Government Aims To Double Coal Production By 2020. Vaikundarajan Explains How?

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The undertaking of commercial mining and sale of dry fuel is on the way as the government allots several coal mines to state-government companies.

“The Baitarni West coal mine in Odhisha, Dahegaon/Makardhokra–IV mine in Maharashtra, Maharashtra State Mining Corp Ltd and Gourangdih ABC block in West Bengal, Patal East in Jharkhand, Penagaddppa mine in Telangana are some of the mines assigned to the companies,” informs Vaikundarjan, founder of VV Minerals India, one of the leading sand beach mining companies in the country.

Furthermore, eight coal mines are earmarked for allotment of PSU’s of non-host states for sale of coal. “The allotment agreement for two coal mines, Madanpur South mine in Chhattisgarh and Suliyari mine in Madhya Pradesh, is already underway,” adds Vaikundarajan.

The Centre has identified 16 blocks for allotment to state PSUs as a means to open up the coal sector for commercial mining. These mines are – 5 in Madhya Pradesh, 3 in Telangana, 2 each in Chattisgarh, Jharkhand and Maharashtra and 1 each in Odhisha and West Bengal.

“The government intends to double the coal production to 1.5 billion tonnes by 2020. With that objective, this move seems to be the right way to go for both the mining companies as well as india’s  mining industry,”concludes Vaikundarajan.

 

Jakarta Government Relaxes Export Ban On Mining Sector

“Jakarta government has decided to issue a government regulation on mining to expedite the resolution of issues faced in the mining sector,” says Vaikundarajan, founder of VV Minerals India, one of the largest mining companies in the country.

The 2009 Mining Law draft revision is still being deliberated at the House of Representatives. President Joko Widodo has request to speed up the deliberation. “The law will probably relax the current ore export ban for a limited amount of time,” predicts Vaikundarajan.

When the government of Jakarta imposed the ban on exposed of unprocessed mineral ores in 2015, it was done with an objective of pushing the development of smelters to strengthen the mining downstream sector in the country. Now, the ban has been pushed to January 2017 following complaints from the mining industry.

“Until the revision of 2009 Mining Law, a legal umbrella will be created to avoid any hiatus in the mining sector,” informs Vaikundarajan.

The relaxation of the export ban on mining sector should come as a relief to the Jakarta mining industry.

Goa Government Lifts Mining Transportation Ban

In a positive move for the mining industry, the Goa government has finally permitted the state mining industry to resume its operation in Goa. “The Goa government had restricted mining operation due to monsoons. With the monsoons behind us, mining industry can resume its operations,” says Vaikundarajan, founder of VV Minerals India, one of the largest sand beach mining companies in India.

Mining operations should be in full swing by the start of October. Prasanna Acharya, director of Mines and Geology, issued a statement informing the mining companies of the ban having been lifted.

The transportation of mineral by road was banned in the interest of public safety after some accidents on the main road came to light. On the request of locals, the government decided to ban transportation of minerals till monsoon had rescinded.

“Public safety is of utmost importance. With the lack of mining transportation roads in Goa, the trucks took to main road. A couple of accidents were reported by locals and the government was quick to take an action. Transportation was suspended till monsoon was over. The government also plans to construct a dedicated road for mining transportation,” says Vaikundarajan.

 

 

Mining Industry set to be revived, to boost growth in mineral output

According to a blueprint being prepared by the government for the mining industry, mineral production in India needs to grow by 15% every year, so that mining’s share in India’s economic output can increase by 1 percentage point in the next 2-3 years.

“For mining industry to grow, mining operations need to begin at hundreds of mines which are stalled due to delays by government in providing environmental clearances, approvals and execution of lease deeds”, reflects Vaikundarajan, Founder of VV Minerals.

The mining ministry plans to execute the lease deeds of about 70-80 mines for which approvals were granted before 12 January 2015, when the Mines and Minerals (Development and Regulation) Amendment Act of 2015 came into operation. Additionally, about 100 mines are going be auctioned shortly.

The share of the mining and quarrying industry in gross value addition (GVA) in the economy is 2.4% at present. Minerals currently account for only 0.43% of GVA. Mining output increased by 9% in 2015-16 and 10.6% in the April-July period of 2016-17, according to official estimates.

Though there is uncertainty prevailing over a recovery in mineral prices. Despite this impressive growth in mineral production in Apr-July, growth by value contracted 7.2%.

“A recovery in mineral prices will depend on demand from user industries. But India is a consuming country, where volume of output holds more importance than value”, adds Vaikundarajan.

 

Villagers In South Goa Demand Construction Of Mining Bypass

Villagers in Sanguem and Quepem talukas in South Goa have been concerned by the resumption of iron ore transportation activities in the area. Their concern points out at the lack of a bypass road to carry out the transportation.

The villagers met with Chief Minister Laxmikant Parsekar with a request for mining bypass on war-footing. Furthermore, the villagers put forth the demand to stop transportation activities till the bypass was ready and functional.

“The mining bypass is to be completed in three phases, however, has been delayed for now. This results in the trucks taking the main road and causing several fatal accidents,” explains Vaikundarajan, founder of VV Minerals, largest sand beach mining company in India.

The villagers explained that the bypass must be completed in all 3 phases – Uguem to Guddemol, Guddemo to Curchorem and Pirla to Uguem – before resuming the iron ore transportation. In March, two women in the village met with a fatal accident adding to the villager’s agitation.

“Around 6000 trucks are operational in Sanguem, Quepem and Curchorem. The issue was raised with the Assembly Session. The body has agreed to construct the mining bypass as soon as possible,” informs Vaikundarajan.