Union Coal Minister Pralhad Joshi on Thursday described the 100 per cent FDI under automatic route for coal mining activities and associated infrastructure as "the biggest" reform by Prime Minister Narendra Modi led BJP government, which will help provide power to all 24x7.
"100 per cent FDI is the biggest reform of our times. The entry of international players will create an efficient and competitive coal market in India," Joshi said in a statement.
He said it is expected to bring state-of-the-art coal mining technology to the country, which will help in environmentally sustainable mining.
"This decision will also create direct and indirect employment in coal-bearing areas and will have a positive impact on the economic development of these regions," he said.
Joshi, who is also Parliamentary Affairs Minister, said the reform is likely to help the coal-bearing states get more revenue and bring in more players to create an efficient and competitive coal market.
Terming the measure as part of ease-of-doing-business, he said it will provide impetus to the economy.
He said that the step would also lead to the energy security of the country as 70 per cent of India's electricity is generated from thermal power plants.
The Union Cabinet had on Wednesday permitted 100 per cent FDI under automatic route in coal mining and associated infrastructure has been approved.
( With inputs from ANI )