The Government
has liberalized its Foreign Direct Investment (FDI) policy in
the mining sector which allows foreign equity holding upto 100
per cent, on the automatic route for all non fuel and non atomic
minerals except diamonds and precious stones. This covers exploration,
mining, mineral processing and metallurgy. In the case of diamonds
and precious stones, foreign equity upto 74 per cent is allowed
on the automatic route for both exploration and mining operations.
Proposals seeking higher than 74 per cent foreign equity for
diamonds and precious stones are considered by the Foreign Investment
Promotion Board (FIPB). The Mines and Minerals (Development
& Regulation) Act, 1957 has also been suitably amended to
make it more investor friendly.
The FIPB, in
consultation with the Ministry of Mines, has so far approved
72 proposals of FDI in the mining sector. The Indian subsidiary
companies of global mining companies have taken permits for
reconnaissance operations involving state-of-the-art technology
for aerial, geophysical and geochemical surveys for exploring
minerals.
This information
was given by the Minister for Mines, Shri Ramesh Bais in a written
reply in the Rajya Sabha today.
