The domestic mining space has the potential to attract $5 billion foreign investment, but it is the policy and the rules governing the sector that will determine the flow of funds into the country, a top government official said.
"Many countries are actually interested in investing in India and bringing in new technology and it is mainly getting the policy and the legislation right that will determine that how much investment flows into India. One ballpark figure could be up to $5 billion," Ministry of Mines Additional Secretary S Vijay Kumar said.
However, the official did not elaborate on the time frame for such an amount coming into the country.
The Mines Ministry will introduce a Bill to amend the Mines and Minerals Development and Regulation Act 1957, paving the way for implementing a new mineral policy, which will support the investment.
India is one of the leading producer of iron ore — a vital raw material for making steel — in the world. Global mining majors like Rio Tinto are learnt to be eyeing domestic iron ore reserves, apart from minerals like copper and zinc.
The ministry has also favoured value-addition on domestic iron ore without being averse to its exports.
"We have not taken a view against the (iron ore) export. We are trying to encourage (the use of the material), which is exported, within the country," added Mines Secretary Santha Sheela Nair.
