500 Mineral Mines to be Auctioned Under Simplified Regime

NEW DELHI: The government will auction 500 mineral mines, remove the distinction between captive and non-captive blocks and rationalise stamp duty as part of reforms to stimulate the sector identified as one of the major generators of direct and indirect employment.

Announcing the measures, finance minister Nirmala Sitharaman on Saturday said the removal of distinction between captive and non-captive mines will allow these to be auctioned for better value instead of states reserving them for captive use.

This will, however, require amendment in the Mines and Minerals (Development and Regulation) Act of 1957 to remove the right of first refusal given to mining lease holders. The government started the process of awarding mineral mines through auction from 2015. Mining leases of companies with captive mines were up to 2030 with right of first refusal in the auction after the expiry of the lease.

The rationalisation of stamp duty will reduce the burden on the sector that is highly taxed by the government.

“Removal of distinction between captive and non-captive mines will bring a level playing field to the industry and is a fantastic step in order to improve the overall availability of affordable minerals to everyone,” JSW chairman Sajjan Jindal tweeted.
To help aluminium industry and make its manufacturing in India competitive, the government will conduct joint auction of bauxite and coal to make aluminum manufacturing competitive in India. Both coal and bauxite are the key raw materials in the manufacture of aluminium.

Source: ToI