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
 The Cabinet Committee on Economic Affairs (CCEA) has given its approval for creation of buffer stock of pulses. Background: Although India is the highest producer of pulses in the world, its ...
READ MORE
Chinkaras
Scientific name: Gazella bennetti About the animal Indian Gazelles are called shy animals as they always act themselves as an alert nature and usually it roams alone in the wild regions. Not very ...
READ MORE
As per the latest assessment (Year-2011) of Dynamic Ground Water Resources, carried out jointly by Central Ground Water Board (CGWB) and the State Governments, out of 6607 assessment units (Blocks/ ...
READ MORE
 Karnataka Government Programme for KPSC exam: Surya Raitha Scheme
It is a scheme by Government of Karnataka to harness Solar Energy for the benefit of the Farmer. This scheme will ensure solar panels are placed to generate electricity for running irrigation ...
READ MORE
Karnataka: Aircraft to spray seeds and fertilisers?
State-owned aviation major, Hindustan Aeronautics Ltd (HAL) thought so when it produced 39 Basant aircraft but stopped building them after 1980. Now, the Aussies want rich Indian farmers to check out ...
READ MORE
Karnataka Current Affairs – KAS / KPSC Exams – 9th April 2017
Elephant census to focus on areas outside forests Forest offici­a­ls and conservationists, who are gearing up for the elephant census, will focus on areas outside forests as the jumbos are seen ...
READ MORE
Urban Development-Construction of Houses for EWS
The Government of Karnataka has allotted 323 acres of land for the formation of Housing Projects for the members of economically weaker Section of the Society 190 Acres of land has been handed ...
READ MORE
Rebooting ties with Iran- Modi’s visit to Iran
Rebooting ties with Iran Prime Minister Narendra Modi’s visit to Tehran on May 22-23 will be an important marker in New Delhi’s attempt to instill momentum in bilateral ties. India's interests in ...
READ MORE
Rural Development-Multi Village Scheme Project & Swachha Bharat Mission
Drinking water supply schemes under Rajiv Gandhi National Drinking Water Mission have been formulated in rural areas with surface water as source to tackle water quality problem. Habitations affected by chemical ...
READ MORE
Insufficient women in police force – High Court
The number of women in the State police force is not enough to deal with crimes against women, who constitute about 50% of the total population, the Karnataka High Court ...
READ MORE
Long term measures to increase production of pulses
Chinkaras
Ground water management
 Karnataka Government Programme for KPSC exam: Surya Raitha
Karnataka: Aircraft to spray seeds and fertilisers?
Karnataka Current Affairs – KAS / KPSC Exams
Urban Development-Construction of Houses for EWS
Rebooting ties with Iran- Modi’s visit to Iran
Rural Development-Multi Village Scheme Project & Swachha Bharat
Insufficient women in police force – High Court