Foreign Direct Investment in Commercial Coal Mining in India
New Delhi: The government has clarified that any FDI in the commercial coal mining is subject to “Applicable Laws” and any country that shares land border with India could invest only under the government route. This also applies to the beneficial owner of an investment into India is situated in or is a citizen on of any such country.
Further, a citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the Government route, in sectors/activities other than defence, space, atomic energy and sectors/activities prohibited for foreign investment.”
The Ministry of Coal stated on Monday that a corrigendum to the tender document has also been issued in this regard.
It may be mentioned that with regard to the ongoing auction process of coal mines for commercial coal mining in India, which was launched by the Nominated Authority, Ministry of Coal, Government of India in June, 2020, Foreign Direct Investment (FDI) Policy, 2017 was amended by the Central Government, to permit 100% FDI under automatic route in coal mining activities including associated processing infrastructure, for sale of coal, subject to the provisions of Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957 as amended from time to time and other relevant Acts on the subject.
Accordingly, it was stated in the tender document that “The Press Note 4 of 2019, issued by the Central Government, amended FDI Policy 2017, to permit 100% FDI under automatic route in coal mining activities, including associated processing infrastructure subject to the Act and other Applicable Laws, for sale of coal.”
– globalbihari bureau