India can be a major gold producer if it privatises two PSUs: Anil Agarwal

Anil Agarwal, Vedanta chairman, stated on Friday that privatizing India’s two gold-producing public sector units (PSUs), Bharat Gold Mines and Hutti Gold Mines, could turn India into a major gold producer. This recommendation follows the Union Budget 2024-25 proposal to reduce customs duty on gold from 15 percent to six percent.

Agarwal highlighted India’s heavy reliance on gold imports, emphasizing the potential for significant domestic production and job creation through privatization.

"We import 99.9 percent of our requirement. With massive investments, we can be a major producer of gold and a big generator of employment," Agarwal posted on X.



He suggested that the best approach would be for the government to privatise Bharat Gold Mines and Hutti Gold Mines, the country's sole gold producers.

He insisted that the privatization should come with three conditions: no retrenchment, some equity to be given to employees, and the process to be undertaken without splitting the assets into parts.

India's gold imports surged by 30 percent to USD 45.54 billion during 2023-24 due to strong domestic demand, up from USD 35 billion in 2022-23, impacting the current account deficit (CAD).

Agarwal also recommended the government divest its equity in Hindustan Copper Ltd., India’s only copper miner.

"Even a 10 percent reduction in gold and copper imports can save USD 6.5 billion in forex, contribute an additional Rs 3,500 crore to the government, and create at least 25,000 jobs," he said.

Hindustan Copper operates under the administrative control of the Ministry of Mines. It holds all the operating mining leases for copper ore in India and is the only integrated producer of refined copper in the country.

(With PTI inputs)