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Fdi - in coal trading

Abhinandan Baid (CA Practice ) (113 Points)

13 April 2013

Hello ,

What is the FDI Limit for a Private Limited Company engaged in coal trading ?The company is suppose to receive FDI from Bangladesh.

Thanks

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2 Replies

Sathish M (Management Accountant) (40581 Points)
Replied 14 April 2013

As per the existing policy, 100 per cent Foreign Direct Investment (FDI) in coal sector is allowed to private Indian companies setting up or operating power projects and coal or lignite mines for captive consumption. 100 per cent FDI is allowed for setting up coal processing plants subject to the condition that the company shall not do coal mining and shall not sell washed 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. FDI upto 74 per cent is allowed for exploration or mining of coal or lignite for captive consumption.