The Hindu Business Line : ‘Tax sops needed to lure funds into mining’

Mumbai, June 8 Incentives, such as ‘Mineral Exploration Tax Credit’, that are being provided in Canada have been suggested to attract more private investments in mineral exploration in India.

Under the tax credit scheme, investments in the shares of companies engaged in mineral exploration activities will be eligible for tax exemption. This will enable such companies to raise equity funds easily.

The suggestion was made by a study conducted by Export Import Bank of India, which underlined the need for a comprehensive mineral exploration policy to help sustain the growth momentum in the Indian mineral sector.

The study recommends that the mineral exploration activity be intensified with a “suitable incentive framework” to attract private sector and foreign investment. Export of ores and minerals from India have grown from $917 million in 1999-2000 to $7,028 million in 2006-07.

Iron ore is the largest exported minerals from India, accounting for 55 per cent of total Indian export of ores and minerals. The study observes that India’s exports have largely been confined to iron ore.

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