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FDI in Mining, Petroleum and Natural Gas in India
FDI in Mining
of Equity/ FDI Cap
1. Mining and Exploration of metal and non-metal ores including
diamond, gold, silver and precious ores but excluding titanium bearing
minerals and its ores; subject to the Mines and Minerals (Development &
Regulation) Act, 1957.
2. Coal & Lignite
(a) Coal & Lignite mining for captive consumption by power
projects, iron & steel and cement units and other eligible activities
permitted under and subject to the provisions of Coal Mines (Nationalization)
(b) Setting up coal processing plants like washeries subject to the
condition that the company shall not do coal mining and shall not sell washed
coal or sized coal from its coal processing plants in the open market and
shall supply the washed or sized coal to those parties who are supplying raw
coal to coal processing plants for washing or sizing.
3. Mining and mineral separation of titanium bearing minerals and
ores, its value addition and integrated activities
- Mining and mineral separation of titanium bearing minerals &
ores, its value addition and integrated activities subject to sectoral regulations
and the Mines and Minerals (Development and Regulation Act 1957).
(i) FDI for separation of titanium bearing minerals & ores will be subject to the following additional conditions viz.:
(A) value addition facilities are set up within India along with transfer of technology;
(B) disposal of tailings during the mineral separation shall be carried out in accordance with regulations framed by the Atomic Energy Regulatory Board such as Atomic Energy (Radiation Protection) Rules, 2004 and the Atomic Energy (Safe Disposal of Radioactive Wastes) Rules, 1987.
(ii) FDI will not be allowed in mining of “prescribed substances” listed in the Notification No. S.O. 61(E), dated 18.1.2006, issued by the Department of Atomic Energy.
(1) For titanium bearing ores such as Ilmenite, Leucoxene and Rutile, manufacture of titanium dioxide pigment and titanium sponge constitutes value addition. Ilmenite can be processed to ‘produce 'Synthetic Rutile or Titanium Slag as an intermediate value added product.
(2) The objective is to ensure that the raw material available in the country is utilized for setting up downstream industries and the technology available internationally is also made available for setting up such industries within the country. Thus, if with the technology transfer, the objective of the FDI Policy can be achieved, the conditions prescribed at (i) (A) above shall be deemed to be fulfilled.
FDI in Petroleum & Natural Gas
of Equity/ FDI Cap
1. Exploration activities of oil and natural gas fields,
infrastructure related to marketing of petroleum products and natural gas,
marketing of natural gas and petroleum products, petroleum product pipelines,
natural gas/pipelines, LNG Regasification infrastructure, market study and
formulation and Petroleum refining in the private sector, subject to the
existing sectoral policy and regulatory framework in the oil marketing sector
and the policy of the Government on private participation in exploration of
oil and the discovered fields of national oil companies.
2. Petroleum refining by the Public Sector Undertakings (PSU),
without any disinvestment or dilution of domestic equity in the existing
Refer: Clause 5.2.3 & 5.2.4 of the Consolidated FDI Policy Circular of 2016 (D/o IPP F. No. 5(1)/2016-FC-1 Dated the June 07, 2016) issued by Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of India.