The Foreign Direct Investment (FDI) policy
was introduced in 1997 whereby exploration and
mining investments involving foreign equity were
allowed without referring each and every case
to the Foreign Investment Promotion Board. Further
liberalization took place in 2000, where foreign
equity holdings up to 100% would be allowed for
both exploration and mining. In the case of gold
exploration and mining, a 100% foreign equity
holding is allowed.
The Central Government offers a wide range of
concessions to foreign investors engaged in exploration
or mining activities. These include Tax Holidays,
generous Depreciation Schedules on Capital Equipment,
Tax Deductibility for elements of Mineral Exploration,
specified exemptions from Excise Duty, and concessions
on Customs Duty.
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