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
Karnataka: Landowners declare their sandalwood trees
There has been a rise in availability of sandalwood on private properties across Mysuru division, with more landowners coming forward to ‘declare’ and ‘sell’ the prized trees. This is the result ...
READ MORE
Everything you need to know about Bandipur Forest Fire
Fire in Kalkere Range Thousands of acres of forest cover burnt down in forest fire in Bandipur tiger reserve on Saturday and a forest guard succumbed to burn injuries while preventing the flames ...
READ MORE
Urban Development – Municipal Reforms Cell –DMA & BDA
Municipal Reforms Cell –DMA • An exclusive cell dedicated for municipal reforms. • Managed by Senior KAS and KMAS Officers and Professionals hired directly from the market. • The cell has in house Data Center with centralized ...
READ MORE
Amendment to CRZ 2011
The amendment to the Coastal Regulation Zone (CRZ) notification 2011 permitting the use of reclaimed land for construction of roads in notified areas has triggered a wave of concern among ...
READ MORE
Urban Development Karnataka -Successful Initiatives – BSUP
Pantharapalya slum is situated near Rajarajeshwarinagar in land of 6 A. 4 G. declared by KSDB during 2001. There are 1088 families with 6000 population belonging to different sections of the ...
READ MORE
Karnataka: Mysuru Railway Division Intensifies Track Patrolling
The Mysuru Division of South Western Railways has initiated additional precautionary measures to beef up rail safety following the recent train accident near Kanpur that claimed nearly 150 lives. This includes ...
READ MORE
Karnataka Current Affairs – KAS/KPSC Exams – 14th Feb 2018
Kalaburagi is now free wifi connected Kalaburagi is now wi-fi connected with the installation of a new, free wi-fi hotspot, at the city's Mahanagara Palike office premises. MP Mallikarjun Kharge inaugurated the ...
READ MORE
State seeks diversion of Bhutaramanahatti Reserve Forest land, Belagavi
The Centrally-appointed Forest Advisory Committee (FAC) has pulled up the State government for ‘converting’ a reserve forest to gomala land in Belagavi. The recommendations by the 7-member FAC, which comprises officials ...
READ MORE
14th ಮಾರ್ಚ್ 2018 ಕನ್ನಡ ಪ್ರಚಲಿತ ವಿದ್ಯಮಾನ
ಎಲ್‌ಒಯು’ ನೀಡಿಕೆಗೆ ಆರ್‌ಬಿಐ ನಿರ್ಬಂಧ ಆಮದು ವಹಿವಾಟಿಗೆ ನೀಡಲಾಗುವ ಸಾಲಗಳಿಗೆ ಸಂಬಂಧಿಸಿದಂತೆ ಬ್ಯಾಂಕ್‌ಗಳು ವಿತರಿಸುತ್ತಿದ್ದ ಸಾಲ ಮರುಪಾವತಿ ಖಾತರಿ ಪತ್ರಗಳಿಗೆ (ಎಲ್‌ಒಯು) ಭಾರತೀಯ ರಿಸರ್ವ್‌ ಬ್ಯಾಂಕ್‌ ನಿಷೇಧ ವಿಧಿಸಿದೆ. ‘ಎಲ್‌ಒಯು’ಗಳ ದುರ್ಬಳಕೆ ತಡೆಗಟ್ಟಲು ಈ ಕ್ರಮ ಕೈಗೊಳ್ಳಲಾಗಿದೆ. ತಕ್ಷಣದಿಂದಲೇ ಇದು ಜಾರಿಗೆ ಬಂದಿದೆ. ವಜ್ರಾಭರಣ ...
READ MORE
Packaged tours booked through travel &tour agencies will result in a nearly 20% hike
The Centre’s revision of service tax rate for packaged tours booked through travel and tour agencies will result in a nearly 20% hike in charges, which will be passed on ...
READ MORE
Karnataka: Landowners declare their sandalwood trees
Everything you need to know about Bandipur Forest
Urban Development – Municipal Reforms Cell –DMA &
Amendment to CRZ 2011
Urban Development Karnataka -Successful Initiatives – BSUP
Karnataka: Mysuru Railway Division Intensifies Track Patrolling
Karnataka Current Affairs – KAS/KPSC Exams – 14th
State seeks diversion of Bhutaramanahatti Reserve Forest land,
14th ಮಾರ್ಚ್ 2018 ಕನ್ನಡ ಪ್ರಚಲಿತ ವಿದ್ಯಮಾನ
Packaged tours booked through travel &tour agencies will