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.