The Indian government, bullion industry and Organisation for Economic Cooperation and Development (OECD) will together work for preparing responsible gold policy, covering import of gold and dore and refining as well as delivery of refined bars.
A task force is being set up to decide a future roadmap for further implementation, according to sources.
Tyler Gillard, head of responsible sourcing and sector projects at OECD, who was in Delhi to be a keynote speaker at India gold convention organised by Bullion Federation of India, said in a telephone interview that, "After meeting Indian minister of state for finance Mr Meghwal and various industry representatives, I am optimistic about India implementing the OECD Guidance for responsible gold supply chains."
OECD gold guidelines prescribe sourcing of dore or unrefined gold to ensure it is not sourced from mines, which are illegal or mined or sold by entities that are anti-social and so on. It also audits and certifies refineries and gold sold by refineries following OECD norms is eligible for delivering on exchange platform and also for use by exporters.
So far, gold coming from London Bullion Market Association-approved refineries are considered good delivery in Indian exchange's and for exports.
Gillard also said that, "Next move would be to form a working group consisting of representatives from the Indian government, OECD and Indian gold industry, including the BFI, GJEPC and IBJA, which will seek to propose a responsible gold audit system based on the OECD Guidance and taking into account India's own market characteristics." He explained that implementing the OECD Guidance will help India increase its jewellery exports, attract more quality investment in the sector and tackle illicit activity linked to the gold trade.
Harish Acharya, secretary, Bullion Federation of India said: "LBMA norms are not conducive for Indian business situation and OECD norms will be prepared to keep in mind Indian industry situation. We will be setting up four Sonal training and facilitation centres in India where government, industry and OECD will have representatives and it will provide training to all who are required to take it. These centres being set up in West, East, North and South India. Under OECD guidelines refineries will have to be annually audited by certified auditors and "these centres will be facilitating points for all these."