The Minerals (Transfer of Mining Lease Granted Otherwise than through Auction for Captive Purpose) Rules, 2016
The government of India has notified the Minerals (Transfer of Mining lease Granted otherwise than through Auction for Captive Purpose) Rules, 2016. The new regulation will not only boost mergers and acquisitions in the mining and related sectors but will unlock billions of dollars of additional revenue to the states. Apart from the transfer charges payable by the transferee equal to 80% of the royalty, the state governments would also collect 0.5% of the estimated value of the mineral reserved in the captive mines from the transferee as an upfront payment. The upfront payment will have to be submitted by the transferee within a period of 30 days of receipt of demand from the state government.