International gold mining companies are looking for tying up with gold exploration firms in India to form joint venture and launch new exploration projects.

Southern India's Deccan region has been surveyed as having one of the richest deposits of the yellow metal.

Officials at leading Indian companies like Deccan Gold Mines Ltd [Get Quote] said that at least four global gold mining companies have approached them for joint ventures. DGML has been active in exploration in southern India's Karnataka and Andhra Pradesh states. DGML is the first private sector gold exploration company in India to be listed on the Mumbai Stock Exchange.

"Yes, we have been approached by four international gold mining houses to enter into joint venture to fast track development of some of our projects and take up new exploration projects," said DGML Managing Director Sandeep Lakhwara.

He said several global companies are willing to make substantial investments in India. "We hope to finalise a joint venture agreement with one of these companies in three months," he said.

Typically, a new project gold mining project in India needs an investment of $5 million. Companies like DGML expects that global tie ups will help them to utilize the latest technology and expertise in gold mining.

India consumes anywhere between 600 to 700 tonnes of gold annually, worth $6-7 billion. But domestic production of gold is only about 2 tonnes per annum.

The Republic of South Africa, followed by Australia and the US, are the world's leading gold producers, contributing 17.3 per cent, 10.6 per cent and 10.2 per cent respectively to the world production.

Upset by the low production of gold, the Indian government last month had asked domestic gold miners to actively explore joint venture with foreign companies to speed up exploration of the yellow metal within the country.

The request came from India's Minister of State for Mines T Subbarami Reddy. He said that the government was is concerned over the huge bills for the gold that is imported to India.