Tax Levied Affects Heavy Mineral Companies, VV Mineral
A major challenge faced by the heavy mineral mining industry is the implied taxes levied upon them through government policies. The central government has imposed 12.5 to 15% excise duty for various heavy minerals. Adding to this there is 10% excise duty which needs to be fulfilled by the organizations.
Further, the state government adds a number of taxes on companies like, sales tax, Value Added Tax (VAT) and local surcharge that are applicable to heavy mineral manufacturers.
Adding to the misery for mineral processing companies, the process of getting environmental and CRZ clearences from the ministry of Environment and Forest consumes a lot of time. Even if manufacturers own the land, the first stage public hearing has to be compulsorily
attended. After this stringent process is cleared, another 17 department/agencies from State and Government departments need to be cleared.
VV Minerals is the first organization to export ilmenite. The organization also exports garnet and they rank number one in the same field.
The domestic market of India for heavy minerals has a tremendous growth potential. In India, the current consumption of pigment is only 1.5kg/person, whereas in the developed countries it is usually 4kg / person. A similar trend is applied for other minerals like zircon and rutile.
The demand for zircon in India is about 130,000 tonne, however, only 50,000 tonne of zircon is produced in India This leaves a huge amount of zircon to be imported from other countries.
Nearly 200,000 tonne of titanium pigments are demanded in the Indian markets, sadly only 60,000 tonne of titanium pigments are produced by Indian manufacturers. The remaining gap is fulfilled by taking imports from countries like China and other developed countries. As for Rutile, Indian demand is around 40,000 tonnes and only 18,000 tonnes is produced in India.
Only ilmenite is exported in India. The government does not realise how the export of ilmenite will contribute to the country's economy. On the lines a global front, the demand for minerals are scaling new heights, but the Indian manufacturers are only contributing a small amount towards this.
As for utility, Garnet is widely used as an abrasive in oil producing companies for corrosion control. Ilmenite and Rutile are Titanium feedstock used mainly for producing Tio2 pigment and small quantities in production of welding electrodes. Zircon is used in ceramic tiles as an opacifier and in Refractory for insulation.
VV Minerals India, is a family grown business and the company is owned by Mr.S. Vaikundarajan. He is the chairman and the managing director of the same. The company started in 1989 in Tamil Nadu and since then it has grown and achieved great heights rising to the top of the mining industry on a global scale.
V. V. Mineral Blogs – http://www.vvmineralmining.blogspot.in
http://vvmineral.wordpress.com
http://www.vvmineral-mining.blogspot.in
http://vvmineralmining.wordpress.com
http://vvmineralblog.wordpress.com
Like us on Facebook – https://www.facebook.com/vvmineralmining Follow us on Twitter – https://twitter.com/vvmineralsindia
V. V. Mineral Official Website http://www.vvmineral.com