Anil Agarwal Advocates for Gold Mine Privatisation Amid Budget Proposals

Mining mogul Anil Agarwal suggests privatising Bharat Gold Mines and Hutti Gold Mines to boost gold production and employment in India. His statement follows the Union Budget 2024-25 proposal to reduce customs duty on gold imports. Agarwal also recommends privatising Hindustan Copper Ltd to save on forex and create jobs.

Mining tycoon Anil Agarwal on Friday proposed that India can become a significant gold producer if the government privatises Bharat Gold Mines and Hutti Gold Mines.

This announcement comes in the wake of the Union Budget 2024-25, which has suggested a reduction in customs duty on gold imports from 15 per cent to six per cent.

''With substantial investments, India can emerge as a major gold producer and generate significant employment,'' said Agarwal, the chairman of Vedanta, on X.

Agarwal emphasized that privatising Bharat Gold Mines and Hutti Gold Mines is crucial for this shift, suggesting three conditions for privatisation: no retrenchment, equity distribution among employees, and keeping the assets intact without parceling them out.

The country's gold imports, affecting the current account deficit (CAD), surged by 30 per cent to USD 45.54 billion in 2023-24, with the imports standing at USD 35 billion in 2022-23.

Agarwal also advocated for the government to divest its equity in Hindustan Copper Ltd. ''A 10 per cent reduction in gold and copper imports can save USD 6.5 billion in foreign exchange, contribute an additional Rs 3,500 crore to the government, and create around 25,000 jobs,'' he noted.

Hindustan Copper, under the Ministry of Mines, is India's sole copper ore miner and refined copper producer.

(With inputs from agencies.)