBM redundant in Goa”, he points. “He wants to usurp the powers of the Centre on mining,” Congress spokesman Jitendra Desprabhu said. How the Centre will react to this, is yet to unfold. An indication of the trajectory for this potential confrontation
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would have worked out to Rs 120 cr per million tonnes of environment clearance (EC) limit. After a series of meetings with the chief minister a cap of Rs 20 cr per million tonnes has been introduced -- which even now the highest in the country. Is the matter settled? Do we have a choice? Even at Rs 1cr stamp duty per lease agreed to by the previous government, small mineowners objected. Six leases were renewed in 2007. What was holding up the remainder? Leases with all permissions and ripe for renewal were operating under deemed provisions and were pending only because of delays in amending the Stamp Duty Act. Section 24A6 (the deeming clause) had become a whipping tool for NGOs and even Shah Commission, for no fault of ours. Was the mining policy discussed with your association?
It is ridicu- lous (the vision document’s suggestion that mining be capped at 20 million). Is it based on any study? I’d like to see that.
rect. Is that a dispute waiting to happen? I don’t think there is a dispute. During discussions the chief minister has not raised this. Parrikar said all dumps on forest land belong to the government. Dumps on pre-declared forest land are absolutely illegal. But post facto declaration of a land as forest after you’ve mined it for 20 years is not correct. What are the three major challenges facing the mining industry in Goa? Infrastructure has not kept up. We need mining corridors and dedicated roads; stability in legislation. The goal post changes every few days. High court and supreme court petitions are filed and its decisions made applicable. Illegal activity needs to be controlled, so that people legitimately doing business don’t have to shout from the rooftop that listen, we have nothing to hide. ¯¯
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POLITICAL ARENA
GOA I Sunday august 12, 2012
Justice for Nadia? The move to revisit the Nadia Torrado case may be political, but it cannot overlook some of the hard evidence pointed out by the courts, Guilherme Almeida reports. Vincent Braganza
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wo years after she died in mysterious circumstances in a Chennai hospital, Nadia Torrado’s death is back in the news. Chief Minister Manohar Parrikar’s statement in the recently concluded legislative assembly, that investigations into Nadia’s death had been politically motivated may be viewed in many quarters as a trade off for Mickky Pacheco’s support to the ruling dispensation. That, though, does not change the fact that there are Nadia Torrado more questions than answers surrounding the death of the through Nadia’s 28-year old from Vanxem, Loutotreatment at lim. Apollo hospital, Investigations by the crime Margao, Jupiter branch of the Goa police over 24 hospital, Thana months have not helped unravel and Apollo hospithe mystery behind Nadia’s death. tal, Chennai. While Parrikar’s statement may The police had have sparked a debate at the police initially regisheadquarters, a host of questions tered a case of atrelated to the death remain unantempt to commit swered. It is still unclear if this was suicide when Naindeed a suicide, or whether there dia ingested the was abetment to commit suicide or poison, Ratol at culpable homicide not amounting her residence on to murder as alleged by the crime May 15, 2010 at branch investigation. 9 am. InvestigaAfter all these months the investions took a twist tigation has not reached its logical days later when conclusion. The police are yet to the first post morfile a charge sheet against Mickky tem examinaPacheco and the others arrested in tion conducted at the case. Crime branch officials Chennai revealed say the case has been delayed over multiple contuthe examination of the hard disk of sions, with the the CPUs and a laptop seized from medico-legal offithe office of the former tourism cer clarifying that minister. “Investigations are stuck the contusion inbecause we have not yet received juries, 12-16 days the report from the experts at the old, had been Central Forensic Sciences Lab, caused by a blunt Hyderabad where the hard disk object, such as and laptop are being examined. a wooden log or Based on the expert’s report, insomething simivestigations may take a new direclar. These find- Mickky Pacheco tion,” investigating officer Sunita ings prompted Sawant told HeraldReview. the crime branch Till date, the crime branch has to invoke section 304 of the IPC not managed to recover the passport, two cell phones and the lap- which deals with culpable homitop that belonged to Nadia. Sawant cide not amounting to murder. Pacheco insists the case was confirmed that all this crucial material is still missing. “These politically motivated: “The invesitems would have definitely helped tigating agency framed me in the to give a further insight into the case on the orders of the previous government. The crime branch has case,” she adds. Pacheco had been arrested by not even chargesheeted the case the crime branch on July 8, 2010 in the court because they have no from Hospicio hospital after his evidence against me,” he told this surrender to the sessions court on correspondent. But questions over the injuries July 3 that year. His anticipatory on Nadia’s body and whether she bail applications had been turned took the poison by mistake remain down by the sessions court, high unanswered. Rejecting Pacheco’s court and the apex court as well. anticipatory bail application on The police case against the former minister focused on his alleged June 10, 2010 Additional Sesclose relationship with Nadia and sions Judge B P Deshpande had the fact he had been present at observed: “Material collected by her residence on the night of May the prosecution ruled out the pos14, 2010. He was also present all sibility of (Nadia) consuming the
What Mickky has to say
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o you feel vindicated after Chief Minister Manohar Parrikar said that investigations into Nadia’s death had a political tinge?
