Lok Sabha passes MMDR Amendment Act

The Mines and Minerals (Development and Regulation) Amendment Act was passed in the Lok Sabha in today’s Parliamentary session.The amendment to the 2015 MMDR Act, when passed by the Rajya Sabha, will allow for transfer of captive mines in the country without the need for auction and will unclog a number of stuck deals in the mining sector.

The Ultratech-JayPee and Birla-Reliance deals, which were worth Rs 5,400 crore and Rs 4,800 crore respectively, both of which have been stuck because of the MMDR Act, will likely get a fillip following the government's decision to move an amendment.Reacting to this news, Sanjay Ladiwala of Cement Dealers Association told CNBC-TV18 that this is a practical step taken by the government and it will aid the mergers and acquisitions clogged in the cement industry.Mines Minister Narendra Singh Tomar said he brought the MMDR AmendmentBill, 2016 after consulting different stakeholders including the SBI and industry associations.Tomar said auction notices for 33 mines were out, of which auctioning for six was already done in three states and revenue of Rs 18,146 crore was generated. He added that auction notices for 42 more mines will be out in second stage and the figure will soon reach to 100."With the transfer...suppose, if one industry is sick, (if not transferred), then it will lead to unemployment, the local economy will be hit," Tomar said replying to a debate on the bill.(With additions from PTI)Watch video for more.