India Unveils Plans to Set Up Two New Gold Refineries

SEATTLE (Scrap Monster): A Hong Kong-based firm and an Indian firm are said to be in race for setting up gold refineries in the South Indian state of Telengana. The proposals submitted by these companies are being forwarded by the State government to the Commercial Taxes Department for further evaluation and scrutiny. The bidders for the project are Hong Kong-based Huntton and an Indian company belonging to the Biyani Group.

The government plans to set up the first gold Special Economic Zone (SEZ) in Kongara Kalan, Ranga Reddy District in city outskirts, close to Hyderabad International Airport. A land of approximately 25 acres has already been allotted. The officials from both the companies, who visited the site, have expressed satisfaction over the location, mainly due to its proximity with the airport. As per sources, this will be the first gold refining facility in South India.

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The proposal submitted by the Hong Kong firm projects the annual turnover of the proposed refinery at around Rs. 33,000 crores, employing 150 workers. However, the proposal by the second company foresees an annual turnover of Rs. 10,000 crore, by engaging 60 workers. It proposes to invest Rs. 550 crores in the first phase of the project to build a refinery, capable to process 30 tonnes of gold and 100 tonnes of silver per annum. In the second phase, it will invest Rs. 750 crores, thereby lifting the total processing capacity by additional 50 tonnes of gold and 150 tonnes of silver per year.

According to official sources, the final government nod to the gold refineries will be given based on the report submitted by the Commercial Taxes Department. Once in operation, the refineries will process unrefined gold imported from South Africa. They are expected to contribute significantly to the state’s Gross Domestic Product (GDP) growth. Incidentally, Telengana is one among the high gold consuming states in the country.