Mining tycoon Anil Agarwal stated on Friday that if PSUs Bharat Gold Mines and Hutti Gold Mines are privatized, India has the potential to become a significant gold producer.

The announcement was made a few days after the Union Budget 2024–25 suggested lowering the customs charge on gold from 15% to 6%.

“We import 99.9 percent of our gold needs. With significant investments, we could become a major gold producer and a significant generator of employment,” posted Anil Agarwal, Vedanta’s chairman, on X.

He clarified that the government’s plan to privatize the two independent gold producers, Bharat Gold Mines and Hutti Gold Mines, is the best course of action.

Additionally, he stated that privatization should take place under three guidelines: there shouldn’t be any layoffs, employees should receive some equity, and the process should be carried out exactly as it is without any attempt to divide up the assets.

According to official data, India’s gold imports—which are related to the country’s current account deficit (CAD)—rose 30% to USD 45.54 billion in 2023–2024 as a result of robust domestic demand. In 2022–2023, imports totaled USD 35 billion.

Agarwal suggested that the government divest its equity in Hindustan Copper Ltd., the country’s only copper mining company.

He stated, “A 10 percent reduction in gold and copper imports could save USD 6.5 billion in foreign exchange, contribute an additional Rs 3,500 crore to the government, and create at least 25,000 jobs.”

Hindustan Copper, which operates under the Ministry of Mines, is the sole company in India involved in copper ore mining. It holds all active copper ore mining leases and is the only integrated producer of refined copper in the country.