7 International Trade & Investment Promotion

Foreign Direct Investment Policy diamonds and precious stones have been increased to 100% under the automatic route with effect from 10th 7.1 India possesses great potential of mineral resources. February, 2006. However, there exists considerable scope for augmenting the resource position by further With this, the Foreign Direct Investment in the mining exploration of known deposits and discoveries of new sector for all non-atomic and non-fuel minerals have deposits, adopting state-of-the-art technology and now been fully opened upto 100% through the modern methods like aerial reconnaissance or automatic route including diamonds and precious geophysical surveys. stones.

7.2 The geological and metallogenic history of India is 7.4 The data on FDI in the mining sector for the last similar to mineral rich Australia, South Africa, South three years and in the current year upto September, America, and Antarctica, all of which formed a 2009 are as follows:- continuous landmass prior to the breaking up of (amount in USD million)* Gondwanaland. It also has some features similar to the mineral rich Canadian shield of North America. Being 2006-07 2007-08 2008-09 2009-10 (April to aware of the vast potential of the sector, the Indian September, Government, has been consistently and in a pragmatic 2009) manner opening up the previously controlled regime Mining 6.62 444.26 34.22 86.63 to usher private investment in the sector and infuse *(Source: DIPP)

INTERNATIONAL TRADE & INVESTMENT PROMOTION INVESTMENT & TRADE INTERNATIONAL funds, technology and managerial expertise. The opening up of the Indian mining sector has, therefore, EXPORTS AND IMPORTS generated considerable global interest. The Indian 7.5 The provisional value of export of ores and minerals mining sector was opened up to Foreign Direct during 2008-09 was Rs. 1,08,837 crore. Diamond Investment in 1993 after the announcement of the (mostly cut) was the principal item of export during New Mineral Policy. Initially, all proposals were 2008-09, which accounted for 66.24 %, followed by considered on a case to case basis by the Foreign iron ore with a contribution of 19.96 percent, granite Investment Promotion Board (FIPB). FDI policy in the 4.42 % and alumina 1.45 %. Chromite 0.89 %, mining sector was further liberalised in January 1997 Precious and semi precious stones 0.72% and Lead which opened up an “automatic approval” route for ores and conc. 0.52% were the other important investments involving foreign equity participation upto minerals exported during the year 2008-09. Data on 50% in mining projects, and upto 74% in services export of some important ores and minerals during incidental to mining. 2004-05 to 2008-09 is mentioned at Annexure-3.2. 7.3 The Foreign Direct Investment (FDI) policy in the 7.6 The provisional value of import of ores and minerals mining sector has been gradually liberalized over the during 2008-09 was Rs. 5,13,632 crore. Petroleum last few years. FDI cap for exploration and mining of (crude) was the main constituent of mineral import

