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Coal Ministry Tightens FDI Norms for Coal Block Auction

Coal News - Published on Wed, 05 Aug 2020

Image Source: Coal Block Auction FDI
Indian coal ministry clarified that any foreign direct investment in commercial coal mining from an entity of a country that shares land border with India will be allowed only after government approval. Coal ministry said "This is with reference to the on going auction process of coal mines for commercial coal mining. It is further clarified that any 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.”

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

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.

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Posted By : Yogender Pancholi on Wed, 05 Aug 2020
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