Anil Agarwal, Chairman of metals major Vedanta group has advocated the sale of the government’s stake in Bharat Gold Mine and Hutti Gold Mine so as to increase gold production in India.
In a social media post, Agarwal said global gold prices are currently at record highs and India imports 99.9 percent of its requirement. “With massive investments, we can be a major producer of gold and a big generator of employment,” Agarwal said. In India, as of now only Bharat Hold Mine and Hutti Gold mines are producing gold and the best way forward is to privatise both mines, he said. In 2023, India’s total gold consumption was 747.5 tonnes, a 3 percent decrease from the previous year.
On Friday, gold prices rebounded on Friday after falling for three past sessions, rising Rs 50 to Rs 70,700 per 10 grams in the local market due to strong trend in the global markets. The precious metal had earlier closed at Rs 70,650 per 10 grams in the previous session on Thursday. In the budget, the Indian government decided to reduce import duty on gold to 6 percent from 15 percent leading to a sharp fall in the local markets. In the overseas markets, comex gold was trading higher at US$ 2,416.40 per ounce.
Agarwal said the privatisation of both mines should happen with three conditions. “First, no retrenchment. Second, some equity to be given to employees. Third, it should be done as it is without any attempt to parcel assets into different parts. Even if a state government holds shares, the Government of India must sell its equity. Entrepreneurs who acquire it are capable of persuading and working with the state government,” Agarwal said.
Agarwal also lobbied for the sale of the Government’s stake in Hindustan Copper Ltd, the sole miner of copper in India. “It is in a similar situation to the gold mines,” he said. “Even a 10 per cent reduction in gold and copper imports can save US$ 6.5 billion in forex, contribute an additional Rs 3,500 crore to the government, and create at least 25,000 jobs,” Agarwal added.
After the budget, top government officials clarified that the government’s strategy goes beyond privatisation and the aim now is to create value of the government owned companies.
First Published: Jul 26 2024 | 6:12 PM IST