Mines and minerals bill clears rajya sabha test, but industry anxious about implications – the economic times

NEW DELHI | MUMBAI | KOLKATA: The government managed to get amendments to the Mines and Minerals Development and Regulation (MMDR) Act cleared but added a rider, making the industry anxious about the implications of the fine print. Grade 6 electricity experiments The Rajya Sabha on Monday approved the amended MMDR Bill, 2016, that will allow companies to transfer captive mining leases issued prior to last January, helping cement several M&A deals in the mining and resources sector.

However, the government is planning to levy a charge for transfer of mines allotted in the pre-auction era. Electricity notes class 10 pdf The transfer charge, government functionaries indicated, will be fixed but will be revised from time to time.

With no clarity yet on the quantum of the levy or even the mechanism through which it will be arrived at, companies and legal experts are preferring to wait and watch before rejoicing.

“The clarification will surely help clear the backlog of M&A deals, but we still need to wait to see the amount of the transfer fee, since there is no clarity on that,” said Haigreve Khaitan, senior partner at Khaitan & Co. Gas mask bong review “If the fee for transferring assets is too high, then it might become unviable to close a transaction even after regulatory clarity.”

According to Hemant Sahai, founding partner of HSA Associates, the fixed fee structure will bring about transparency and eliminate subjectivity. Gas variables pogil However, this will be another capital cost for the acquirer and hence the valuation of many deals will change.

Even after the amendment, the Centre will have to notify terms and conditions governing such transfers. Electricity voltage in norway Also, there’s need to define the term ‘captive’ — how much would the producer or extractor have to consume internally for it to qualify as a captive user, said experts. Maharashtra electricity e bill payment “The fee structure is not clear. Gas vs electric dryer Will there be a one-time flat fee or will it be on the basis of annual production? This will be a key factor that will determine valuations,” said Ajay Saraf, executive director, ICICI Securities. Storing electricity in water He was confident the details will soon emerge, triggering large-scale consolidation.

The industry, thus, remains cautiously optimistic. M gasol nba Almost all mining-related sectors will see some transactions after the amendment, but cement and steel would arguably be the biggest beneficiaries. Arkansas gas tax “It’s a case of better late than never,” said the CEO of a large multinational cement company with operations in India that is eyeing consolidation opportunities. Electricity voltage in india “Undoubtedly this is a big positive for the sector. Gas news But the devil could still be in the detail,” the executive said, requesting anonymity.

SPURRING CONSOLIDATION Others said the clarity would spur consolidation and investments. Elektricity club “This will hopefully provide clarity on a range of mining issues and is likely to pave the way for mining sector consolidation and industrial investment. Electricity electricity schoolhouse rock Depending on the provisions, it will be certainly helpful in reviving some mining deals that were stalled,” said Jayant Acharya, director (commercial & marketing) at JSW Steel.

The lack of a provision for transfer for mining leases issued prior to January 12, 2015, in the MMDR Act upset many headlinegrabbing transactions in the past one-and-a-half years, such as Lafarge’s sale of two cement units to Birla Corp for Rs 5,000 crore. Geothermal electricity how it works The French major subsequently had to submit a revised plan to sell its entire India operations as a pre-condition to getting approval from the Competition Commission of India for the India leg of its mega global merger with Holcim.

Similarly, after facing regulatory logjam for 15 months, the Jaypee Group had to finally call off a deal to sell two of its cement units in Madhya Pradesh to UltraTech this February. 2 chainz smoking on that gas The two assets then got folded back into a larger Jaypee Cement divestment involving 22.4 million tonnes of its portfolio, which was subsequently sold to the Aditya Birla Group.

Following the enactment of the amended MMDR Act on January 12, 2015, all mining leases in the country could only be issued after a competitive bidding process. Industrial electricity prices by state Under the amended Act, even in case of M&As, transfer of mineral leases was only allowed for those that have been auctioned out.

Even legacy mines were not spared. Electricity production in chad Earlier, mines moved along with the transfer of ownership. Electricity laws uk For instance, the assets and mines that Lafarge was previously selling were acquired from Tata Steel (then Tisco) in 1999 through a business transfer agreement. Electricity dance moms episode The limestone mines with 145 million tonnes of reserves — received through nomination — had moved seamlessly then.

Ever since, the industry wanted policymakers to recognise the practical impact of the transfer of such an asset. Save electricity images for drawing A mine is integral to the raw material supply to a plant, industry officials said. Gas water heater reviews 2012 “Why will the seller hold on to only the mining lease and why will an acquirer buy the plant without the assurance of the rights from the mine?” asked the chief financial officer of an iron ore mining company.

With the law covering all major minerals except coal and atomic minerals, the new rules made any M&A impossible. Gaslighting “No buyer would acquire a cement or steel plant without limestone or iron ore mines that come with it. Gas and water socialism That’s what one is paying top dollars for,” added the CFO quoted above.

Several companies such as Reliance Cement chose to sell shares of the company which owned the mining and prospective leases instead of opting for a slump sale of assets to circumvent the logjam. Grade 9 electricity worksheets Reliance sold the business to Birla Corp in February.

The transfer provisions have a bigger implication and will also facilitate banks and financial institutions to liquidate stressed assets where a company or its captive mining lease is mortgaged. Gas station near me Most of the banking sector stress is in commodity or infrastructure sectors. Gas bloating nausea Quicker consolidation will help bring down overall indebtedness. B games play online “This is a NPA (non-performing assets)-reducing move,” quipped a government functionary.