Cabinet Decisions: India Eases Rules For Coal Mine Auctions, Approves Neelachal Ispat Divestment 

The measures announced by the Narendra Modi government “will go a long way in reducing coal imports, which is over $15 billion per year”, said Sajjan Jindal.

Continuity of all forest and environment clearances for iron ore mines for a period of two years is another great reform, the JSW Steel Ltd. chairman said in a statement.

Here are the other highlights from Jindal’s comments:

• At a time when oil prices are very uncertain, the cabinet decisions are path breaking and will help make India self-reliant.
• Viability gap funding for the North-East natural gas pipeline grid is a decision that shows the dedication of this government in encouraging growth in the regions which were deprived of the basic tools needed for development.

The government on Wednesday approved an Ordinance to amend a law in order to ease rules for auctioning of coal mines and opening it for steel and power sectors.

The decision taken by the Cabinet Chaired by Prime Minister Narendra Modi will also do away with end-use restrictions of the mining blocks, Coal Minister Pralhad Joshi said.

"The Cabinet has approved promulgation of Mineral Laws (Amendment) Ordinance 2020," the minister said, addressing media after the Cabinet meeting.

The Ordinance will ease rules for auctioning coal mines to open up to all sectors.

The Ordinance to allow auction of 46 iron ore and other mines before March 31, 2020.

Source: PTI

The Cabinet on Wednesday approved a proposal to divest equity shares of six PSUs, including MMTC, in Neelachal Ispat Ltd.

"The Cabinet has approved divestment of some shares of six companies held in Neelachal Ispat," Information and Broadcasting Minister Prakash Javadekar told reporters after the Cabinet meeting here.

The six PSUs are MMTC, National Mineral Development Corporatin, Bharat Heavy Electrical Ltd., Odisha Mining Corporation, Odisha Investment Corporation and MECON, he said.

The minister further said MMTC will sell 49 percent in Neelachal Ispat, while that of Odisha Mining Corporation 20 percent, Odisha Investment Corporation 12 percent, NMDC 10 percent.

Source: PTI

The Cabinet on Wednesday approved a proposal to provide Rs 5,559 crore viability gap funding for building a 1,656 km gas grid in the Northeast region at a cost of Rs 9,256 crore, Oil Minister Dharmendra Pradhan said.

The decision to provide viability gap funding to Indradhanush Gas Grid Ltd. for setting up the North East Natural Gas Pipeline Grid was taken by the Cabinet chaired by Prime Minister Narendra Modi in its meeting.

"Quantum of viability gap funding will be capped at 60 percent of estimated project cost; Gas pipeline would be developed in eight states of north east; this will lead to development of industrial climate in these states and improvement in standard of living of people in the region," the government said.

Source: PTI

The cabinet also approved an in-principle strategic disinvestment of equity shareholding, in Neelachal Ispat Nigam, of:

• Minerals and Metals Trading Corp.
• National Mineral Development Corp.
• MECON (formerly known as Metallurgical & Engineering Consultants)
• BHEL

In a “major reform”, India’s union cabinet headed by Prime Minister Narendra Modi has approved the promulgation of Mineral Laws (Amendment) Ordinance 2020 which is related to coal and mines, said Prakash Javadekar - Minister for Environment, Forest and Climate Change.

Coal and Mines Minister Pralhad Joshi went on to say:

• The Ordinance will amend Mines and Minerals (Developmment and Regulation ) Act 1957 and Coal Mines (Special Provisions) Act 2015
• The end-use clause in coal mine auctions will be removed as part of the ordinance
• Allocation of coal/lignite blocks for composite prospecting licence-cum-mining lease has been provided
• Requirement of previous approval in cases where allocation of blocks was made by central government has been dispensed with
• Mining leases of 46 mines expiring on March 31, 2020.
• Auction to allow seamless transfer with continuous production.
• There will be no more captive coal block auctions.
• What PSUs need will be allocated, remaining coal blocks will be auctioned.

The government will help Coal India achieve 1 billion ton output by financial year 2023-24, he said.

On Dec. 31, the government outlined the contours of a $1.5 trillion plan to build infrastructure over the next five years to shore up economic growth.

The programme will include existing projects in the energy, road and railway sectors in the pipeline, Finance Minister Nirmala Sitharaman told reporters, adding that private companies will account for 22-25 percent of the investments, with the federal government and states contributing the rest.

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India’s Union Ministers Prakash Javadekar, Dharmendra Pradhan, Pralhad Joshi are set to hold a press conference at 2 p.m. today, leading to expectations of measures to boost the economy or ease business operations amid a growth slowdown.

The cabinet - headed by Prime Minister Narendra Modi - met earlier today for a meeting.