Mineral policy envisages $2.5 bn FDI

New Delhi: The new National Mineral Policy (NMP), which seeks to ensure assured right in mineral concessions, envisages foreign direct investment (FDI) of $2.5 billion annually.

“FDI of about $2.5 billion per annum is expected in the mining sector from the fifth year of implementation of the new NMP,” Mines Minister Sis Ram Ola told the House in a written reply to a query.

He pointed out that the government did not accept the Hoda Committee’s report in toto on the NMP, which sought to ensure transferability of mineral concessions and transparency in allotment of concessions in order to reduce delays which are seen as impediments to investment and technology flow in the domestic mining sector.

The minister said the policy sought to develop a sustainable framework for optimum utilisation of the country’s natural mineral resources for the industrial growth in the country and at the same time improving the life of people living in the mining areas, which are generally located in the backward and tribal regions of the country.