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Cabinet nod for FDI in coal mining
Why is it in the news?
- Government has opened up the coal sector completely for commercial mining for all local and global firms.
- It eases restrictions on end-use.
More in the news
- The Union Cabinet approved promulgation of two laws:
(1) Mineral Laws (Amendment) Ordinance 2020 to amend the Coal Mines (Special Provisions) Act, 2015.
(2) The Mines and Minerals (Development and Regulation) Act, 1957.
- The decision is said to boost the ease of doing business and increase growth avenues for coal mining.
- End to Captive Auctions:
(1) The ordinance puts an end to captive coal block auctions in future.
(2) It will have to be adopted in the upcoming Budget session once it is cleared by the President.
- Commercial Mining:
(1) The government proposes to kick-start commercial coal mining auction process.
(2) It releases bid rules and consultations with stakeholders.
- Need of Private Players:
(1) Coal India has been tasked to produce one billion tonnes by 2023-24.
(2) However, production will still fall short of demand and there is a need to introduce private players in coal mining.
(3) The amendment will help attract more participation in coal block auctions.
Source
The Hindu.