Invest In India

COAL AND MINERALS


  • This is the industry that provides raw material to the major industries by producing about 95 minerals: 4 fuel-related minerals, 10 metallic minerals, 23 non-metallic minerals, 3 atomic minerals and 55 minor minerals (including building and other minerals).100% FDI in mining in India is allowed under automatic route.
  • 100% FDI in the mining sector in India is allowed in Coal and Lignite under automatic route.
  • 100% FDI in the mining sector is allowed in Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities under government route.
  • India has a strategic location that enables exports to developed and fast-developing Asian markets.
  • National Mineral Policy 2019 strives for transparency, better regulation and enforcement and balanced social and economic growth.
  • Potential growth owing to power, cement industries and rising iron and steel demand.
  • Rising demand from infrastructure (Housing for All 2022) and transportation (expansion of railway network) sectors.
  • Second largest crude steel and coal producer and fourth largest iron ore and aluminum producer in the world, leading to advantage in production and conversion costs.
  • Unexplored potential- only 20% reserves have been explored till now.
  • Permission to captive mines to sell coal in open market.
  • Some recent announcements in this sector include:
    • To introduce commercial mining in coal sector.
    • Entry norms to be liberalized- nearly 50 blocks to be offered immediately.
    • Coal Gasification/Liquefication to be incentivized through rebate in revenue share.
    • USD 6.7 Bn earmarked for infrastructure development in the coal sector.
    • Coal Bed Methane (CBM) extraction rights to be auctioned from Coal India's mines.
    • To introduce seamless composite exploration-cum-mining-cum- production regime in the minerals sector, 500 mining blocks to be auctioned.
    • Introduce joint auction of bauxite and coal mineral blocks.