New Delhi: The government approved an Ordinance to ease mining laws that will allow global players to enter the coal sector and it was termed as ‘a mother reform in the coal industry’ by Coal Minister Pralhad Joshi. He said the promulgation of Mineral Laws (Amendment) Ordinance 2020 will pave the way for growth of the coal sector and allow foreign direct investment.
The minister was briefing the media after the Union Cabinet chaired by Prime Minister Narendra Modi approved the Ordinance that will also do away with end-use restrictions and allow sectors other than power and steel to participate in auctions.
“We have taken historic decision by promulgating amendment to the MMDR Act, 1957…These amendments will open up new areas to the growth in coal and mining,” Joshi said.
“This will lead to growth of the segment, promote ease of doing business, besides ‘democratisation of the sector by opening the sector for anyone. The decision will result in promoting the foreign direct investment in the sector by removing the restriction and eligibility critieria for the participation…it will boost foreign direct investment,” the minister added.
Joshi informed that of the 334 non-captive mining leases expiring March 31, 46 are working mines. The Ordinance will allow auction of 46 iron ore and other mines before March 31, 2020.
The Ordinance according to the minister will also facilitate the seamless transfer of all statutory clearances.
The move holds significance as India has the fourth largest coal resources in the world and has set a target of production one billion tonnes by 2023-24. Despite this, it has to import coal worth around Rs 1.7 lakh crore last year.
PTI
