Weekly News 4 - 8 March 2024
Monday, 4 March 2024 (mint) ‘10 offshore mineral auctions by mid-2024’
The Indian government plans to initiate the first tranche of offshore minerals auctions between June and July this year, according to Union Minister Pralhad Joshi. Ten offshore mineral blocks have been short-listed, and consultations between ministries are ongoing to secure necessary clearances for the auctions. These blocks, situated along India's East and West coast, will pave the way for future auction tranches as part of the government's strategy.
The amendments to the Offshore Areas Mineral (Development and Regulation) Act, 2002, now allow for the auctioning of production leases for offshore minerals. These reserves, including gold, diamond, copper, nickel, cobalt, manganese, and rare earth elements, are located deep within the earth's crust, presenting extraction challenges compared to onshore minerals. The government's move signals a strategic shift towards tapping into India's offshore mineral wealth through systematic auctioning processes.
Tuesday, 5 March 2024 (mint) W.Australia working on critical minerals JVs with Indian firms
Major Indian mining firms are in discussions with authorities in Western Australia regarding potential investments in the mineral-rich province, according to Nashid Choudhury, the region's investment and trade commissioner for India and the Gulf. Choudhury highlighted the province's focus on mapping joint ventures with Indian firms, especially those involved in decarbonization efforts and lithium-ion technology for batteries.
Western Australia aims to attract Indian investments, particularly in critical minerals like lithium, vanadium, and green steel, as well as nickel, copper, and magnetite. Already, Legacy Iron Ore Ltd, a subsidiary of India's National Mineral Development Corporation (NMDC), has invested in a gold mine in Mount Celia, while MDC has secured a joint venture deal with Hancock Prospecting for lithium and critical minerals in Western Australia's Central Yilgarn area. The growing partnership aligns with the Critical Minerals Partnership signed between India and Australia in 2021, emphasizing securing supplies for India's energy transition. With Australia being a major producer of critical minerals and rare earths, the global race for critical mineral resources intensifies, with large economies like China and the US also eyeing international acquisitions.
Wednesday, 6 March 2024 (The Indian Express) Singapore’s competition watchdog approves Air India-Vistara merger, but with riders
Singapore's Competition and Consumer Commission (CCCS) has conditionally approved the merger between Air India and Vistara, a joint venture between Tata and Singapore Airlines. This approval, among the final competition-related nods needed for the merger, comes after the Competition Commission of India (CCI) previously approved it in September. CCCS raised concerns regarding the significant market share the airlines hold on four direct flight routes between Singapore and India, prompting the airlines to make commitments to address these concerns.
The commitments include maintaining capacity levels on the four routes at 2019 levels and appointing an independent auditor to monitor compliance. CCCS conducted a market testing exercise to evaluate the proposed commitments, with most stakeholders not raising concerns, except for suggestions for refinement from one party. This conditional approval highlights efforts to ensure competition in the airline industry amidst mergers and market consolidations.
Thursday, 7 March 2024 (Financial Express) CCI can now impose fines based on global turnover of companies
The Ministry of Corporate Affairs (MCA) has amended the powers of the Competition Commission of India (CCI), allowing it to impose penalties of up to 10% of the global turnover of companies violating competition laws. This move aims to increase compliance and mitigate risks through the newly introduced 'Commitment and Settlement' mechanism, which enables companies to negotiate penalties and make changes to their business practices to resolve investigations.
Previously, penalties were capped at 10% of the turnover from the specific products and services involved in the infringement. The amendments, effective from March 6, 2024, are expected to encourage more companies to opt for settlements and commitments, offering a mechanism for resolving issues with the CCI. The changes are seen as a response to the rising concerns over market dominance abuse, particularly by Big Tech firms, and are likely to impact companies operating across multiple jurisdictions.
Friday, 8 March 2024 (The Indian Express) India-Asean FTA review: Thailand flags rules of origin
Thailand has raised objections to India's customs regulations implemented in 2020 to verify rules of origin under free trade agreements, particularly impacting exports to the Association of Southeast Asian Nations (ASEAN) countries. This objection comes amidst India's efforts to address a growing trade gap with ASEAN nations, which surged to $43.57 billion in favour of ASEAN in FY23, mainly driven by increased investments and production-linked incentives favouring ASEAN nations.
The trade deficit with ASEAN countries has prompted India to seek a review of the India-ASEAN Free Trade Agreement (FTA) to improve market access and streamline non-tariff barriers. Additionally, India aims to negotiate liberal product-specific rules in key sectors like electronics, chemicals, and textiles to enhance utilization of the FTA and counterbalance the China-plus-one strategy adopted by multinational companies, which has led to a surge in investments and exports in ASEAN countries.
