The Mines and Minerals (Development and Reguation), Act, 1957

1 THE MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957 ____________ ARRANGEMENT OF SECTIONS ____________

CHAPTER I PRELIMINARY SECTIONS

1. Short title, extent and commencement.

2. Declaration as to expediency of Union Control.

3. Definitions.

CHAPTER II GENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING OPERATIONS

4. Prospecting or mining operations to be under licence or lease.

4A. Termination of prospecting licences, exploration licences or mining leases.

4B. Conditions for efficiency in production.

5. Restrictions on the grant of mineral concession.

6. Maximum area for which mineral concession may be granted.

7. Periods for which prospecting licences may be granted or renewed.

8. Periods for which mining leases may be granted or renewed.

8A. Period of grant of a mining lease for minerals other than coal, lignite and atomic minerals.

8B. Provisions for period and transfer of statutory clearances.

9. Royalties in respect of mining leases.

9A. Dead rent to be paid by the lessee.

9B. District Mineral Foundation.

9C. National Mineral Exploration Trust.

CHAPTER III PROCEDURE FOR OBTAINING MINERAL CONCESSION IN RESPECT OF LAND IN WHICH THE MINERALS VEST IN THE GOVERNMENT

10. Application for mineral concession.

10A. Rights of existing concession holders and applicants.

10B. Grant of mining lease in respect of notified minerals through auction.

10BA. Grant of exploration licence for minerals specified in Seventh Schedule through auction.

10C. [Omitted.]

11. Grant of composite licence through auction in respect of minerals other than notified minerals.

11A. Granting of mineral concession or composite licence in respect of coal or lignite.

11B. Power of Central Government to make rules for regulating atomic minerals specified under Part B of First Schedule.

11C. Power of Central Government to amend First Schedule and Fourth Schedule.

11D. Central Government to conduct auction for grant of mining lease or composite licence in respect of minerals specified in Part D of First Schedule.

12. Registers of mineral concession.

12A. Transfer of mineral concessions.

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CHAPTER IV RULES FOR REGULATING THE GRANT OF MINERAL CONCESSIONS SECTIONS

13. Power of Central Government to make rules in respect of minerals.

13A. Power of Central Government to make rules for grant of prospecting licences or mining leases in respect of territorial waters or continental shelf of India.

14. [Sections 5 to 13] not to apply to minor minerals.

15. Power of State Governments to make rules in respect of minor minerals.

15A. Power of State Government to collect funds for District Mineral Foundation in case of minor minerals.

16. Power to modify mining leases granted before 25th October, 1949.

CHAPTER V SPECIAL POWERS OF CENTRAL GOVERNMENT TO UNDERTAKE PROSPECTING OR MINING OPERATIONS IN CERTAIN CASES

17. Special powers of Central Government to undertake prospecting or mining operations in certain lands.

17A. Reservation of areas for purposes of conservation.

CHAPTER VI DEVELOPMENT OF MINERALS

18. Mineral development.

18A. Power to authorise Geological Survey of India, etc., to make investigation.

CHAPTER VII MISCELLANEOUS

19. Mineral concession to be void if in contravention of Act.

20. Act and rules to apply to all renewals of prospecting licences and mining leases.

20A. Power of Central Government to issue directions.

21. Penalties.

22. Cognizance of offences.

23. Offences by companies.

23A. Compounding of offences.

23B. Power to search.

23C. Power of State Government to make rules for preventing illegal mining, transportation and storage of minerals.

24. Power of entry and inspection.

24A. Rights and liabilities of a holder of mineral concession.

25. Recovery of certain sums as arrears of land revenue.

26. Delegation of powers.

27. Protection of action taken in good faith.

28. Rules and notifications to be laid before Parliament and certain rules to be approved by Parliament.

29. Existing rules to continue.

30. Power of revision by Central Government.

30A. Special provisions relating to mining leases for coal granted before 25th October, 1949.

3 SECTIONS

30B. Constitution of Special Courts.

30C. Special Courts to have powers of Court of Session.

31. Relaxation of rules in special cases.

32. [Repealed].

33. Validation of certain acts and indemnity.

THE FIRST SCHEDULE.

THE SECOND SCHEDULE.

THE THIRD SCHEDULE.

THE FOURTH SCHEDULE.

THE FIFTH SCHEDULE.

THE SIXTH SCHEDULE.

THE SEVENTH SCHEDULE.

4 THE MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957 ACT NO. 67 OF 1957 [28th December, 1957.]

An Act to provide for the 1[development and regulation of mines and minerals] under the control of the Union.

BE it enacted by Parliament in the Eighth Year of the Republic of India as follows:―

CHAPTER I PRELIMINARY

1. Short title, extent and commencement.―(1) This Act may be called the Mines and Minerals 2[(Development and Regulation)] Act, 1957.

(2) It extends to the whole of India.

(3) It shall come into force on such date3as the Central Government may, by notification in the Official Gazette, appoint.

2. Declaration as to expediency of Union Control.―It is hereby declared that it is expedient in the public interest that the Union should take under its control the regulation of mines and the development of minerals to the extent hereinafter provided.

3. Definitions.―In this Act, unless the context otherwise requires,― 4[(a) “composite licence” means the prospecting licence-cum-mining lease which is a two stage concession granted for the purpose of undertaking prospecting operations followed by mining operations in a seamless manner;

(aa) “dispatch” means the removal of minerals or mineral products from the leased area and includes the consumption of minerals and mineral products within such leased area;

5[(aaa) “exploration licence” means a licence granted for undertaking reconnaissance operations or prospecting operations or both in respect of minerals specified in the Seventh Schedule;]

(ab) “Government company” shall have the same meaning as assigned to it in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013);

(ac) “leased area” means the area specified in the mining lease within which the mining operations can be undertaken and includes the non- mineralized area required and approved for the activities falling under the definition of “mine” as referred to in clause (i);

(ad) “minerals” includes all minerals except minerals oils;

(ae) “minerals concession” means either a reconnaissance permit, prospecting licence, minig lease, composite licence 5[,exploration licence] or a combination of any of these and the expression “concession” shall be construed accordingly;]

(b) “mineral oils” includes natural gas and petroleum;

(c) “mining lease” means a lease granted for the purpose of undertaking mining operations, and includes a sub-lease granted for such purpose;

(d) “mining operations” means any operations undertaken for the purpose of winning any mineral;

1. Subs. by Act 38 of 1999, s. 2, for “regulation of mines and the development of minerals” (w.e.f. 18-12-1999).

2. Subs. by s. 3, ibid., for “(Regulation and Development)” (w.e.f. 18-12-1999).

3. 1st June, 1958, vide notification No. G.S.R. 432, dated 29th May, 1958, see Gazette of India, Extraordinary, Part II, sec. 3(i).

4. Subs. by Act 16 of 2021, s. 3, for clause (a) and (aa) (w.e.f. 28-3-2021).

5. Ins. by Act 16 of 2023, s. 2 (w.e.f. 17-8-2023).

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(e) “minor minerals” means building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central Government may, by notification in the Official Gazette, declare to be a minor mineral;

1[(ea)“notified minerals” means any mineral specified in the Fourth Schedule;]

(f) “prescribed” means prescribed by rules made under this Act;

2[(fa) “production” or any derivative of the word “production” means the winning or raising of mineral within the leased area for the purpose of processing or dispatch;]

(g) “prospecting licence” means a licence granted for the purpose of undertaking prospecting operations;

3* * * * *

(h) “prospecting operations” means any operations undertaken for the purpose of exploring, locating or proving mineral deposit ; 4*** 5[(ha) “reconnaissance operations” means any operations undertaken for preliminary prospecting of a mineral through regional, aerial, geophysical or geochemical surveys and geological mapping, include pitting, trenching, drilling and sub-surface excavation;]

(hb) “reconnaissance permit” means a permit granted for the purpose of undertaking reconnaissance operations; 4***] 2[(hba) “Schedule” means the Schedules appended to the Act;]

1[(hc) “Special Court” means a Court of Session designated as Special Court under sub-section (1) of section 30B; and]

(i) the expressions, “mine” and “owner”, have the meaning assigned to them in the Mines Act, 1952 (35 of 1952).

2[Explanation.—For the purpose of this clause, —

(i) a mine continues to be a mine till exhaustion of its mineable mineral reserve and a mine may have different owners during different times from the grant of first mining lease till exhaustion of such mineable mineral reserve;

(ii) the expression “mineral reserve” means the economically minearble part of a measured and indicated mineral resource.]

