The Goa government is finding itself in a piquant situation after the ambitious mining corridor projects in the state, have failed to garner much support from mining firms which were expected to share the cost.

Chief minister Digambar Kamat, in the budget 2011-12, had earmarked Rs 500 crore for the mining corridors, which would by-pass the truck transport from the thickly inhabited areas of the mining belt.

Although work for one stretch of mining corridor in South Goa has been tendered, the mining firms have developed cold feet, stunning the state government.

State-run Goa Infrastructure Development Corporation has signed an agreement with Niraj Cement Structurals Limited to construct first phase of mining corridor costing Rs 65.76 crores.

As per the minutes of the recent meeting of steering committee on mining corridors held on July 13, secretary mines S Kumarswamy informed the chief minister that no one has come forward towards sharing the project cost.

Kamat in his budget speech had claimed that the corridors would be built on cost-sharing basis, as the roads would be exclusively used by the trucks transporting ore from the mining sites to the jetties, from where they are loaded into big ships.

Goa Mineral Ore Exporters Association (GMOEA), an organisation of ore exporters, has indicated that their support for these corridors may come with a rider.

Shivanand Salgaoncar, GMOEA president, told chief minister during the meeting that government has to ensure that the renewals and other pending environmental issues need to be looked into earnestly.

Salgaoncar was not available for his comments, after the meeting.

Goa has 105 mining sites, of which 90 are operational, tapping 45 million metric tones of ore, annually.

The mining corridors were planned after a string of agitations by locals, who complained that the trucks were creating pollution in their localities.

The state government, which has to fix several issues to get mining corridors done, has asked the mining firms, which will be using this road, to deposit Rs 10 crore each with them as an advance towards contribution.