Vedanta threatens to shut mining operation in Goa

Sangeetha R Chakravarthy, head of corporate Communications said that the truck owners demand of hike in freight tariff of e-auctioned mines is ‘unreasonable’.

Written by Harsha Raj Gatty | Panaji | Updated: December 25, 2015 10:20:59 pm

Vedanta Limited has threatened to ‘close-down’ its mining activities in Goa citing violent attacks against its employees by truck owners who have brought operations to a standstill.

In October, three attacks have taken place on the mining transporter of Vedanta, during which company officials say that nine of their trucks were damaged and two of their escort personnels were injured. While the local police say that they have booked a case against ‘unknown individuals’, they have detained two of them for questioning, Vedanta says the action is insufficient as they continue to be held at ransom by truck owners.

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Sangeetha R Chakravarthy, head of corporate Communications said that the truck owners demand of hike in freight tariff of e-auctioned mines is ‘unreasonable’.

“For e-auctioned mines the cost of transportation is fixed by the Directorate of Geology and Mines (DMG), but the truck owners are exceeding their demands. They are demanding up to Rs 17 as against the approximate DMG fixation of Rs 10.55 per tonne,” Chakravarthy adds.

On Wednesday, after the company approached the Goa Bench of Bombay High Court, division bench led by Justice KL Wadane and FM Reis ordered Goa government to provide police security to the ore transporters against a prescribed payment.

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