FDI in commercial mining from border sharing nations needs govt nod: India

Foreign Direct Investment Policy, 2017 was amended vide the Press Note 4 of 2019, issued by the central government
The Centre on Monday clarified that any foreign direct investment (FDI) in commercial coal mining from an entity of a country that shares land border with India will be allowed only after government approval.

"This is with reference to the ongoing auction process of coal mines for commercial coal mining...It is further clarified that any FDI (foreign direct investment) in the commercial coal mining is subject to applicable laws including the Press Note 3 of 2020 issued by the Central Government....," the coal ministry said in a statement.

According to the Press Note 3 of 2020, 'an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Government route', it added.

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 statement said.

A corrigendum to the tender document has also been issued in this regard, it added.

Foreign Direct Investment Policy, 2017 was amended vide the Press Note 4 of 2019, issued by the central government, to permit 100 per cent 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 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 per cent FDI under automatic route in coal mining activities, including associated processing infrastructure subject to the act and other applicable Laws, for sale of coal."

It is further clarified that any FDI in the commercial coal mining is subject to applicable laws, including the Press Note 3 of 2020, the statement said.

Prime Minister Narendra Modi launched the auction process of coal blocks for commercial mining in June.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel