FDI in commercial coal mining: India tightens screws on Chinese investments
FDI in commercial coal mining: Indian government has made it clear that companies from China, Pakistan and all other nations that share a common border with India will be able to invest through government route only.
FDI in commercial coal mining: In a bid to foil any kind of hostile takeover through a company investment route, the Indian government has made it clear that companies from China, Pakistan and all other nations that share a common border with India will be able to invest through government route only. The Ministry of Coal informed about the decision through a written press statement yesterday evening.
The Ministry of Coal said, "FDI in the commercial coal mining is subject to Applicable Laws issued by the Central Government according to which an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Government route." The statement further said that a citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the Government route, in sectors/activities other than defence, space, atomic energy and sectors/activities prohibited for foreign investment.
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Foreign Direct Investment (FDI) Policy, 2017 was amended by the Central Government, to permit 100 per cent FDI under automatic route in coal mining activities including associated processing infrastructure, for sale of coal, subject to the 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.
A corrigendum to the tender document has also been issued in this regard.
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