What level of foreign direct investment is permitted in commercial coal mining under the liberal framework described in the 16th auction round?
- A.49 per cent through the government route
- B.74 per cent through the automatic route
- C.100 per cent through the automatic route
- D.26 per cent through the government route
Correct answer
Explanation
The correct answer is 100 per cent through the automatic route. The commercial coal mining framework was designed to attract wide participation, so it carries no end-use restriction on the coal mined, permits full foreign investment without prior approval, and keeps upfront payments low by allowing them to be adjusted against future revenue share. Options A, B and D are wrong because they name partial caps or the government approval route, neither of which applies to this sector; such caps belong to other regulated sectors and are used here only as distractors. Remember also that the blocks are open to experienced mining companies, new entrants and technology-driven enterprises alike, which is why the ministry describes the framework as liberal. This combination of features is a favourite question in economy sections.
Read the full article: Coal Ministry Launches 16th Round of Commercial Coal Mine Auctions
Practice Questions
How many coal blocks are offered in the 16th round of commercial coal mine auctions launched on 17 September 2026?
- A.19 blocks
- B.21 blocks
- C.25 blocks
- D.32 blocks
Show answer
The 16th round puts 25 coal blocks before bidders, of which 21 are fully explored and four only partly explored, and they are spread across nine coal-bearing states from Arunachal Pradesh to West Bengal.
Read the full explanation →Since the sector was opened to commercial mining in 2020, how many coal mines have been auctioned in India?
- A.116
- B.128
- C.147
- D.165
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With the launch of the sixteenth round, the commercial coal mining programme has auctioned this many mines since the sector was thrown open in 2020.
Read the full explanation →What was the theme of the 14th India Chem 2026 held in Mumbai?
- A.Advantage Bharat: An Emerging Global Chemicals Hub
- B.Chemicals for a Viksit Bharat
- C.Green Chemistry, Green Growth
- D.Make in India, Mix in India
Show answer
The 14th edition of India Chem was organised in Mumbai from 22 to 24 October 2026 as a three-day event aimed at drawing investment and promoting sustainable growth in chemicals and petrochemicals.
Read the full explanation →Which of the following is NOT one of India's three operational Petroleum, Chemicals and Petrochemicals Investment Regions?
- A.Dahej in Gujarat
- B.Paradeep in Odisha
- C.Visakhapatnam-Kakinada in Andhra Pradesh
- D.Haldia in West Bengal
Show answer
India has three operational PCPIRs: Dahej in Gujarat, Visakhapatnam-Kakinada in Andhra Pradesh and Paradeep in Odisha. Haldia is not among them, so option D is the exception.
Read the full explanation →What is the total financial outlay of the BHAVYA Rasayan scheme for dedicated chemical parks?
- A.Rs 1,000 crore
- B.Rs 3,030 crore
- C.Rs 5,000 crore
- D.Rs 30,000 crore
Show answer
The Bharat Audyogik Vikas Yojana Rasayan scheme, approved in July 2026, carries that total outlay, of which Rs 3,000 crore is earmarked for common infrastructure and basic utilities and Rs 30 crore for administrative expenditure.
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