Indian cabinet approves law reform to remove captive/non-captive mine distinction

Thursday, 14 January 2021 11:40:43 (GMT+3)   |   Kolkata

India’s cabinet of ministers has approved reforms of mining legislations aiming to double mineral productions over the next four to five years and, inter alia, remove the distinction between captive and non-captive mining, a government official said on Thursday, January 14.

The official said that, with the removal of the distinction between captive and non-captive mines, downstream processing industries like steel, cement and thermal power will have full freedom for the commercial sale of minerals from their iron ore and coal mines, in addition to their own consumption.

The reforms will also enable the free transfer of mining leases, the official said.

The Ministry of Mines had previously relaxed the norms for captive iron ore mines, whereby a steel company having a captive mine was permitted free commercial sale of iron ore up to a maximum of 25 percent of annual incremental production.

The cabinet approval will be followed up by amendments to sections 10A (2b) and 10A (2C) of the Mines, Minerals Development and Regulation Act (MMDRA) 2015.

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