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Impact on metal & Minerals Industries after FM Nirmala Sithraman’s Tranche:
- Metal companies welcome government’s coal and mineral sector reforms
- “All these steps will not only improve the ease of doing business, but also significantly contribute to the global competitiveness of the metals and mining industry,” : Hindalco NSE 1.69 %’s managing director
- As per Hindalco, introduction of joint auction of coal and bauxite is a novel step for the primary aluminium industry to allow long-term investments and to be more globally competitive.
- “We look forward to the rules and the methodology of valuation of mines and auction process : Pai said.
- India is importing 60% of aluminium even when there is enough domestic capacity, resulting in Forex Outgo of US$ 5.5 billion (Rs 38,000 Crore): said VedantaNSE -2.70 % Aluminium and Power Business’ CEO, Ajay Kapur
- The Government may focus on promoting the domestic aluminium industry with preference for indigenously produced aluminium for domestic use in line with the PM’s thrust on local products for local market for India’s self-reliance.
- The Government may focus on promoting the domestic aluminium industry with preference for indigenously produced aluminium for domestic use in line with the PM’s thrust on local products for local market for India’s self-reliance.
- Other measures include promoting coal gas gasification through rebate in revenue share, auctioning 50 new coal and 500 mineral blocks, and an investment of Rs 50,000 crore to create transportation infrastructure for evacuating 1 billion tonnes of coal from state-run Coal India LtdNSE 1.56 % (CILNSE 3.28 %) mines.
- Indian metals and mining sector to be hit if lockdown persists: KPMG
- “The sector is dependent on raw materials which are procured on a cash-and-carry basis. Cash flow constraints will happen sooner than later and sales will be impacted due to distress in the auto and construction sector,” the report said. Indian raw material market is generally de-linked from international prices, however they will decline sharply too if turnaround gets delayed beyond a month :KPMG
- Metals are considered a process industry and exempted from complete shutdown. However all the production units are running with lower capacities and lesser numbers of staff. “If turnaround takes time, furnaces and smelters too will be shut down, which will have an impact in the metals and mining :KPMG
- After the announcement of mandatory lockdown, several reports have indicated trucks and logistics being held back, due to which there is also a risk of pilferage, which might lead to losses for the companies. :KPMG Report
- The report observed that the employment in the logistics sector, driven by the metals and mining industry will have a major hit with a pay suspension if not retrenchment.
- The Indian aluminium industry has made huge investments .
- The government monopoly of coal has been abolished as the Finance Minister of India, Nirmala Sitharaman has notified that coal mining will now be commercialized on her fourth tranche of the announcement on the Mega Stimulus Package.
- Commercial mining to improve coal availability, attract FDI : EXPERT
- “Commercial mining of coal on a revenue-sharing basis would help more coal availability at market prices. So this will be far more efficient..Liberalised entry to allow people to participate for a range of coal blocks and those who produce well before the deadlines incentive would also be given :The finance minister
Coal and Mining
- There will not be any distinction between captive and non-captive mineral mines to allow transfer of mining leases and sale of surplus unused minerals. About 500 mineral mines will be auctioned. The privatisation of discos in Union territories will provide a model for emulation by other utilities across the country. It will lead to better services to consumers and improvement in operational and financial efficiency in distribution,: Niramla Sitharaman
- Today, only 60% of the airspace is available for commercial flights and discussions will happen to ensure that more airspace is made available to commercial flights, which will not just reduce travel time between two destinations but also reduce cost of operations for the airlines,” Sitharaman
- Arvind Sharma, Partner, Shardul Amarchand Mangaldas :government had recently permitted 100 per cent FDI in commercial coal mining and, pursuant to the recent announcement, I understand be that the auction process for commercial coal mining is to be kick-started.
- Centre considering amendment to free 724 mineral deposits for auction.
- Indian metals and mining sector to be hit if lockdown persists: KPMG
- “The sector is dependent on raw materials which are procured on a cash-and-carry basis. Cash flow constraints will happen sooner than later and sales will be impacted due to distress in the auto and construction sector,” KPMG report.
- Indian raw material market is generally de-linked from international prices, however they will decline sharply too if turnaround gets delayed beyond a month :KPMG Report
- As per KPMG after the announcement of mandatory lockdown, several reports have indicated trucks and logistics being held back, due to which there is also a risk of pilferage, which might lead to losses for the companies.
- The report observed that the employment in the logistics sector, driven by the metals and mining industry will have a major hit with a pay suspension if not retrenchment.
- Please find some of the important video regarding this project.
- Links are available here :
- Bringing In Commercial Mining In The Coal Sector: FM Nirmala Sitharaman | CNBC-TV18
- DISTINCTION BETWEEN CAPTIVE & NON-CAPTIVE MINES WILL BE REMOVED: FM NIRMALA SITHARAMAN
- FM Sitharaman Announces Commercial Mining In The Coal Sector | ABP News
- Centre Introduces Commercial Mining In Coal Sector, Invests Rs. 50,000 Crores
- NMDC ने घटाई Iron Ore की कीमतें | Chhattisgarh के Steel Industry को होगा फायदा
- CBM in India || MoU b/w CMPDI and BCCL,ECL
source :Youtube.
Thank You, Stay safe and healthy.
