Rajesh Exports to start gold refining operations in Bengaluru in 2 months

Bengaluru: Rajesh Exports Ltd will commence operations at its new gold refinery in Bengaluru in the next two months, Executive Chairman Rajesh Mehta said.

The refinery will have a capacity of 400 tn per annum of gold and will cost 2.0-2.5 billion rupees. This refinery will largely replace its 300-tn-per-annum unit in Rudrapur, Uttarakhand, where a tax holiday has come to an end.

Earlier, industrial units set up in many north Indian states like Uttarakhand were exempt from value-added tax and central excise duty to attract investment. Bullion refineries set up in Uttarakhand received a 0.75% tax benefit.

The Goods and Services Tax, introduced in 2017, subsumed all state levies. To prevent industries from packing off, the government said that value addition in such excise-free zones would be refunded, which would be half of the Goods and Services Tax.

However, in the case of gold refining, the value addition and refund amount was negligible. The logistical costs of operating in the hilly state added to their woes. Because of this, about 15 refineries in the state are in various stages of shifting their operations out of the state, Mehta said.

Rajesh Exports’ total bullion refining capacity in India and abroad is around 2,400 tn. In 2015, the company had acquired Valcambi, the largest gold refiner in the world.

Mehta added that the company had chosen Bengaluru as the location for the refinery because of its proximity to their headquarters, and due to demand from south India.

With West Asia making up a significant market for the gold and diamond jewellery maker, the company has been looking to acquire a refinery in the region for a few years now. “We are still evaluating it but there is no confirmation yet,” Mehta said.

Courtesy: cogencis.com