50 Ministry of Mines INTERNATIONAL TRADE & INVESTMENT PROMOTION 51 May, 2008 in Canada. May, Annual Report 2009-2010 Annual Report th The main projects are study on Arsenic Toxicity in the The main projects are study on Arsenic Toxicity Bengal and monitoring of ground water of West landslides at selected sites in India, etc. 7.14 There is also an MoU between Ministry of Mines 7.14 There is also an MoU between rehabilitation. There on mine Australia and Western this MoU. of visits under has been regular exchange pursued a very A delegation from the two sides have possibilities of active/ fruitful relationship. Exploring was discussed with broadening the scope of the MoU led by Hon. Australia a delegation from Western for Regional Brendon Grylls MLA, Minister 2009. Development in September, Survey of Western 7.15 A delegation from Geological had a meeting with GSI and Officers of Australia 2009. Both sides Ministry of Mines on 13th October, discussed areas of cooperation such as capacity of scientists to enhance knowledge building, exchange and capabilities in earth science activities, sustainable mining practice etc. Canada the signing of MoU with Department of 7.16 After Canada in April, 2003 on Co- Natural Resources, operation in Geosciences, five meetings of the Joint Group (JWG) have so far been held. The Working fifth meeting was held on 27 Western Australia Western the two countries in the Mining Sector, Workshops Sector, the Mining in two countries the during November- and Nagpur in Kolkata were held made Australia which experts from 2009 in December, the mining technologies in on the updated presentation the Indian geoscientists. sector to Group Joint Working 7.13 Under the Indo-Australian and Technical India-Australia on Energy and Minerals, programme on “Mining and Minerals exchange Policy at Building in India” was held Exploration – Capacity the 2009. This was December, Nagpur during 3-4 Australian being organized by the second Workshop Building in India. The Workshop Agency for Capacity by Shri C.S. Gundewar, was jointly inaugurated Barnicoat from Controller General, IBM and Dr. Officers from IBM apart from GSI, Fifteen Australia. in the Workshop. MECL, SAIL& MOIL participated and Annexure 7.1 . . . Annexure 7.3 Annexure 7.4 7.9 India’s Export of iron ore during 2008-09 is given 7.9 India’s Export of iron ore during at 7.12 As a follow-up to the Work Plan signed between 7.12 As a follow-up to the Work 7.11 The sixth meeting of the Australia-India Joint 7.11 The sixth meeting of the Australia-India Group on Energy and Minerals was held on Working 16-17 March, 2009 at New Delhi. Ministry of Mines is the nodal Ministry from the Indian side for this was signed at the end of Group. A Protocol Working Group endorsed the the meeting. The Joint Working Plans in the workshops activities under the five Action held on Mining and Minerals, New and Renewable and Natural Gas and Coal Petroleum Power, Energy, sectors. 7.10 The India-Australia Joint Working Group (JWG) Joint Working 7.10 The India-Australia in the year on Energy and Minerals was established 2000 for enhancing bilateral co-operation in the energy of the JWG have so and mineral sectors. Six meetings Group, both far been held. Under the Joint Working 2008 Plans in November, countries have signed Action and renewable in the coal, mines, petroleum, new a number of energy and power sectors envisaging The Action activities and events for implementation. view to maintain Plans have been signed with a and bilateral energy momentum in the Australia-India resources relationship. 7.8 Despatches of Iron ore for Domestic consumption 7.8 Despatches of is 2009 and Export for the period April-September, given at Australia International Investment Promotion Annexure 7.2. during 2008-09, which accounted for 67.53% of the 67.53% for accounted which 2008-09, during by and minerals followed of import of ores total value lignite) %, Coal (excluding (uncut) with 14.57 diamond Natural concentrate 3.47%, ores and 8.05%, Copper etc. phosphate, sulphur percent. Coke, rock gas 2.51 minerals imported during were the other important import of some important ores and 2008-09. Data on at to 2008-09 is mentioned minerals during 2004-05 Annexure 3.3 data is given at 7.7 Export/Import MoU With Ontario 7.22 A delegation from Ministry of Mines led by Secretary (Mines) visited Namibia from 27-31 October, 7.17 A Memorandum of Understanding ( MoU) 2009 and attended the 1st Meeting of the India- between Ministry of Mines, Government of India and Namibia Joint Working Group on Geology & Mineral the Ministry of Northern Development, Mines and Resources held in Windhoek, Namibia. Minutes of the Forestry of the Province of Ontario, Canada on meeting was signed by both sides after the Joint cooperation in the fields of Geology and Mineral Working Group Meeting. The delegation visited Resources is proposed to be signed shortly in view of the geological potential of Ontario Province and the various mine sites and had meetings also with avenues of co-operation and investment. The MoU important dignitaries in Namibia. Follow-up action on st will provide an umbrella framework for development the discussions which emerged of the 1 JWG meeting of mutual cooperation in the field of geology and are being taken up. mineral resources between India and Ontario Province, Argentina Canada. 7.23 Geological Survey of India (GSI), an attached Chile office under the Ministry of Mines has signed a Memorandum of Understanding (MoU) with the 7.18 A Memorandum of Understanding (MOU) was Serviceo Geologico Minero Argentino (SEGEMAR), of signed between India and the Republic of Chile on 17th the Argentine Republic on scientific and technical March, 2009, for cooperation in the field of Geology cooperation in the earth sciences in New Delhi on 14th and Mineral Resources during the visit of President of October, 2009 during the visit of the Argentine Chile to India. The Ministry of Mines is in the process President to India. of identifying specific collaborative project proposals under the framework of the MoU. Under the MoU, a PDAC Joint Working Group has been formed which will 7.24 The Annual Convention of the Prospectors and coordinate the implementation of the areas of Developers Association of Canada (PDAC) is a major cooperation under the MoU. mining event. The PDAC Conference is one of the most 7.19 The first meeting of the India-Chile Joint Working important and prestigious events in the global mining Group was held in Santiago, Chile during 2nd-4th industry, which is attended by delegates from all over INTERNATIONAL TRADE & INVESTMENT PROMOTION INVESTMENT & TRADE INTERNATIONAL February,2010 Ms. Santha Sheela Nair, Secretary the world. Ministry of Mines participated in PDAC (Mines) led the Indian delegation. 2009 and put up booths which received a large number of visitors and prospective investors. An ‘India Day’ Namibia was also organised on 3rd March, 2009 which showcased India’s mineral wealth and capabilities and 7.20 Ministry of Mines has signed a Memorandum of potential of the Indian Mining Industry as an Understanding (MoU) with the Republic of Namibia investment destination. on cooperation in the field of geology and mineral resources, in New Delhi on 31st August, 2009. The Mining Exploration Convention & Trade Show MoU was signed by Hon’ble Minister of Mines and 7.25 A Mining Exploration Convention & Trade Show Development of North Eastern Region on behalf of was held during 16-18 November, 2009 in Bengaluru. the Government of India and the Minister of Mines The Conference was organized by Federation of Indian and Energy, on behalf of the Republic of Namibia. Mineral Industries in association of PDAC, Toronto, 7.21 The Minister of Mines and Energy, of the Republic Canada and the Trade Show was supported by the of Namibia also had a meeting with Hon’ble Minister Canadian Association of Mining Equipment and of Mines on 31st August, 2009 and discussed possible Services for Export (CAMESE). The Conference was a areas of co-operation in the mining sector. success.

