Effective policy coordination could see India attract $30bn in mining investment
KOLKATA (miningweekly.com) – The Indian mining sector could attract $30-billion in foreign investments over the short term if various Ministries and provincial governments could “get their act together”, the country’s Planning Commission has said.
The commission, which held a high-level meeting to review concerns over the problems ailing the mining sector and declining production, stated that only the concerted effort of various Ministries involved in policy-making and the administration of the sector would be able to reverse the trend.
Representatives from the Ministries of Coal, Mines, Power and Land Resources, the Geological Survey of India and the Atomic Energy Commission attended the meeting. The Federation of Indian Mineral Industries, representing mining companies, made a presentation before the commission on the problems and issues the industry faced.
The commission also felt that it was necessary to bring on board various provincial governments, as local level policies and administrative measures needed to be in tune with federal policies to create a positive environment for investors in mining.
The commission noted that there were 65 000 mining applications pending before various provincial governments.
According to data available to the commission, the value of mining and quarrying output in the current year is expected to fall to around $4.04-billion (at 2005 prices) compared with $4.15-billion in 2012/13.
As per the latest industrial production data, mining output was down 3.4% during the period from April to August 2013, with a 1.8% decline during the corresponding period of the previous financial year, indicating that the problem was being aggravated by the court-ordered ban on mining in the provinces of Karnataka and Goa in the wake of allegations of rampant illegal mining and violation of environmental laws.
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