Policy Intervention For A Boost To The Promising Heavy Mineral Mining Industry VV Mineral

The Heavy Minerals Mining (HMM) industry in India is in a very promising stage. In an interaction with Financialexpress.com, V Subramanian, Director, VV Mineral, said there should be a logical policy that will boost booming industry.

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Madurai Bench In Favour Of VV Mineral Mining

VV Mineral Single BenchThe Madurai bench of the Madras High Court, granted an interim stay on its single judge order of 28th October. VV Mineral, said to be the country’s largest manufacturer and exporter of Garnet and Ilmenite, is at the benefitting end. The company won’t have to pay Rs. 76.67 crore to the commissioner of Excise duty that was to be given earlier as Central Excise from 2011 to 2014.

A writ appeal filed by the commissioner of central excise challenging the order was presented to the division bench of Justices V Ramasubramanian and N Kirubakaran.

After receiving the show cause notice issued by the commissioner of central excise on 26th December, 2014, VV Mineral Mining did not delay in challenging it and moved to the high court bench. VV Minerals India claimed that extracting minerals from sand, technically falls under the category of ‘mines’, thus legally defending that the minerals were supposed to be exempted from excise duty.

Also, VV Mineral was never provided with all the documents required to help the firm give an effective reply, said VV Mineral Vaikundarajan, Managing Director.

The bench directed the commissioner to provide documents on which the show cause notice was issued and to provide all the other documents that might be needed. Still, the commissioner failed to provide the documents on time. Justice S Vaidyanathan repetitively asked the excise office to provide the documents. In the end, the commissioner got upset over the order and preferred the appeal.

Thus the division bench decided to issue an interim stay on the order passed on October 28 and adjourned the hearing.

VV Mineral V Subramanian Take On The Indian Heavy Minerals Industry

VV Minerals, a Tamil Nadu based beach mining company, is one of the largest exporters of beach minerals in India. Lead by the enigmatic Managing Director, V Subramaniam, the company is India’s largest exporter of garnet and ilmenite.

Recently, an interview of VV Mineral V Subramaniam by Ramesh Kumar Raja was published in Governance Today, where he spoke briefly about India’s current position in the world production of heavy minerals and the steps that can be taken for its improvement.

V Subramanian, VV Mineral India Director, And Tribune India In Conversation

VV-Mineral-V-SubramanianDirector of VV Minerals India, V Subramanian, in conversation with Tribune India spoke about the heavy minerals market in India.

“The market size of heavy minerals is around 1.2 million tonne worldwide and 700000 tonne in India,” he informs. Though India has 40% of world’s total reserve, the production contribution as compared to world market is less than 5%.

The main reason for this difference is the mining lease approval process that involves 26 different government departments. This, in turn, takes roughly 7-8 years for clearance.

“Beach sand industry easily generates forex in the tune of Rs 3500-4000 crore each year,” he says. VV Minerals, which was founded by Vaikundarajan in late 1980s generates garnet (750,000 tonne per year), ilmenite  (11 lakh tonne per year), zircon (50,000 tonne per year), rutile (35,000 tonne per year) and silimanite (60,000 tonne per year).

Speaking on future demands, he says, “These minerals are used for making of welding electrodes. India imports almost 1.5 lakh tonne of titanium dioxide for production which is still less than actual consumption. The consumption level could grow 5-10 times considering that we consume 400gm per head of population as compared to USA’s 4kg per head.”