CHAPTER II GENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING OPERATIONS

4. Prospecting or mining operations to be under licence or lease.―(1) 6[No person shall undertake any reconnaissance, prospecting or mining operations in any area, except under and in accordance with the terms and conditions of a reconnaissance permit or of a prospecting licence 7[or of a exploration licence] or, as the case may be, of a mining lease, granted under this Act and the rules made thereunder]:

Provided that nothing in this sub-section shall affect any prospecting or mining operations undertaken in any area in accordance with terms and conditions of a prospecting licence 9[or of a exploration licence], mining lease granted before the commencement of this Act which is in force at such commencement:

1. Ins. by Act 10 of 2015, s. 2 (w.e.f. 12-1-2015).

2. Ins. by Act 16 of 2021, s. 3 (w.e.f. 28-3-2021).

3. Clause (ga) omitted by Act 16 of 2021, s. 3 (w.e.f. 28-3-2021).

4. The word “and” omitted by Act 10 of 2015, s. 2 (w.e.f. 12-1-2015)

5. Subs. by Act 16 of 2023, s. 2, for clause (ha) (w.e.f. 17-8-2023).

6. Subs. by Act 38 of 1999, s. 5, for certain words (w.e.f. 18-12-1999).

7. Ins. by Act 16 of 2023, s. 3 (w.e.f. 17-8-2023).

6 1[Provided further that nothing in this sub-section shall apply to any prospecting operations undertaken by the Geological Survey of India, the Indian Bureau of Mines, 2[the Atomic Minerals Directorate for Exploration and Research] of the Department of Atomic Energy of the Central Government, the Directorates of Mining and Geology of any State Government (by whatever name called), and the Mineral Exploration Corporation Limited., a Government company within the meaning of 3[clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), and any 4[other entities including private entities that may be notified for this purpose, subject to such conditions as may be specified by the Central Government]]:]

5[Provided also that nothing in this sub-section shall apply to any mining lease (whether called mining lease mining concession or by any other name) in force immediately before the commencement of this Act in the Union territory of Goa, Daman and Diu.]

6[(1A) No person shall transport or store or cause to be transported or stored any mineral otherwise than in accordance with the provisions of this Act and the rules made thereunder.]

(2) 7[No 8[mineral concession]] shall be granted otherwise than in accordance with the provisions of this Act and the rules made thereunder.

5[(3)Any State Government may, after prior consultation with the Central Government and in accordance with the rule made under section 18, 9[undertake reconnaissance, prospecting or mining operations with respect to any mineral specified in the First Schedule in any area within that State which is not already held under any 11[mineral concession]].]

10[11[4A.Termination of prospecting licences, exploration licences or mining leases.]―(1) Where the Central Government, after consultation with the State Government, is of opinion that it is expedient in the interest of regulation of mines and mineral development, preservation of natural environment, control of floods, prevention of pollution, or to avoid danger to public health or communications or to ensure safety of buildings, monuments or other structures or for conservation of mineral resources or for maintaining safety in the mines or for such other purposes, as the Central Government may deem fit, it may request the State Government to make a premature termination of a 12[prospecting licence or exploration licence] or mining lease in respect of any mineral other than a minor mineral in any area or part thereof, and, on receipt of such request, the State Government shall make an order making a premature termination of such 12[prospecting licence or exploration licence] or mining lease with respect to the area or any part thereof.

(2) Where the State Government 13*** is of opinion that it is expedient in the interest of regulation of mines and mineral development, preservation of natural environment, control of floods, prevention of pollution or to avoid danger to public health or communications or to ensure safety of buildings, monuments or other structures or for such other purposes, as the State Government may deem fit, it may, by an order, in respect of any minor mineral, make premature termination of prospecting licence or mining lease with respect to the area or any part thereof covered by such licence or lease.

14[* * * * *]

1. Ins. by Act 37 of 1986, s. 2 (w.e.f. 10-2-1987).

2. Subs. by Act 38 of 1999, s. 5, for “the Atomic Minerals Division” (w.e.f. 18-12-1999).

3. Subs. by Act 10 of 2015, s. 3, for “section 617 of the Companies Act, 1956 (1 of 1956)” (w.e.f. 12-1-2015).

4. Subs. by Act 16 of 2021, s. 4, for certain words (w.e.f. 28-3-2021).

5. Ins. by Act 16 of 1987, s. 14 (w.e.f. 1-10-1963).

6. Ins. by Act 38 of 1999, s. 5 (w.e.f. 18-12-1999).

7. Subs. by s. 5, ibid., “No prospecting licence or mining lease” (w.e.f. 18-12-1999).

8. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).

9. Subs. by Act 38 of 1999, s. 5, for certain words (w.e.f. 18-12-1999).

10. Subs. by Act 37 of 1986, s. 3, for section 4A (w.e.f. 10-2-1987).

11. Subs. by Act 16 of 2023, s. 4, for the marginal heading (w.e.f. 17-8-2023).

12. Subs. by s. 4, ibid., for “prospecting license” (w.e.f. 17-8-2023).

13. The words “, after consultation with the Central Government,” omitted by Act 25 of 1994, s. 2 (w.e.f. 25-1-1994).

14. Proviso omitted by Act 38 of 1999, s. 6 (w.e.f. 18-12-1999).

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(3) No order making a premature termination of a prospecting licence 1[or exploration licence] or mining lease shall be, made except after giving the holder of the licence or lease a reasonable opportunity of being heard.

(4) Where the holder of a mining lease fails to undertake 2[production and dispatch] for a period of 3[two years] after the date of execution of the lease or having commenced 2[production and dispatch], has discontinued the same for a period of 3[two years], the lease shall lapse on the expiry of the period of 3[two years] from the date of execution of the lease or, as the case may be, discontinuance of the 2[production and dispatch]:

4[Provided that the State Government may, on an application made by the holder of such lease before it lapses and on being satisfied that it shall not be possible for the holder of the lease to undertake production and dispatch or to continue such production and dispatch for reasons beyond his control, make an order, within a period of three months from the date of receipt of such application, to extend the period of two years by a further period not exceeding one year and such extension shall not be granted for more than once during the entire period of lease:

Provided further that such lease shall lapse on failure to undertake production and dispatch or having commenced the production and dispatch fails to continue the same before the end of such extended period.]

5[4B. Conditions for efficiency in production. Notwithstanding anything contained in section 4A, the Central Government may, in the interest of maintaining sustained production of minerals in the country, prescribe such conditions as may be necessary for commencement and continuation of production by the holders of mining leases who have acquired rights, approvals, clearances and the like under section 8B.]

6[7[5. Restrictions on the grant of mineral concession.]―8[(1) A State Government shall not grant a 9[mineral concession] to any person unless such person―

(a) is an Indian national, or company as defined in 10[clause (20) of section 2 of the Companies Act, 2013 (18 of 2013)]; and

(b) satisfies such conditions as may be prescribed:

11[Provided that in respect of any mineral specified in Part A and Part B of the First Schedule, no reconnaissance permit, prospecting licence or mining lease shall be granted except with the previous approval of the Central Government.]

12[Provided further that the previous approval of the Central Government shall not be required for grant of 9[mineral concession] in respect of the minerals specified in Part A of the First Schedule, where,—

(i) an allocation order has been issued by the Central Government under section 11A; or

(ii) a notification of reservation of area has been issued by the Central Government or the State Government under sub-section (1A) or sub-section (2) of section 17A; or

(iii) a vesting order or an allotment order has been issued by the Central Government under the provisions of the Coal Mines (Special Provisions) Act, 2015 (11 of 2015).]

1. Ins. by Act 16 of 2023, s. 4 (w.e.f. 17-8-2023).

2. Subs. by Act 16 of 2021, s. 5, for “mining operations” (w.e.f. 28-3-2021).

3. Subs. by Act 25 of 1994, s. 2, for “one year” (w.e.f. 25-1-1994).

4. The provisos first, second, third and fourth subs. by Act 16 of 2021, s. 5 (w.e.f. 28-3-2021).

5. Ins. by Act 2 of 2020, s. 2 (w.e.f. 10-1-2020).

6. Subs. by Act 37 of 1986, s. 4, for section 5 (w.e.f. 10-2-1987).

7. Subs. by Act 16 of 2023, s. 5, for the marginal heading (w.e.f. 17-8-2023).

8. Subs. by Act 25 of 1994, s. 3, for sub-section (1) (w.e.f. 25-1-1994).

9. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).

10. Subs. by Act 10 of 2015, s. 5, for “sub-section (1) of section 3 of the Companies Act, 1956 (1 of 1956)” (w.e.f. 12-1-2015).

11. Subs. by s. 5, ibid., for the proviso (w.e.f. 12-1-2015).

12. Ins. by Act 2 of 2020, s. 3 (w.e.f. 10-1-2020).

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Explanation.―For the purposes of this sub-section, a person shall be deemed to be an Indian national,―

(a) in the case of a firm or other association of individuals, only if all the members of the firm or members of the association are citizens of India; and

(b) in the case of an individual, only if he is a citizen of India.]

1[Provided also that the composite licence or mining lease shall not be granted for an area to any person other than the Government, Government company or corporation, in respect of any minerals specified in Part B of the First Schedule where the grade of such mineral in such area is equal to or above such threshold value as may be notified by the Central Government.]

(2) No mining lease shall be granted by the State Government unless it is satisfied that― 2[(a) there is evidence to show the existence of mineral contents in the area for which the application for a mining lease has been made in accordance with such parameters as may be prescribed for this purpose by the Central Government;]

(b) there is a mining plan duly approved by the Central Government, or by the State Government, in respect of such category of mines as may be specified by the Central Government, for the development of mineral deposits in the area concerned:]

3[Provided that a mining lease may be granted upon the filing of a mining plan in accordance with a system established by the State Government for preparation, certification, and monitoring of such plan, with the approval of the Central Government.]

4[6. Maximum area for which mineral concession may be granted.]―5[(1) No person shall acquire 6*** in respect of any mineral or prescribed group of associated minerals 7[in a State]―

(a) one or more prospecting licences covering a total area of more than twenty-five square kilometres; or 7[(aa) one or more reconnaissance permit covering a total area often thousand square kilometres:

Provided that the area granted under a single reconnaissance permit shall not exceed five thousand square kilometers; or] 8[(ab) one or more exploration licences covering a total area of more than five thousand square kilometres:

Provided that the area granted under a single exploration licence shall not exceed one thousand square kilometres;]

(b) one or more mining leases covering a total area of more than ten square kilometres:

9[Provided that if the Central Government is of the opinion that in the interest of the development of any mineral or industry, it is necessary so to do, it may, for reasons to be recorded in writing, increase the aforesaid area limits in respect of prospecting licence or mining lease, in so far as it pertains to any particular mineral, or to any specified category of deposits of such mineral, or to any particular mineral located in any particular area.]] 10[(c) any 11[mineral concession] in respect of any area which is not compact or contiguous:

Provided that if the State Government is of opinion that in the interests of the development of any mineral, it is necessary so to do, it may, for reasons to be recorded in writing, permit any person to acquire a 12[mineral concession] in relation to any area which is not compact or contiguous.]

1. Ins. by Act 16 of 2021, s. 6 (w.e.f. 28-3-2021).

2. Subs. by Act 10 of 2015, s. 5, for clause (a) (w.e.f. 12-1-2015).

3. Ins. by s. 5, ibid. (w.e.f. 12-1-2015).

4. Subs by Act 16 of 2023, s. 6, for the marginal headin. (w.e.f. 17-8-2023).

5. Subs. by Act 56 of 1972, s. 3, for sub-section (1) (w.e.f. 12-9-1972).

6. The words “in any one State” omitted by Act 37 of 1986, s. 5 (w.e.f. 10-2-1987).

7. Ins. by Act 38 of 1999, s. 8 (w.e.f. 18-12-1999).

8. Ins. by Act 16 of 2023, s. 6 (w.e.f. 17-8-2023).

9. Subs. by Act 10 of 2015, s. 6, for the proviso (w.e.f. 12-1-2015).

10. Subs. by Act 38 of 1999, s. 8, for clause (c) (w.e.f. 18-12-1999).

11. Subs. by Act 16 of 2023, s. 6, for “reconnaissance permit, mining lease or prospecting licence” (w.e.f. 17-8-2023).

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(2) For the purposes of this section, a person acquiring by, or in the name of, another person a 1[mineral concession] which is intended for himself shall be deemed to be acquiring it himself.

2[(3) For the purposes of determining the total area referred to in sub-section (1), the area held under a 1[mineral concession] by a person as a member of a co-operative society, company or other corporation or a Hindu undivided family or a partner of a firm, shall be deducted from the area referred to in subsection (1) so that the sum total of the area held by such person, under a 1[mineral concession], whether as such member or partner, or individually, may not, in any case, exceed the total area specified in subsection (1).]

3[7. Periods for which prospecting licences may be granted or renewed.―(1) The period for which 4[a reconnaissance permit or prospecting licence] may be granted shall not exceed three years.

(2) A prospecting licence shall, if the State Government is satisfied that a longer period is required to enable the licensee to complete prospecting operations be renewed for such period or periods as that Government may specify:

Provided that the total period for which a prospecting licence is granted does not exceed five years:

Provided further that no prospecting licence granted in respect of 5[a mineral included in Part A and Part B to] the First Schedule shall be renewed except with the previous approval of the Central Government.]

6[8. Periods for which mining leases may be granted or renewed.―(1) The provisions of this section shall apply to minerals specified in Part A of the First Schedule.

(2) The maximum period for which a mining lease may be granted shall not exceed thirty years:

Provided that the minimum period for which any such mining lease may be granted shall not be less than twenty years.

(3) A mining lease may be renewed for a period not exceeding twenty years with the previous approval of the Central Government.]

7[(4) Notwithstanding anything contained in this section, in case of Government companies or corporations, the period of mining leases including the existing mining leases, shall be such as may be prescribed by the Central Government:

Provided that the period of mining leases, other than the mining leases granted through auction, shall be extended on payment of such additional amount as specified in the Fifth Schedule:

Provided further that the Central Government may, by notification in the Official Gazette and for reasons to be recorded in writing, amend the Fifth Schedule so as to modify the entries mentioned therein in the said Schedule with effect from such date as may be specified in the said notification.

(5) Any lessee may, where coal or lignite is used for captive purpose, sell such coal or lignite up to fifty per cent. of the total coal or lignite produced in a year after meeting the requirement of the end use plant linked with the mine in such manner as may be prescribed by the Central Government and on payment of such additional amount as specified in the Sixth Schedule:

Provided that the Central Government may, by notification in the Official Gazette and for the reasons to be recorded in writing, increase the said percentage of coal or lignite that may be sold by a Government company or corporation:

1. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).

2. Ins. by Act 56 of 1972, s. 3 (w.e.f. 12-9-1972).

3. Subs. by Act 25 of 1994, s. 4, for section 7 (w.e.f. 25-1-1994).

4. Subs. by Act 38 of 1999, s. 9, for “a prospecting licence” (w.e.f. 18-12-1999).

5. Subs. by s. 9, ibid., for “a mineral included in” (w.e.f. 18-12-1999).

6. Subs. by Act 10 of 2015, s. 7, for section 8 (w.e.f. 12-1-2015).

7. Ins. by Act 16 of 2021, s. 7 (w.e.f. 28-3-2021).

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Provided further that the sale of coal shall not be allowed from the coal mines allotted to a company or corporation that has been awarded a power project on the basis of competitive bid for tariff (including Ultra Mega Power Projects):

Provided also that the Central Government may, by notification in the Official Gazette and for reasons to be recorded in writing, amend the Sixth Schedule so as to modify the entries mentioned therein with effect from such date as may be specified in the said notification.]

1[8A. Period of grant of a mining lease for minerals other than coal, lignite and atomic minerals.―(1) The provisions of this section shall apply to minerals other than those specified in Part A and Part B of the First Schedule.

(2) On and from the date of the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015), all mining leases shall be granted for the period of fifty years.

(3) All mining leases granted before the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015) shall be deemed to have been granted for a period of fifty years.

(4) On the expiry of the lease period, the lease shall be put up for auction as per the procedure specified in this Act.

2[Provided that nothing contained in this section shall prevent the State Governments from taking an advance action for auction of the mining lease before the expiry of the lease period.]

(5) Notwithstanding anything contained in sub-sections (2), (3) and sub-section (4), the period of lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015), where mineral is used for captive purpose, shall be extended and be deemed to have been extended up to a period ending on the 31st March, 2030 with effect from the date of expiry of the period of renewal last made or till the completion of renewal period, if any, or a period of fifty years from the date of grant of such lease, whichever is later, subject to the condition that all the terms and conditions of the lease have been complied with.

(6) Notwithstanding anything contained in sub-sections (2), (3) and sub-section (4), the period of lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015), where mineral is used for other than captive purpose, shall be extended and be deemed to have been extended up to a period ending on the 31st March, 2020 with effect from the date of expiry of the period of renewal last made or till the completion of renewal period, if any, or a period of fifty years from the date of grant of such lease, whichever is later, subject to the condition that all the terms and conditions of the lease have been complied with.

