Mines Minister Narendra Singh Tomar said he brought the Mines and Minerals (Development and Regulation) Amendment Bill, 2016 after consulting different stakeholders including the SBI and industry associations.

Tomar cited auction notices for 33 mines were out, of which auctioning for six was already done in three states and revenue of Rs 18,146 crore was generated. He added that auction notices for 42 more mines will be out in second stage and the figure will soon reach to 100.

"With the transfer...suppose, if one industry is sick, (if not transferred), then it will lead to unemployment, the local economy will be hit," Tomar said replying to a debate on the bill.

Earlier, the Ministry had sought views from the public, states and industry on amending the MMDR Act to include provisions allowing transfer of captive mines granted through procedures other than auction.

Responding to queries on the role of states in this, the Minister cited states will do the transfer and the revenue will go to the treasury of the states.

The Mines and Minerals (Development and Regulation)(Amendment) Bill, 2016 was brought as  the government was of the view that the transfer of captive mining leases, granted otherwise through auction, would facilitate banks and financial institutions to liquidate stressed assets where a company or its captive mining lease is mortgaged.

The step will not only help in checking the stressed and non-performing assets of banks by allowing them to liquidate the same where a firm or its captive mining lease is mortgaged, but will spur mergers and acquisitions in the sector.

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