MMDR Act of 2015 to be amended

  • The government, during the Budget session of the Parliament, plans to amend The mining law which is holding up mergers and acquisitions worth thousands of crore in the distressed commodities and mining sector.

  • Consolidation, in stressed sectors such as metals and cement, is critical as companies seek to lower their debt levels by hiving off assets.
  • The deals are stuck as the Mines and Minerals (Development and Regulation) or MMDR Act of 2015, which aims to ensure transparent auctions of minerals, doesn’t allow transfer of captive mines allotted to end-user plants in the past.
  • For instance Birla Corp’s Rs. 5,000 purchase of two Lafarge India cement units was announced this year.So, Birla Corp. can take over Lafarge’s cement plant, but won’t get access to the captive limestone mines linked to the plant, making the transaction unviable.
  • For allowing transfer of captive mines, there is no other way to proceed without an amendment. The govt is about to move a cabinet note for inter-ministerial consultations, proposing a change so that captive mines can be transferred
  • The transfer of mineral concessions shall be allowed only for concessions which are granted through auctions,” according to the relevant sub-section of the MMDR Act of 2015, which came into force on January 12.
  • Before this change, transfer of mining leases was allowed under the mineral concession rules of 1960 after getting an approval from the state government.
  • The clause has turned into a deal-breaker as a cement or steel plant with captive limestone or iron ore mines loses its utility without the assured mineral resources.
Related Posts
Brazil Zika outbreak
Brazil says the number of babies born with microcephaly or abnormally small heads since October has now reached nearly 4,000. The authorities there believe the increase is caused by an outbreak ...
Karnataka Current Affairs – KAS / KPSC Exams – 18th April 2017
Biometric attendance to weed out bogus billing Civic officials are all set to introduce the biometric system of attendance for pourakarmikas to weed out suspect bogus billing by contractors. The National Informatics ...
Karnataka State Government Launches Mobile Units To Check Polluting Vehicles
To monitor vehicular pollution, the Karnataka State Pollution Control Board (KSPCB) on 16th Nov launched 12 vehicles fitted with sophisticated emission monitoring equipment. KSPCB chairman Lakshman said the vehicles are fitted ...
Sports: Saina Nehwal Lifts Malaysia Masters Grand Prix Gold Title
Indian badminton ace Saina Nehwal notched up her first title after a career-threatening injury by claiming the Malaysia Masters Grand Prix Goldwith a hard-fought victory in the summit clash on ...
Ganga Task Force deployed Ganga Gram Yojana launched As a major initiative towards fast track implementation of Namami Gange Programme the first company of Ganga Task force Battalion was deployed at ...
19 private hospitals barred from serving patients under government schemes
The state government will cancel the empanelment of 19 private hospitals, including some top corporate facilities, for refusing to serve patients under public healthcare schemes in protest against the non-payment ...
Karnataka – Revised TDR notified; to be twice property value
The state government has notified the rules for implementing the revised scheme, which envisages acquisition of land for infrastructure projects. Under the revised scheme, two times the value of the land ...
The newly adopted Constitution of Nepal might undergo the first round of amendments if the latest round of consultations being held by former Prime Minister Sushil Koirala becomes successful. Two amendments ...
Karnataka Current Affairs – KAS / KPSC Exams 30th April 2017
Karnataka: Drought hits production With major mango producing districts stricken by drought, domestic mango production, and subsequently the export of the fruit, is seeing a huge hit this year. The production of mangoes ...
The government’s electronic intelligence monitoring system , the Central Monitoring System (CMS), will become operational by March 2016 Centralised Monitoring System (CMS) will be set up  to automate the process of ...
Brazil Zika outbreak
Karnataka Current Affairs – KAS / KPSC Exams
Karnataka State Government Launches Mobile Units To Check
Sports: Saina Nehwal Lifts Malaysia Masters Grand Prix
Implementation Of Namami Gange programme
19 private hospitals barred from serving patients under
Karnataka – Revised TDR notified; to be twice
Constitutional amendments underway in Nepal
Karnataka Current Affairs – KAS / KPSC Exams
Central Monitoring System