Stoppage of Beach Mineral Mining operation by State Government is illegal. Central Government should set-aside the order to protect the employees – RLC enquiry report

The Tamilnadu Government stop the mining operation of Beach Minerals from 2013. Lot of employees affected. So they knocked the doors of Central Government. The Chief Labour Commissioner directed the Regional Commissioner (Central) to enquire the case.  Accordingly Regional Labour Commissioner enquired the employees and their associations and the mine owners and submit the report to Govt., of India. 

The Labour Commissioner in his report mentioned that, V.V. Mineral has provided the following benefits to VV Mineral employees and their family member and as well as village peoples.

  • EPF
  • Insurance
  • Free Medical treatment scheme
  • Free Transportation
  • Canteen Facility
  • Health Centre facility for medical treatment for employees and public
  • Free Medical camp to employees family members and village people
  • Free Note books for our employees children and poor children yearly once
  • CSR activities for society – Medical camp, Bus shelter, Water facility, Community Hall for marriage function in coastal villages etc.
  • Self Employment for coastal women’s through interest free loan
  • Solar lamps distribution to poor students in the mining villages
  • Employment training to coastal village women

He further mentioned that,  due to the stoppage the following loss to our nation in addition to employment loss of 50,000 people.

1)         Foreign Exchange earning Rs.5000 crore per year approximately by way of export of processed minerals.

2)         Aprox. 300 Crore Rupees loss by way of 10% Export duty on Ilmenite 

3)         Aprox. 420 crore Rupees loss to Central Govt., by way of 14% Excise duty.

4)         Aprox. 100 Crore Rupees loss to State Govt., by way of 3% of royalty on sale price on advalarem basis.

5)         VAT and other taxes loss to the State Government.

6)         Ancillary industries and indirectly supporting industries operation such as Transportation, shipping, Logistics, etc. and their annual income Rs.500 crores per annum.

7)         National wealth of our beach minerals moves to nearby countries by sea wave action.

The Regional Labour commissioner concluded that, the State Govt., had arbitrarily and unilaterally   travelled beyond its jurisdictions and , without seeking the approval of the Ministry of Mines  had illegally preferred to issue the G.O. thereby stopping the mining operations in the Districts and recommended to take up the matter with the Ministry of Mines to exercise revisional powers under Section 30 of MMDR Act to set aside the portion of stoppage of mining operation alone, and ensure that the Mining Operations in these Districts are revived and justice rendered to the apathy conditions of the workers and their families at large.

He further recommended that, a meeting at the level of Chief Labour Commissioner (Central), New Delhi is convened with the Officials of the Ministry of Mines, Govt. of India, with the representative of the Govt. of Tamil Nadu and Mineral Company Owners and workers representative and executives, then every chance of revival of the Mineral Industries could be apprehended  and the fate of the 50,000 populations of workers and their families at large who are languishing for their livelihood  could be saved.    

Thanks to the Honourable Labour Minister as well as Chief Labour Commissioner (Central) for intervening this important issue.

We Hope the Honourable Prime Minister will take follow up action to resolve this long pending issue.

Copy of the said report obtained under RTI is given below.

RLC Report-min


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