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FDI In Commercial Coal Mining: Nations Sharing Land Border Need Government Approval

  • 06 Aug 2020

  • The Government of India had amended the Foreign Direct Investment (FDI) Policy, 2017 recently to allow 100 percent Foreign Direct Investment in coal mining activities including associated processing infrastructure.
  • Further, on 3rd August, 2020 the Union Government clarified in a statement that any Foreign Direct Investment (FDI) in commercial coal mining an entity of a country, which shares a land border with India or where the beneficial owner of investment into India is situated in or is a citizen of any such country, can invest only under the Government route. 
  • In case of a Pakistani citizen or an entity incorporated in Pakistan, the individual or entity can invest only with the approval of the Indian Government in sectors and activities other than defence, space, atomic energy and sectors and activities that are prohibited for foreign investment.