Lok Sabha passes mines bill to allow auction of captive mines | india | Hindustan Times
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Lok Sabha passes mines bill to allow auction of captive mines

The Lok Sabha passed a bill on Wednesday to allow transfer of captive mines allotted without auction.

india Updated: Mar 17, 2016 00:44 IST
HT Correspondent
The Mines and Minerals Bill, 2016, will also facilitate banks and financial institutions to liquidate stressed assets where a company or its captive mining lease is mortgaged.
The Mines and Minerals Bill, 2016, will also facilitate banks and financial institutions to liquidate stressed assets where a company or its captive mining lease is mortgaged.

The government introduced in the Lok Sabha on Tuesday a bill to amend the mines and minerals act to include provisions of allowing transfer of captive mines allotted through procedures other than auction.

The Mines and Minerals (Development and Regulation) (Amendment) Bill, 2016, will also facilitate banks and financial institutions to liquidate stressed assets where a company or its captive mining lease is mortgaged.

The move will spur mergers and acquisitions in the sector.

Mines minister Narendra Singh Tomar said he had consulted different stakeholders, including State Bank of India and industry associations. Auction notices for 33 mines were issued. Of these, six were auctioned in three states and revenue of Rs 18,146 crore generated. He said similar notices for 42 more mines will be out in the second stage and the figure will soon touch 100.

“With the transfer... suppose, if one industry is sick, (if not transferred), then it will lead to unemployment, the local economy will be hit,” Tomar said.

The MMDR Act, passed by Parliament in March last year, only allowed transfer of mines acquired through auction. The mines ministry had later sought views from the public, states and industry on amending the law.