The Union Cabinet approved amending the Mines and Minerals (Development and Regulation) Act to regulates mining sector activities in the country. The move would allow transfer of mining lease for captive mines as compared to the present scenario where transfer of mining lease is only for auctioned mines.
The MMDR Act passed by Parliament in March last year and only allows transfer of mining leases in cases where the mine has been acquired through auction. But now through the amendment, the government wants to insert a clause that says: “Provided that where a mining lease has been granted otherwise than through auction and where minerals from such mining lease is being used for captive purpose such mining lease will be permitted to be transferred subject to compliance with terms and conditions as prescribed by central government.”.
After the enactment of the amended MMDR Act on January 12, 2015, all mining leases in the country could only be issued after a competitive bidding process. Under the amended Act, even in case of mergers and acquisitions, transfer of mineral leases was only allowed for those that have been auctioned. Mines Secretary Balvinder Kumar said that the fresh amendment will allow the pending mergers and acquisitions to go through. Mineral Concession Rules flowing from the amendment will be issued once the changes to the law are ratified by Parliament.”
The step will not only help in checking the stressed and non-performing assets of banks by allowing them to liquidate the same where a firm or its captive mining lease is mortgaged, but will spur mergers and acquisitions (M&As) in the sector.
Extra Info :
The Bill amends the Mines and Minerals (Development and Regulation) Act, 1957.
The Mines and Minerals (Development and Regulation) Amendment Bill, 2015 was introduced in Lok Sabha on February 24, 2015
The Mines and Minerals (Development and Regulation) Act, 1957 regulates the mining sector in India and specifies the requirement for obtaining and granting mining leases for mining operations.
So lets discuss some questions related to this article which can be asked in the upcoming exams :
1. Expand the term MMDR ?
2. The MMDR act was formed in which year ?
Courtesy : The Hindu