Government Resumes Coin Minting Operations

The Government of India has reversed its decision to completely halt coin production and has instructed all four mints in the country to resume production, albeit at a reduced pace.

The government has directed the state-run Security Printing and Minting Corporation of India Limited (SPMCIL), also known as India Government Mint, overseeing operations in Mumbai, Kolkata, Hyderabad, and Noida, to operate on a single shift, instead of the usual two shifts, while continuing the minting of coins across various denominations.

The mints are now tasked with meeting production targets in the remaining two-and-a-half months of the current fiscal year.

The Reserve Bank of India (RBI) collects coins and banknotes from these mints for distribution in the market.

The initial decision to halt coin production, effective from January 9, 2018, was made due to market saturation and a shortage of storage space. In an order dated January 9, 2018, the government instructed SPMCIL to halt production of circulation coins immediately and encouraged the mints to adhere to regular working hours, excluding overtime, specifically for printing banknotes.

This directive faced opposition from mint workers who expressed concerns about the potential impact on their pay, leading to agitation among the workforce. The subsequent reversal of the decision is a response to these concerns and aims to strike a balance between managing coin inventory and addressing the workforce's apprehensions.