The state of Goa celebrated for its Sun, Sea, and Sand is currently reeling under a massive unemployment crisis. The once-thriving tourism industry which was the highest contributor to the state’s GDP and income generation came to a screeching halt in March last year with COVID-induced national lockdown and the consequent international and domestic travel ban.

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As uncertainties persist over the revival of the tourism industry, Goans lie entrapped in a state of helplessness and constant worry. The state with silver sands, sparkling blue waters, unique architectures, and paddy fields continues to face reduced tourist traffic due to the ongoing pandemic which has adversely impacted its revenues and jobs dependent on the tourism industry.

The tourism sector in Goa attracts 2.5 million visitors each year, the bulk of which are domestic tourists while the remaining 400000 are foreign tourists.

The livelihood crisis in Goa is not only due to the marked downturn in tourism but also due to stalling of mining activity on account of judicial pronouncements.

Mining was the second largest employment creator in the state before it ceased on March 16, 2018, following the Supreme Court’s order to quash the renewal of 88 mining leases. This has brought lakhs of mining-dependent Goans to the very brink of the abyss without any sustainable source of income.

With the mining industry still in limbo, every third person of Goa’s 18 lakh (1.8million) citizens is hit. It is worth noting that with exports of 35 million tonnes, mining used to bring valuable foreign exchange to the state exchequer making Goa one of the richest states in the country. The state had the highest GDP per capita — two and a half times that of the country — with one of its fastest growth rates of 8.23 percent.

While over 3,00,000 Goans continue to face acute livelihood crises due to the halt of mining operations, the tourism industry may face a severe downturn for at least the next 2-3 years. This situation is further deepening the financial crisis exacerbating the already difficult lives of ordinary Goans who are left without any sustainable source of income to meet their basic needs.

The genesis of the mining crisis lies in the Abolition Act, which gave birth to Goa and recently modified the 2015/2020 Mines and Minerals Development (MMDR) Act which gives the allottee, the right to have 50 years of the lease period or renewal, or till 2020, whichever date is the furthest. The 2015 amendment to section 8A of the MMDR Act states that all mining leases that were operational before the amendment came into force shall be deemed to have been granted for a period of fifty years.

The harmonisation of these two acts is necessary to emerge from the quagmire of this crisis. There is a three-bench judgment of 1998 which says that mining should continue till this matter is disposed of while the SC judgment quashing mining leases was a two-bench judgment. The state government has already passed legislation to resume mining and sent it to the Government of India for necessary action.

The government has accepted that under the amendment Tata and SAIL have already obtained an extension for their mining leases till 2037 after making representations to the state mines department. But, Goa continues to lose due to the indecisiveness of the Center, the State Government, and the Supreme Court. The result is a continuous slide of the state into poverty as declining household income and loss to the exchequer is plunging the Goan people into a state of misery and incredible suffering.

With 15 million tonnes of iron ore exports coming to a standstill, an entire ecosystem of allied industries, including logistics suppliers, truck companies, and barge owners as well as equipment suppliers have been impacted. Goa lost Rs 3,500 crores in the first year of the mining ban while the loss in the subsequent years stood at Rs 2000 — 2500 crores. And if mining does not start, it may hurt the state government's development activities. Even salaries of government employees may get impacted - a glaring example of how the delay in correcting the policies can push a prosperous state into an economic crisis.

The state also lost many lives amid the second wave of the Covid pandemic as the closure of plants and industries due to the non-functioning of steel plants and no new investments consequent to mine closures affected the capability of local industries to produce and supply life-saving liquid medical oxygen (LMO) to hospitals at the time of nationwide medical oxygen crisis. This was when the rest of the country banked on industries for the supply of LMO.

Goa had no choice but to jack up the oxygen supply in the shortest possible time. Goans have had enough. What is currently happening in Goa is a grave humanitarian crisis. There is a strong need for the country in a joint effort to resolve the issue amicably and trigger back Goa to the path of development at an accelerated pace.

—Dr Aruna Sharma is a development economist and former secretary to the Government of India. The views expressed are personal

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(Edited by : Ajay Vaishnav)