Create more SMZs in mining sector: Assocham
Industry body Assocham has asked the government to create more Special Management Zones (SMZs) in the mining sector to attract foreign direct investment.
By PTI |
NEW DELHI: Industry body Assocham has asked the government to create more Special Management Zones (SMZs) in the mining sector to attract foreign direct investment.
"SMZs should be accorded with tax incentives facilities with infrastructure status to lure FDI," Assocham president Anil K Aggarwal said in a statement.
He suggested that the state government concerned could settle it with either certain per cent in the lease rentals or by giving incentives to the investors for developing required infrastructure.
This could also be in form of tax holidays, depreciation benefits, lower lease rentals, Agarwal added.
Despite approval by the Foreign Investment Promotion Board (FIPB), FDI in the mining and quarrying sector has been extremely dismal so far, the chamber said.
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FIPB has already granted 73 FDI approvals worth Rs 4,044 crore in areas like diamond, gold, silver, non ferrous metal such as copper ore, zinc etc.However, no such FDI was actually converted into any mining lease.
Assocham suggested that it was mainly due to the procedural delay in getting various clearances from multiple agencies.
In countries like Australia it takes 15-18 months to seek any FDI clearance in mining sector, however, in India it takes 3-7 years, it said.
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The chamber also suggested for a single window clearing system for the FDI in mining sector.Start a SIP with as low as ₹500 with ET Money App!
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