labels: mining, finance - general, economy - general
Rs4-billion FDI expected in mineral and mining sectorsnews
24 November 2005

Chennai: The centre is expecting over Rs4,044 crore foreign direct investment (FDI) inflow in in the field of mineral prospecting, exploration, processing and mining. The liberalisation of the mining sector has resulted in the Foreign Investment Promotion Board (FIPB) approving 73 proposals.

Addressing the investors in the North-eastern region, Ajita Bajpai Pande, joint secretary, ministry of mines said that the conducive climate for investment in the mining sector has attracted private investment in exploration of base metals, noble metals and gemstones.

"More than 193 reconnaissance permits covering an area of about 2.7-million sq. km. have been granted so far in various parts of the country," she added. India produces 67 major minerals and 23 minor minerals, besides a host of atomic minerals. The total value of country's mineral production during 2004-05 was about Rs.80,000 crore, which accounted for above 2.6 per cent of the gross domestic product (GDP).

The North Eastern region has proven deposits of important minerals such as hydrocarbons, coal, limestone, dolomite, dimensional stones, graphite and others. However the region's difficult topography makes exploration a challenging task, particularly when communication has remained backward, making movement of men and equipment an expensive and arduous job.

Another factor, that has to be given a due consideration is the fact that the region is ecologically and environmentally, a very sensitive. The task of exploration and harvesting of the minerals should not overlook the environmental consideration. "On the other hand, it should not lead us to restrict or even abandon mineral development," she remarked. It is, therefore, essential that a properly planned approach be adopted in order to develop the minerals in the NER for the benefit of the region.





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Rs4-billion FDI expected in mineral and mining sectors