India to attract Rs100,000 crore FDI in mining

25 March 2008

India expects to attract foreign direct investment of Rs100,000 crore per annum in mining exploration of gold and diamond in the country.

Saying that though the country has a mineral area of 18.5 lakh sq km but lacks the technology and capital to harness their potential, union minister of state for mines Subbarami Reddy said that the new mining policy National Mineral Policy 2008 is expected to go through in next month's Parliament session.

An amendment to make the required changes in the existing Mining Act will be introduced in the ongoing session of Parliament. 

The Union Cabinet last approved the policy last week after a delay of two years, and aims to attract around $250 million in foreign direct investment annually in the mining sector in the next five years. 

He said that over a dozen companies from Australia, Canada and South Africa have expressed their interest in bringing technical expertise to identify the potential of a mining block, and Indian officials would soon visit these countries to explore the possibilities of more investment.

Reddy said that under the new policy, those who invest heavy-risk capital will automatically get the mining lease to enable them to protect their capital, while enabling India to achieve capital intensive mineral exploration.