Indian Parliament Passes Bills to Allow Mine Auctions

Reuters reported Friday that the Indian parliament passed two bills to allow mines that produce minerals like iron, coal and bauxite to be auctioned, to jumpstart an industry that has been deteriorating for years.

As quoted in the market news:

The Mines and Minerals Development and Regulation, and Coal Mines Special Provisions bills were seen as a test of the government’s ability to secure support from opposition parties in the upper house of parliament where the ruling Bharatiya Janata Party (BJP) lacks a majority.

BJP has an overwhelming hold over the lower chamber, Lok Sabha, due to Modi’s resounding election victory 10 months ago.

The bills have to be approved by President Pranab Mukherjee for them to become law – likely to be a formality.

India’s mining sector has been mired in controversy over the illegal allocation of resources, causing a near standstill in granting permits to open new mines, including an iron ore exploration licence for South Korean steel giant POSCO that wants to set up a steel plant in India.

Click here to read the full Reuters report.