New Delhi: In a setback for the mining industry, the government is set to reject a proposal to extend non-captive mining leases of companies that are expiring after completing 50 year period in March, 2020.
The move will impact about 334 mines belonging to companies such as Tata Steel, Vedanta Limited, Essel Mining, V.M. Salgaocar and Rungta Mines in 10 states that are facing expiry of lease and closure by March next year under current regulations.
Of these 46 working mining leases have a significant contribution to the production of iron ore, manganese ore and chromite ore in India.
Sources said a high level committee (HLC) set upon by Niti Aayog to identify key challenges of the sector and negate their impact has recommended that all existing mining lease of companies that have completed 50 years of operation will expire on March 31, 2020 and these would then be allocated through an auction process to be conducted in the January-March. Government is set to implement these recommendations, sources said.