I have been saying all along that the case is politically motivated. Forget about me, even the people know that the previous government targeted and harassed me after the success of the NCP convention at Betalbatim. The previous government used the then SP to target me in the case. As far as Parrikar’s statement is concerned, he had made a similar statement as leader of the opposition. The impression is that the CM’s stand is a quid pro quo for the Goa Vikas Party’s support to the government. There is no politics involved in Parrikar’s statement as the Home Minister. Moreover, I would like to ask my critics what the crime branch has done to investigate the case. There was no investigation at all in the last two years. Not a single witness was called for investigations. They have not even filed the chargesheet. In the changed circumstances, what do you now expect from the investigating agency? That it should close the case or take it to its logical conclusion? I have nothing to say. If they had enough evidence, why has the crime branch not filed the chargesheet against me till date? I was arrested but not interrogated, because they knew there was nothing in the case. I have nothing to comment on the investigations. The Crime branch had made you an accused in the case on the grounds that you enjoyed a close relationship with Nadia and were at her residence on the night preceding her alleged suicide attempt and also with her till she breathed her last at Chennai. Was it not my duty to save the life of a close friend? As a citizen, was it is not my duty to help someone in distress? I was present with Nadia since the time she was taken to the hospital, to Mumbai and then to Chennai. I had even chartered a flight from Mumbai to Chennai and Chennai to Coimbatore to get in expert doctors to save her life. I did all this because she and her family was our close family friend. Our families still maintain that friendship.
information given to the doctor at Apollo hospital at 3 pm by the mother and also by the victim clearly show that it was not consumed by mistake. The injuries on the person of the
deceased further suspect that the same might have been forcibly given or she might have been induced to consume the same. The truth could be revealed by specific interrogation and not otherwise”. n
poison by mistake as tried to be claimed by way of statement of the victim recorded before the special magistrate at Mumbai for the simple reason that if it was consumed by mistake How the case developed at around 9 am on May 15, 2010, no one will • Nadia Torrado ingests rat poison at her home in remain in the house Loutolim, May 15, 2010, 9 a.m. till 3 pm when actu• Taken to Apollo Victor Hospital, Margao, 3 p.m. ally the deceased was • Maina Curtorim police register a case of attempt to shifted in the presence commit suicide of Pacheco at Apollo • Shifted to Jupiter Hospital, Thana-Mumbai by air Victor hospital. If it same evening. was consumed by mis• Undergoes treatment at Jupiter till May 26 take considering it as • Shifted to Apollo Hospital, Chennai. a tooth paste, the de• Expires on May 29 ceased or her family • Crime branch takes over investigations on June 3 members would have Investigating officer • Mickky surrenders before Sessions Court on July 3 Sunita Sawant immediately contact• Arrested on July 8 ed the doctor or admit• Released on bail on July 26 after 18 days in jail ted her in the hospital for the treatment. The
Continued from pg 1
“Goan mine owners never needed the traders. They just came down in droves from all over during the China boom, stealing ore and buying royalty challans.” With them out of the picture, established miners are looking at increasing their throughput, currently limited only by infrastructure logistics that the present State government is speeding into place. This may include a rail line, introduced as a late addition into the Regional Plan 2021. Exports out of Panaji port, run by the State government, are growing faster than that at Mormugao port. Infrastructure for mining and industry, in fact, is the BJP government’s priority, going by announcements made shortly after it assumed power. The Rs 300 cr mining corridor was fasttracked; the Mopa airport project got airborne; Rs 16,000 cr for underground power cabling is announced, with pledges for Rs 5000 cr spends for cabling in the next financial year. In addition, the slew of preelection sops and doles that critics are calling the “opium for the people” is estimated to cost a further Rs 1000 cr. Where will the money come from? The mining policy makes it absolutely clear it expects the industry to pitch in, in job creation; clean-ups, regulation, even to pay mining inspectors at mine sites. In addition, the recent amendment
to the Stamp Duty Act was expected to officially garner Rs 2500 cr, but a rollback thrashed out with the mining industry over the past few days will bring this down to Rs 920 cr (see accompanying interview). That’s the price the industry must pay for a better managed system, with speedier lease
weed out smaller players and create consolidation and monopolies. A shakeout is imminent, agree analysts. Vedanta’s Sesa bought out V S Dempo mines in 2009, while other groups like Fomento are steadily expanding their footprint. In 2010-11, the top five mining companies ac-
renewals and dump working that the new regime is offering. “A lot of small mineowners will not be able to make the upfront payment and will have to sell to the bigger companies” says Sardessai. Phrases in the policy like “amalgamation of mines”, avoiding waste by value addition, he says, will be a carte blanche. The political buzz is that a lot of the suggestions to government are coming from a couple of top mine owners. A veiled threat in the policy to declare non-functional mines as lapsed, will similarly force sales,
counted for 70 per cent of total exports, while the major two exporters Sesa Goa Ltd and the Fomento group between them exported 50 per cent (27 million tonnes) of the 54 million tonnes exported that year. “At any rate farm land and private land is being increasingly snapped up by the industry in the interior. It is that cash rich” said a senior government official. Making and breaking governments and buying out legislators is par for the course, he added. Pegged at Rs 28,000 cr and climbing, the Goa min-
The decision to nominate Mickky Pacheco to head the House committee set up to probe police-drug cartel connections, shows that Manohar Parrikar is out to humour the Nuvem MLA and settle old political scores at the same time. But Pacheco himself has a long list of criminal cases against him.
