Non-fuel captive miners can now sell half of produce in open market

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November 04, 2021 2:15 AM

The Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021, notified Tuesday, has also paved the transfer of mines, both captive and non-captive, without any charges now. The nature of the mine –captive or non-captive – will, however, not change.

Through the amendments, the government has also allowed partial surrender of a mining lease. Earlier, if the lessee wanted to transfer the lease, she has to surrender the entire lease. Also, the interest rate for delayed payments of royalty and penalty has now been halved to 12% from 24% earlier.Through the amendments, the government has also allowed partial surrender of a mining lease. Earlier, if the lessee wanted to transfer the lease, she has to surrender the entire lease. Also, the interest rate for delayed payments of royalty and penalty has now been halved to 12% from 24% earlier.

Tata Steel, JSW Steel and others having captive non-coal, non-fuel mines are now eligible to sell 50% of their annual production in the open market, a move that will improve the availability of raw materials like iron ore, limestone, gypsum and others and boost India’s manufacturing competitiveness.

“Though the companies with captive mines will have to fork out certain charges to the state government for selling up to half of their annual production in the open market, the move will certainly improve the availability and boost India’s manufacturing capability,” said industry body Federation of Indian Mineral Industries’ additional secretary general B K Bhatia.

The Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021, notified Tuesday, has also paved the transfer of mines, both captive and non-captive, without any charges now. The nature of the mine –captive or non-captive – will, however, not change.

Through the amendments, the government has also allowed partial surrender of a mining lease. Earlier, if the lessee wanted to transfer the lease, she has to surrender the entire lease. Also, the interest rate for delayed payments of royalty and penalty has now been halved to 12% from 24% earlier.

The industry is gung-ho with the changes, saying that the amended rules will help the mining sector not only to contribute significantly to the country’s gross domestic product (GDP) but will also generate huge employment opportunities.

“Operationalising mineral supplies in the open market from captive mines is the highpoint of these Rules. This is bound to provide the much-needed support to the mineral-based downstream industries which were facing raw material supplies shortage across several sectors,” said Rahul Sharma, CEO (Aluminium Business), Vedanta.

NMDC CMD Sumit Deb said, “The optimisation of minimum lease area for various mineral concessions is also a positive step for promoting scientific and sustainable mining. The reforms would help in resource conservation with sustainable mining in a big manner.”

“The continued focus on reforms and the addressal of a long-pending request related to rationalising of high penal interest rate is a welcome move. The Mineral Concession Rules 2021 will further give a fillip to the sector by providing for refund of unadjusted upfront payment collected for mining concession transfers, said Pankaj Satija, chief regulatory affairs, Tata Steel.

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