Metal-linked shares gained in Thursday’s trade after the Union Cabinet cleared amendment to the Mines and Minerals (Development and Regulation) (MMDR) Act. MMDR regulates mining sector activities in the country.
The move would allow transfer of mining lease for captive mines, as compared to the present scenario where transfer of mining lease is only for auctioned mines.
Hindalco shares closed 3.02 per cent up to Rs 83.65, followed by Jindal Steel (up 1.23 per cent), SAIL (up 0.94 per cent) and Vedanta (up 0.40 per cent). The BSE Metal index closed 0.36 per cent up at 7,532.07. On the other hand, BSE Sensex settled the day 170.62 points down at 24623.34.
The MMDR Act, passed by Parliament in March last year, only allows transfer of mining leases in cases where the mine has been acquired through auction.
Through the amendment, the government wants to insert a clause that says: “Provided that where a mining lease has been granted otherwise than through auction and where minerals from such mining lease is being used for captive purpose, such mining lease will be permitted to be transferred subject to
compliance with terms and conditions as prescribed by central government,” the ministry had earlier said in a statement.
(With inputs from agencies)