The Union government is planning to produce gold under the public private partnership (PPP) to plug the current account deficit. The Union Finance Ministry has asked for the Mines Ministry’s opinions about allowing private companies on the PPP basis to explore untapped gold reserves.
Sources in Finance Ministry says that despite the Centre’s effort to reduce the current account deficit, caused by large scale import of the yellow metal, producing gold domestically is the only way to meet the demand.
In Karnataka and Jharkhand, India currently has three gold mines that produce 2.8 tonne of gold annually. However, the Planning Commission has said there are 40 potential gold mines in the country which it plans to explore during the 12th plan period (2012-17).
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