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Various bauxite mining companies are planning to wind-up their businesses along the Western Ghats (i.e. Dapoli & Shriwardhan) in Maharashtra due to many issues hitting their operations adversely, mainly local socio-political disturbances in recent past and logistics cost, said Shiv Kanodia, Founder President of Bhartiya Investors' Make In India Forum.
These companies have been into this business since more than two decades and responsible for development of unexplored mineral resources and bringing Western Ghat i.e. Dapoli and Shriwardhan on global map.
It has provided employment to more than 10,000 people directly and indirectly. There have been disturbances and stringent regulatory issues which were effectively negated by the company by adequate compliances over the years but recent incidents in conjugation with non-committal, non-supportive approach from the various government/non-government, certain section of Local political party, villagers etc. agency land up putting these flourishing industries into non profitable business. Since last couple of years company suffered huge loss on account of closure of mining and transport for more than 6 months.
The company has been retaining approx. 300 staff members for couple of years, even the operation is either closed or partially working.
Politically motivated for their own benefit, some legal issues are pending at district court and we are afraid this industrial closure (if so) may result into loss of employment, business opportunity and huge government exchequers which will affect these areas adversely.
It is a known fact that Mining comes with some sort of discomfort but in return creates many business & employment opportunities which might have been forgotten by the local habitants. Now in competitive market condition, hope that our so-called "great local leaders" who often oppose mining for the sake of creating vote bank should come up with positive approach to sustain industry.
Time to rethink, unite and think rational in the overall interest of people.
For last two years, there was an export of Bauxite approx. 11-12 lakhs MT per year from various ports of Ratnagiri like JSW Port, Sakhari Port etc. In this financial year only 80,000 MT have been exported. There has been drastic fall in the export.
As there are no buyers of these low grade material in India, small mine owners are struggling to sell them in International markets at competitive rates.
With reduction in Sales, Government will lose substantial amount of foreign exchange and also considerable loss to exchequer by way of Royalty, Wharfage, Port dues to MMB etc.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)