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n the years that he has spent in the game of political manoeuvring, Ravi Naik has picked up several enemies. It’s hardly surprising then, that some of them are now out to get him. Naik of course, knows the score. “Since they cannot find a single case against me, they are trying to target me through my son,” he told HeraldReview. Roy Naik, whose name has been often tossed around in allegations linking him to Israeli drug dealers like Atala, is the former Congress home minister’s younger son. In recent years he has been a significant player in trading iron ore. “If they have evidence against my son, why did they not hand it over to the CBI which is investigating the case? This is nothing but political match fixing against me,” Ravi Naik says of the decision to set up the House committee. The name ‘Roy’ cropped up years ago in an Anjuna drug case and was twisted around to implicate his son, “because people just like to spread rumours,” he adds. With factionalism still running deep in Congress veins, there has been little support coming Naik’s way from Opposition benches in the House or otherwise. “Why did the Congress remain silent? an affronted Naik asks. “I’ll wait for the report to be submitted to the House. In any case, in our country there are courts one can approach for justice,” he said. n --Devika Sequeira
‘It is criminal...
Clearing the Hurdles
It’s political match fixing, says Ravi
ing industry is no longer a small economic blip. Key players are currently lobbying at the Centre for beneficial changes in the MMRD Act. “If Sesa Goa and Fomentos have grown exponentially in the past few years, it is because they are better managers”, commented the CEO of a major mining firm. It’s an open secret in mining and political circles that mining groups seeking to up their stakes backed several candidates now in government. For Parrikar, the turnaround has been dramatic, but then no Goa chief minister can afford to cross the industry. His critics point out that the aborted PAC report he authored listed a series of illegalities, including exports in excess of environment clearance limits, carried on by several mining majors. But thus far the strong arm of the law has been reserved mainly for the smaller players, especially those pilfering ore from major companies. The flip-flops and roll-backs in government policy are similarly beginning to raise eyebrows. Mining transport in South Goa during the monsoon was stopped then restarted. In September the new mining season gets underway. Will the State government and mine owners have the last word, or will the state-centre confrontation be settled politically? That’s something to wait and watch. n
Continued from pg 1 Is industry happy the way things are going right now? In terms of regulation and control we are pleased. On the stamp duty we are very very disappointed. The CM expects to collect Rs 900 cr. Before the rollback, it would have been Rs 2500 cr. Everybody can have a dream, but realise it without killing the industry. Civil society feels mining ought to pay for infrastructure. We will pay. Put taxes back into infrastructure. Put a toll road, we will pay toll. We need government to acquire land quickly. We can’t invest and then get bogged down because of some permissions. Has the China boom been a boon or bane? It was a child growing uncontrolled. Those of us with systems from day one did not change. But newcomers, without even addresses came into play. The minute the boom happened the government should have invested in control mechanisms. Pre 2007 there was a tenuous relationship between Goan villages and the industry. Post 2007 that broke down. Can it be bridged? I don’t blame the villages. Mining has to be sensitive to the local population. Where possible, have a dialogue and accommodate them. It’s not always possible to meet all requirements sometimes. Moving 47 million tonnes of ore through villages would put the industry at loggerheads with villages. Even now it is manageable. The load bearing capacity of infrastructure in each area has to be looked into. Ore from deep south is coming up north; the cross movement creates complications. The vision document for Goa suggests a cap of 20 million tonnes. It is ridiculous. It’s a vision statement. Is it based on any study? I’d like to see that. The industry will not agree to a cap? You might as well ask us to close. In the interior people depend on it. People in Panjim are insulated from these realities. So the industry wants no cap? A cap should be reasonable, flexible, related to current infrastructure. If infrastructure improves, the cap should be increased. Is V M Salgaocar looking to increase its throughput this year? There is a decrease because of the ban on dump handling. It is criminal for authorities not to permit export of low grade ore from dumps. We have stocks, and a riverine system to export it. We need to sell it when we can. When they lie as dumps, nobody benefits. n