Miners seek reforms in TN mining industry

CHENNAI: Several petitions have been received by the Centre complaining that the mining industry in south India, particularly in Tamil Nadu, is under stress and the Union government has instructed the mining ministry to look into the issue by holding talks with state governments and stakeholders to promote mineral exports, said N.K. Singh, joint secretary, Union mines ministry. Addressing reporters on the sidelines of a sub-committee meeting here on Thursday to discuss and resolve problems faced by the granite industry, Mr Singh admitted there were some problems faced by stakeholders and exporters when it came to handling minor minerals like granite.

Quarry contractors in Madurai had submitted a memorandum stating there were problems in getting new licenses and renewals in Tamil Nadu region following litigations and they have also complained about lack of uniformity in VAT which ranges from 5 per cent to 15 per cent across states. Another major grievance is on recovery percentage from granite quarries. A detailed report will be submitted to the Centre after holding talks with the State government, Singh added.

Earlier in the day, about 30 quarry lessors from Madurai submitted a petition to the central mining ministry ridiculing the report of former Madurai collector U. Sagayam who had pegged the State’s loss in Madurai granite scam at above Rs 65,000 crore. According to Mr K. Subbha Reddy, Federation of Indian Granite and Stone Industry, national level issues like rate of royalty, dead rent prevalent for quarries being different from one state to another and lack
of uniformity in VAT ranging from 5   per cent to 15 per cent across states were raised during the high-level meeting.

He also said the Tamil Nadu Minerals Limited had been briefed on the issues the mining industry was facing. Nearly 25,000 persons in the State had lost their jobs over the past four years. “The then Collector Sagayam committed two major errors. First, he failed to look into the parameters of what caused loss. Booking a criminal case against mining contractors without hearing them is double jeopardy”, said Raja Sekharan, president, Madurai Granite Association.
Nowhere in the world there is a mining recovery upto 90 per cent and when you mine there is mud, silt, stones and low quality rocks. These wastes have not been accounted by the one man commission, he alleged.