India blocks firms from China, other neighbours in commercial coal auction

The coal ministry has issued a notice regarding foreign direct investment (FDI) in commercial coal auctions. The move, aimed at restricting the entry of Chinese miners, requires foreign investors to take approval from the government before participating.

Earlier, the Centre had permitted 100 per cent FDI under the automatic route for coal mining activity, including associated processing infrastructure.

The ministry issued a press note on Monday, citing the amendment made to the FDI policy formulated in April, which restricts the entry of countries that share a border with India.

“The Press Note 3 of 2020, issued by 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 that shares land borders with India,