As per the news article on Deccan Herald News Portal , the 10% export duty on ilmenite has affected the mineral industry greatly in places like Gujarat and Karnataka.
Since this industry provides employment to about 50 lakh people, the Government should consider this in a serious manner. Also, the sale of these products is mainly dependent on the Chinese markets, and, since the duties are high, the Chinese buyers may opt to change their preferences to South African heavy mineral mining companies.
Recently at the India Mining Summit, the director of VV Minerals, V Subramanian, also stated in his business session about the issues private mining companies face. The session focused on ‘Export duty on heavy minerals especially on ilmenite’.
More Detail Interview On Daily Pioneer.
VV Mineral, India owned by Mr. S. Vaikundarajan is the nation’s largest mining, manufacturer and exporter of garnet and ilmenite, and Mr. Subramanian spoke about the cost and regulatory challenges faced by the mining industry with specific reference to impact of high excise duties on heavy minerals such as, ilmenite.
In such modern times when time is the most important factor, in India lengthy processes are given more importance. Such is the case in the heavy mineral mining industry as well where close to 3,000 applications for mining leases are pending that is adversely affecting the industry. VV Minerals, a private company and one of the major players of the industry also has to suffer because of this. V Subramanian, director, VV Minerals said, “The long drawn and protracted mining lease application process involving 28 ministries and departments at state and central government levels, leading to a total gestation time of more than 2800 days (nearly 8 years) was severely impacting the industry.”
This kind of a scenario is not a very positive one for the economy and not only does it lead to loss of revenue but also undervalues the potential of sector that can do way better than how it is doing now feels S. Vaikundarajan of VV Minerals India and also it is highly endowed country which is rich in mineral reserves as compared to other nations but what is unfortunate is that the resources are not being fully optimized in order to gain a better standing in the world market believes S. Vaikundarajan.
More Story On Click On The Link: Economic Times.
India’s heavy mineral resources are in abundance and much higher as compared to other countries over the world. Sadly, these resources are not optimized to the fullest which results in low production of the minerals and also greater losses to the economy. The private sector which is keen on the development of the mining sector is however not given all the liberty to carry out its business in full bloom. VV Minerals, a private heavy mineral mining company which also happens to be one of the major players in the market is also deprived of such opportunities b which they can carry out mining without any interference.
MEAI has requested the central government to allow private sector mining of monazite that is a primary source of radio-active thorium. Thorium being a strategic metal and an integral part of India’s three stage nuclear power program is an essential metal. S. Vaikundarajan also puts forward his suggestion of relaxing the various policies on mining of Ilmenite, Rutile, Zircon, Garnet and Sillimanite as they become a hurdle in the trade. If these areas are taken care of and looked after by the government then it will surely result in fostering a better trade scenario in the mining industry feels S. Vaikundarajan.