Thiruvananthapuram: Minister of Industry P Rajeeve has directed the Mining and Geological Department to ensure that the English Indian Clays Limited (EICL) accepts the raw materials needed for smooth functions.
The decision was taken at a high-level meeting organized by the Minister here on Friday.
Mining and geological departments will now see the legal options needed to enable companies to mine raw materials needed for production.
The meeting was held after the company’s request that unless they were allowed to mine the necessary raw materials, they had to turn off the operation.
The company’s operations have decreased over the past few years due to lack of sustainable raw materials.
This finally caused the closure of the factory in Thonnakkal and Kochu Veli in August 2020.
However, the company chose to continue partial operations in Thonnakkal after government intervention.
The minister said the meeting had also decided to ensure the smooth function of the company and provide full government support.
Corporate management representatives who take part in the discussion guarantee new investment proposals if the government can ensure raw materials needed for their production in their units.
Meanwhile, the government also decided to hold a meeting with the Labor Minister to resolve labor issues in the company.
The company has claimed that it has experienced a substantial decline in market share and sales behind it causing enormous financial losses.
The company is also still worried about its potential for future investment in the state.
The investment has been directed to Gujarat where the operation has begun.
The company has previously claimed that if things did not improve, the operation at the Thonnakkal factory might also go down along the line witnessed in the unit in the Veli.
Clay mined from Thonnakkal has found a good desire in terms of quality and quantity for sustainable surgery thanks to especially limited permission for mining activities.
Market decline has a cascading effect worsening further situation.