Karnataka to sell gold coins embossed with state emblem

Karnataka is planning to sell gold coins bearing the state’s emblem and is in talks with the private sector to open retail jewellery outlets in Tier-1 cities, Mines and Geology Minister Murugesh Nirani said Thursday.

The precious metal will be promoted with the ‘Brand Karnataka’ image, Nirani said after meeting the Jewellers’ Association and jewellery designers.

Karnataka is home to India’s only active gold mines operated by the state-run Hutti Gold Mines Ltd. “The government is exploring the possibilities of opening jewellery retail outlets by tying up with private jewellers. The state will produce jewellery and operate shops with the participation of private entities,” Nirani said.

“The idea of selling gold coins with the state’s emblem is aimed at attracting more customers since the yellow metal produced by the state will come with purity guarantee and there will be no question of pilferage,” the minister said.

For gold, the government is keen to emulate the success of Mysore Silks (sarees) and Mysore Sandal soaps. “Since gold is one of the most popular investment choices of the people, the government’s venture is expected to achieve great success,” Nirani said.

The government is also planning to set up a special economic zone exclusively for jewellery in the Kalyana Karnataka region, Nirani said. “The government is planning to set up a jewellery park in one of the locations in the Kalyana Karnataka region,” he added.

The Hutti Gold Mines will be modernised as part of the government’s plan to increase gold production and open retail jewellery shops. “We’re planning to rename Hutti Gold Mines Ltd as Karnataka State (Hutti) Gold Mines Ltd. The production of gold in the mines will be increased from 1,700 kg to 5,000 kg,” Nirani said.