11th Jan, 2016
Mines and Minerals (Development and Regulation) (Amendment) Bill, 2016
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.
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