Cabinet allows 100% FDI in coal mining via automatic route
- By NewsOnFloor Staff
- Aug 28, 2019
- 77 views
New Delhi, Aug 28 (IANS) The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved 100 per cent foreign direct investment (FDI) through the automatic route in coal mining and related activities.
"It has been decided to permit 100 per cent FDI under automatic route for sale of coal, for coal mining activities including associated processing infrastructure subject to provisions of Coal Mines Act, 2015 and the Mines and Minerals Act, 1957," an official statement said.
"Associated Processing Infrastructure" would include coal washery, crushing, coal handling, and separation (magnetic and non-magnetic).
As per the present FDI policy, 100 per cent FDI under automatic route is allowed for coal and lignite mining for captive consumption by power projects, iron and steel and cement units and other eligible activities permitted under and subject to applicable laws and regulations.
Further, 100 per cent FDI under automatic route is also currently permitted for setting up coal processing plants such as washeries subject to the condition that the company shall not do coal mining and shall not sell washed coal or sized coal from its coal processing plants in the open market and shall supply the washed or sized coal to those parties who are supplying raw coal to processing plants.
Total FDI into India from 2014-15 to 2018-19 has been $286 billion.
Source : ians