100% FDI In Coal Mining To Create Direct, Indirect Employment, Says Coal Minister
The decision will also create direct and indirect employment in coal-bearing areas, bring positive economic development.
Terming 100 percent foreign direct investment in coal mining "the biggest reform" of Bharatiya Janata Party government, Coal Minister Pralhad Joshi said the move will set up an efficient and competitive coal market in India and create direct and indirect employment in coal bearing areas.
On Wednesday, the government allowed 100 percent foreign investment in coal mining and contract manufacturing.
"This is the biggest reform of our times and the influx of international players will create an efficient and competitive coal market in India. It is expected to bring state-of-the-art coal mining technology to the country which will help in environmentally sustainable mining," Joshi said.
The decision will also create direct and indirect employment in coal bearing areas and will have a positive impact in the economic development of these regions, he said.
The reform is likely to help the coal bearing states get more revenue and bring in more players to create an efficient and competitive coal market.
"The decision of 100 percent FDI under automatic route for coal mining activities including associated processing, infrastructure in the coal sector is the biggest reform by Modi government which will help provide power to all 24x7," he said.
Terming the measure part of ease-of-doing-business, he said it will provide impetus to the economy.
Joshi reiterated that this step will also lead to energy security of the country as 70 percent of India's electricity is generated from thermal power plants.
Commerce Minister Piyush Goyal on Wednesday said 100 percent FDI under automatic route in coal mining and sale of coal as also associated infrastructure activity has been allowed to help attract international players to create an efficient and competitive coal market.