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
Bank consolidation India’s largest lender State Bank of India (SBI) formally started merger of 5 associative banks and Bharatiya Mahila Bank with itself. The merged entity will have India’s one-fourth of ...
READ MORE
Dandeli-anshi-tiger-reserve
"A King Cobra has been run over by a vehicle on Castle Rock Main Road passing through the Castle Rock Wildlife Range of Dandeli-Anshi Tiger Reserve." Dandeli-Anshi Tiger Reserve is the fourth ...
READ MORE
Marital rape – Need to be criminalised?
Criminalise marital rape: UNDP chief Recently Minister for Women and Child Welfare Maneka Gandhi submitted in Parliament that the government wouldn’t criminalise “marital rape,”. She said that the “concept of marital rape, as ...
READ MORE
Karnataka Budget 2017- 2018 – Highlights
Siddaramaiah, who presented the state budget proposals for 2017-18 in the Assembly on 15th March, tried to explain the financial constraints his government faces because of a sluggish economy. This has ...
READ MORE
1)Consider the following on “Zika” Virus a) it is a tick-borne disease  b) it is a contagious disease c) it causes headache, muscle and joint pain along with neurological and foetaldeformation known as Microcephaly d) ...
READ MORE
Karnataka Economy: Bengaluru Water Supply and Sewerage Board (BWSSB)
Bengaluru Water Supply and Sewerage Board is an autonomous body formed by the State legislature under Bengaluru Water supply and Sewerage Board Act on 10-09-1964 for Water Supply & Sewage ...
READ MORE
India’s solar mission – Aditya
Aditya, India’s first dedicated scientific mission to study the sun is likely to get a go-ahead from the Prime Minister’s Office (PMO) Its is a joint venture between ISRO and physicists ...
READ MORE
Karnataka: Mid-Year Review Shows State Cash Happy
Revenue surplus is Rs. 8,751 cr. in the first six months of financial year 2016-17 Karnataka has a comfortable cash position and there is no need to avail loans from the ...
READ MORE
Karnataka MobileOne bags award
Karnataka MobileOne, the flagship application launched by the State government in 2014, bagged the Gold award at the World Governance Summit in Dubai Secretary, Department of e-Governance, Srivatsa Krishna, received the ...
READ MORE
Rural Development-Rural Roads InfrastructurePradhana Manthri Gram Sadak Yojana
Pradhana Manthri Gram Sadak yojana (PMGSY) PMGSY was launched in the State during December 2000 with the objective of providing rural connectivity through all weather roads to the habitations having a population of 500 and above. Under ...
READ MORE
All you need to know- Bank consolidation
Dandeli-anshi-tiger-reserve
Marital rape – Need to be criminalised?
Karnataka Budget 2017- 2018 – Highlights
CURRENT AFFAIRS QUESTION 3-02-2016
Karnataka Economy: Bengaluru Water Supply and Sewerage Board
India’s solar mission – Aditya
Karnataka: Mid-Year Review Shows State Cash Happy
Karnataka MobileOne bags award
Rural Development-Rural Roads InfrastructurePradhana Manthri Gram Sadak Yojana