Category: blog
Stoppage of Beach Minerals is one of the reason for bad financial situation in Tamilnadu – White paper reveals.
The Tamil Nadu government has issued a white report on the state’s financial situation. The images from that white report are attached here and it is considered as the most important one. That represents the financial condition of the state which has been deteriorating since 2013.
Since then, 50,000 workers lost their jobs at the same time as the beach sand mine was totally shut down due to false allegations. This proves that the beach sand mining strike is one of the main reasons for the deteriorating financial condition of the state. Looking forward with the list, the financial situation has been deteriorated immensely in the period 2019 to 2021. In 2019, the central government seemingly ordered the concurrent cancellation of about 24 per cent of major mineral mining leases across India. That means the federal government canceled 72 of the 328 major mining leases across India. Among these, 64 mining leases are identified to be in Tamil Nadu. Hopefully the situation will be understood by now. What is the reason for Tamil Nadu becoming so bad financially?
The former Tamil Nadu Industry Minister did not write a letter to the Central Government stating that it was wrong for the Central Government to cancel the mining leases without consulting the State Government for its own hostility. However the present government is taking various measures to recover the financial position as earlier as possible. So let’s hope this action is taken as well. And, It is considered a mistake by the Central Government to cancel about 64 mining leases in Tamil Nadu without consulting the Government of Tamil Nadu. The State Government is requested to write a letter to the Ministry of Mines asking them to withdraw the cancellation order. The above 64 mining leases is estimated to provide employment to 50,000 workers and will mine and export mineral sand to the tune of Rs. 5000 crore per annum. Of this, 28 per cent stands for GST. 10 per cent export tax is owned only by the Central Government. Therefore, GST tax compensation of Rs 1400 crore per annum, export tax compensation of Rs. 500 crore to the Central Government and the loss to the state government is estimated as Rs 200 crore per annum in the form of 3 % royalty and tax on it.
50,000 workers are paid a minimum of Rs 10,000 and a maximum of Rs 30,000. On this way also Government will get 400 crore rupees a year in GST by spending a portion of their salaries on food, clothing and education to support 50,000 families. With this, the revenue available to the state government through ancillary industries and those who get employment
through this have been affected since 2019. So the state government alone is not responsible for this financial burden worsened. The action of the
present central government is also a factor.
Therefore, to protect the livelihood of a total of 50,000 workers and to fix
the financial position of the Government of Tamil Nadu, The state
government needs to appoint the right officers at the right place and plan
accordingly to restructure this industry.
Tamil Nadu, which has been the largest producer of beach sand in India since 1994, has now slipped to 3rd place due to a misguided order by the Central Government. India, the world’s largest producer of ore sand, is now ranked 5th. If this is the reason why all these incompetent officers are employed in important posts then there is no doubt about the size of the sesame. It is fortunate enough that Tamil Nadu has an unexpected Finance Minister.
Chief Minister Shri.M.K. Stalin has also appointed a good finance minister in accordance to emerge from a similar financial crisis. We therefore hope
that the Finance Minister will take note of the opposite period of the beach sand workers.
Tamilnadu Government White Paper
Ilegal Mining Complaint by Dhayadevadas is false and due to business motive – Principle Secretary reported to Govt., of India
Out of 335 operating mining leases 72 private beach mineral mining leases terminated by JS, MOM. This is the reason for negative growth of Indian Economy
The Below list downloaded from Ministry of Mines shows that, total 335 major mineral mining leases including beach mineral mining leases operated all over India on 2017. There is no fresh grant after 2017. But Joint Secretary, Ministry of Mines terminated 72 private beach mineral mining leases vide his order No. 1/1/2019-M.VI dated 01.03.2019 which affects more than one lakh people’s bread winning employment.
More than Rs.4000 Cr/year foreign exchange earnings lose to government in addition to Rs.1200 Cr/year by way of GST as well as Export Duty. Indian Producers has lost their 40 years developed market share to China and other countries. Foreign investors also lost their faith over India to invest in the mining field. Only convening of a meeting including beach mineral mining lessees, Atomic Energy Department, Ministry of Mines officials under the Chairmanship of Honourable Prime Minister alone will save 100 year old beach mineral industries and save one lakh families from poverty.
MMDR Amendment Act 2015 give only adverse impact instead of positive impact. MEAI Bangalore webinar also reveals.
The MEAI, Bangalore organized a Webinar on “Updates on Mineral Legislation in India” on 24th July 2021. Eminent personalities in mining field participate the webinar. Most of their opinion is that, instead of increasing the production and development of industry, the amendment made during 2015 MMDR Act give only adverse impact. We are the first who point out that, the MMDR Amendment is against our nations development. All are expect that, PM Modi will take remedial action to rectify the mistakes done by Mines Ministry. Full webinar link in the Youtube is attached.
Representation send to Ministry of Mines in response to their reply to PMO Reference
Dear Sir,
The Ministry of Mines, Section officer Mr. Sandeep Kumar has mentioned that, the said notification was issued based on the recommendation of the Department of Atomic Energy (DAE). The Department of Atomic Energy already constituted a committee very early and found out that even in separation of Individual minerals also, the monazite percentage will be more than 0.1%. That is why DAE prescribed the limit for export as 0.25%.
