New Delhi The government is set to consider a proposal for a complete ban on private-public joint ventures (JVs) for developing mineral blocks allocated to state-run corporations and public sector undertakings under a special dispensation. The move would hit the plans of Adani Mining, Moser Baer, Vedanta, Monnet Ispat and the Jaypee Group, among others, in the minerals and metals business. The parliamentary standing committee on coal and steel — which is vetting the Mines and Mineral Development and Regulation (MMDR) Bill, 2011 — is understood to have taken the view that JVs between private and public companies for mines allocated under the reserved category (for PSUs) would amount to back-door entry of the private sector into commercial mining of minerals such as coal that are reserved for the government sector. Sources said that the steel ministry wants the current policy of PSU reservation in grant of mineral concessions to continue. The ministry is of the opinion that there is no need to dilute this policy by allowing public sector entities to tie up with private firms, they said. The House panel may now endorse this. The policy under the extant MMDR Act, 1957, is proposed to be withdrawn in the Bill, which means that even government firms would have to participate in the auction process for mineral concessions regarding major minerals excluding coal. “The views of the ministry is practical and would be considered in the final report of the committee so that the mines ministry makes necessary changes in the new MMDR Bill proposing a ban on joint ventures with the private sector for blocks reserved for government entities including PSUs,” said a committee member, who did not want to be identified. It is likely that the new Bill will have provisions on PSU reservation for minerals. If these companies feel the need to forge alliances, they would be permitted to do so with other state or central government companies or corporations. The steel ministry is of the view that even in the case of coal, JVs with private companies should not be allowed. Companies such as Monnet, Vedanta, Moser Baer, Adani and the Jaypee Group have forged JVs with mining and mineral corporations of Jharkhand, Chhattisgarh, Orissa and Madhya Pradesh for coal blocks allocated to these state entities. However, state corporations could now be asked not to operate these JVs in a manner that provides back-door entry to companies in an area where private operations are not permitted. Obviously, this has not gone down will with the private sector companies. “Why should there be any preference to PSUs when we (private players) have put in more investment than the government-owned companies?” asked a private steel company official, who did not want to be identified. The secretary general of the Federation of Indian Mineral Industries echoed similar views. “At a time when the government itself is trying to get more private investment in the mining sector, why does it continue to give preference to its own companies?” questioned RK Sharma. The MMDR Bill was cleared by the group of ministers headed by finance minister Pranab Mukherjee in July last year, following which the Cabinet gave its green signal and the Bill was tabled in Parliament. Now, the draft Bill is with the standing committee, which has invited views from all the stakeholders before finalising it. The committee has called private companies and associations for a meeting at the end of this month.