100 per cent FDI in coal mining likely to attract more global investment
According to an ICRA report, opening up commercial coal mining for the private sector and allowing 100 per cent foreign direct investment (FDI) are likely to attract global miners to invest in India. Private sector participation would result in faster ramp up of coal production, helping gradually reduce India?s import dependence, especially for thermal coal, the report said.

Allowing 100 per cent FDI in commercial coal mining is likely to open the doors for global coal miners to invest in India, which can benefit the sector in the long run through increased technology adoption and mechanisation in mining operations, thereby helping achieve better operational efficiency for the industry, the report added. Absence of end-use condition in the guidelines is a significant positive for commercial miners, who were not eligible to participate in the previous coal mine auctions conducted during 2015, the report observed.

However, the production levels may remain the same between 40-60 million tonne per annum (mtpa) in the last several years, accounting for a mere 6-10 per cent of the overall domestic production.