The new law will allow companies that received mining licences without having gone through the auction process to transfer these leases.
- 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.
- It will make M&As easier in the steel cement, and metals sectors.
- It gives acquirers raw material security and scope for its optimal use in end-use plants in the cement, steel and aluminium sectors.
- It will also help banks liquidate such licences if they have been mortgaged to it..