Government to amend MMDR Act
The step will not only spur merger and acquisitions (M&A) in the sector, but will also help in checking the stressed and non-performing assets of banks by allowing them to liquidate assets where a firm or its captive mining lease is mortgaged. The MMDR Act, passed by Parliament allows transfer of mining leases in cases where the mine has been acquired through auction.
The ministry has prepared the draft Mines and Minerals (Development and Regulation) (Amendment) Bill, 2016 seeking to amend the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957, the Mines Ministry said in a release today.
The move will allow M&As worth billions of dollars in the domestic market, especially in the cement sector where several such deals are stuck like those of Jaiprakash Associates and Lafarge, industry insiders said.