29th July 2024

CRISIS FACED BY OUR WORKFORCE AND INDUSTRY

We wish to bring to your attention that the lives of more than 30,000 workers has been badly affected and the industry has come to a grinding halt since 12th June 2024 when the online transport permits for MLs and MDLs were blocked.

Our business reputation built over decades has been lost. We are loosing business to other states in India and other countries. Mostly importantly the relationships with buyers has been strained due to frequent blocking of MLs and MDLs over the past one year.

The mining industry in Nellore district is more than 100 years old and our mining belt has abundant reserves of Mica and the associated minerals, Quartz, Feldspar and Vermiculite.

We wish to bring to your notice that the mining lease holders are unable to generate the mining pass from the portal since 12th June 2024 and in this current situation caused by frequent closures of ML/MDL portal:

 1.  The Mica, Quartz, Feldspar and Vermiculite mines are unable to operate and despatch minerals needed for export and critical downstream MSME and large industry in ceramics, electronics, electrical appliances, paint, plastics, fire proofing and many others in India.

2.  Huge revenue losses and unemployment for mines and MSME industries located in rural parts of our state.

3.  Image of our state being a reliable source of high quality industrial minerals being affected, along with diversion of our orders to other states and countries.

The mines and the industries are suffering as they have no revenue and are burdened by overheads such as electricity charges and staff wages. The livelihood of thousands of workers has been affected as the mines and the downstream MSME industries are the main source of employment for those living in and around Sydapuram Mandal. The service providers to our industry – transporters and mining equipment rental agencies have all been affected too.

We also would like to bring to your attention that following retrograde policies and selective blocking of MLsover the past few years, that have contributed to illegal mining:

1.  Non-renewal of mining lease applications despite paying the fees of 10 times the dead rent.

2.  Non-grant / long delay in issue of fresh mining leases.

We understand that the new NDA government in Andhra Pradesh headed by the dynamic and visionary leader Honourable CM Sri. Chandrababu Naidu garu is taking all the necessary steps to boost the investment climate in the state and is working hard on bringing in new policies to put Andhra Pradesh back on track and achieve progress and development in all fields in line with the vision of Viksit Bharat of the PM Sri. Narendra Modiji.

Our Association would like to work closely with Governmental agencies to develop the new mineral industry of Andhra Pradesh for the benefit of all stakeholders and make our mineral rich State no.1 in India.

We extend our full support to the Government to curb illegal mining activity within our state. We believe ease of doing business must be balanced with revenue generation, employment and environment and request your help in addressing both our immediate and long-term concerns.

We request your kind support for the following immediate steps needed to be taken by the Government:

1.  Reopen ML/MDL website for despatch of Mica, Quartz, Feldspar and Vermiculite pending new mining policy. 

2.  Allow all mines to operate in the Normal course.

3.  Allow downstream MSME industry to receive raw minerals from AP mines.

4.  Allow exports of mica, feldspar, quartz and vermiculite.

Yours faithfully,

Sundar Pranay Reddy Cherukuru

President

The Mineral Chamber of Commerce

Gudur