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| Investment
Policy |
Investment Policy The Mines and Minerals (Regulation and Development)
Act, 1957, and the Mines Act, 1952 constitute the basic laws governing
the mining sector. Further, the Government has formulated the National
Mineral Policy in 1993. Far reaching measures to promote foreign investment
in the mining sector have been announced:
For
Mining
- For
exploration and mining of diamonds and precious stones FDI is
allowed upto 74% under automatic route.
- For
exploration and mining of gold and silver and minerals other than
diamonds and precious stones, metallurgy and processing FDI is
allowed upto 100% under automatic route.
For Coal and Lignite
- Private
Indian companies setting up or operating power projects as well
as coal or lignite mines for captive consumption are allowed FDI
upto 100%.
- 100%
FDI is allowed for setting up coal processing plants subject to
the condition that the company shall not do coal mining and shall
sell washed coal or sized coal from its coal processing plants
only to those parties who are supplying raw coal to the company
for washing or sizing.
- FDI
upto 74% is allowed for exploration or mining of coal or lignite
for captive consumption.
In
all the above cases, FDI is allowed upto 50% under the automatic route
subject to the condition that such investment shall not exceed 49%
of the equity of a PSU
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