India has 1/3 of beach mineral world reserve but mining ratio is very less. So Vajpayee Govt., take a bold action to allow private players in this beach mineral industry

Since India is slow in capitalizing in these beach sand minerals, neighboring counties like Sri Lanka, Vietnam, South Africa, Indonesia (located along Indian Ocean Coast) are already benefited by collecting these Indian origin Mineral. (These countries are now starting to compete against India.)

Hence Govt., of India, insisted Atomic Energy Department either to collect all the minerals deposited within India through its company IREL or to permit the private parties to collect the minerals. Since IREL could not able to collect and cater the need, DAE notified Policy on beach mineral in 1998. According to the above said policy, wholly Indian owned companies are permitted to enter in the beach mineral mining (Production of Ilmenite, Rutile and Zircon) and mineral separation either with or without joint venture with State or Central Govt., companies.  Until this time private players were only producing and exporting only Garnet.

The policy also declares that if monazite is produced during the process of other minerals, it should be disposed off by the lessees in accordance with the directions issued by Atomic Energy Regulatory Board (AERB).

According to the policy notified in 1998, the private mining lessees are able to get permission for other minerals in addition to Garnet subject to a handling license issued by DAE under the Atomic Energy Rules.  Atomic Energy Department vide their letter dated 05.05.2000 and 05.06.2000, informed that, the lessee can use the old accumulated heavy mineral stocks for production of Ilmenite etc., subject to the handling license quantity.  Accordingly all the lessees are producing Ilmenite etc., by using the accumulated old stock in accordance with the permission obtained from DAE as well as Ministry of Mines (MOM).