Mines ministry proposes to amend MMDR Bill: Narendra Singh Tomar

The Minister of Steel and Mines Narendra Singh Tomar said Mines ministry has proposed to amend the MMDR Act to include provisions allowing transfer of captive mines granted through procedures other than auction. It has prepared a draft Mines and Minerals (Development and Regulation) (Amendment) Bill, 2016 to amend Mines and Minerals (Development and Regulation) Act, 1957. The minister said the transfer of captive mining leases, granted otherwise through auction, would facilitate banks and financial institutions to liquidate stressed assets where a company or its captive mining lease is mortgaged.

It will soon be sent for the approval of the Cabinet and after that it will be placed in Parliament, he said. On the budget for 2016-17, Tomar said the decision to increase custom duty on zinc alloy will control the recent surge in imports. Removal of export duty on iron ore will encourage export of the ore, which is not being utilised in India and increase in custom duty by 2.5 percent on aluminium will provide relief to the domestic industry, he added.

He also expressed confidence that the steel industry will benefit from increase in steel demand as a result of various decisions taken in the Budget. "A new policy to expand LPG connections to the poor and needy particularly in the rural areas will help raise demand for LPG grade HR Coils. The industry will directly benefit from this," Tomar added.

The target of 100 percent village electrification by May 1, 2018, will boost demand of steel products such as poles, structural steel, wires, electrical steel, etc, he added. "A policy to provide 100 percent FDI through FIPB route in food products produced and marketed in India will increase the need for storage for food products. This will increase the demand for containers and silos for storage, again indirectly boosting steel demand," Tomar noted.

The government's investment plan of Rs 85,000 crore in irrigation is expected to increase the demand for pipes and tubes, the minister said.