State-run miner Coal India Limited’s (CIL’s) dominant position in the domestic market is unlikely to change any time soon even though the Indian government has permitted 100% foreign direct investment (FDI) in coal mining, paving the way for the entry of global resource companies.
The 100% FDI will be permitted through the automatic route, allowing global resource majors to invest in commercial coal mining in the country through wholly owned subsidiaries and permitting free pricing and free sale of production from their Indian mining projects.