Stoppage of Beach Minerals is one of the reason for bad financial situation in Tamilnadu – White paper reveals.

Web Admin

Aug 14 2021

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.

 

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