After the said notification, our nation’s mineral production is completely affected, out total 325 Major mineral mining leases more than 70 leases were terminated. More than 50,000 employees lose their jobs. Since beach minerals are replenishable in nature, since we failed to collect the same, they were transported to the nearby country Srilanka and after this notification, they have re-started the production of Ilmenite and sell it to its origin nation of India. Thus India is buying its own mineral from the nearby countries because of this notification. So Ministry of Mines Notification GSR 126(E) DT. 19.02.2019 and GSR 134(E) DT. 20.02.1019 affects very much of our nation’s economic development.
Moreover all the sea ports and Airports are equipped with gadgets to find out the radioactive material’s transportation and connected with more than 900 police stations.
Hence there is no necessity to notify the said amendments. In case, such a proposal is submitted, it is the duty of the Ministry of Mines to publish the same inviting suggestions / objections for the same. That is also not followed.
Though we have more than 25% of Total world reserve, because of this notification, our Indian Industries are importing these mineral, thereby we loose our valuable foreign exchange. This is completely against the aim of our Honourable Prime Minister “MAKE IN INDIA” Scheme.
Due to covid-19, our nation’s economy is very much affected and peoples also affected. It is not possible to create 50,000 new employments for the people who lose their jobs.
Hence our humble request is the Honourable Prime Minister / Honourable Mines Minister / Honourable Minister for Atomic Energy may kindly be advise to the officials to convene a meeting either in Ministry of Mines, Shastri Bhawan or at Department of Atomic Energy, Anusakthi Bhawan, Mumbai comprising of DAE officials, Ministry of Mines officials and Beach Mineral mining lessees and our association representatives. We will explain the impact how our Indian Industry is affected for want of raw material, such as Ilmenite, Rutile, Zircon etc.,
Yours faithfully,
C.Sakthi Ganapathi
Secretary.
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——— Forwarded message ———
From: <cpgrams-darpg@nic.in>
Date: Thu, Jul 22, 2021 at 11:01 AM
Subject: Grievance Disposal
To: <president@beachminerals.org>
From: <cpgrams-darpg@nic.in>
Date: Thu, Jul 22, 2021 at 11:01 AM
Subject: Grievance Disposal
To: <president@beachminerals.org>
Dear Sir/Madam,
Your Grievance with Registration No.PMOPG/E/2021/0425083 has been disposed.
Logon to: https://pgportal.gov.in/
Reserving Mineral bearing area to PSU amounts locking of Minerals and affect GDP Growth of our nation.
In India, Mineral bearing areas are reserved for public sector under taking. According to Indian Bureau of Mines publication, the areas reserved from 1972 to 2010 were not utilized by any of the Public Sector Under taking. This will establish that, when the government don’t want to grant Mineral Concession to a particular company or a particular group, immediately Government declared that, the areas are reserved for PSU. This amounts, misuse of mineral for domestic purpose by the common people such filling of pits, construction, etc., without payment of royalty and without scientific mining. Conservation and Development of mineral, the moto of our MMDR Act is defeated by Reservation.
The Net Result, the State Government will lose Royalty, Central Government will lose GST, common people will lose the Employment. Above all it affects the GDP Growth of our nation also. When Government clearly knows that, the minerals are the raw materials for lot of industries, locking of minerals in the name of reservation for PSU is not a wise decision. When Modi ji Government’s moto is “EASE OF DOING BUSINESS’ in India, how Mines Minister failed to de-reserve the area by notifying in the official Gazette. Even areas reserved during 1960 is locked for last 60 years.
The list published by IBM is given below.
https://ibm.gov.in/writereaddata/files/06302014172709mineralbearingareas.pdf
Comments on Draft Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021 – request for comments and suggestions
Mr. B.K. Bhatia 07.06.2021
Joint Secretary General
Federation of Indian Mineral Industries (FIMI)
FIMI House, B-311, Okhla Industrial Area
Phase-I, New Delhi – 110 020.
Dear Sir
Sub : The Comments and Suggestions on the Proposed Draft Minerals (Other than Atomic and Hydro-Carbons Energy Minerals) Concession Amendment Rules, 2021 – Reg.
Ref : Your Circular No. B/8/21-22/Cir. No. 41 Dt. 19 June, 2021 sent through E-mail by FIMI on 19.06.2021.
We Beach Minerals Producers Association (BMPA) established in the year 1995, to make the Manufacturers & Employees of the beach minerals (atomic minerals) industry join hands for common issues and organize them through a common platform to develop Beach Minerals (Atomic Minerals) Industries. There are 61 nos of Beach Mineral Mining Leases, which are functioning under the guidance of this Association. The efficient and valuable guidance of the Association, lead to bring our country as largest producer of Garnet in the World.
Now, we are submitting the following Comments & Suggestions on the Proposed Draft Minerals (Other than Atomic and Hydro-Carbons Energy Minerals) Concession Amendment Rules, 2021.
