Create SMZs to attract capital in mining: ASSOCHAM

New Delhi, June 27: The Associated Chambers of Commerce and Industry (ASSOCHAM) has sought creation of Special Management Zones (SMZs) for the domestic mining sector in a bid to make it more lucrative and attract investments and FDIs.

In a background paper prepared by ASSOCHAM on 'Mining and Quarrying sector- issues and priorities', it has been pointed out that the performance of mining sector has been extremely dismal, as the Foreign Investment Promotion Board (FIPB) had already given 73 approvals for FDIs in it without any concrete results.

The chamber has suggested a single window clearing system to clear FDIs approvals, which will not only save time but effort and money as well.

The paper will be released at a seminar on Indian Mining sector being held here on June 29 by Union Minister of Mines Sis Ram Ola.

''In order to address the safety environment issues relating to mining, SMZs are necessary and the suggested zones can also take care of the area as well as the states falling under it,'' ASSOCHAM President Anil K Agarwal said.

These zones should be accorded with tax incentive facilities with infrastructure status to lure investors in the mining sector, he added.

Mr Agarwal further said that India needs to boost investment in infrastructure and in this direction the state governments can either set aside a certain percentage of the lease rentals for infrastructure fund or give incentives to the applicant itself for building up of the required infrastructure.

The incentives can be in the form of tax holidays, depreciation benefits, lower lease rentals and Public-Private Partnerships can also be encouraged for the purpose, he added.

There is a need for assimilating the advances in information and communication technologies into mining operations. Tasks like geological mapping, topographical survey for volume calculation, excavation control for reclamation work can be done with the help of Global Positioning System (GPS), the paper suggested.

The paper further stated that India also needs to enhance its export potential of a number of minerals and metals, in which it has sufficiently large reserves.

UNI