(7) Any holder of a lease granted, where mineral is used for captive purpose, shall have the right of first refusal at the time of auction held for such lease after the expiry of the lease period.

3[(7A) Any lessee may, where mineral is used for captive purpose, sell mineral up to fifty per cent. of the total mineral produced in a year after meeting the requirement of the end use plant linked with the mine in such manner as may be prescribed by the Central Government and on payment of such additional amount as specified in the Sixth Schedule:

Provided that the Central Government may, by notification in the Official Gazette and for the reasons to be recorded in writing, increase the said percentage of mineral that may be sold by a Government company or corporation:

Provided further that the Central Government may, by notification in the Official Gazette and for reasons to be recorded in writing, amend the Sixth Schedule so as to modify the entries mentioned therein with effect from such date as may be specified in the said notification.]

1. Ins. by Act 10 of 2015, s. 8 (w.e.f. 12-1-2015).

2. Ins. by Act 2 of 2020, s. 4 (w.e.f. 10-1-2020).

3. Ins. by Act 16 of 2021, s. 8 (w.e.f. 28-3-2021).

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(8) Notwithstanding anything contained in this section, the period of mining leases, including existing mining leases, of Government companies or corporations shall be such as may be prescribed by the Central Government.

1[Provided that the period of mining leases, other than the mining leases granted through auction, shall be extended on payment of such additional amount as specified in the Fifth Schedule:

Provided further that the Central Government may, by notification in the Official Gazette and for reasons to be recorded in writing, amend the Fifth Schedule so as to modify the entries mentioned therein with effect from such date as may be specified in the said notification.

Explanation.—For the removal of doubts, it is hereby clarified that all such Government companies or corporations whose mining lease has been extended after the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015), shall also pay such additional amount as specified in the Fifth Schedule for the mineral produced after the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021.]

(9) The provisions of this section, notwithstanding anything contained therein, shall not apply to a mining lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015), for which renewal has been rejected, or which has been determined, or lapsed.]

2[8B. Provisions for period and transfer of statutory clearances.―(1) Notwithstanding anything contained in this Act or any other law for the time being in force, all valid rights, approvals, clearances, licences and the like granted to a lessee in respect of a mine (other than those granted under the provisions of the Atomic Energy Act, 1962 (33 of 1962) and the rules made thereunder) shall continue to be valid even after expiry or termination of lease and such rights, approvals, clearances, licences and the like shall be transferred to, and vested; subject to the conditions provided under such laws; in the successful bidder of the mining lease selected through auction under this Act:

Provided that where on the expiry of such lease period, mining lease has not been executed pursuant to an auction under provisions of sub-section (4) of section 8A, or lease executed pursuant to such auction has been terminated within a period of one year from such auction, the State Government may, with the previous approval of the Central Government, grant lease to a Government company or corporation for a period not exceeding ten years or till selection of new lessee through auction, whichever is earlier and such Government company or corporation shall be deemed to have acquired all valid rights, approvals, clearances, licences and the like vested with the previous lessee:

Provided further that the provisions of sub-section (1) of section 6 shall not apply where such mining lease is granted to a Government company or corporation under the first proviso:

Provided also that in case of atomic minerals having grade equal to or above the threshold value, all valid rights, approvals, clearances, licences and the like in respect of expired or terminated mining leases shall be deemed to have been transferred to, and vested in the Government company or corporation that has been subsequently granted the mining lease for the said mine.

(2) Notwithstanding anything contained in any other law for the time being in force, it shall be lawful for the new lessee to continue mining operations on the land till expiry or termination of mining lease granted to it, in which mining operations were being carried out by the previous lessee.]

9. Royalties in respect of mining leases.―(1) The holder of a mining lease granted before the commencement of this Act shall, notwithstanding anything contained in the instrument of lease or in any law in force at such commencement, pay royalty in respect of any 3[mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee] from the leased area after such commencement, at the rate for the time being specified in the Second Schedule in respect of that mineral.

(2) The holder of a mining lease granted on or after the commencement of this Act shall pay royalty in respect of any 3[mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee] from the leased area at the rate for the time being specified in the Second Schedule in respect of that mineral.

1. Ins. by Act 16 of 2021, s. 8 (w.e.f. 28-3-2021).

2. Ins. by s. 9, ibid., (w.e.f. 28-3-2021).

3. Subs. by Act 56 of 1972, s. 4, for “mineral removed by him” (w.e.f. 12-9-1972).

12 1[(2A) The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972) shall not be liable to pay any royalty in respect of any coal consumed by a workman engaged in a colliery provided that such consumption by the workman does not exceed one-third of a tonne per month.]

(3) The Central Government may, by notification in the Official Gazette, amend the Second Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral with effect from such date as may be specified in the notification:

2[Provided that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of 3[three years].]

4[9A. Dead rent to be paid by the lessee.―(1) The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972, shall notwithstanding anything contained in the instrument of lease or in any other law for the lime being in force, pay to the State Government, every year, dead rent at such rate, as may be specified, for the time being, in the Third Schedule, for all the areas included in the instrument of lease:

Provided that where the holder of such mining lease becomes liable, under section 9, to pay royalty for any mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee from the leased area, he shall be liable to pay either such royalty, or the dead rent in respect of that area, whichever is greater.

(2) The Central Government may, by notification in the Official Gazette, amend the Third Schedule so as to enhance or reduce the rate at which the dead rent shall be payable in respect of any area covered by a mining lease and such enhancement or reduction shall take effect from such date as may be specified in the notification:

Provided that the Central Government shall not enhance the rate of the dead rent in respect of any such area more than once during any period of 5[three years].]

6[9B. District Mineral Foundation.―(1) In any district affected by mining related operations, the State Government shall, by notification, establish a trust, as a non-profit body, to be called the District Mineral Foundation.

(2) The object of the District Mineral Foundation shall be to work for the interest and benefit of persons, and areas affected by mining related operations in such manner as may be prescribed by the State Government.

(3) The composition and functions of the District Mineral Foundation shall be such as may be prescribed by the State Government.

7[Provided that the Central Government may give directions regarding composition and utilisation of fund by the District Mineral Foundation.]

(4) The State Government while making rules under sub-sections (2) and (3) shall be guided by the provisions contained in article 244 read with Fifth and Sixth Schedules to the Constitution relating to administration of the Scheduled Areas and Tribal Areas and the Provisions of the Panchayats (Extension

1. Ins. by Act 56 of 1972, s. 4 (w.e.f. 12-9-1972).

2. Subs. by Act 56 of 1972, s. 4, for the proviso (w.e.f. 12-9-1972).

3. Subs. by Act 37 of 1986, s. 8, for “four years” (w.e.f. 10-2-1987).

4. Ins. by Act 56 of 1972, s. 5 (w.e.f. 12-9-1972).

5. Subs. by Act 37 of 1986, s. 9, for “four years” (w.e.f. 10-2-1987).

6. Ins. by Act 10 of 2015, s. 9 (w.e.f. 12-1-2015).

7. Ins. by Act 16 of 2021, s. 10 (w.e.f. 28-3-2021).

13 to the Scheduled Areas) Act, 1996 (40 of 1996) and the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (2 of 2007).

(5) The holder of a mining lease or a 1[composite licence] granted on or after the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 2[, other than those covered under the provisions of sub-section (2) of section 10A], shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount which is equivalent to such percentage of the royalty paid in terms of the Second Schedule, not exceeding one-third of such royalty, as may be prescribed by the Central Government.

(6) The holder of a mining lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 3[other than those covered under the provisions of sub-section (2) of section 10A], shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount not exceeding the royalty paid in terms of the Second Schedule in such manner and subject to the categorisation of the mining leases and the amounts payable by the various categories of lease holders, as may be prescribed by the Central Government.

9C. National Mineral Exploration Trust.―(1) The Central Government shall, by notification, establish a Trust, as a 4[non-profit autonomous body], to be called the National Mineral Exploration Trust.

(2) The object of the Trust shall be to use the funds accrued to the Trust for the purposes of regional and detailed exploration in such manner as may be prescribed by the Central Government.

(3) The composition and functions of the Trust shall be such as may be prescribed by the Central Government.

(4) The holder of a mining lease or a 5[mineral concession] shall pay to the Trust, a sum equivalent to two per cent. of the royalty paid in terms of the Second Schedule, in such manner as may be prescribed by the Central Government.]

