9 January , 2020 Fdiindia
Govt Approves Ordinance to Boost FDI in Coal Mining
With the aim of boosting coal mining in India, the Union government passed an ordinance on Wednesday 8 January 2020, which is expected to increase foreign direct investment in the sector and improve ease of doing business.
The Cabinet sanctioned promulgation of Mineral Laws (Amendment) Ordinance 2020 which will amend Mines and Minerals (Developmment and Regulation ) Act 1957 and Coal Mines (Special Provisions) Act 2015.
Prahlad Joshi, the Union Minister of Parliamentary Affairs, Coal and Mines, while addressing the press said that after the Supreme Court cancelled over 200 coal blocks, only 29 were auctioned because of end-use restrictions. The amendments are aimed at eliminating these restrictions he said.
He further said that it will improve the ease of doing business. Apart from this, it will also aide private companies to do commercial mining of coal. The government has also permitted a reform in law to improve foreign direct investment in coal mining.
Oil minister Dharmendra Pradhan dubbed the ordinance a major reform in the coal sector. He said that this will boost revenue in states like Orissa.
Under the ordinance, allocation of coal/lignite blocks for composite prospecting licence cum mining lease has been provided; requirement of previous approval in cases where allocation of blocks was made by Central Government has been dispensed with, K.S. Dhatwalia, principle spokesperson in PIB tweeted.
"This will speed up the process of implementation of projects, ease of doing business, simplification of procedure and benefit all the parties in areas where minerals are located," he said in another tweet.
Apart from this, the Centre has approved gas grid for Northeast states and viability gap funding for Northeast grid.
The disinvestment in Neelachal ISPAT Nigam has also been approved by the Centre. The government will allow Neelachal ISPAT stakeholders to sell their respective shares.