Non-coal mineral blocks up for grabs
COAL & MINING

Non-coal mineral blocks up for grabs

More than 500 non-coal mineral blocks, partially or minimally explored under current leases, but are entangled in legacy issues and litigation, will be available for allocation, as the Union Cabinet has approved a proposal to amend the relevant law for their re-allocations through competitive bidding.

The mining sector will get a boost from the Cabinet's decision to do away with end-use restrictions for miners. Those having captive leases will be allowed to sell the minerals in the open market.

Sources said the Cabinet also gave the nod for reallocation of several non-producing blocks of the state-run companies, a move that could also interest the private players as many of these blocks have abundant proven resources.

The moves are in sync with the National Mineral Policy, which aims to increase the domestic production of non-coal, non-fuel minerals by 200% in seven years with greater private sector participation.

The leases stuck in disputes and legacy issues have failed to start production even after a 5-year window given under the Mines and Minerals (Development and Regulation) Act in 2015. The rescinding of the relevant sections of the Act will bring these leases back in the hands of the state for prompt reallocation, as per sources. The current holders of these leases will be compensated for exploration expenditure incurred by them, by dipping into the funds under the National Mineral Exploration Trust (NMET).

Mineral-potential areas will be put to auction offering seamless prospecting licence-cum mining leases. This will add to the certainty of tenure and come in handy for potential investors with deep pockets and appetite for long-gestation projects.

While the distinction between captive and non-captive mines will be removed, captive miners will likely augment production for sale in the open market, boosting supplies in the country. This also means that the preference to 'captive' users will go and, instead, all mines will be available for anyone, including commercial miners. Captive mines will be allowed to sell up to 50% of the minerals excavated.

The sources added that as in the coal sector, it is proposed to provide 50% rebate in the quoted revenue share for non-coal mineral leaseholders, for the quantity of mineral produced and dispatched earlier than the scheduled date of production. Further, the Cabinet has also cleared the industry's long-pending demand for waiver of charges for transferring mineral concessions for non-auctioned captive mines.

The Cabinet also gave a green signal for introducing an index-based mechanism by developing a National Mineral Index (NMI) for various statutory payments and others for future auctions. At present, the average sale price (ASP) is the basis for calculating various statutory payments, which is subject to distortions due to the absence of sale price data for some minerals, differences in prices across states, etc.

Also read: Amendments to mining laws get cabinet nod

Image Source

More than 500 non-coal mineral blocks, partially or minimally explored under current leases, but are entangled in legacy issues and litigation, will be available for allocation, as the Union Cabinet has approved a proposal to amend the relevant law for their re-allocations through competitive bidding. The mining sector will get a boost from the Cabinet's decision to do away with end-use restrictions for miners. Those having captive leases will be allowed to sell the minerals in the open market. Sources said the Cabinet also gave the nod for reallocation of several non-producing blocks of the state-run companies, a move that could also interest the private players as many of these blocks have abundant proven resources. The moves are in sync with the National Mineral Policy, which aims to increase the domestic production of non-coal, non-fuel minerals by 200% in seven years with greater private sector participation. The leases stuck in disputes and legacy issues have failed to start production even after a 5-year window given under the Mines and Minerals (Development and Regulation) Act in 2015. The rescinding of the relevant sections of the Act will bring these leases back in the hands of the state for prompt reallocation, as per sources. The current holders of these leases will be compensated for exploration expenditure incurred by them, by dipping into the funds under the National Mineral Exploration Trust (NMET). Mineral-potential areas will be put to auction offering seamless prospecting licence-cum mining leases. This will add to the certainty of tenure and come in handy for potential investors with deep pockets and appetite for long-gestation projects. While the distinction between captive and non-captive mines will be removed, captive miners will likely augment production for sale in the open market, boosting supplies in the country. This also means that the preference to 'captive' users will go and, instead, all mines will be available for anyone, including commercial miners. Captive mines will be allowed to sell up to 50% of the minerals excavated. The sources added that as in the coal sector, it is proposed to provide 50% rebate in the quoted revenue share for non-coal mineral leaseholders, for the quantity of mineral produced and dispatched earlier than the scheduled date of production. Further, the Cabinet has also cleared the industry's long-pending demand for waiver of charges for transferring mineral concessions for non-auctioned captive mines. The Cabinet also gave a green signal for introducing an index-based mechanism by developing a National Mineral Index (NMI) for various statutory payments and others for future auctions. At present, the average sale price (ASP) is the basis for calculating various statutory payments, which is subject to distortions due to the absence of sale price data for some minerals, differences in prices across states, etc. Also read: Amendments to mining laws get cabinet nod Image Source

Next Story
Products

TOTO India Launches Premium G & L Showers with Sleek Faucet Range

TOTO India has launched its G Shower and L Shower series, alongside an expanded range of GT, LH, and Pull-Out lavatory faucets. The collection blends advanced technology, refined aesthetics, and everyday comfort, staying true to TOTO’s philosophy of creating spaces that are both beautiful and functional. The G Shower series delivers the 3Rs of showering: Relaxing, Refreshing, and Revitalizing. Features include the Calming Shawl spray mode, Warm Spa technology, and multiple overhead and hand-shower options across eight finishes. The L Shower complements this with easy-to-use controls sui..

Next Story
Infrastructure Energy

Hero Future Energies Secures Funding for 120 MW Hybrid Project

Hero Future Energies (HFE), through its SPV Clean Renewable Energy Hybrid Three, has secured Rs 19.08 billion in funding from the State Bank of India (lead) and Canara Bank. The funds will be used to develop and construct HFE’s 120 MW renewable energy hybrid project at Kurnool, Andhra Pradesh. The project, contracted with SJVN, integrates wind, solar, and storage technologies to deliver reliable peak power. With a 21-year repayment period, the funding ensures timely execution and the commencement of commercial operations. The financial closure demonstrates continued lender confidence in..

Next Story
Infrastructure Energy

IOC GPS Renewables Raises Rs 8.36 billion Debt for Compressed Biogas Plants

IOC GPS Renewables Private Limited (IGRPL), a joint venture between IndianOil Corporation  and GPS Renewables, has raised Rs 8.36 billion (approx. US$ 95 million) in debt financing from Indian Bank to execute nine Compressed Biogas (CBG) projects across India.   The funding is the largest single-bank debt raise in the CBG sector and the first fully non-recourse financing in India for these projects. The plants—four in Haryana, three in Uttar Pradesh, one each in Chhattisgarh and Andhra Pradesh—will each produce 15 tonnes of CBG per day using paddy straw as feedstock. All nin..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?