6[(5) The entities specified and notified under sub-section (1) of section 4 shall be eligible for funding under the National Mineral Exploration Trust.]

CHAPTER III 7[PROCEDURE FOR OBTAINING MINERAL CONCESSION IN RESPECT OF LAND IN WHICH THE MINERALS VEST IN THE GOVERNMENT]

10. 8[Application for mineral concession.]―(1) An application for 9[a 5[mineral concession]] in respect of any land in which the minerals vest in the Government shall be made to the State Government concerned in the prescribed form and shall be accompanied by the prescribed fee.

(2) Where an application is received under sub-section (1), there shall be sent to the applicant an acknowledgment of its receipt within the prescribed time and in the prescribed form.

1. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

2. Ins. by s. 10, ibid. (w.e.f. 28-3-2021).

3. Ins. by Act 16 of 2021, s. 10 (w.e.f. 28-3-2021).

4. Subs. by s. 11, ibid., for “non-profit body” (w.e.f. 28-3-2021).

5. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).

6. Ins. by Act 16 of 2021, s. 11 (w.e.f. 28-3-2021).

7. Subs. by Act 16 of 2023, s. 7, for Chapter Heading (w.e.f. 17-8-2023).

8. Subs. by s. 8, ibid., for the marginal heading (w.e.f. 17-8-2023).

9. Subs. by Act 38 of 1999, s. 11, for “a prospecting licence or a mining lease” (w.e.f. 18-12-1999).

14

(3) On receipt of an application under this section, the State Government may, having regard to the provisions of this Act and any rules made thereunder, grant or refuse to grant the 1[permit, licence or lease].

2[(4) Notwithstanding anything contained in this section, no person shall be eligible to make an application under this section unless—

(a) he has been selected in accordance with the procedure specified under 3[sections 10B, 10BA, 11, 11A, 11B or 11D];

(b) he has been selected under the Coal Mines (Special) Provisions Act, 2015 (11 of 2015);

or

(c) an area has been reserved in his favour under section 17A.]

4[10A. Rights of existing concession holders and applicants.―(1) All applications received prior to the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, shall become ineligible.

(2) Without prejudice to sub-section (1), the following shall remain eligible on and from the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015:―

(a) applications received under section 11A of this Act;

(b) where before the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 a reconnaissance permit or prospecting licence has been granted in respect of any land for any mineral, the permit holder or the licensee shall have a right for obtaining a prospecting licence followed by a mining lease, or a mining lease, as the case may be, in respect of that mineral in that land, if the State Government is satisfied that the permit holder or the licensee, as the case may be,―

(i) has undertaken reconnaissance operations or prospecting operations, as the case may be, to establish the existence of mineral contents in such land in accordance with such parameters as may be prescribed by the Central Government;

(ii) has not committed any breach of the terms and conditions of the reconnaissance permit or the prospecting licence;

(iii) has not become ineligible under the provisions of this Act; and

(iv) has not failed to apply for grant of prospecting licence or mining lease, as the case may be, within a period of three months after the expiry of reconnaissance permit or prospecting licence, as the case may be, or within such further period not exceeding six months as may be extended by the State Government;

5[Provided that for the cases covered under this clause including the pending cases, the right to obtain a prospecting licence followed by a mining lease or a mining lease, as the case may be, shall lapse on the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021:

Provided further that the holder of a reconnaissance permit or prospecting licence whose rights lapsed under the first proviso, shall be reimbursed the expenditure incurred towards reconnaissance or prospecting operations in such manner as may be prescribed by the Central Government.]

1. Subs. by Act 38 of 1999, s. 11, for “licence or lease” (w.e.f. 18-12-1999).

2. Ins. by Act 16 of 2021, s. 12 (w.e.f. 28-3-2021).

3. Subs. by Act 16 of 2023, s. 8, for the words figures and letters “sections 10B, 11, 11A or the rules made under section 11B” (w.e.f. 17-8-2023).

4. Ins. by Act 10 of 2015, s. 10 (w.e.f. 12-1-2015).

5. Ins. by Act 16 of 2021, s. 13 (w.e.f. 28-3-2021).

15

(c) where the Central Government has communicated previous approval as required under sub-section (1) of section 5 for grant of a mining lease, or if a letter of intent (by whatever name called) has been issued by the State Government to grant a mining lease, before the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, the mining lease shall be granted subject to fulfilment of the conditions of the previous approval or of the letter of intent within a period of two years from the date of commencement of the said Act:

Provided that in respect of any mineral specified in the First Schedule, no prospecting licence or mining lease shall be granted under clause (b) of this subsection except with the previous approval of the Central Government.

1[(d) in cases where right to obtain licence or lease has lapsed under, clauses (b) and (c), such areas shall be put up for auction as per the provisions of this Act.

Provided that in respect of the minerals specified in Part B of the First Schedule where the grade of atomic mineral is equal to or greater than the threshold value, the mineral concession for such areas shall be granted in accordance with the rules made under section 11B.]

10B. Grant of mining lease in respect of notified minerals through auction.―2[(1) The provisions of this section shall not apply to the,—

(a) cases falling under section 17A;

(b) minerals specified in Part A of the First Schedule;

(c) minerals specified in Part B of the First Schedule where the grade of atomic mineral is equal to or greater than such threshold value as may be notified by the Central Government from time to time;

or

(d) land in respect of which the minerals do not vest in the Government.]

(2) Where there is inadequate evidence to show the existence of mineral contents of any notified mineral in respect of any area, a State Government may, after obtaining the previous approval of the Central Government, grant a 3[composite licence] for the said notified mineral in such area in accordance with the procedure laid down in section 11.

(3) In areas where the existence of mineral contents of any notified mineral is established in the manner prescribed by the Central Government, the State Government shall notify such areas for grant of mining leases for such notified mineral, the terms and conditions subject to which such mining leases shall be granted, and any other relevant conditions, in such manner as may be prescribed by the Central Government.

4[Provided that where the State Government has not notified such area for grant of mining lease after establishment of existence of mineral contents of any mineral (whether notified mineral or otherwise), the Central Government may require the State Government to notify such area within a period to be fixed in consultation with the State Government and in cases where the notification is not issued within such period, the Central Government may notify such area for grant of mining lease after the expiry of the period so specified.]

(4) For the purpose of granting a mining lease in respect of any notified mineral in such notified area, the State Government shall select, through auction by a method of competitive bidding, including e-auction, an applicant who fulfils the eligibility conditions as specified in this Act.

4[Provided that—

(a) where the State Government has not successfully completed auction for the purpose of granting a mining lease in respect of any mineral (whether notified mineral or otherwise) in such notified area; or

1. Ins. by Act 16 of 2021, s. 13 (w.e.f. 28-3-2021).

2. Subs. by s. 14, ibid., for sub-section (1) (w.e.f. 28-3-2021).

3. Subs. by s. 2, ibid., for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

4. Ins. by s. 14, ibid. (w.e.f. 28-3-2021).

16

(b) upon completion of such auction, the mining lease or letter of intent for grant of mining lease has been terminated or lapsed for any reason whatsoever, the Central Government may require the State Government to conduct and complete the auction or re-auction process, as the case may be, within a period to be fixed in consultation with the State Government and in cases where such auction or re-auction process is not completed within such period, the Central Government may conduct auction for grant of mining lease for such area after the expiry of the period so specified:

Provided further that upon successful completion of the auction, the Central Government shall intimate the details of the preferred bidder in the auction to the State Government and the State Government shall grant mining lease for such area to such preferred bidder in such manner as may be prescribed by the Central Government.]

(5) The Central Government shall prescribe the terms and conditions, and procedure, subject to which the auction shall be conducted, including the bidding parameters for the selection, which may include a share in the production of the mineral, or any payment linked to the royalty payable, or any other relevant parameter, or any combination or modification of them.

(6) Without prejudice to the generality of sub-section (5), the Central Government shall, if it is of the opinion that it is necessary and expedient to do so, prescribe terms and conditions, procedure and bidding parameters in respect of categories of minerals, size and area of mineral deposits and a State or States, subject to which the auction shall be conducted:

1[Provided that no mine shall be reserved for captive purpose in the auction.]

(7) The State Government shall grant a mining lease to an applicant selected in accordance with the procedure laid down in this section in respect of such notified mineral in any notified area.

2[10BA. Grant of exploration licence for minerals specified in Seventh Schedule through auction.—(1) The provisions of this section shall not apply to—

(a) the areas covered under section 17A;

(b) the minerals specified in Part A of the First Schedule;

(c) the minerals specified in Part B of the First Schedule where the grade of atomic mineral is equal to or greater than such threshold value as may be notified by the Central Government from time to time;

(d) any land in respect of which the minerals do not vest in the Government.

