GST rationalisation, transparent auction among key mining reforms in offing
PB Jayakumar August 11, 2020
India's mining sector is undergoing a big transformation to allow private sector participation. Discussing key reforms in the offing, Pralhad Joshi, Minister for Mines, Coal & Parliamentary Affairs, Government of India said that the government will address concerns of the stakeholders such as GST rationalisation, illegal mining, digital data usage and logistics issues to bring more clarity and transparency in the policy.
The mining sector in the country contributed Rs 4 lakh crore to the Gross Domestic Product (GDP) last year and the sector employs 1.1 crore people directly and another 5.5 crore people are indirectly dependent on the sector, he said today, while addressing a Federation of Indian Chambers of Commerce & Industry (FICCI) webinar on 'Indian Mining Industry - Contribution Towards Atmanirbhar Bharat'.
"The country has nearly 95 minerals and metal natural resources, which can act as a backbone of our economy. Under Atmanirbhar Bharat scheme, the government has taken several reforms to tap the potential and more are in the pipeline. The industry and various stakeholders should also keep discussions with the state governments to ensure that policy initiatives are implemented by the states while going ahead to ensure smooth implementation," he said.
An open and transparent mining auction for other minerals and metals as done in the case of coal blocks, a mineral index, rationalisation of stamp duty in consultation with the states are some of the industry-friendly policy initiatives being worked out, he said.
Industry representatives attending the seminar demanded the GST for mining should be decreased from 18 per cent to 5 per cent, industry should be accorded 'core sector status', the railway freight rates should be re-classified and global mining and reporting standards should be brought into the Indian mining sector.