Opening up mining

Removal of end-use restrictions is a major step forward

The Union Cabinet on Wednesday cleared an Ordinance that, in effect, opened up India’s mineral extraction sector to commercial mining companies of both local and foreign ownership. The Mineral Laws (Amendment) Ordinance 2020 amends both the Mines and Minerals (Development and Regulation) Act of 1957 and the Coal Mines (Special Provisions) Act of 2015. This sets in motion the process by which mining leases can be auctioned. Any company registered in India can bid and develop coal blocks, which means that previous restrictions — such as compulsory mining experience or a presence in specified sectors such as power or iron