The government has initiated a process to liberalise the foreign direct investment (FDI) policy in mining and trading. The department of industrial policy and promotion has prepared a Cabinet note on FDI liberalisation in a number of areas in the two sectors.The proposal, which includes suggestions for liberalising norms for sectors such as coal & lignite, precious stones and floriculture, will be circulated to all ministries concerned for their comments.Currently, 49 per cent FDI is allowed in captive coal mining for power generation. The current proposal is to allow FDI in captive coal mining meant for commercial sale to industrial users including steel and cement manufacturers, sources said. But the ceiling would still be 49 per cent.
