Ministry of Mines invite comments / suggestions regarding the propose mining Reforms.
For the same, we send our comments to Ministry of Mines Director on 25.08.2020. The contents of the mail send to Ministry of Mines is posted here for our members Information.
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Madam,
Sub : The Comments and Suggestions on the Draft Proposed Mining Reforms- request to remove the irrelevant notifications to attract foreign direct investment as well as to generate one lakh new employment – Reg.
Ref : Notice issued by Ministry of Mines on 24.08.2020.
With reference to the above Notice w.r.t. Draft Proposed Mining Reforms issued by Ministry of Mines.
In case, you really interested to implement the reforms, you have to open the beach mineral industry to private parties. Because, according to the MoEF condition beach mineral mining alone carried out by manual mining which will generate lot of employment. In Tamilnadu alone, more than 50000 people get employment through beach mineral industry as, out of 71 mining leases, 61 mining leases are in Tamilnadu. So if MAKE IN INDIA scheme is implemented defentily our government will get huge revenue by way of taxes duty and foreign exchange earnings in addition to lot of employment.
The back ground is given below.
We are a Registered Organization of Southern Regional Mines and Mineral based Workers Welfare Association. Please visit our website https://southernmines.co.in/ .
In Tamil Nadu, beach minerals are available abundantly in East coast as well as West coast. It is deposited due to the sea current and wind and wave action. Unless we failed to collect the beach mineral within a stipulated time, larger portion will taken back to the sea and deposited to some other area. On this method, beach minerals are transported to nearby country Sri Lanka. The origin is only western Ghats. When Indian producers are mining beach minerals Srilankan companies are shut down. Unfortunately last some years beach minerals producers in India are prevented from mining, so our Indian mineral goes to Srilanka which was imported by Indian value added producers.
Previously only IREL, a Govt., company alone permitted to enter in the beach mineral industry. By knowing the scope for development, then Prime Minister Mr.Adul Bihari Vajbaiji relaxed the procedures and permitted wholly Indian owned companies resulted the Increase in Revenue from Rs. 35 Crore to Rs.1500 Crores per year. The direct and indirect employment also raised from 500 to 50000.
So if your really want to make reforms in the mining sector, complete opening of beach minerals to private sector is required.
The then Congress minister Dhanuskodi Aadhithan was involved in the beach mineral industry through two companies namely Indian Garnet Sand Company and Southern Enterprises. (photo attached)
Through his political power he do illegal mining in a larger level. Result as per the order of the High Court, the State Govt., authorities inspected and found the illegal mining and determine the mining leases. (Tamilnadu Govt., order attached)
As a counter blast, Mr.Dhayadevadas made false complaints against all the private beach mineral mining lessees stating that, Atomic mineral monazite is illegally exported. In fact, there is no demand for monazite. It is easily available all over the world. So IRE Ltd itself stopped the production from 2004 ( RAJYA SABHA UNSTARRED QUESTION NO.420
TO BE ANSWERED ON THE 26th NOVEMBER, 2014 by Ministry of Mines)
Moreover all the seaports and airports are equipped with gadgets to find out the radioactive material. (Parliament reply by DEPARTMENT OF ATOMIC ENERGY
LOK SABHA UNSTARRED QUESTION NO.896 TO BE ANSWERED ON 20.12.2017)
The said Dhayadevadas was financed by the developed countries who loose their international market to the Indian producers, as, the exporters face stiff competition from the countries namely Australia, Canada, China, Norway, South Africa, USA and etc. Systematic propaganda was made by a section of people against Indian Beach Mineral Industry which all are false. (Parliament reply to question No. DEPARTMENT OF ATOMIC ENERGY
LOK SABHA UNSTARRED QUESTION NO. 1872, TO BE ANSWERED ON 09.03.2016)
You will appreciate the face that it is a great achievement on the part of the beach sand mineral companies operating against many odds in India. This shows the vibrancy and determination of these exporters in “Make in India” campaign declared by Hon’ble Prime Minister Sri Narendra Modi ji, because all these mineral separators are export their mineral products and thereby earn valuable foreign exchange to our nation through 50,000 beach mineral employees.
Due to the false complaint of export of monazite, Ministry of Mines notified the threshold value thereby prevent private mining lessees to enter in this field. This not only affect our Indian Producer. But the overseas investors also afraid of to invest in India, since there is no security for their investment as, based on a simple complaint, even without enquiry or reports, the government authorities will prevent the business or industries. Unless their fears are cleared, there is no possibility to attract foreign direct investment in the mining field. So reversing the following Ministry of mines notifications are required.
- G.S.R. 2356 (E) Dt. 11.07.2016) – Suggestion – Suitable Amendments in MMDR Act, 1957 to be notified by MoM for delisting the entries of 7, 11 & 12 of Part B of First schedule into Part C of First Schedule. All Beach Sand Minerals (including Ilmenite, Rutile, Monazite, Leucoxene, Garnet, Sillimanite and Zircon), Titanium Bearing Minerals and Ores (Ilmenite, Rutile & Leucoxene) and Zirconium Bearing Minerals including Zircon to be made as Part -C of First Schedule of MMDR Act – Metallic and Non-Metallic Minerals.
- (Impugned Order – MoM Notification G.S.R. 134 (E) Dt. 20.02.2019) – Suggestion – Suitable Amendments in AMCR, 2016 to be notified by MoM for amendment in the entries of 7, 9, 11 & 12 in Schedule A. The Amendment in the above entries are proposed by fixing Threshold value as 5.00% monazite in THM for Beach Sand Minerals (Ilmenite, Rutile, Leucoxene, Garnet, Monazite, Zircon and Sillimanite).
In respect of export, even though Ministry of Mines as well as DGFT knows that, the rare earth elements are available only in Monazite, in the name of Rare Earth Elements DGFT canalize the export of Garnet, Ilmenite, Rutile, zircon, sillimanite etc., only to help IREL, a govt., company. This also make a fear in the international business community. When some of our people travel to overseas countries, they openly told that, in India there is no government administration, the policies and rules are framed based on the amount received from a section of traders / industries. They point out the above said notifications in addition to DGFT Notification No.26/ 2015-2020 (S.O.4053(E)) Dt. 21.08.2018). Hence that notification also to be withdrawn.
In case, the above reforms are done in consultation with our association people, as well as beach mineral producers association, definitely it will generate not less than one lakh new employment in addition to approximately 10000 Crore rupees of foreign exchange earnings and save foreign exchange outgo by way of Ilmenite, Rutile import from overseas countries.
Thanking You,
Yours truly
Balakrishnan
Date : 25.08.2020