Indian CEOs have taken up with their Australian counterparts the issue of imposition of carbon tax on mining activities in Australia and has expressed the hope that a solution would be found to resolve the issue.

However, the Australian side has also expressed concern over the new mining law proposed in India that entails profit sharing by mining companies to the tune of 26 per cent to tribal development fund. These issues came up for discussion during the first meeting of the India-Australia CEOs Forum held in New Delhi.

In addition to this, both sides expressed the hope that the negotiations for the free trade agreement (FTA) would be completed soon to put in place a mechanism for enhanced economic engagement between the two countries.

India CEOs, led by Forum co-chair Naveen Jindal, expressed concern over the plans of the Australian Government to impose a 30 per cent tax on big mining companies.

It will come into effect in July, and will apply to mining giants such as Rio Tinto and BHP Billiton.