India to ease approval procedures in mining

This week the Indian government is expected to adopt the recommendations of a high-level committee, which is likely to propose changes to the mining policy, according to reports. The committee, headed by planning commission member Anwarul Hoda, will submit a report to the government calling for amendments to facilitate the process of foreign direct investment (FDI) and the entry of new technology into mineral prospecting.

The report also recommends a simplification of the licence approval procedure from reconnaissance to prospecting and then to mining, but notes that the government has the right to intervene in matters concerning public security and defence.

Current guidelines allow 100 per cent FDI under the automatic route in exploration and mining of diamonds and precious stones as well as of gold, silver and minerals, which is subject to the Mines and Minerals (Development and Regulation) Act, 1957.