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De Beers may gain entry into India

The world's diamond giant -- De Beers -- is on the verge of gaining entry into India for mining and prospecting of precious and semi-precious diamonds in some states, including Madhya Pradesh, where its earlier bid was rejected by the state government.

Minister of Steels and Mining B K Baishya has assured the South African government during the official level talks in Durban, South Africa, that the Indian government has decided to modify the guidelines regarding issuing of mining licences to international companies for the exploration of precious mineral and mines in the country.

In fact, India and South Africa also signed an agreement in mining and minerals sector on Tuesday, in Cape Town following talks between Prime Minister I K Gujral and President Nelson Mandela.

Baishya also made a presentation on the Indian government's mining policy at the delegation level talks, which were attended by senior ministers of the South African government, the agreements seek South African technology in exploring mines in India.

The Madhya Pradesh government had selected six parties, including de Beers, for gold and diamond mining prospecting in the state. It had offered seven sites for the bidders about eight months ago. But later it rejected all the proposals. The state government declared that terms and conditions of de beers were unacceptable and economically detrimental to the state.

However, it is learnt that de Beers is also ready to offer an attractive package to get the contract for the mining.

Madhya Pradesh Chief Minister Digvijay Singh has urged the Centre to reduce royalty on diamonds from 20 per cent to 10 per cent. It strongly suggested that there should be open auction as per the government's policy of transparency.

De Beers controls 60 per cent of the world's mining of precious and semi-precious stones which are marketed through its sister organisation, the Central Sales Organisation.

UNI