Mar 11, 2016, 07.59 AM | Source: CNBC-TV18
The Cabinet today gave green signal to transfer of mining lease for captive mines, easing up passage for merger and acquisition activities in the cement sector.
Certain proposals regarding mineral concessions are pending, which will be pushed for in the Budget, he adds.
With the new amendment, the stuck M&A deals could be moved in the right direction. The two biggest deals that were stuck were the UltraTech -JP Cement’s Rs 5,400 crore deal and the Birla-Reliance deal for 5 million tonne deal valued at Rs 4,800 crore.
Another company that will benefit now is French cement maker Lafarge, which was looking to sell its Indian business, but the merger regulator has disallowed it from selling it to Indian companies.
Mangesh Bhandang of Nirmal Bang says that the major flaw of the earlier Act was non-allowance of transfer without auctioning. The move is a certain positive for M&A activities in the sector as the companies can now break-up and sell business.
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.
Watch video for more.
UltraTech Cement Ltd has informed BSE that the 16t
Ashwani Gujral of ashwanigujral.com is of the view
According to Aditya Agarwal of Way2Wealth Securiti
In an interview with CNBC-TV18, Vaibhav Agarwal, V
UltraTech Cement has informed that regarding Outco
Dipan Mehta - Member at BSE & NSE is poistive on c