New Delhi : No foreign company is eligible to participate in auction for commercial mining as per extant policy. However, companies incorporated in India are eligible to participate.
Foreign Direct Investment of Rs.119.19 crores in FY-2022-23 has been made for one coal mine located in Jharkhand.
Government has reviewed the Foreign Direct Investment (FDI) policy in the coal mining on 18.09.2019 allowing 100% FDI under automatic route for sale of coal, coal mining activities including associated processing infrastructure subject to the provisions of the Coal Mines (Special Provisions) Act, 2015 and Mines and Mineral (Development & Regulation) Act, 1957 as amended from time to time and other relevant Acts on the subject. Associated processing infrastructure includes coal washery, crushing, coal handling and separation (magnetic and non-magnetic). DPIIT has circulated consolidated FDI policy circular 2020 vide OM dated 17.12.2020.
Further, according to the Press Note 3 of 2020, the Central Government further amended the FDI Policy to prescribe a requirement to seek prior Government approval if such foreign direct investment is by an entity from a country which shares land borders with India or where the beneficial owner of such foreign direct investment into India is situated in or is a citizen of any such country.
All the currently operating coal mines have valid environmental clearances for the part of the mine which is in operation. For a mine to become operational environmental clearance is mandatory.
This information was given by the Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi in a written reply in Rajya Sabha today.