View: Govt must implement a reform agenda in mining sector to realise its full potential

Recent policy announcements in the mining sector, such as doing away with end-use restrictions in coal mining and extending the validity of clearances for mining leases expiring in 2020, could result in a paradigm shift. Earlier this week, the Union Cabinet approved the promulgation of the Mineral Laws (Amendment) Ordinance 2020. This permits commercial coal mining for local and global firms without imposing any end-use restrictions.

Previously, 100% FDI was permitted, under the automatic approval route, for coal and lignite mining, only for captive consumption by power projects, iron and steel, and cement units. This move is expected to result in forex savings, employment generation and enhanced investment.