100 percent FDI on Titanium mining gets govt nod
In a significant move, the Union Cabinet on Wednesday gave its approval for 100 percent Foreign Direct Investment (FDI) on titanium mining in India.
Speaking to reporters after the cabinet meeting, Information and Broadcasting Minister P R Dasmunsi said, the approval is for mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities.
However, the FDI on titanium, a strategic mineral used in manufacturing airframes and aircraft engines, will have to be sanctioned by the Foreign Investment Promotion Board (FIPB) and will not be through the automatic route, he said.
FDI up to 100 per cent shall be allowed for mineral separation only if value addition facilities are set up within India along with transfer of technology. Currently, 74 per cent FDI was permitted for titanium mining with a mandatory clause that Indian partner must be a public sector unit.
Titanium is unique because it is as strong as steel but 45 per cent lighter
India has one sixth of the world resources of limonite, a titanium-bearing mineral and most of it is concentrated in Tamil Nadu, along the southeastern coast from Cuddalore to Vedaranyam.
Several companies, including aircraft manufacturers Boeing and airbus industries have evinced interest titanium mining in India.
In a significant move, the Union Cabinet on Wednesday gave its approval for 100 percent Foreign Direct Investment (FDI) on titanium mining in India.
Speaking to reporters after the cabinet meeting, Information and Broadcasting Minister P R Dasmunsi said, the approval is for mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities.
However, the FDI on titanium, a strategic mineral used in manufacturing airframes and aircraft engines, will have to be sanctioned by the Foreign Investment Promotion Board (FIPB) and will not be through the automatic route, he said.
FDI up to 100 per cent shall be allowed for mineral separation only if value addition facilities are set up within India along with transfer of technology. Currently, 74 per cent FDI was permitted for titanium mining with a mandatory clause that Indian partner must be a public sector unit.
Titanium is unique because it is as strong as steel but 45 per cent lighter
India has one sixth of the world resources of limonite, a titanium-bearing mineral and most of it is concentrated in Tamil Nadu, along the southeastern coast from Cuddalore to Vedaranyam.
Several companies, including aircraft manufacturers Boeing and airbus industries have evinced interest titanium mining in India.