Why in news?

  • The ordinance for amendment in the MMDR Act 1957 and the CMSP Act 2015 has been promulgated.
  • The Union Cabinet had earlier approved the amendments intending to open up new areas of growth in the coal & mining sector.


  • The amendments in the Acts would enable the following:
  • Enhancing the  ease of doing business
  • Democratization of coal mining sector by opening it up to anyone willing to invest.
  • Offering of unexplored and partially explored coal blocks for mining through prospecting license-cum-mining Lease (PL- cum-ML).
  • Promoting Foreign Direct Investment in the coal mining  sector by removing the restriction and eligibility criteria for participation.
  • Allowing of successful bidder/allottee to utilise mined coal in any of the plant of its subsidiary or holding company
  • Attracting large investment in coal mining sector as restrictions of end use has been dropped.
  • The amendments will help to increase domestic production of India.
  • It will also help India achieve its targets set.
  • The GoI plans to increase coal production to 1 billion tonnes by 2024.
  • For the financial year 2019-20, the target set is 660 million tonnes.
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