FDI in business mining: Govt nod wanted for companies from nations sharing border with India


New Delhi, August 3

The Centre on Monday clarified that any international direct funding (FDI) in business coal mining from an entity of a rustic that shares land border with India can be allowed solely after authorities 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 mentioned in a press release.

According to the Press Note Three 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 integrated in Pakistan can make investments solely below the federal government route in sectors/actions aside from defence, house, atomic power and sectors/actions prohibited for international funding, the assertion mentioned.

A corrigendum to the tender doc has additionally been issued on this regard, it added.

Foreign Direct Investment Policy, 2017 was amended vide the Press Note four of 2019, issued by the central authorities, to allow 100 per cent FDI below computerized route in coal mining actions, together with related processing infrastructure, on the market of coal, topic to the provisions of Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957 and different related Acts on the topic.

Accordingly, it was said within the tender doc 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 additional clarified that any FDI within the business coal mining is topic to relevant legal guidelines, together with the Press Note Three of 2020, the assertion mentioned.

Prime Minister Narendra Modi launched the public sale strategy of coal blocks for business mining in June. — PTI

 



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