Bengaluru, May 16 (IANS): Mineral-rich Karnataka would benefit from the Centres new policy for the sector to be framed soon as part of the governments structural reforms, Chief Minister B.S. Yediyurappa on Saturday.

"Policy changes in the mineral sector will complement our mineral policy, as the state has several mineral deposits and mining is allowed," Yediyurappa said here after Union Finance Minister Nirmala Sitharaman announced structural reforms for eight growth sectors, including minerals.

Detailing the measures for easing the economic hardships triggered by the Covid-19 pandemic, Sitharaman said a seamless composite exploration-cum-mining-cum production regime would be introduced to enhance private investment in the mineral sector.

"As the present mining laws are cumbersome, structural reforms in the sector would enable the state to mine mineral deposits and create direct and indirect employment for our people," Yediyurappa said in a statement.

With one of the oldest geological formations in the Deccan region of the Indian peninsula, the southern state has abundant mineral deposits like iron, copper, gold, quartz and uranium in its central and northern districts.

"Mining the mineral reserves in an eco-friendly manner will help the state's economic growth. Private participation in mining will be profitable for the state," asserted the Chief Minister.

Investments in civil aviation, defence production, space and planetary exploration will also benefit the southern state.

"As the state has many manufacturing units in these growth sectors, other units complementing them can be set up to build an ecosystem for them. The new financial policies for the sectors will save foreign exchange, with greater thrust on self-reliance and ‘Made in India'," Yediyurappa said.

Besides coal, structural reforms are also envisaged in airspace management, MRO (maintenance, repairs and overhaul) of aircraft, power distribution and atomic energy.

"Private participation in atomic energy will also benefit our state. Many overseas atomic, space and defence firms have evinced interest in setting up their Indian operations in Karnataka," said Yediyurappa, recalling his visit to Davos in Switzerland during the World Economic Summit in January this year.

In the space sector, the state-run Indian Space Research Organisation (ISRO) is headquartered in this tech city.

In the defence sector, the state-run Hindustan Aeronautics Ltd (HAL) is also based in this aerospace hub, rolling out fighter and transport aircraft and multi-utility helicopters.