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

The Rajya Sabha has cleared the Mines and Minerals (Development and Regulation) Amendment Bill of 2016.

• This paves the way for merger and acquisition activity involving firms holding captive mining leases that were allotted in the past without adopting the auction route.

Highlights:

• The Bill amends the Mines and Minerals (Development and Regulation) Act, 1957. 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.
• The Bill adds a new Fourth Schedule to the Act. It includes bauxite, iron ore, limestone and manganese ore and are defined as notified minerals. The central government may, by notification, amend this Schedule.
• The Bill creates a new category of mining license i.e. the prospecting license-cum-mining lease, which is a two stage-concession for the purpose of undertaking prospecting operations (exploring or proving mineral deposits), followed by mining operations.
• It also allows mergers and acquisitions worth billions of dollars in the domestic market as the provision of non-transfer of concessions granted through auction was coming in the way of banks and financial institutions to liquidate stressed assets where a company or its captive mining lease is mortgaged.