52 Ministry of Mines INTERNATIONAL TRADE & INVESTMENT PROMOTION 53 st and Eng. Annual Report 2009-2010 Annual Report inistry of Mines inistry of April, 2009 with a view to exchange th knowledge and experience of Mineral Sector knowledge and experience of regulations in India. October, 2009 at New Delhi. 2009 at New October, Thakral, meeting was co-chaired7.29 The V.K. by Shri M Joint Secretary, the then Thailand the to study local minerals for 7.30 A delegation joint venture project with Tata upcoming iron-smelting Officials from the Steel, comprising 9 Government Ministry Industries & Mines, Department of Primary Office Regional Thailand visited Kolkata of Industry, of IBM on 4 Abdollah Kashani Movahhed, Manager of Economic Movahhed, Manager Abdollah Kashani Iranian Mines & Mining Relation, & International Organization, and Renovation Industries Development of Iran. Republic (IMIDRO), Islamic first meeting of the India-Iran Sub-Group of the India-Iran meeting first 1 held on February 2010. Special Secretary 2010. February th Dump slope stabilization with coir netting & lemon grass plantation at Sukinda Chromite Mine Dump slope stabilization with coir netting & lemon grass plantation at Sukinda Chromite to 4 st March, 2010 and in order to further promote 2010 and in order March, th -10 th Iran of representatives 7.28 An Indian Delegation comprising , of Fertilizers from the Ministry of Mines, Department Thakral, HCL, GSI and IBM, led by Shri V.K. NALCO, Ministry of Mines the attended the then Joint Secretary, 7.27 After a gap of several years the Ministry of Mines a gap of 7.27 After annual Mining Indaba at Capetown participated in the held on 1 South Africa 7.26 The PDAC Convention for 2010 is being held on is being held 2010 for Convention The PDAC 7.26 7 (Mines) led a CII delegation which included major steel (Mines) led a CII delegation The visit is likely to help and aluminium producers. trade and investments in coal and promote Indian in Africa. ferrous minerals investment, State Governments have been encouraged have been State Governments investment, for the planned the Indian delegation to join convention.