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100% FDI in Coal
Why is it in the news ?
- The Central government took a decision to allow 100 per cent foreign direct investment (FDI) in the coal sector.
- It also allowed commercial mining of coal.
More in the news
- The government's decision to open India's coal sector to 100 percent foreign direct investment is expected to garner interest from global players.
- The previous rules had also allowed FDI, but it was allowed for 'captive consumption only'.
- The captive consumption means for internal purpose only. Like it was restricted to domestic use like for power projects, iron and steel industry etc.. The coal mined could not be sold in open market.
- Now as per the new rules, government allowed the miners to sell the coal in open market.
Source
The Hindu.