Coal and Mining Sector

Mines and Minerals (Development and Regulation) (Amendment) Bill, 2016

The new law will allow companies that received mining licences without having gone through the auction process to transfer these leases.

  1. The 2015 law allowed transfer of mines allotted through auctions but was silent on captive mining licences allotted in the past on the basis of recommendations by a screening committee.
  2. It will make M&As easier in the steel cement, and metals sectors.
  3. It gives acquirers raw material security and scope for its optimal use in end-use plants in the cement, steel and aluminium sectors.
  4. It will also help banks liquidate such licences if they have been mortgaged to it..

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