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All That Glitters May Soon Be Gold: Mines With Around INR 25,000 Crore Gold on Auction in India

News:

The ministry of mines has planned to resurrect India's dormant gold mining industry. "We're going to auction threefour gold mines in Karnataka, Madhya Pradesh and Rajasthan in two-three months. With amendment of the Mines and Minerals Development and Regulation (MMDR) Act, we are pursuing with the states to move ahead with these auctions," Union Mines Secretary Balvinder Kumar told Mail Today.

Source: Indiatoday

SNP Insight:

Reviving India's dormant gold mining industry is key to cutting rising gold import bill and boosting the economy. However there are a lot of challenges which needs to be addressed by the Government to auction gold mines located in Karnataka like the impending issue of workers of PSU Bharat Gold Mines Ltd which has been long pending since 2001 needs to resolved first. With growing legal complexities the proposal to auction India's of the largest gold mines located in dusty hills of Kolar Karnataka remains challenging proposition. However with the commitment from the Governments end for auction of mines as in case of coal,iron ore,gold mining may also not be a far off development.

Source: SNP Infra Research