A bill to allow transfer of captive mines from one allottee to another
without auction was passed by Parliament on Monday May 02,2016, a move that will
enable banks and financial institutions to sell stressed assets to
recover debts.
Mines Minister Narendra Singh Tomar said in Rajya Sabha that the Mines and Minerals (Development and Regulation) Amendment Bill, 2016 is in the larger interest of workers and that the provision was not intended to benefit any industrial house.
The bill was later approved by the House. Lok Sabha had passed the bill on March 16,2016
The legislation allows mergers and acquisitions worth billions of dollars in the domestic market as the provision of non-transfer of concessions granted through auction was coming in the way of banks and financial institutions to liquidate stressed assets where a company or its captive mining lease is mortgaged.
Mines Minister Narendra Singh Tomar said in Rajya Sabha that the Mines and Minerals (Development and Regulation) Amendment Bill, 2016 is in the larger interest of workers and that the provision was not intended to benefit any industrial house.
The bill was later approved by the House. Lok Sabha had passed the bill on March 16,2016
The legislation allows mergers and acquisitions worth billions of dollars in the domestic market as the provision of non-transfer of concessions granted through auction was coming in the way of banks and financial institutions to liquidate stressed assets where a company or its captive mining lease is mortgaged.
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