Rs 4,044-cr FDI proposals in mining get FIPB nod

Shillong, Nov 18 | Updated: Nov 19 2005, 07:14am hrs
With the countrys liberalised mining policy, 73 proposals of foreign direct investment (FDI) have been approved by the Foreign Investment Promotion Board (FIPB) with an expected inflow of over Rs 4,044 crore in the field of mineral prospection, exploration, processing and mining. Joint secretary of the union mines ministry Ajita Bajpaipande said here that 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 sqkm were granted so far in various parts of the country, she said. Ms Pande was addressing an investors meet and conference onharnessing mineral potential for industrial development in the North eastern region on Friday. She said India produced 67 major, 23 minor and a host of atomic minerals and the total value of the countrys mineral production during 2004-05 was more than Rs 75,000 crore or usd 17,200 million which accounted for 2.6% of GDP.

With the North East having proven deposits of important minerals such as coal, hydrocarbons, limestone, dolomite, dimensional stones and graphite, she said the ministry had constituted a task force which evolved an action plan for identifying possibilities and thrust areas to facilitate systematic exploration and exploitation of mineral resources in the region.

The ministry, Ms Pande said, was in the process of formulating operational mechanism for funding of various project proposals received from the North eastern states in consulation with the finance ministry and planning commission to provide direct assistance to those governments. Although the North East had proven deposits of minerals but its difficult topography would make exploration a challenging task particularly when communication was not fully developed and movement of men and equipment were expensive and an arduous task, Ms Pande said.

PTI

Moving Ahead

India produces 67 major, 23 minor and a host of atomic minerals
Country's mineral production during 2004-05 was more than Rs 75,000 crore which accounted for 2.6% of GDP
More than 193 'reconnaissance' permits covering an area of about 2.7 million sqkm were granted in various parts of the country