Six Key Demands Of Indian Mining Sector

Six Key Demands Of Indian Mining Sector

B Swaminathan

Federation of Indian Mineral Industries (FIMI), established in the year 1966, is an all-India apex body to promote the interests of all mining (including coal), mineral processing, metal making and other mineral-based industries and to attend to the problems faced by them in lease grants, renewals, tenures, production, taxation, trade, exports, labor and others.

FIMI envelopes in its fold mining, mineral processing, metal making, cement, coal and other mineral-derived industries as well as granite, stone, marble and slate industries – private, joint and public sectors – of the country. It has more than 400 direct members and 25 regional associations which represent local small mining units in the country.

Here are some of the key expectations from the members of the association which would address their key pain areas:

  1. Taxation should be made simple. The tax effective rates are quite high. Direct and indirect which comes 60 to 64%.
  2. Exploration of the minerals is majorly driven by the government. Enhancing the role of private sector should be given importance. Focus should be given for deep-seated minerals.
  3. In iron-ore, India is self-sufficient. However, in the deep-seated minerals, India need more focus as majority of that is dependent on the import from various countries.
  4. Due to the policies of the government in non-captive mining, many players are to shut their mining operations in 2020. The existing captive mines which are completing 50 years they are given time (captive mines) till 2030. Major mines which are facing shut down  are from Odisha, Karnataka, which will be leading to scarcity of material. This is the immediate challenge.
  5. There is also differential treatment by the government towards the government-owned and private companies. For example, inthe non-captive mining, the Government companies lease can be extended to 20 years which is not available for private players. In many key cases, reservation are for government companies only. However, private players should also be given important.
  6. Stocks of iron-ore is of low grade which is not consumable in the country. Export duty of 30% is high and economically viable for Indian players. As a result, close to 151 million tonnes are pending with India in the mines. They are not usable and Government should address this immediately.

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