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34 MNCs get aerial prospecting licences

The central government has given aerial prospecting licences to 34 multinational companies.

The licences cover about 50,000 sq km in Bihar, Gujarat, Maharashtra and Rajasthan.

Two of these multinationals, BHP of Australia and Meridian Peak Resources Corporation of Canada, have already started aerial surveys.

Other prominent multinationals who have been given licences are RTZ-CRA, White Tiger Resources, Pasminco, all from Australia, Metdist from the United Kingdom and Phelps-Dodge from the United States.

The Foreign Investment Promotion Board has so far cleared 44 mining proposals aggregating an investment of about Rs 27 billion. This is in addition to what may have come in through the automatic route, where no reference to the FIPB is necessary.

Thirtytwo of the 44 FIPB approvals have been given to mining companies in North America, Australia, the UK and South Africa-based global diamond giant De Beers. Investment in the mining sector has a long gestation period.

In all these mining ventures, 100 per cent foreign equity is now permitted.

Any overseas entity wishing to invest in the mining sector can shop in India either under the automatic route (up to 50 per cent equity participation in mining projects and 74 per cent in service incidental to mining) or through the FIPB route for proposals above these.

UNI