Gold monetisation Scheme: Jewellers want reduction in melting charges

Fin Min has fixed melting charges at Rs 500 per lot of upto 100 grams and Rs 100 per lot of additional 100 grams

Fearing the success of gold Monetisation scheme, jewellery manufacturers and retailers are want the government to reduce melting charges at least by 30% to make it customer friendly.

In the Draft Gold Monetisation Scheme issued for public comments on Tuesday, the Ministry of Finance has fixed melting charges at Rs 500 per lot of upto 100 grams and Rs 100 per lot of additional 100 grams which jewellers feel is too high.

“The initial charge fixed by the Ministry of Finance needs a revision for which we would recommend for a reduction by at least 30%. A maximum Rs 350 per 100 grams lot of gold as melting charge is enough looking at other charges and melting loss,” said Ashok Minawala, Director, All India Gems and Jewellery Trade Federation (GJF), an apex representative body of over 80% of jewellers in India.

Apart from melting charges, the customers will have to bear the cost of testing / fire assaying charges of Rs 300, stone removal charges at actual of Rs 100 and melting loss.

“Through this, the government is trying to over regulate which it must resist. On several occasions, we recommended the government not to over regulate small customers if it wants to make the scheme successful. Gold monetization scheme should be considered as fixed deposits for which charges should be fixed as per customers’ profile and quantity of deposit. Anyway, this is the draft through which the government wants to make the scheme practicable. Fixation of melting charges should be left with banks without any government’s interference,” said Rajesh Khosla, managing director of MMTC-PAMP India Pvt Ltd, India’s first LBMA approved gold refinery and the first proposer of gold monetisation scheme.