The state government has set up a special investigating team to probe into the matters concerning illegal beach mining allegations. It has been observed that the coastal population has shown little or no faith in the investigating team’s work. Following this, the members of Fishermen United Front have appealed for a CBI inquiry instead. The low faith shown by the Fishermen United Front in judiciary is yet unclear.
Founder of VV Minerals India has been accused of having political connections with CM Jayalalitha. It has also been rumored that VV Mineral Vaikundarajan has used his political connections to carry illegal mining activities. This, however, is not supported by any evidence as the company has assured they have carried all legal proceedings for beach mining activities.
Two former IAS officers have gone on the record to state that VV Minerals have been engaging in illegal beach sand mining in the southern districts. However, VV Mineral has played down such allegations and insisted that the investigating team’s report will be in favor of the company.
No conclusive evidence has been found to prove that the company is guilty of illegal activities. VV Mineral Vaikundarajan has stood firm by his company and assures that the operations are within legal boundaries. Meanwhile, several fishermen in the region have threatened to leave their houses.
VV Minerals India was founded in late 1980s and has been run under the tutelage of S Vaikundarajan. The founder publicly thwarted all allegations as a defamation plot by rival mining industries.
He further stated that the allegations have no credibility and the threats are uncalled for. “We have a complete faith in the judiciary and believe the investigation will do its job. We lend our complete support to the investigating team,” VV Minerals added.
The 10% export duty on heavy minerals seems to be having a grave impact on the mining sector. The industry officials have raised the concern and requested the Centre to withdraw the export duty.
“The government of India in the budget has imposed a 10 per cent export duty on sale of ilmenite and five per cent duty on upgraded ilmenite. This has already impacted us. We are already feeling the pinch of it in places like Karnataka and Gujarat,” said Mining Engineers Association of India National President Arjeth Bagchhi.
The mining industry is contributing about 2.5% of country’s GDP by employing over 50 lakh people. VV Mineral states that the Indian ilmenite was accepted only in China. “However, due to the export duty, China may look to South Africa for ilmenite,” VV Minerals.
Indian ilmenite is low grade which requires a huge capital to separate them for purity. What was $200 per tonne has now come to $100 per tonne of ilmenite. “At this rate, the mining industry will soon face a standstill and lot of people will find themselves jobless,” says VV Minerals India.
In the wake of export duty, South Africa may export its ilmenite to China due to its quality and price. This hampers the Indian company’s chances of competing globally.
Moreover, the government has also decided to do away with extension of leasing ilmenite which will definitely be the collapse of the mining industry in the near future.
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