Global companies such as BHP, Peabody Energy and Glencore can now own coal mines and
carry out related operations in India, with the cabinet approving 100% foreign direct
investment under the automatic route in mining, processing and sale.
The FDI has been allowed for coal mining activities including associated processing
infrastructure subject to provisions of Coal Mines (Special Provisions) Act, 2015 and the
Mines and Minerals (Development and Regulation) Act, 1957 as amended from time to time,
and other relevant acts on the subject,” as per a statement issued . Associated processing
infrastructure would include washery and facilities for crushing and coal handling, it said.
Coal India’s director-finance Sanjiv Soni said the decision would lead to increased
competition. “Foreign direct investment will result in increased competition after a couple of
years when foreign players start investing, as coal mining has a long gestation period,” Soni
told. “Competition will result in additional supplies in the market and we feel prices should
stabilise once these players start producing in India.”
To help revive economic activity by attracting more foreign direct investment (FDI), the Union
Cabinet relaxed several rules in areas such as single-brand retail, contract manufacturing,
coal mining and digital media.
The Union Cabinet has made some announcement:
75 government medical colleges in areas where no such colleges exist;
diluted the current 30% domestic sourcing norms for the single brand retail trade
100% FDI under the automatic route for sale of coal, coal mining activities including
associated processing infrastructure and other relevant acts on the subject;
26% FDI under government route for uploading/streaming of news and current affairs
through digital media, on the lines of the print media;
Extending export subsidy to 6 million tonnes of sugar worth ₹6,268 crore;
Establishing an international Coalition for Disaster Resilient Infrastructure (CDRI),
with a supporting Secretariat Office in New Delhi
100% FDI under the automatic route has been allowed in contract manufacturing
Finance Minister Nirmala Sitharaman said that she would come back to announce
more relief for homebuyers and property developers. The country’s big real estate
developers are hoping she will ease access to funds and simplify rules.
Developers, battling slowing sales, have faced new rules in the past couple of years
such as the Real Estate (Regulation and Development) Act (RERA), goods and
services tax (GST), and so on, which were aimed at streamlining the sector and
simplify tax regime.
The demand for steel is expected to pick up in the second half of the year on the back
of a revival in construction activity and the slew of measures announced by Finance
Minister Nirmala Sitharaman to boost consumer sentiment.
The Karnataka government has deferred the auction of the Donimalai iron ore mine.
The development comes soon after the Centre’s Mines Tribunal kept in abeyance the
cancellation of mining lease of the block by the state government extended to NMDC