Coal news and updates

India Inc, investors upbeat as RS passes MMDR Bill

March 20: The S&P BSE Metal Index spiked up after the Mines and Minerals Development and Regulation Bill was passed in the Rajya Sabha on Friday.

All mining leases will now be auctioned, enabling transparency for mine allocation and approvals. Companies indulging in illegal mining will have to a pay a hefty penalty of Rs 5 lakh/hectare and face imprisonment as well, industry sources said.

This is a positive for the mining industry as companies will now be able to buy metals from within the country rather than importing it. The passage of the Bill is a positive for mining companies in the long term, said a Mumbai-based metals analyst.

According to an official in an iron ore mining company, this is positive for the industry and will bring a lot clarity and certainty. The state governments are likely to benefit from mining as royalty payments are set to increase.

Companies like Tata Steel and Sesa Sterlite will be some of the beneficiaries of the MMDR Bill.

At 12:50 pm, the BSE Metal Index spiked 1.52% from intraday low of 9,628.78. SAIL (up 0.88%), HINDALCO (up 0.72%) and Coal India (up 0.29%) were some of the index gainers.

The mining sector in India has been mired in controversy over the illegal allocation of resources, causing a near standstill in granting permits to open new mines for firms, including South Korean steel giant POSCO.

India was once the world's third-largest exporter of iron ore but is importing heavily now due to court action on illegal mining. India's top court has eased some of the curbs, but state bureaucrats have dithered over renewing mining licenses, fearing charges of corruption.