Centre may clear new rules to boost gold and diamond production

Exploration of gold and diamond deposits in the country will get a boost if the cabinet approves a new mining policy, which aims to cut dependence on imports, officials said.

Exploration of gold and diamond deposits in the country will get a boost if the cabinet approves a new mining policy, which aims to cut dependence on imports, officials said. The overhaul of prospecting and mining regulations is slated to be put before ministers within a week.

According to officials, lack of geological data and technology is blocking foreign firms from making any significant discoveries of key commodities like gold.

“Under the existing rules if any entrepreneur invests money and finds gold, then he must apply again for mining,” said junior mines minister T Subbarami Reddy at a seminar. The new policy will allow any investor who finds gold to automatically get permission to begin mining, he said.

Archaic laws mean firms sometimes have mining applications pending before state and central government for up to four years before a decision is reached, said Federation of Indian Mineral Industries secretary general R K Sharma.

Under the new rules, approvals for most minerals must be made in about a year or be automatically referred to a tribunal.

Foreign companies rarely come to India because they cannot sell the data they map and can only utilise the information if they venture into mining themselves.