FDI in Mining Sector
The Foreign Direct Investments (FDI) inflow into the mining sectors during the last three years are as follows:-
SL.No. Year (April to March FDI in Rs. Crore FDI in US$ million
1. 2008-09 161.09 34.16
2. 2009-10 829.92 174.40
3. 2010-11 357.42 79.51
4. 2011-12 (Apr-May) 436.61 98.28
Grand Total 1,785.04 386.35
The National Mineral Policy for non-fuel and non-atomic minerals, has thrown open the mining sector for private investment including foreign direct investment (FDI). The above policy envisages, inter-alia, foreign technology and foreign participation in exploration, mining, mineral processing and metallurgy under the automatic route for all non-fuel and non-atomic minerals including diamonds and precious stones. FDI approval granted is only for equity participation in a Company incorporated in India. The companies are required to apply to the concerned State Governments, which are the owners of minerals in their respective territorial jurisdictions, for mineral concessions. The domestic investment in the mining sector is not centrally monitored. Therefore comparison between FDI and domestic investment and their deliverable benefits are not available.
The Foreign Director Investment in exploration and mining in India is not considered huge in comparison to the total domestic sector, whose annual production is estimated to be in excess of Rs. 2 lakh crores during 2010-11. In so far as deliverable benefits to local population from investments are concerned, investment from FDI as well as domestic investments are both subject to the same policy and legislative framework and it is not possible, keeping also in view the quantum of Foreign Director Investment, to distinguish between domestic and foreign investment in so far as deliverable benefits to local population are concerned and benefits in terms of direct and indirect employment and other income generation have accrued in both cases.
This information was given by the Minister of State (Independent Charge) for Mines Shri Dinsha Patel in the Lok Sabha today in a written reply.
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