Ease Of Doing Business: FDI Equity Inflows In Mining Jump 16 Times Under Modi Government

A report (PDF) on the performance of the mining sector released today (16 December) by the Central government claims that FDI equity inflows jumped by more than 16 times between 2014-2016 compared to the previous two years. FDI inflows increased from $70 million in 2012-2014 to $1.2 billion during 2014-2016.

The NDA government has liberalised the FDI regime in mining sector, allowing 100 per cent FDI via automatic route for mining and exploration of metal and non-metal ores and 100 per cent FDI through government route for mining of titanium bearing minerals and its ores and value addition. The credit perhaps also goes to junking the old and arbitrary auction process of “first come first serve’ basis. Under the MMDR amendment act, which came into effect from January last year, the government says, a transparent and competitive process has been put in place.

The report says that till November 2016 ,17 mineral blocks across seven States (Andhra Pradesh, Karnataka, Jharkhand, Madhya Pradesh, Rajasthan, Odisha and Chhattisgarh) have been auctioned resulting in additional revenues of Rs 47,551 crores and total revenue of Rs 59,639 crores over the lease period.