COMMENTS & SUGGESTIONS ON THE PROPOSED DRAFT MINERALS (OTHER THAN ATOMIC AND HYDRO-CARBONS ENERGY MINERALS) CONCESSION AMENDMENT RULES, 2021
| Sl. No. | Proposed Rule | Comments/ Suggestions | Reasons/ Justifications |
|
1 |
Additional Proposal
Rule 3 – Applicability.- These rules shall apply to all minerals, except (ii) minerals listed in Part A and Part B of the First Schedule to the Act.
|
Suitable Amendments to be incorporated in the Proposed MCR to accommodate and govern the mineral concessions relating to atomic minerals where the grade of atomic mineral contained in the ore is less than the threshold value. Hence the suitable amendments to be incorporated in the rule 3 as follows – “Applicability – These rules shall apply to all minerals, except (ii) minerals listed in Part A and Part B of the First Schedule minerals where the grade of atomic mineral contained in the ore is equal or above than the threshold value”. | As per rule 3(2) of AMCR, 2016, the mineral concessions relating to atomic minerals where the grade of atomic mineral contained in the ore is less than the threshold value will be governed, mutatis mutandis, by the provisions of the Minerals (Other than Atomic and Hydrocarbons Energy Minerals) Concession Rules, 2016, in force. Whereas the existing MCR, 2016 is not reflecting the same.
Whereas MMDR Act, 1957 and MCDR 2017 are in line with the rule 3 of AMCR, 2016. Hence the conflicted rule no. 3 of MCR, 2016 to be amended suitably. |
| 2 | Omission of Rule 8 – Rights under the provisions of clause (c) of sub-section (2) of section 10A | The rule 8 – Rights under the provisions of clause (c) of sub-section (2) of section 10A – shall not be omitted and to be retained. | i) Recently MMDR Act has been amended on 28.03.2021, in which the section 10A (2)(c) is not omitted and the same is retained. Whereas this rule is framed based on MMDR Act and shockingly making proposal for omitting the important rule provision.
ii) During the period 2016 to 2019 – (the threshold value is fixed as 0.75% monazite in Total Heavy Minerals, in the case of Beach Sand Minerals as per AMCR, 2016) – there were 34 mining leases were saved under section 10A(2)(c) of MMDR Act pertaining to our members. All the above 34 mining leases were having the grade of atomic mineral contained in the ore is less than the threshold value and shockingly no rule is to govern those mining leases. Thus, our members were not provided with any opportunity towards saving those mining leases applications.
iii) Now we strongly objecting the omission of rule no. 8 and our members shall be given a special grace period of at-least 3 years to save their mining leases under section 10A (2) (c). |
| 3 | Schedule XII – Amount of Fine – Delay in Modification and review of the Mining Plan – Rs. 2,000/ per day subject to maximum Rs. 5,00,000/-. | The amount of Fine to be modified as, Rs. 500/- per day subject to maximum Rs. 50,000/-. | The amount of Fine is exceptionally high and already all the lessees are overcharged with several financial implications viz., Royalty, DMF, NMET, GST etc. |
Hence, we kindly requested that the above comments & suggestions may be forwarded to the Ministry of Mines accordingly.
Thanking You,
President
Beach Minerals Producer Association
Notification issued by Ministry of Mines vide GSR 126(E) DT. 19.02.2019 and GSR 134(E) DT. 20.02.1019 are against National Mineral Policy
Our Mail to Prime Minister of India and other Govt., departments to withdraw the notification issued by Ministry of Mines vide GSR 126(E) DT. 19.02.2019 and GSR 134(E) DT. 20.02.1019 are against National Mineral Policy is given below for our members knowledge.
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Date : 30.06.2021
To
The Honourable Prime Minister of India,
New Delhi
Most Honourable Modi ji,
Sub : Request to withdraw the notification issued by Ministry of Mines vide GSR 126(E) DT. 19.02.2019 and GSR 134(E) DT. 20.02.1019 against National Mineral Policy.
National Mineral Policy, 2019, insists that the regulatory environment is conducive, to ease of doing business with simpler, transparent and time-bound procedures, for obtaining clearances. Since mining contributes significantly to state revenues, there is a need for an efficient regulatory mechanism with high penetration of e-governance systems. Mining contributes significantly to employment generation, thus, there shall be a keen focus on gender sensitivity in the mining sector at all levels. But Ministry of Mines Notification GSR 126(E) DT. 19.02.2019 and GSR 134(E) DT. 20.02.1019 are completely against the National Mineral Policy, 2019, notified by the MoM, Government of India.
Due to the above said notification, Foreign Investors will loose their faith over our nation for investment, as these Notifications amounts to termination of existing Mining Leases also. So, they feel insecurity to invest in India.
Even Indian Investors also afraid to invest in mining sector due to the above said notification. This notification is the main reason for unsuccessfulness of the auction scheme in mining sector.
Hence the Honourable Prime Minister may director Ministry of Mines to immediately withdraw the said notification. So that foreign as well as Indian investors will have faith over our nation as well as government will pave the way to attract huge investment and revenue to government.
Yours truly
Sakthi Ganapathi
Secretary
Beach Mineral Producers Association