Govt seeks comments on draft Mines and Minerals (Development and Regulation) (Amendment) Bill, 2016
Updated: Jan 11, 2016 03:35:49pm
New Delhi, Jan 11 (KNN) The Ministry of Mines has sought for comments and suggestions from the stakeholders on the draft Mines and Minerals (Development and Regulation) (Amendment) Bill, 2016 seeking to amend the Mines and Minerals (Development and Regulation) Act, 1957.
As part of the Pre-Legislative Consultation Policy, the draft Bill along with an Explanatory Note explaining the provisions of the proposed draft Bill are made available on the website of the Ministry of Mines at www.mines.gov.in inviting comments/suggestions from the general public, Governments of States and Union Territories, Mining Industry, Stake Holders, Industry Associations, and other persons and entities concerned, on the draft Bill.
The last date for sending the comments/suggestions is January 26, 2016.
According to the draft, in the Mines and Minerals (Development and Regulation) Act, 1957, after sub-section (6) in section 12A, the following proviso shall be inserted:
“Provided 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 will be permitted to be transferred subject to compliance with the terms and conditions as prescribed by the Central Government in this behalf.”
In the explanatory note on Mines and Minerals (Development and Regulation) (Amendment) Bill, 2016, the Ministry said, “To amend the Mines and Minerals (Development and Regulation) Act, 1957 to allow the transfer of mining leases granted otherwise than through auction and where mineral from such mining lease is being used for captive purpose subject to compliance with such terms and conditions as may be prescribed by the Central Government in this regard.”
The transfer of captive mining leases, granted otherwise than through auction, would facilitate banks and financial institutions to liquidate stressed assets where a company or its captive mining lease is mortgaged. The transfer provisions will also allow mergers and acquisitions of companies and facilitate ease of doing business for companies to improve profitability and decrease costs of the companies dependent on supply of mineral ore from captive leases.
The transfer of captive leases would be subject to the consideration of enforcing Performance Security, Mine Development and Production Agreement (MDPA), and realisation of an appropriate amount, if any, if found feasible at the time of framing terms and conditions, added the Ministry. (With PIB Inputs)
As part of the Pre-Legislative Consultation Policy, the draft Bill along with an Explanatory Note explaining the provisions of the proposed draft Bill are made available on the website of the Ministry of Mines at www.mines.gov.in inviting comments/suggestions from the general public, Governments of States and Union Territories, Mining Industry, Stake Holders, Industry Associations, and other persons and entities concerned, on the draft Bill.
The last date for sending the comments/suggestions is January 26, 2016.
According to the draft, in the Mines and Minerals (Development and Regulation) Act, 1957, after sub-section (6) in section 12A, the following proviso shall be inserted:
“Provided 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 will be permitted to be transferred subject to compliance with the terms and conditions as prescribed by the Central Government in this behalf.”
In the explanatory note on Mines and Minerals (Development and Regulation) (Amendment) Bill, 2016, the Ministry said, “To amend the Mines and Minerals (Development and Regulation) Act, 1957 to allow the transfer of mining leases granted otherwise than through auction and where mineral from such mining lease is being used for captive purpose subject to compliance with such terms and conditions as may be prescribed by the Central Government in this regard.”
The transfer of captive mining leases, granted otherwise than through auction, would facilitate banks and financial institutions to liquidate stressed assets where a company or its captive mining lease is mortgaged. The transfer provisions will also allow mergers and acquisitions of companies and facilitate ease of doing business for companies to improve profitability and decrease costs of the companies dependent on supply of mineral ore from captive leases.
The transfer of captive leases would be subject to the consideration of enforcing Performance Security, Mine Development and Production Agreement (MDPA), and realisation of an appropriate amount, if any, if found feasible at the time of framing terms and conditions, added the Ministry. (With PIB Inputs)
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