100 per cent FDI allowed in coal mining

The Railway and Commerce Minister Piyush Goyal on August 28 announced the approval of 100 per cent foreign direct investment (FDI) in coal mining.

Till now, only Coal India Limited (CIL) could mine and sell the coal in the country, whereas private and public sector companies with captive mines were allowed to mine and sell 25 per cent of the coal in the open market. Due to the approval of 100 per cent FDI in coal mining, the private companies will also be able to mine and sell coal in the country. This decision will attract new international players and create an efficient and competitive coal market.

Partha Bhattacharya, former Chairman and Managing Director of Coal India, said, “Despite having among the largest reserves in the world at 350 billion tonnes, India still imported about 235 MT of coal last year. While the demand for coal was 965 MT, only 730 MT could be sourced locally. This gap can be met by investment from international miners”.

On Thursday, the stock of Coal India Limited (CIL) opened at Rs. 182.90, made intra-day high and low of Rs. 190.10 and Rs. 182.00, respectively, and closed at Rs. 189.90, up by 2.05 per cent, on the BSE.