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Indian Government to Allot Mining Leases through Auction - Report

Steel News - Published on Mon, 16 Sep 2019

Image Source: Mint
IANS reported that in a setback for the mining industry, the government is set to reject a proposal to extend non-captive mining leases of companies that are expiring after completing 50 year period in March, 2020. Sources said a high level committee set upon by Niti Aayog to identify key challenges of the sector and negate their impact has recommended that all existing mining lease of companies that have completed 50 years of operation will expire on March 31, 2020 and these would then be allocated through an auction process to be conducted in the January-March and the government is set to implement these recommendations.

The committee has said in its report "The committee took note of the fact that these mines have known reserves and their period of lease will come to an end on 31-03-2020 as per MMDR (Amendment) Act, 2015 was also known. The legislature had already given a time of 5 years to ward off any situation causing disruption in supplies to local industry. Therefore, extension of time for continued operation of these mines is not desirable."

The move will impact about 334 mines belonging to companies such as Tata Steel, Vedanta Limited, Essel Mining, VM Salgaocar and Rungta Mines in 10 states that are facing expiry of lease and closure by March next year under current regulations. Of these 46 working mining leases have a significant contribution to the production of iron ore, manganese ore and chromite ore in the country.

The mining industry had sought extension of leases of all operational non-captive mines for a period of 10 years beyond 2020 with another 20 years extension to be considered beyond this period. This, they felt, was necessary to prevent disruption in production while allowing full exploitation of resource available in a mine.

Source :

Posted By : Sanju Moirangthem on Mon, 16 Sep 2019
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