FDI caps increased to 100 per cent in coal

New Delhi, Aug 03 (UNI) The government today said it has decided to increase FDI caps to 100 per cent, and permit it under the automatic route for coal and lignite mining for captive consumption by power projects, iron and steel, cement production and other activities.

Minister of state for Coal Dasari Narayana Rao informed the Rajya Sabha in a written reply that FDI is permitted only in respect of captive mining of coal and lignite for specified end uses.

Therefore, the Trade Unions of public sector coal companies were not consulted.

The Minister also said that Coal India Limited (CIL) is planning to have a joint venture with GAIL for surface coal gasification. He said GAIL has made a presentation of the report to CIL. The main product of gasification will be syn gas whcih can be used for manufacture of ammonia. The only byproduct will be sulphur which can further be used for the manufacture of Sulphuric Acid.

UNI/RT RA RS1426