(2) Notwithstanding anything contained in sections 10B and 11, an exploration licence may be granted in any area by the State Government for the purpose of undertaking reconnaissance or prospecting operations or both in respect of any mineral specified in the Seventh Schedule.

(3) The Central Government may, by notification in the Official Gazette, and for reasons to be recorded in writing, amend the Seventh Schedule so as to modify the entries therein with effect from such date as may be specified in the said notification.

(4) The State Government shall, after obtaining the previous approval of the Central Government, and in such manner as may be prescribed by the Central Government, notify the areas in which exploration licence shall be granted, subject to such terms and conditions as may be specified in the notification.

(5) The Central Government may require the State Government to notify the area for grant of exploration licence within such period as may be fixed in consultation with the State Government, and in case the State Government does not notify the area within such period, the Central Government may, after the expiry of the period so fixed, notify the area for grant of exploration licence.

(6) The State Government shall, for the purpose of granting exploration licence through auction by method of competitive bidding, including e-auction, select an applicant who fulfils the eligibility conditions as specified in this Act and grant exploration licence to such applicant.

1. Subs. by Act 16 of 2021, s. 14, for the proviso (w.e.f. 28-3-2021).

2. Ins. by Act 16 of 2023, s. 9 (w.e.f. 17-8-2023).

17

(7) Where—

(a) the State Government has not successfully completed auction for the grant of exploration licence; or

(b) after completion of auction, the exploration licence or letter of intent for grant of exploration licence has been terminated or lapsed for any reason whatsoever, the Central Government may require the State Government to conduct and complete the auction or re-auction process, as the case may be, within such period as may be fixed in consultation with the State Government, and in cases where such auction or re-auction process is not completed within such period, the Central Government may, after the expiry of the period so fixed, conduct auction for the grant of exploration licence for such area:

Provided that upon successful completion of the auction, the Central Government shall intimate the details of the preferred bidder in the auction to the State Government and the State Government shall grant exploration licence for such area to such preferred bidder in such manner as may be prescribed by the Central Government.

(8) The holder of exploration licence shall be entitled to a share of applicable amount quoted in the auction of ining leases payable by the lessee to the State Government in respect of the area granted in mining lease pursuant to the prospecting operations undertaken by the holder of such exploration licence:

Provided that the share in applicable amount payable to the holder of exploration licence by the lessee of such area shall be allowed only in respect of the minerals specified in the Seventh Schedule.

(9) The Central Government shall by rules provide for the manner of conducting auction for grant of exploration licence, including its terms and conditions, the bidding parameters for selection, share payable to the holder of exploration licence from out of the applicable amount quoted in auction of mining leases payable by the lessee of such area, the period for such payment and such other conditions as may be necessary.

(10) Notwithstanding anything contained in section 7,—

(a) the exploration licence shall be granted for a period of five years from the date of execution of the exploration licence;

(b) if, after three years from the date of execution of exploration licence, but before the date of its expiry, the holder of the exploration licence makes an application for the extension of the period of that licence, the State Government may, on being satisfied that within the period of five years, it shall not be possible for the holder of such licence to complete the reconnaissance or prospecting operations for reasons beyond his control, extend the said period to a further period not exceeding two years.

(11) After three years from the date of execution of the exploration licence, the holder of such licence may retain an area not exceeding twenty-five per cent. of the total area covered under that licence for the purpose of continuing reconnaissance or prospecting operations and shall surrender the remaining area after submitting a report to the State Government stating the reasons for retention of the area proposed to be retained by him and the boundaries of that area.

(12) The holder of the exploration licence shall, within three months of the completion of the operations for which licence has been granted, or of the date of expiry of the exploration licence, whichever is earlier, submit a geological report to the State Government explaining the result of the reconnaissance and prospecting operations, in such manner as may be prescribed.

(13) If the holder of the exploration licence fails to complete the reconnaissance and prospecting operations before expiry of the exploration licence, or fails to submit the geological report within the period specified in sub-section (12), the State Government may take such action as it deems fit, including imposition of penalty.

(14) Within six months from the date of receipt of the geological report from the holder of the exploration licence, the Central Government or the State Government shall initiate the auction process for grant of one or more separate mining leases under section 10B or section 11 or section 11D, as the case may be, in respect of the area where existence of mineral content is established and shall select the preferred bidder for grant of such mining leases within one year from the date of receipt of the geological report:

Provided that in case the preferred bidder is not selected within the period so specified, the State Government shall pay to the person who was the holder of exploration licence such amount, and in such manner, as may be prescribed.]

10C. [Grant of non-exclusive reconnaissance permits.] Omitted by the Mines and Minerals (Development and Regulation) Amendment Act, 2021, s. 16 (w.e.f. 28-3-2021).

18 1[11. Grant of 2[composite licence] through auction in respect of minerals other than notified minerals.―3[(1) The provisions of this section shall not apply to the,—

(a) cases falling under section 17A;

(b) minerals specified in Part A of the First Schedule;

(c) minerals specified in Part B of the First Schedule where the grade of atomic mineral is equal to or greater than such threshold value as may be notified by the Central Government from time to time;

or

(d) land in respect of which the minerals do not vest in the Government.]

(2) In areas where there is evidence to show the existence of mineral contents as required by clause (a) of sub-section (2) of section 5, the State Government shall grant a mining lease for minerals other than notified minerals following the procedure laid down in section 10B.

(3) In areas where there is inadequate evidence to show the existence of mineral contents as required under clause (a) of sub-section (2) of section 5, the State Government shall grant a 2[composite licence] for minerals other than notified minerals in accordance with the procedure laid down in this section.

(4) The State Government shall notify the areas in which 2[composite licence] shall be granted for any minerals other than notified minerals, the terms and conditions subject to which such 2[composite licence] shall be granted, and any other relevant conditions, in such manner as may be prescribed by the Central Government.

4[Provided that where the State Government has not notified such area for grant of mining lease after establishment of existence of mineral contents of any mineral (whether notified mineral or otherwise), the Central Government may require the State Government to notify such area within a period to be fixed in consultation with the State Government and in cases where the notification is not issued within such period, the Central Government may notify such area for grant of mining lease after the expiry of the period so specified.]

(5) For the purpose of granting 2[composite licence], the State Government shall select, through auction by method of competitive bidding, including e-auction, an applicant who fulfils the eligibility conditions as specified in this Act.

4[Provided that—

(a) where the State Government has not successfully completed auction for the purpose of granting a composite licence in respect of any mineral (whether notified mineral or otherwise) in such notified area; or

(b) upon completion of such auction, the composite licence or letter of intent for grant of composite licence has been terminated or lapsed for any reason whatsoever, the Central Government may require the State Government to conduct and complete the auction or reauction process, as the case may be, within a period to be fixed in consultation with the State Government and in cases where such auction or re-auction process is not completed within such period, the Central Government may conduct auction for grant of composite licence for such area after the expiry of the period so specified:

Provided further that upon successful completion of the auction, the Central Government shall intimate the details of the preferred bidder in the auction to the State Government and the State Government shall grant composite licence for such area to such preferred bidder in such manner as may be prescribed by the Central Government.]

(6) The Central Government shall prescribe the terms and conditions, and procedure, subject to which the auction shall be conducted, including the bidding parameters for the selection, which may

1. Subs. by Act 10 of 2015, s. 11, for section 11 (w.e.f. 12-1-2015).

2. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

3. Subs. by s. 16, ibid., for sub-section (1) (w.e.f. 28-3-2021).

4. Ins. by s. 16, ibid. (w.e.f. 28-3-2021).

19 include a share in the production of the mineral, or any payment linked to the royalty payable, or any other relevant parameter, or any combination or modification of them.

(7) Without prejudice to the generality of sub-section (6), the Central Government shall, if it is of the opinion that it is necessary and expedient to do so, prescribe terms and conditions, procedure and bidding parameters in respect of categories of minerals, size and area of mineral deposits and a State or States, subject to which the auction shall be conducted.

(8) The State Government shall grant a 1[composite licence] to an applicant selected in accordance with the procedure laid down in this section.

(9) The holder of a 1[composite licence] shall be required to complete, within the period laid down in section 7, the prospecting operations satisfactorily as specified in the notice inviting applications.

