The Mines Ministry does not want to involve itself with the corporate structures of the mining companies.
Anup K Pujari, Secretary, Ministry of Mines, said the Ministry is not considering imposing any restrictions for mergers and acquisitions of mining lease holders in the amendments being framed for the Mines and Minerals Development and Regulation Act (MMDR).
“The mining lease is given to an individual corporate entity. If the lease-holding company is acquired by another entity, then it’s change in corporate structure,” he told
The MMDR Act will be applicable only if there is a transfer of lease. Besides, it is a subject, which has to be dealt between the signatories of the lease – the company and the State Government. “I cannot expect the lease holder to be alive (in the case of an individual) or remain with the same shareholders (in the case of a company) for the full duration of the lease.
Therefore, the Mines Ministry will not interfere with mergers. If there is anything, the Ministry of Corporate Affairs will be the one to look into it,” he added.
By not interfering in mergers, the Mines Ministry will leave the option open for larger companies to buy out mining lease holders. The Ministry expects to be ready with the amendments in time for the winter session of Parliament, which begins at the end of November.