Government to set up Gold Board soon

Instead of announcing the gold policy, the government will first set up the Gold Board of India (GBI), which will take policy decisions for the industry. The government is likely to make an announcement in this regard in the next 15- 20 days.

As per the budgetary announcement, the government had earlier asked the Niti Ayog to prepare a gold policy document, taking the recommendations of the several stakeholders of the industry into consideration. The NITI Aayog had submitted its report in February this year. However, after the document was found to be heavily favouring the jeweller fraternity, the government shelved it.

“Now the government is planning to set up the Gold Board of India as an advisory body under the aegis of the ministry of finance. This body will then take appropriate policy decisions on various matters pertaining to the industry,” Surender Mehta, national secretary of India Bullion and Jewellery Association, told Financial Chronicle.

The GBI will have representatives from the DEA, financial services, revenue and expenditure, NITI Aayog, ministries of commerce and industry, consumer affairs, mines, skill development and entrepreneurship and labour.

It will also have representatives from the RBI, SEBI and National Accreditation Board for Testing and Calibration Laboratories, among others. However, industry members will not be part of this board.

The board in turn will set up the gold domestic council, which will be represented by various stakeholders of the industry like jewellers, bullion dealers, manufacturers, distributors, hallmarking centres and refiners. The council will mediate between the industry and the board.

Decisions with regard to the setting up of the bullion exchange, making changes in investment products like Gold Monetisation Scheme and Sovereign Gold Bonds and formulating India Gold Standard will also be taken by the GBI. “The GBI will issue guidelines on some of the recommendations in the NITI Aayog report. But the government is not likely to either bring down the duties on gold import of GST rates as per the NITI Aayog report or as presumed by some in the industry. It is also not going to do away with requirement of collateral for gold metal loans as that decision has to be taken by the RBI,” said Mehta.

“The NITI Aayog report is before the government. The government should be making some announcement based on the report soon,” said Ajay Mehra, co-chair, FICCI Gems & Jewellery Committee. The industry expects the Gold Board announcement to be made in the next 15 to 20 days. “The finance minister had made an announcement regarding gold policy in the last budget. So we expect the government to implement some of its proposals before the coming budget,” added Mehta.

Courtesy: mydigitalfc.com/ Image: mydigitalfc.com