2[(10) On completion of the prospecting operations, the holder of the composite licence shall submit the result of the prospecting operations in the form of a geological report to the State Government specifying the area required for mining lease and the State Government shall grant mining lease for such area, to the holder of the composite licence in such manner as may be prescribed by the Central Government.]] 3[11A. Granting of 1[mineral concession] 4[or 5[composite licence] in respect of coal or lignite].—(1) Notwithstanding anything contained in this Act, the Central Government may, for the purpose of granting 1[mineral concession] 6[or 5[composite licence] in respect of coal or lignite] select any of the following companies through auction by competitive bidding, on such terms and conditions as may be prescribed, namely: —

(a) a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be, or any other company incorporated in India; or

(b) a company or a joint venture company formed by two or more companies, 7[to carry on coal or lignite reconnaissance or prospecting or mining operations, for own consumption, sale or for any other purpose as may be determined by the Central Government;]

8[Provided that the auction by competitive bidding under this section shall not be applicable to coal or lignite—

(a) where such area is considered for allotment to a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be, for own consumption, sale or for any other purpose as may be determined by the Central Government;

(b) where such area is considered for allotment to a company or corporation that has been awarded a power project on the basis of competitive bid for tariff (including Ultra Mega Power Projects);]

(2) The Central Government may, with a view to rationalise coal and lignite mines referred to in sub-section (1), so as to ensure the coordinated and scientific development and utilisation of resources consistent with the growing requirements of the country, from time to time, prescribe—

1. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).

2. Subs. by s. 16, ibid., for sub-section (10) (w.e.f. 28-3-2021).

3. Subs. by Act 11 of 2015, s. 28 and the Fourth Schedule, for section 11A (w.e.f. 21-10-2014).

4. Ins. by Act 2 of 2020, s. 7 (w.e.f. 10-1-2020).

5. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

6. Subs. by Act 2 of 2020, s. 7, for “in respect of any area containing coal or lignite” (w.e.f. 10-1-2020).

7. Subs. by s. 7, ibid., for the long line (w.e.f. 10-1-2020).

8. Ins. by s. 7, ibid. (w.e.f. 10-1-2020).

20

(i) the details of mines and their location;

(ii) the minimum size of such mines;

(iii) such other conditions, which in the opinion of that Government may be necessary for the purpose of mining operations or mining for sale by a company.

(3) The State Government shall grant such 1[mineral concession] 2[or 3[composite licence]] in respect of any area containing coal or lignite to such company as selected through auction by 4[competitive bidding or through allotment] under this section:

Provided that the auction by competitive bidding under this section shall not be applicable to an area containing coal or lignite—

(a) where such area is considered for allocation to a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be;

(b) where such area is considered for allocation to a company or corporation or that has been awarded a power project on the basis of competitive bids for tariff (including Ultra Mega Power Projects).

Explanation.—For the purposes of this section, “company” means a company as defined in clause (20) of section 2 of the Companies Act, 2013 (18 of 2013).]

5[11B. Power of Central Government to make rules for regulating atomic minerals specified under Part B of First Schedule.―The Central Government may, by notification in the Official Gazette, make rules for regulating the grant of mining leases or other mineral concessions in respect of minerals specified in Part B of the First Schedule and for purposes connected therewith, and the State Government shall grant a 1[mineral concession] in respect of any such mineral in accordance with such rules.

11C. Power of Central Government to amend First Schedule and Fourth Schedule.―The Central Government may, by notification in the Official Gazette, amend the First Schedule and the Fourth Schedule so as to add or delete any mineral as may be specified in the notification.]

6[11D.Central Government to conduct auction for grant of mining lease or composite licence in respect of minerals specified in Part D of First Schedule.—(1) Notwithstanding anything contained in this Act, the Central Government shall, for the purpose of granting mining lease or composite licence in any area in respect of any mineral specified in the Part D of the First Schedule, select, through auction by method of competitive bidding, including e-auction, a preferred bidder who fulfils the eligibility conditions as specified in section 5, on such terms and conditions, and in such manner, as may be prescribed.

(2) Upon successful completion of the auction, the Central Government shall intimate the details of the preferred bidder in the auction to the State Government and the State Government shall grant mining lease or composite licence for such area, to such preferred bidder, in such manner, as may be prescribed by the Central Government.

1. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).

2. Ins. by Act 2 of 2020, s. 7 (w.e.f. 10-1-2020).

3. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

4. Subs. by s. 7, ibid., for “competitive bidding or otherwise” (w.e.f. 10-1-2020).

5. Ins. by Act 10 of 2015, s. 12 (w.e.f. 12-1-2015).

6. Ins. by Act 16 of 2023, s. 10 (w.e.f. 17-8-2023).

21

(3) The royalty, dead rent, applicable amount quoted in the auction and any other statutory payment in relation to the mining lease or composite licence auctioned by the Central Government shall accrue to the State Government or concerned authorities, as the case may be, as if the auction has been conducted by the State Government.]

12. 1[Registers of mineral concession.]―(1) The State Government shall cause to be maintained in the prescribed form―

(a) a register of applications for prospecting licences;

(b) a register of prospecting licensees;

2[(c) a register of applications for mining leases;

(d) a register of mining lessees;

(e) a register of applications for reconnaissance permits; 3***

(f) a register of reconnaissance permits,] 4[(g) a register of applications for exploration licences; and

(h) a register of exploration licence,] in each of which shall be entered such particulars as may be prescribed.

(2) Every such register shall be open to inspection by any person on payment of such fee as the State Government may fix.

5[12A. Transfer of mineral concessions.―(1) The provisions of this section shall not apply to minerals specified in Part A or Part B of the First Schedule.

(2) A holder of a mining lease or a 6[composite licence 7[or exploration licence]] granted in accordance with the procedure laid down in 8[this Act] may, with the previous approval of the State Government, transfer his mining lease or 6[composite licence 7[or exploration licence]], as the case may be, in such manner as may be prescribed by the Central Government, to any person eligible to hold such mining lease or 6[composite licence 7[or exploration licence]] in accordance with the provisions of this Act and the rules made thereunder.

9[Provided that the transferee of mining lease shall not be required to pay the amount or transfer charges referred to in sub-section (6), as it stood prior to the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021, after such commencement but no refund shall be made of the charges already paid.]

(3) If the State Government does not convey its previous approval for transfer of such mining lease or 10[composite licence 11[or exploration licence]], as the case may be, within a period of ninety days from the date of receiving such notice, it shall be construed that the State Government has no objection to such transfer:

1. Subs. by Act 16 of 2023, s. 11 for the marginal heading (w.e.f. 17-8-2023).

2. Subs. by Act 38 of 1999, s. 13, for clauses (c) and (d) (w.e.f. 18-12-1999).

3. The word “and” omitted by Act 16 of 2023, s. 11 (w.e.f. 17-8-2023).

4. Ins. by Act 16 of 2023, s. 11 (w.e.f. 17-8-2023).

5. Ins. by Act 10 of 2015, s. 13 (w.e.f. 12-1-2015).

6. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

7. Ins. by Act 16 of 2023, s. 12 (w.e.f. 17-8-2023).

8. Subs. by s. 17, ibid., for “section 10B or section 11” (w.e.f. 28-3-2021).

9. Ins. by s. 17, ibid. (w.e.f. 28-3-2021).

1. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

2. Ins. by Act 16 of 2023, s. 12 (w.e.f. 17-8-2023).

22

Provided that the holder of the original mining lease or 1[composite licence 2[or exploration licence]], shall intimate to the State Government the consideration payable by the successor-in-interest for the transfer, including the consideration in respect of the prospecting operations already undertaken and the reports and data generated during the operations.

(4) No such transfer of a mining lease or 1[composite licence 2[or exploration licence]], referred to in sub-section (2), shall take place if the State Government, within the notice period and for reasons to be communicated in writing, disapproves the transfer on the ground that the transferee is not eligible as per the provisions of this Act:

Provided that no such transfer of a mining lease 1[or composite licence], shall be made in contravention of any condition subject to which the mining lease or the 1[composite licence 2[or exploration licence]], was granted.

(5) All transfers effected under this section shall be subject to the condition that the transferee has accepted all the conditions and liabilities under any law for the time being in force which the transferor was subject to in respect of such a mining lease or 1[composite licence 2[or exploration licence]], as the case may be.

2* * * * * 3[Provided that where a mining lease has been granted otherwise than through auction ad where mineral from such mining lease is being used for captive purpose, such mining lease may be permitted to be transferred subject to compliance of such terms and conditions and payment of such amount or such amount or transfer charges as may be prescribed.

Explanation.―For the purposes of this proviso, the expression “used for captive purpose” shall mean the use of the entire quantity of mineral extracted from the mining lease in a manufacturing unit owned by the lessee.]

