August 04, 2020
For the ongoing auction of coal mines, the Government has restrained participation of companies from countries sharing a border with India for commercial wrenching by the private sector.
The Coal Minister has issued a deception to the tender document which is permitted for commercial coal mining. Even the proposal from the companies where the whereabouts of beneficial owners is regarded or a citizen of any such country sharing a land border with India will mandatory have to go through Government route.
Under the automatic direction, any new activity or investment proposals or any bids from countries sharing the border with India will go through the Government route which means that they have to first vet by the Government before aiding in anything.
The Coal Ministry even instructed about the eligibility of the investors before placing any bid. Even a citizen of Pakistan or entity consolidated in Pakistan can also invest, but only under Government route in sectors/activities other than defence, space, atomic energy and sectors/operations halted for foreign investment.
Earlier the Government issued a Press Note 3 where all the investments from countries sharing a land border with India will have to go with Government approval route. This rule was mandatory because the Government wants to check the propagation of Chinese companies in India’s critical and delicate sector.
But now the border conflict between China and India in the Lakhdak has created even more precautions to take further measures assuring all the investments and imports from the neighbouring country.
Out of 41 mines with a total geological coal reserve of 17 billion tonnes are offered under the first stage of commercial coal mine auctions. Both the large and small mines are included. These have PRC ranging from 0.5 to 40 million tonnes per annum of coal. The total PRC of all mines is 225 mtpa.
Till now, the Coal block auction is receiving an excellent response from the investors. It also includes many inquiries from both India and global mining, metal and energy companies.
Article Written by Dikhya Mohanty
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