Global mining giants such as BHP Billiton, Rio Tinto and Glencore may soon populate India’s coal-mining sector with their deep pockets and high-end technology to aid the government’s efforts to ramp up production of the fossil fuel, rising imports of which have been an increasing strain on the country’s current account in recent years.
The Cabinet on Wednesday allowed 100% foreign direct investment (FDI) through the automatic route for sale of coal in the open market, in a critical step that will result in culmination of a February 2018 decision allowing auction of coal-bearing blocks to private parties for commercial mining.
Last year’s move virtually upended the Coal Mines (Nationalisation) Act, 1973, which has kept the sector largely a preserve of public-sector monolith Coal India (CIL) for long.
