ICICI Securities: NMDC’s Premium Incidence Impacts Investment Thesis
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
In a press conference Minister of Coal, Mines and Parliamentary Affairs, Pralhad Joshi, highlighted the arrangement that centre has reached with the state of Karnataka regarding the restarting of NMDC Ltd.’s Donimalai mines.
The two facets of the arrangement are:
- A committee under the chairmanship of mines secretary has been formed to look into how much premium, a state or central public sector undertaking should pay on renewal of the mines – decision is expected in three months; earlier it was zero under Mines and Minerals Development and Regulation Act (MMDR) and
- Till the time the decision is reached, based on the request of Chief Minister of Karnataka, to avoid losses to the state, an additional premium of 22.5% has been imposed on renewal of all mines (state and central PSUs).
Thus, NMDC can restart Donimalai mines by starting to pay 22.5% additional premium, ad valorem premium.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.