Page 144 - CW E-Magazine (9-1-2024)

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RELAXATION OF TERMS led for mid-2025. The focus of the fi rst
Govt. proposes cap on performance security and upfront phase of production will be on biologi-
cal agriculture products, followed by
amount to auction critical and strategic minerals probiotics and enzyme products. The
project will focus on reducing chemi-
cal usage in the agribusiness sector.
The Mines Ministry has proposed formance security and upfront payment
capping the performance security and for a mining lease is 0.50% of the VER, “This manufacturing unit will be a fully
automated, state-of-the-art facility,
upfront amount – payable after bagging which shall be adjusted every fi ve years probably the best in the world and it will
the rights to extract minerals – for mak- so that it continues to correspond to the not only contribute to the local economy,
ing critical and strategic mineral blocks resource value. For a composite lease, but also elevate India’s standing in the
more lucrative for mining companies. the performance security is 0.25% global arena of biotechnology,” said
Presently, the performance security and of the VER, but it is revised upwards Mr. Harshvardhan Bhagchandka, Presi-
upfront amount is a percentage of the when the mining license is issued for dent, IPL Biologicals.
Value of Estimated Resources (VER). the same block.
under the Mineral (Auction) Rules,
According to the Mines Ministry, 2015. Similarly, bid security amount is These amounts function as a mone- GACL, Vedanta to explore opportunities in caustic-
“such huge requirement for perfor- also capped at Rs. 50-crore for auction of tary guarantee of performance by the suc- chlorine, other businesses
mance security and upfront amount mining and composite licence. But pre- cessful bidder. The performance security
would reduce participation of the bid- sently there is no cap for the performance is supposed to be maintained by the suc-
ders in the auction process.” These security and upfront amount. The centre cessful bidder till the expiry of the lease Gujarat Alkalies and Chemicals Ltd.
relaxations follow pre-bid consultations now wants to cap the performance secu- period and revised every fi ve years on the (GACL) said it has signed an initial
conducted by the Mines Ministry that rity and upfront amount mining lease at reassessed VER. The upfront amount is pact with Vedanta group fi rm, Vedanta
took place recently. The centre is cur- Rs. 500-crore each for a mining lease. adjusted in full against the auction of pre- Aluminium, for exploring various busi-
rently bidding out 20 blocks of critical A cap of Rs. 250-crore is in the works for mium payable by the successful bidder ness opportunities in the areas of caustic-
mines under the fi rst round of auctions. performance security under a composite after production commences. chlorine and other allied businesses.
license.
The government had listed 24 “The amount of performance secu- The Memorandum of Understand-
minerals as strategic and critical for Mining license or lease is for areas rity and upfront amount beyond a cer- ing (MoU) envisages to recognise the
the country. These include graphite, which have proven reserve of mine- tain amount does not serve any purpose potential of adding value to the business
molybdenum, lithium and platinum rals. Composite licence also called a but may act as a barrier in the participa- of both GACL and Vedanta Aluminium
group elements. Efforts are now under- prospective-cum-mining license is for tion of bidders in the auction process,” by adopting a collaborative approach in “With this MoU, both companies in the form of joint venture project or
way to speedily auction mining leases areas where preliminary exploration the ministry said, while adding that the common business interests to achieve have, in-principle, agreed to jointly through contractual arrangements of
for these minerals. has been done, but further exploration successful bidder is required to pay synergy, GACL said in a regulatory fi ling. explore the business opportunities either mutual interest,” it added.
would be required by mining compa- auction premium (percentage quoted of ANTI-TRUST REGULATOR
For auction of mining lease, net worth nies to establish more resources. Under the value of mineral dispatched) on the
requirement is capped at Rs. 200-crore the Mineral (Auction) Rules 2015, per- actual monthly production. PCBL gets CCI approval to acquire Aquapharm

SUSTAINABLE AGRICULTURE Chemicals
IPL Biologicals to set up bio-fertiliser & bio-pesticide The Competition Commission of being intimated to the fair-trade regula- action, Aquapharm Chemicals will be a
unit in Gujarat India (CCI) has granted its approval tor. After the completion of the trans- wholly-owned subsidiary of PCBL Ltd.
under the green channel route for the
acquisition of Pune-based water treat- Asian Paints gets environmental
Agro-biological company IPL Bio- Understanding with the State Government said in a press statement. The MoU ment chemicals company, Aquapharm
logicals has announced plans to set agency, Gujarat State Biotechnology with the state government aligns with Chemicals Pvt. Ltd. (ACPL), by carbon clearance for TN plant
up a facility in Gujarat involving an Mission, in the presence of Chief the national goal of adopting organic black producer, PCBL Ltd.
investment of Rs. 400-crore. The Minister Bhupendra Patel. “The invest- and sustainable practices by 2030, the Asian Paints’ plant for manufacturing The approval was granted at a
facility will manufacture biofertilisers, ment of Rs. 400 crore underscores IPL’s statement added. Under the green channel route, a resins and paints at Sriperumbudur, Tamil SEIAA meeting held on 18th December
biopesticides, biofungicides and micro- commitment to promoting eco-friendly transaction that does not raise any risk Nadu, has received the environmental 2023, in which it accepted the recom-
bial growth promoters. The company farming practices and enhancing soil The development and operational of an appreciable adverse effect on com- clearance from the State Environment mendations made by its Technical
recently signed a Memorandum of and environmental health,” the company commencement of the facility is schedu- petition is deemed to be approved on Impact Assessment Authority (SEIAA). Committee to grant the EC to the plant.

144 Chemical Weekly January 9, 2024 Chemical Weekly January 9, 2024 145

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