Last updated on August 11th, 2023 at 04:32 pm
Estimated reading time: 2 minutes
As per extant policy, no foreign company is eligible to participate in the auction for commercial mining. Companies incorporated in India are appropriate to participate.
One coal mine located in Jharkhand received a foreign direct investment of Rs.119.19 crores in FY-2022-23.
The government reviewed the Foreign Direct Investment (FDI) policy in coal mining on 18.09.2019, allowing 100% FDI under automatic route for the sale of coal, coal mining activities including associated processing infrastructure subject to the provisions of the Coal Mines Act, 2015, and Mines and Mineral Act, 1957 as amended from time to time and other relevant Acts on the subject. Associated processing infrastructure includes a coal washery, crushing, coal handling, and separation (magnetic and non-magnetic).
The Department for Promotion of Industry and Internal Trade has circulated a consolidated Foreign Direct Investment policy circular for 2020 dated December 17th, 2020.
According to Press Note 3 of 2020, the Central Government amended the FDI Policy to require prior Government approval for foreign direct investment by an entity from a country sharing land borders with India, or where the beneficial owner of such FDI into India is situated in or is a citizen of such a country.
Currently, all operating coal mines have valid environmental clearances for the part of the mine that is in operation. It is mandatory for a mine to have environmental clearance to become operational.
Shri Pralhad Joshi, Minister of Coal, Mines and Parliamentary Affairs, gave this information in a written reply today in Rajya Sabha.
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