APPLICABILITY OF esi ACT
Ramamurthy SIvakumar
(Querist) 12 August 2010
This query is : Open
Dear SIr
We are Mining and manufacturer of vermiculite and vermiculite based products. Our processing plant is located in the mines area only. Vermiculite is a mineral taken from the earth. The crude so excavated from the mines will have to be procesed before marketing the products.
As per the ESI act , ESI does not apply to Mining operations.
We are registered with Department of Commerce as SSI unit. Mining lease is given bt the DEpartment f Mines and Geology.
I would like to have the valued opinion of the experts on the following.
1. Whether ESI act will be applicable to us ?
2. As per the mines act 1952, wages paid for processing , dressing of the materials till the materials are ready for sale will be considered as mining operaion.Under the circustance, whether the wages paid for the processing labour will be subject to ESI. I repeat that the processing units such as drying , crusing etc are well inside the mines area only.
3. Whether the machinery repair work given t outsiders will attact ESI. Work is being carried out out side our mines area. Fitting is done by our technicians.
