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The Mines Minister, Shri Sis Ram Ola, today said inspite of the liberalisation and decentralisation of mining rules the issues like getting clearance on environment, forest and tribal lands stand in the way of expediting the grant of mining leases. The Government is keen to take up these issues at appropriate level so that the mining lease can be issued without any delay. The Minister was discussing the mining issues with the Chairman, Investment Commission, Government of India, Shri Ratan N. Tata, who called on the Minister today.
The Minister said in the mining sector, Foreign Direct Investment (FDI) is upto 100 per cent is now allowed through automatic route for exploration and mining except for diamonds and precious stones. For diamonds and precious stones 74 per cent FDI is allowed through automatic route and beyond this limit the cases are considered by FIPB on case to case basis. The Act and Rules governing mineral concession, have already been amended to facilitate private investment and FDI in the mining sector.
Shri Tata discussed in detail about policy, investment strategy, production and industrialization through FDI. He expressed his view that the country should try to add value to its natural resources. On the issue of the investment by South Korean steel manufacturer Pohan Steel Company (Posco), he said that allocation of raw material to the company should be based on progress in establishment of their manufacturing projects. The company should be allowed to invest in India to put up its steel plant rather than allowing only for export of raw material to other steel producing countries.
Shri Tata was of the view that the country which owns raw material would own the industry. India is one of the fortunate countries which has large deposits of iron ore and it should get all the benefits of its resources.
DS/SCH
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