The Cabinet today gave green signal to transfer of mining lease for captive mines, easing up passage for merger and acquisition (M&A) activities in the cement sector.
The Mines and Minerals (Development and Regulation) Act, 2015 (MMDR), which regulates mining activities in the country, earlier allowed transfer of mining lease for auctioned mines only.
Balvinder Kumar, in an interview to CNBC-TV18’s Anshu Sharma, says that now captive mines will be able to transfer lease, which was earlier not allowed.
Certain proposals regarding mineral concessions are pending, which will be pushed for in the Budget, he adds.
Below is the transcript of Balvinder Kumar's interview with CNBC-TV18's Anshu Sharma.
Q: What are the provisions and how will this pave way for the private companies for mergers and acquisitions?
A: Under the amended MMDR Act transfers of mines are not allowed unless these are auctioned.
Now the provision is being made in the MMDR Act to allow captive mines to be transferred so as to allow merger, acquisitions and transfer of captive mines.
Q: How much of mergers and acquisition will be based on this particular amendment? Will there be any changes to mineral concession rules?
A: Mineral concession rules will flow from the amended MMDR Act and accordingly this provision would be made in the mineral concession rules. There are certain proposals pending and it will facilitate those proposals.
Q: How soon can we expect parliament to give a nod to amendment to MMDR?A: I can't say on that.