UPSC Civil Services Model Paper 2

● India currently produces hardly 0.4% of its gold consumption despite having 9% of global gold reserves under the country's landmass. So, statement1 is NOT correct.
● Though private entrepreneurs have come forward for reconnaissance, hardly less than 1% of them have come up to the mining stage . This is mainly for want of the latest technology, high-risk capital, etc.
● The government is also formulating a new mining policy to boost the exploration of gold and diamond deposits and cut down the country's over-dependence on imports.
● Gold mines at Kolar in Karnataka are among the deepest in the world which makes mining of this ore a very expensive process . So, statement 2 is correct.