Business perspectives of mines and minerals regime – by Manoj Kumar (India Business Law Journal – December 13, 2017)

India is rich in natural resources, with a geological makeup that is similar in many ways to that of countries such as Canada, Australia, Brazil, South Africa, Chile and Mexico. With the world’s third-largest mineral reserves, India has the potential to employ about ₹1.2 trillion (US$18.5 billion) in capital, including ₹500 billion in foreign direct investment (FDI), in the mining and minerals sector.

FDI in mining, exploration of metallic, non-metallic and permitted precious ores and related sectors including manufacturing of equipment is permitted up to 100%, subject to the Mines and Minerals (Development & Regulation) Act, 1957.

Mining is expected to generate an additional 6 million jobs in India within the next decade, shifting the scales of poverty towards empowerment and accelerating job creation by over 10% apart from saving nearly US$58 billion in foreign exchange on account of spending on imports of minerals including iron ore, coking coal and thermal coal by 2025.

The Make in India initiative simplifies the business of mining in India by holding auctions for the grant of mineral concessions (mining leases and prospecting licences) for companies interested either in mining or in raw materials for their downstream industry.

In view of India’s increased need for minerals to fulfil its development initiatives towards Vision 2025, the mineral policy of India has a lot to interest those with a stake in mining globally.

For the rest of this column: