Govt. plans to replace gold import with mining of high-value products to improve India’s current account deficit.
The demonetisation of Rs 500 and Rs 1000 notes is being seen positively by a large part of the population cutting across the lines of age, income levels and area of residence, a nationwide survey conducted by C-Voter has suggested. A whopping 80-86 percent of those surveyed said the inconvenience caused by the demonetisation is worth the effort of combating black money.
C-Voter, an international polling agency headquartered in India, conducted its survey in close to half the total parliamentary constituencies on Monday.
The wide-ranging support for the demonetisation cut across the barriers of categorisation. The numbers remained consistently high when broken down on the basis of area of residence, income levels or by age groups.
A landslide 86 percent of the respondents living in urban and rural areas said the inconvenience was worth it. This was 80.6 percent in semi-urban areas. The highest level of support however seems to come from those from the higher income group, 90.6 percent of whom said the move is worth it. Also tellingly, the lowest level of support in the ‘below 25’, 25-45, 45-60 and 60+ was 83.3 percent.
A picture of broad support also emerged for those who thought the demonetisation was a ‘good move and equally well implemented’. This sentiment was reflected in 71 percent of those surveyed in urban areas, 65.1 percent in semi-rural zones and 59.4 percent of rural respondents.
Conversely, 23.8 percent of urban, 24.3 percent of semi-urban and 36 percent of rural respondents agreed with the charge of some opposition parties that demonetisation was a ‘good step but poorly implemented’.
Source Link : http://timesofindia.indiatimes.com/india/Over-80-percent-dont-mind-inconvenience-of-demonetisation-says-C-Voter-poll/articleshow/55566700.cms
High value product mining needs impetus, it’s part of calibrated plan of import substitution: Minister
By pursuing a robust import substitution strategy, which is based on the boilerplate of swadeshi, the government has made a huge turnaround in the domestic consumption patterns of coal, urea and electrification of railways (replacing diesel). This is a part of the premeditated plan, which is being taken to the next level of competence by mining for high value products. On the front burner are gold, bauxite and diamonds. Power and coal minister Piyush Goyal talking to Financial Chronicle said, “High value product mining has to be given the necessary impetus. It is a part of a calibrated plan of import substitution. Gold import meaningfully impacts India’s current account deficit adversely and our endeavour is to replace it with domestic gold mining of some size and scale. We have written to the government of Karnataka to revive the Kolar mining lease. The township of Bharat Gold Mines (BGML) in Kolar was shut down in 2001 during Atalji’s tenure. The land and assets of BGML at Kolar Gold Fields (KGF) in Karnataka are held by the Union government in the name of the President. We are in a dialogue with the Karnataka government to revive this on a priority basis, so that shallow mining can start again.”
Karnataka is to acquire the BGML assets through its own mining company, Hutti Gold Mines. A joint venture will then be formed on a fast track with a private company called JMJ Minerals, comprising former BGML workers, which will provide the administrative, financial and technological support required to take up shallow mining at KGF. The Centre has also agreed to waive about Rs 1,700 crore liabilities that BGML is facing. The Karnataka government has come forward to acquire the assets under section 17/2 of the new MMDR rules. The central government is joining hands to revive the mines.
The mines ministry is considering all options, including revival of BGML. MECL has been engaged for the exploration of the dumps and mining area. The exploration has begun and will take around one year to complete. The future decision in respect of BGML would be taken after the exploration reports. The BGML is also pursuing with Karnataka government for extension of mining lease.
BGML, however, is beset with problems. The ministry of mines had got the approval of the cabinet for sale of BGML assets through a global tender in 2006. In 2008, a tender document was prepared for sale of assets which however met with legal issues as the company bench of Karnataka High Court had passed certain orders which were in variance with the decision of the cabinet. Finally, the Supreme Court in 2013 permitted the Centre to proceed with global render
BGML has an area of around 12,173 acres. There are large numbers of representations from various sources for excluding housing colonies from the global tender. BGML have 25 colonies covering of an area of around 3,753.77 acres. The majority of these houses are hutments belonging to economically weaker sections of the society and needs sensitive handling.
Valuation of BGML assets is another issue. It has four mining leases, one in Karnataka (Kolar Gold Field) and three in Andhra Pradesh) Chigargunta, Bisanatham and Yeppamana). Besides these mines, there are a large number of mining dumps spread in KGF area, which contains gold. As per the valuation done at the time of preparing a cabinet note in 2006, only the old reserves at Chigargunta and Bisanatham were estimated to more than 0.5 million tonnes and their estimated value taken at that time was Rs 421.07 crore. Tailing dumps values has been worked out to be Rs 84.03 crore. The cabinet note of 2006 valued BGML at Rs 272.96 crore.
As per the recent reserves/resources estimation done by the MECL, about Rs.6,000 to Rs 8,000 crore is extractable from these mines, in addition dumps may yield another few thousand crores of rupees.
According to MMDR Amendment Act 2015, mines that are not auctioned can’t be transferred. All the mining leases of BGML has expired and application for renewal of mines in Karnataka is pending whereas AP has determined the mining leases and refused to renew it. The leases at Karnataka are pending for renewal since 2012. Karnataka has stated they would renew the mining leases for BGML, but not in favour of any successful bidder in case of sale of its assets. In the present situation, the Centre is left with only the surface right of the land.
Though the mines ministry has requested the state government to take over BGML, Karnataka has refused to do so in view of the liabilities of the company.
The mines ministry is working to first clean balancesheet by clearing liability. BGML is in the process of assessing the assets and writing to creditors like banks and the state government and the power authority who are the major creditors besides the Centre for one-time settlement.
Also, BGML is ladden with huge scrap. The plant and machineries have become obsolete. BGML is exploring the possibility of getting these scraps auctioned and clear of liability.
Goyal’s effort is a part of an exercise to map the entire country using satellite imagery. Areas where there is a potential upside will be mapped out first. Goyal said, “Checking for geoseismic disturbances is part of the initial probe. By 2017-end, a big thrust will be given progressively to this exercise. As many as 100 mineral blocks have been identified by GSI based on regional mapping for G4 stage exploration. Of this, GSI (Geological Survey of India) has been allotted 30 blocks, MECL (Mineral Exploration Corporation) 30 blocks and notified PSUs like CIL, NTPC and NMDC 20. The rest will be taken up by private exploration agencies through a revenue sharing mechanism. The modalities for allotting blocks to private agencies are being developed by SBI Caps, which has been appointed as consultant.”
Ditto for high-grade bauxite mining, which is one of the focus areas along with gold. Again a part of an overarching larger three-pronged strategy to enhance availability of high value mineral wealth, provide impetus to the farm produce and skill development, according to Goyal.
On the mining front, exploration hopefully will get a big fillip and illegal mining will be controlled through this new plan. A new mining surveillance system – mining tenement system – has been introduced. The online register of mining tenement system is intended to bring about computerisation and automation in the functioning at state directorates of mining & geology of 11 states. Further, usage of satellite imagery will provide ballast to the government efforts. For instance, NMDC is in the process of establishing a remote sensing and GIS Laboratory in Hyderabad to interpret satellite data that will help identify and limit mineral potential areas to a smaller zone thereby negating the need for wide physical exploration. Once the mines are identified, they will be auctioned.
Goyal said the untangling of knots across major ministries like power and coal took a long time. “Initially I wondered, who will invest in the power sector. Rs 80,000 crore projects were stranded. Let me give you one example: The Rs 9,000 crore, 1,200 mw Teesta Urja hydel project was stalled for seven years with everyone squabbling over it. We got everyone back to the negotiating table and untangled the knots, by March, this will be up and running.”
Source Link : http://www.mydigitalfc.com/news/coal-done-goyal-sets-eye-gold-bauxite-903
Demonetisation will help lower the burden on honest taxpayers and extract more from the dishonest, said Union Minister Piyush Goyal . In an interview with Himangshu Watts , he also said people queuing up at ATMs should realise electronic money transfer is the way forward. Edited excerpts:
Is demonetisation an opportunity?
It’s a huge opportunity to prepare India to offer its people a better quality of life, an opportunity to rid the country of black money, corruption, terrorism and drug financing through fake currency. It’s an impactful measure to bring down the use of cash, encourage people to use the banking system.
What will be the impact?
As India becomes more tax-compliant, government revenues will improve and we will be able to serve the poor better. We can have better roads, healthcare, education and improve the life of farmers. As the country moves towards banking transactions, taxes can be collected more efficiently and effectively, which will help bring down tax rates. Inflation can be brought under control, because cash is used for hoarding also. If inflation is brought down, interest rates will fall. Once rates fall, we have the opportunity to, maybe, achieve the goal of ‘housing for all’ faster; take roads, infrastructure to India’s interiors.
How has the banking system responded to the task?
I don’t see any parallel (of such an operation) in the world… (with) such large amounts of currency to be moved through a country of the size of India. There are two lakh ATMs to be recalibrated. Each takes 3-4 hours. It’s a task of unparalleled scale which India has successfully achieved. What gains can people expect? There will be 100% gains. The finance minister and the Prime Minister will let the nation know.
How does the unreturned currency flow to the government?
Let’s cross that bridge when we get to it. But very clearly, whatever doesn’t come back (is) extinguished liability for the RBI.
Will it be used for social welfare?
There are two streams of benefits. One, there is more honesty in the system and it becomes more difficult to become dishonest. The corrupt are fearful that this government means business. More taxes mean more money to spend for public welfare. Also, the black money that comes out ensures funds to serve the people.
How exactly do people benefit?
It means the dishonest will have to pay more tax. For the honest, there will be less tax. Less tax from the honest and more tax from the dishonest.
Will tax rates fall?
That is for the finance minister to say.
How will demonetisation change elections?
All parties should welcome it. One big source of funding for a cadrebased party like BJP is to take donations from workers and supporters. The other is larger donations above Rs 20,000, which are also easier to collect, and where donors, or corporates, also show sensitivity towards clean politics. As more people start approaching donors for clean money, it will help clean up the political process.
Will the election atmosphere be different?
I’m sure corrupt practices will come down. There are rumours that some parties and leaders take money to give seats to candidates.
What about political opposition?
Today, we have the Communists and Mamata Banerjee attacking us. I’d like to ask them to answer to the poor —labourers in tea gardens, coffee plantations, and contract workers — who are paid in cash. What is their interest that those people should be paid in cash, not cheque? Is it not a fact that contractors don’t even pay minimum wages? We’ve increased minimum wages by 42%. We’re not confident that contractors pass it on to the poor. Very often, they take thumb impression or signature on blank paper.
Trade has been disrupted.
There is a short-term disruption. We’re monitoring the situation and will make sure that inconvenience is tackled quickly.
What is your strategy for digital payments?
People should realise they can comfortably transact in daily life without cash. We are getting reports that even hawkers are installing e-wallets in their mobiles. India should leverage the huge opportunity today to bypass and leapfrog the debit and credit card age — just as India telescoped into the mobile revolution, leapfrogging other nations who first went through 100% landline penetration.
Will there be changes or relaxation in limits?
It’s an evolving situation. The queues have shortened and deposits are 50% less than on the first day. Our focus now, having addressed the urgencies in cities, will be rural India. Of course, cities will adapt to new technologies faster. I won’t be surprised if very soon you are able to swipe your card in temples.
What is the message to people standing in queues?
I’d say you have a plethora of options. Obviously, debit or credit cards are very much available in cities. India has 71.2 crore debit cards, 2.6 crore credit cards and over 20 crore RuPay cards of Jan Dhan accountholders. People now have the opportunity to activate those.
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