July 26, 2010: India's mining sector is likely to see a slowdown in growth to 8% this fiscal, even as the overall economy is poised for higher growth the Prime Minister's Economic Advisory Council (PMEAC) has said. The lower forecast comes in the backdrop of an ongoing debate on the virtues of a proposed legislation -- the Mines and Minerals Development and Regulation Act, 2010 -- which aims to make mining allocation expeditious and transparent. "The council expects that there will be an easing in the growth rate in 2010-11 and we have set this estimate at 8%, both for output as well as the GDP arising in this sector," the PMEAC said in its latest Economic Outlook. The sector had grown by about 10% in 2009-10, the Economic Outlook for 2010-11 released last week said. However, for the entire economy, the PMEAC sees a growth of 8.5% this fiscal and 9% in 2011-12. India grew by 7.4% in 2009-10 and 6.7% in 2008-09. The government's Mining Bill, which stipulates licence allocation on a first-come-first-serve basis and provides for giving a stake in projects to tribals, will adversely impact investments in the sector, industry body Ficci said. Source: The Economic Times