Transparency and Reviving Investor’s Confidence Top On Goyal’s Agenda For India’s Mining Sector

Transparency and Reviving Investor’s Confidence Top On Goyal’s Agenda For India’s Mining Sector

Anupama Airy

 

After turning around the fortunes of the country’s power and coal sector–the two most criticised sectors of India’s economy until two years back, Piyush Goyal, the minister who already holds the independent charge of three important economic ministries including power, coal and renewable energy has been given the additional charge of the ministry of mines in order to impart transparency and build investor’s confidence in line with Prime Minister Narendra Modi’s vision to make India emerge as a major mineral producer.

 

Goyal has already begun discussions with the ministry officials on putting in place a roadmap on fast-tracking auction of mines of different minerals and on converting these natural resources into country’s wealth.  He has also made it clear that conducting auctions in the most transparent manner will a priority.

On the issue of transparency, officials said, Goyal is already at work to create an app that will inform people about the status of the mines, the minerals extracted as well as on export and import of minerals.

“We expect the new National Mineral Exploration Policy (NMEP) to attract more foreign direct investment in the mining sector and bring back leading miners of the world including Rio Tinto and De Beers to invest in India….we also want to revive the interest of domestic private players in the mining sector that holds immense potential and opportunities,” a senior bureaucrat said on being asked about reviving investors confidence.

 

Speaking to EnergyInfraPost.com, a top executive of a leading private company with interests in both power and mining sector told EnergyInfraPost.com that the industry was quiet hopeful of things getting better in the country’s mining sector.

 

“Power sector that used to be saddled with issues of fuel shortages leading to frequent supply cuts for consumers may not have fully recovered—and more of this is due to the financial health of state DISCOMs but we are happy to see that the Centre as a facilitator has done a lot of work…no single plant in the country is suffering for want of coal…the pace of reforms is much to the satisfaction of the industry and we have no doubt that the same will be replicated in the mines sector as well,” said the executive, who did not want to be named.

 

Soon after assuming charge as mines minister, Goyal also assured that he will work towards increasing the share of the mines and minerals sector in the GDP by 1% in the next 2-3 years.

“We will work on a growth of 30-35% annually in terms of the volume of minerals mined, which would help us in increasing mining’s share in GDP by 1%,” Goyal had said. Currently, share of mining sector in India’s GDP is 2.4%.

Anupama Airy
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Anupama Airy

Founder and Editor at EnergyInfraPost
Independent Journalist and Energy Expert.​ (Worked with leading mainline financial and national daily for 23 years.​)​ Also, Guest Contributor with busines​sinsider.in
Currently, Writing a Book for Penguin India Titled Greased Pole:How Politics and Lobbying Stifled India’s Energy Dreams. The author can be reached on anupama.airy@gmail.com (9810661825)​
Anupama Airy
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