The Hindu : Business : Foreign investment in mining approved

Online edition of India's National Newspaper
Wednesday, Jul 28, 2004

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Business

Foreign investment in mining approved

By Our Special Correspondent

NEW DELHI, JULY 27. With the opening up of the mining sector to private and foreign investment, about Rs. 4,000 crores of foreign direct investment (FDI) has been approved for this sector, the Minister of State for Coal and Mines, Dasari Narayana Rao, said here today.

Addressing a meeting of the Federation of Indian Mineral Industries, the Minister said massive investment opportunities had opened up in the mining sector and the flow of funds would help India overcome its deficit in high value minerals. The country had been deficient in high value minerals because of low investment in the past and lack of advanced technology required for detailed exploration, Mr. Rao pointed out. "The Government's Common Minimum Programme is committed to provide incentives to boost private investment and to encourage FDI to make our industry more productive and competitive,'' he said. India's annual mineral production today stood at about Rs. 65,540 crores and contributed about 2 per cent of the gross domestic product (GDP), Mr. Rao said. The export turnover from minerals and metals constituted around 21 per cent of the value of all merchandise exports in 2002-03. India's import of high value minerals, including gold, diamonds, coking coal, copper, lead, zinc, nickel, tin, asbestos, potash, sulphur, crude petroleum and rock phosphate worked out to about half the value of all merchandise imports, the Minister said.

On the issue of delay in getting clearances by investors in the mineral sector, Mr. Rao said his Ministry was working out measures which would be investor friendly. He also called for a major thrust in infrastructure development in mineral-rich areas with a focus on social and economic upliftment of the local population. He also emphasised on conservation of mineral wealth and the environment through systematic development and judicious use of mineral resources.

PTI reports:

The Government is planning to introduce a single-window clearance system for approving mining licences Mr. Rao said. He said a high-level committee had been constituted in the Department of Mines for this purpose.

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