India: Miners Demand Payment Waiver on Lease Transfer

Miners have demanded exemption in charges in case of transfer of ownership of leases.

As per the prevailing statutory regulations, transfer of leases is permitted only for auctioned mines. Captive mines awarded before the promulgation of the amended Mines and Minerals- Development & Regulation (MMDR) Act of 2015 are also allowed for transfer subject to payment of 80 percent of royalty. However, the latest MMDR Act debars transfer of non-captive mines except those granted at auctions.

"Transfer of all the leases should, therefore, be permitted without any additional financial implications as was prevalent prior to the enactment of MMDR Amendment Act, 2015. Mergers and acquisitions are the integral components of the business and corporate sector for bringing operational efficiency and strengthening the economy", Federation of Indian Mineral Industries (Fimi) said in a submission to planning think-tank Niti Aayog.

Also, FIMI has demanded that the cases of Reconnaissance Permits (RPs) and Prospecting Licenses (PLs) saved under Section 10 A (2) (b) before the MMDR Act 2015 got legal sanction. Though more than four years have lapsed, none of the pending RP/PL applications have got upgraded to Mining Leases (MLs). "We understand that neither the Central government nor the state government are taking any initiative in respect of the pending applications for mineral concessions. To give an immediate boost to the mining sector, these cases are to be expeditiously granted, for ensuring continuous raw material supply in the interregnum", the mineral body said.