The Ultramodern Mining Law In India

Indias Corporate Affairs Ministry has raised the red flag to several provisions in

the the Mines and Mineral Development and Regulation (MMDR) Bill, which was on its last leg of Parliamentary approvals.The Bill was currently before the Parliamentary Standing Committee for Steel and Coal for final scrutiny and would be placed before Parliament during the forthcoming Budget session, starting next week.Henan Hongxing Mining Machinery Co., Ltd is a joint-stock mining machinery manufacturing enterprise integrated in scientific research, production and marketing. It is located at the High & New Technology Industries Development Zone of Zhengzhou,China with an area of 50 thousand m2 which includes 15,000 m2 of standard heavy duty industrial workshop. Equipments are more than 160 pieces, including large and medium sized metal processing, riveting and installing equipments. There are more than 660 workers including 80 administrators with secondary and senior occupational titles and engineering technicians. In order to promote the competitive strength, the advanced technologies have been introduced from America, Germany, Japan and Australia, which established the international advanced production line, first-class modern testing base as well as research centers of sand maker, mill and mine-selecting equipment. Scientific management, advanced processing technology and innovative manufacturing theory make the company become the mining machinery manufacturing and exporting base in China.

In a communication to the Standing Committee, the Corporate Affairs Ministry pointed out that while a citizen of India, company registered under the Companies Act or a registered firm under the Partnership Act would be eligible for the grant of mining concessions, the proposed law did not have any provision for the grant of mining concessions to Limited Liability Partnership (LLP) firms.The ministry has argued that LLPs were a new form of business entity and widely accepted globally, particularly for high risk, long gestation investments like mining sectors. The ministry has sought amendments to be incorporated by the Standing Committee for inclusion of LLPs for grant of concessions.The ministry has also pointed out that the provision for issuing one non-transferable equity share of the mining company to each family affected by the project was not in consonance with Companies Act, which did not provide any legal sanction for issue of non-transferable shares.Under the Companies Act, all shares of public, private or listed companies should be freely transferable. Apart from legal questions over non transferable shares, company law experts have pointed out that by making the shares issued to project affected families, non-transferable, the families would be denied the opportunity of being part of the wealth creation by the mining company since the family would only be entitled for dividends and not capital gains through sale of such shares.The MMDR Bill, which seeks to replace a 54-year old law governing mineral and mining sectors, provided for mandatory sharing of 26% of profits and 100% equivalent of royalty payable with local population at the mining site. As the professional manufacturer of complete sets of mining machinery, such as Rock crushing plant,Stone crusher plant,Cement mill, Henan Hongxing is always doing the best in products and service.China spiral classifier:http://www.hxjqchina.com/product-list_37.html Sand washing equipment:http://www.crusher-machine.com/19.html

by: maggie

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