India can be major gold producer on privatising two PSUs: Anil Agarwal

Mining mogul Anil Agarwal on Friday said India can be a major producer of gold if it privatises PSUs Bharat Gold Mines and Hutti Gold Mines.

The statement comes days after the Union Budget 2024-25 proposed reducing customs duty to six per cent from 15 per cent on gold.

"We import 99.9 per cent of our requirement. With massive investments, we can be a major producer of gold and a big generator of employment," Agarwal, who is Vedanta chairman, posted on X.

The best way forward is the government privatising the two sole producers of gold -- Bharat Gold Mines and Hutti Gold Mines, he explained.

He also said privatisation should happen with three conditions -- there should be no retrenchment, some equity should be given to employees, and it should be done as it is without any attempt to parcel assets into different parts.

India's gold imports, which have a bearing on the current account deficit (CAD), surged 30 per cent to USD 45.54 billion during 2023-24 due to strong domestic demand, according to government data. The imports stood at USD 35 billion in 2022-23.

Agarwal said the government should also divest its equity in Hindustan Copper Ltd, the sole miner of copper in the country.

"Even a 10 per cent 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 25000 jobs," he said.

Hindustan Copper is under the administrative control of Ministry of Mines. It is the only company in India engaged in mining of copper ore and owns all the operating mining lease of copper ore and also the only integrated producer of refined copper.