Merchant mining leases lapsing by March 2020 may get three-year extension

Fimi had earlier said non-extension will disrupt raw material supplies to steel, other industries. Nearly 70% of steel plants don't have captive iron ore resources and have to rely on merchant miners

Jayajit Dash Bhubaneswar
Merchant mining leases lapsing by March 2020 may get three-year extension

The Union mines ministry is working on a proposal to extend the validity of merchant mining leases due to lapse by March 2020, by another three years.
If the latest government plan falls in place, merchant miners will get a reprieve. Earlier, Federation of Indian Mineral Industries (Fimi) had suggested to planning think-tank Niti Aayog to extend the validity of the merchant leases by 10 years till 2030, co-terminus with the captive mines. Fimi's suggestion was stoutly contested by steel and other end-use industries. They argued there was no case for extending the leases since merchant miners got ample time to prepare their mines for auctions after the amended Mines and Minerals- Development & Regulation (MMDR) Act, 2015 was promulgated.
“The (Mines) ministry is considering an option to extend the leases. The ministry is receptive to some genuine concerns on the anticipated raw material crunch after the merchant mines go offline. Moreo

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First Published: Jun 25 2019 | 6:32 PM IST

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