India Intelligence Report
 

100% FDI in Mining

 

The Federal Minister of State for Coal and Mines Dasari Narayana Rao said that a Group of Minister (GoM) has recommended allowing 100% Foreign Direct Investment in mining. Anticipating that the demand for coal is expected to triple this year to 1260 metric tons (mts), the Government has allocated 35 coal blocks to about 60 private companies for captive consumption and another 10 for Government companies. These allocations amount to about 15 billion tons of coal and equivalent to 15 years of India's current production. He disclosed that India has also recently allocated 20 new blocks for private captive consumption with 2.5 billion mts of reserves and 8 lignite blocks with 800 mts of reserve. The main beneficiaries for these allocations will be power, steel, and cement sectors. He did not disclose any environmental or labor protection and monitoring plans to cover such active mining by private companies.

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