An Indian government panel on Friday recommended sweeping changes in rigid rules for mining to pave the way for inflow of foreign investments.
At the same time, it rejected demands from domestic steel makers setting up new plants that India allow captive mines and cap iron ore exports to ensure enough supplies of raw materials.
The panel said however the government should review the position on captive mining in 10 years' time. "The committee's recommendations have been made to stimulate entrepreneurial activity and foreign investment in the mining sector," Anwarul Hoda, the head of the panel, told a news conference.
"Even though foreign direct investment is already permitted at 100 percent equity, still things are not flowing because the process is not seamless and we do not give security of tenure," he added. Few foreign firms have ventured to invest in India's rich mineral sector because of red tape. The panel recommended that in granting mining leases preference should be given to firms setting up manufacturing facilities.
Comments
Comments are closed.