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Now, as the amendment has been cleared by Parliament, the government expects the transfer of non-auctioned mines to happen smoothly. Mines minister Narendra Singh Tomar said in the Rajya Sabha that the amendment was in the larger interest of workers and the provision was not intended to benefit any industrial house.
Auction of non-coal mines was introduced in the new mining law which was passed last year. Before 2015, all mines in India were handed out by state governments on discretion.
In January, the government proposed the amendment to "spur merger and acquisitions in the mining sector and help in checking the stressed and non-performing assets of banks by allowing them to liquidate assets where a firm or its captive mining lease is mortgaged".