Anil Agarwal, Chairman of metals major Vedanta Group, has proposed that the government should deprive its stake in Bharat Gold Mines and Hutti Gold Mines to improve gold production in India.

In a social Media post, Agarwal explained that the global gold prices are presently at high prices and India Imports 99.9 percent of its requirement. “With massive investments, we can be a major producer of gold and a big generator of employment,” Aggarwal said. In India, as of now only Bharat Hold Mine and Hutti Gold mines are manufacturing gold and the best way to keep forward is to privatize both mines, he said. In 2023, India’s total gold utilization was 747.5 tonnes, a 3 percent decrease from the previous year.

On Friday, gold prices bounced after rejecting for three consecutive sessions, rising by Rs 50 to reach Rs 70,700 per 10 grams in the market, cheered by a strong global market trend. Previously, the valuable metal had closed at Rs 70,650 per 10 grams in the previous session on Thursday. Following the budget announcement, the Indian government’s decision to reduce import duty on gold from 15 percent to 6 percent resulted in a crucial drop in local markets. Meanwhile, in international markets, comex gold was selling higher at US$ 2,416.40 per ounce.        

Agarwal said the denationalization of both mines should be on three conditions,“First, no retrenchment. Second, some equity to be given to employees. Third, it should be done as it is without any attempt to parcel assets into different parts. Even if a state government holds shares, the Government of India must sell its equity. Entrepreneurs who acquire it are capable of persuading and working with the state government,” Agarwal said.

Agarwal also recommended the withdrawal of the Government’s share in Hindustan Copper Ltd, India’s exclusive copper mining company. “It is in a similar situation to the gold mines,” he said. “Even a 10 percent reduction in gold and copper imports can save USD 6.5 billion in forex, contribute an additional Rs 3,500 crore to the government, and create at least 25,000 jobs,” Agarwal added.

After the budget, top government officials elucidate that the government’s planning goes beyond denationalization and the aim is to generate value of the government owned companies.