Metal stocks were under pressure today amid concerns over global growth. Tracking weak sentiment in commodity prices, BSE Metal index was down nearly 2 per cent. Among metal stocks, Hindalco plunged 3.8 per cent to 145 while Sesa Sterlite fell 3.6 per cent to Rs 197 and Tata Steel 2.9 per cent to Rs 380.05.
The new mining law is however seen positively by analysts. President Pranab Mukherjee on Tuesday gave his assent to the mining ordinance that provides for auctioning of mines containing iron ore and others minerals. The ordinance provides for granting mines for 50 years through a competitive bidding route, including e-auction.
The ordinance empowers the Centre to prescribe terms and conditions and procedure for bidding which include production sharing or royalty payment or a combination of both. The Mines Ministry said it would ensure greater transparency and also an increased share for states from the sector.
The mines, which are already granted before the ordinance, would also be deemed to have been given for a period of 50 years. In auction, existing captive user would also have the right of first refusal.