The proposed circular should also contain provisions and stipulations, making it mandatory that bullion imports is affected through LBMA accredited suppliers to ensure its purity, said Mr. Sanghi.
In a White paper brought out by ASSOCHAM on Gold Industry also advocates needs for removal of restrictions for overseas business on gold and silver mining, pointing out that even if India produces roughly 5 tons of gold and silver, however, has huge and insatiable demand for bullion.
Allowing entry of foreign companies in gold and silver mining will facilitate huge international investments as various multinational gold miners are showing interest in technical tie-ups with units in gold mining in India, the paper points out.
Mr. Sanghi said, roughly 15,000 tons of gold stocks are lying idle with the Indian households, the value of which in terms of rupee has been measured at 9 lakh crores. In addition, the gold business in India is presently estimated at Rs.40,000 crore per annum. Such huge reserves strongly make a case for opening up of gold business to foreign refining companies for recycling old gold jewellery.
Free import-export of gold also should be allowed with duty drawback benefits. Removal of back door canalization of gold import is necessary in order to reduce transaction cost and make the procedure simple as import of gold and silver is purely market driven. The restriction of 90 days usance period for import of gold under L/Cs must be removed to facilitate normal trade as in other commodities.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
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