Prez clears law on transfer of captive mines without auction
The Mines and Minerals (Development and Regulation) Amendment Act, 2016, has got assent of President Pranab Mukherjee on Friday, an official order said.
The legislation will allow mergers and acquisitions worth billions of dollars in the domestic market as the provision of non-transfer of concessions granted otherwise through auction was coming in the way of banks and financial institutions to liquidate stressed assets where a company or its captive mining lease is mortgaged.
It will also enable banks and financial institutions to sell stressed assets to recover debts.
The new law amend the Mines and Minerals (Development and Regulation) Act, 1957, which regulates the mining sector in the country, to say that where a mining lease has been granted otherwise than through auction and where mineral from such mining lease is being used for captive purpose, such mining lease may be permitted to be transferred.
It will, however, be subjected to compliance of such terms and conditions and payment of such amount or transfer charges as may be prescribed, as per the amended Act.
An amended bill in this regard was passed in Rajya Sabha on May 2. Lok Sabha had passed it on March 16.
While seeking Rajya Sabha nod for the bill, Mines Minister Narendra Singh Tomar had earlier this month said that the proposed changes were in the larger interest of workers and that the provision was not intended to benefit any industrial house.
Mukherjee has also given assent to the Constitution (Scheduled Castes) Order (Amendment) Act, 2016. It amend the Constitution to include certain castes in the list of Scheduled Castes in five states -- Chhattisgarh, Haryana, Kerala, Odisha and West Bengal.