CHAPTER IV 4[RULES FOR REGULATING THE GRANT OF MINERAL CONCESSIONS]

13. Power of Central Government to make rules in respect of minerals.―(1) The Central Government may, by notification in the Official Gazette, make rules for regulating the grant of 5[mineral concession] in respect of minerals and for purposes connected therewith.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:―

(a) the person by whom, and the manner in which, applications for 6[mineral concession] in respect of land in which the minerals vest in the Government may be made and the fees to be paid therefor;

7[(aa) the conditions as may be necessary for commencement and continuation of production by the holders of mining leases, under section 4B;

(ab) the conditions to be fulfilled by the new lessee for obtaining all necessary rights, approvals, clearances, licences and the like under the proviso to sub-section (2) of section 8B;

3. Subs. by s. 12, ibid., for “or of a composite licence” (w.e.f. 17-8-2023).

4. Sub-section (6) omitted by Act 16 of 2021, s. 17 (w.e.f. 28-3-2021).

5. Ins. by Act 25 of 2016, s. 3 (w.e.f. 6-5-2016).

6. Subs. by Act 16 of 2023, s. 13, for Chapter heading (w.e.f. 17-8-2023).

7. Subs. by Act 16 of 2021, s. 18, for “prospecting licences and mining leases” (w.e.f. 28-3-2021).

8. Subs. by s. 18, ibid., for “reconnaissance permits, prospecting licences and mining leases” (w.e.f. 28-3-2021).

9. Ins. by Act 2 of 2020, s. 8 (w.e.f. 10-1-2020).

23 1* * * * *]

(b) the time within which, and the form in which, acknowledgement of the receipt of any such application may be sent;

(c) the matters which may be considered where applications in respect of the same land are received on the same day;

2[(d) the terms, conditions and process of auction by competitive bidding and allotment in respect of coal or lignite;

(da) the regulation of grant of 3[mineral concession] or 4[composite licence] in respect of coal or lignite;

(db) the details of mines and their location, the minimum size of such mines and such other conditions which may be necessary for the purpose of coal or lignite reconnaissance, prospecting or mining operations;

(dc) utilisation of coal or lignite including mining for sale by a company]

(e) the authority by which 3[mineral concession] in respect of land in which the minerals vest in the Government may be granted;

(f) the procedure for obtaining 5[a 3[mineral concession] in respect of any land in which the minerals vest in a person other than the Government and the terms on which, and the conditions subject to which, such 6[a permit, licence or lease] may be granted or renewed;

(g) the terms on which, and the conditions subject to which, may other 1[mineral concession] may be granted or renewed;

(h) the facilities to be afforded by holders of mining leases to persons deputed by the Government for the purpose of undertaking research or training in matters relating to mining operations;

7[(i) the fixing and collection of fees for 3[mineral concession] surface rent, security deposit, fines, other fees or charges and the time within which and the manner in which the dead rent or royalty shall be payable;]

(j) the manner in which rights of third parties may be protected (whether by payment of compensation or otherwise) in cases where any such party may be prejudicially affected by reason of any 3[mineral concession];

8[(jj) parameters of existence of mineral contents under clause (a) of sub-section (2) of section 5;]

(k) the grouping of associated minerals for the purposes of section 6;

(l) the manner in which, and the conditions subject to which, 9[a 3[mineral concession]] may be transferred;

(m) the construction, maintenance and use of roads, power transmission lines, tramways, railways, aerial ropeways, pipelines and the making of passages for water for mining purposes on any land comprised in a mining lease;

(n) the form of registers to be maintained under this Act;

1. The clause (ac) omitted by Act 16 of 2023, s. 14 (w.e.f. 17-8-2023).

2. Subs. by Act 2 of 2020, s. 8, for clause (d) (w.e.f. 10-1-2020).

3. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).

4. Subs. by s. 2, ibid., for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

5. Subs. by Act 38 of 1999, s. 14, for “a prospecting licence or a mining lease” (w.e.f. 18-12-1999).

6. Subs. by s. 14, ibid., for “a licence or lease” (w.e.f. 18-12-1999).

7. Subs. by Act 37 of 1986, s. 11, for clause (i) (w.e.f. 10-2-1987).

8. Ins. by Act 10 of 2015, s. 14 (w.e.f. 12-1-2015).

9. Subs. by Act 38 of 1999, s.14, for “a prospecting licence or a mining lease” (w.e.f. 18-12-1999).

24 1* * * * *

(p) the reports and statements to be submitted by holders of 2[mineral concession] or owners of mines and the authority to which such reports and statements shall be submitted;

(q) the period within which applications for revision of any order passed by a State Government or other authority in exercise of any power conferred by or under this Act, may be made 3[the fees to be paid therefore and the documents which shall accompany such applications] and the manner in which such applications shall be disposed of; and 3[(qq) the manner in which rehabilitation of flora and other vegetation, such as trees, shrubs and the like destroyed by reason of any prospecting or mining operations shall be made in the same area or in any other area selected by the Central Government (whether by way of reimbursement of the cost of rehabilitation or otherwise) by the person holding the prospecting licence or mining lease;]

4*** 5[(qqa) the amount of payment to be made to the District Mineral Foundation under sub-sections (5) and (6) of section 9B;

(qqb) the manner of usage of funds accrued to the National Mineral Exploration Trust under sub-section (2) of section 9C;

(qqc) the composition and functions of the National Mineral Exploration Trust under sub-section (3) of section 9C;

(qqd) the manner of payment of amount to the National Mineral Exploration Trust under sub-section (4) of section 9C;

(qqe) the terms and conditions subject to which mining leases shall be granted under sub-section (3) of section 10B;

(qqf) the terms and conditions, and procedure, subject to which the auction shall be conducted including the bidding parameters for the selection under sub-section (5) of section 10B;

(qqg) the time limits for various stages in processing applications for grant of 6[mineral concession under section 10B, 10BA, 11, 11A, 11B, 11D], and section 17A, and their renewals;

7* * * * *

(qqi) the terms and conditions for grant of 8[composite licence] under sub-section (4) of section 11;

(qqj) the terms and conditions, and procedure, including the bidding parameters for the selection under sub-section (6) of section 11;

9[(qqja) the terms and conditions and amount or transfer charges under the proviso to sub-section (6) of section 12A;]

1. Omitted by Act 37 of 1986, s. 11 (w.e.f. 10-2-1987).

2. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).

3. Ins. by Act 37 of 1986, s. 11 (w.e.f. 10-2-1987).

4. The word “and” omitted by Act 10 of 2015, s. 14 (w.e.f. 12-1-2015).

5. Ins. by s. 14, ibid. (w.e.f. 12-1-2015).

6. Subs. by Act 16 of 2023, s. 14, for the words, figures and letters “mining lease or composite licence under section 10B, 11, 11A, 11B” (w.e.f. 17-8-2023).

7. Clause (qqh) omitted by Act 16 of 2021, s. 18 (w.e.f. 28-3-2021).

8. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

9. Ins. by Act 25 of 2016, s. 4 (w.e.f. 6-5-2016).

25 1* * * * * 2[(r) the period of mining lease under sub-section (4) of section 8;

(s) the manner of sale of mineral by the holder of a mining lease under sub-section (5) of section 8;

(t) the manner of sale of mineral under sub-section (7A) of section 8A;

(u) the manner for reimbursement of expenditure towards reconnaissance permits or prospecting operations under the second proviso to clause (b) of sub-section (2) of section 10A;

(v) the manner of granting mining lease to the preferred bidder under the second proviso to sub-section (4) of section 10B;

3[(va) the manner of notifying the areas for grant of exploration licence under sub-section (4) of section 10BA;

(vb) the manner of granting exploration licence to the preferred bidder under the proviso to subsection (7) of section 10BA;

(vc) the manner of conducting auction for grant of exploration licence, the terms and conditions thereof, the bidding parameters for selection, the share payable to the holder, the period for payment and other conditions under sub-section (9) of section 10BA;

(vd) the manner of submitting geological report under sub-section (12) of section 10BA;

(ve) the amount to be paid and the manner of payment under the proviso to sub-section (14) of section 10BA;]

(w) the manner of granting composite licence to the preferred bidder under the second proviso to sub-section (5) of section 11;

(x) the manner of granting mining lease by the State Government to the holder of the composite licence under sub-section (10) of section 11;

1[(xa) the terms and conditions and the manner of selecting a preferred bidder under sub-section (1) of section 11D;

(xb) the manner of granting a mining lease or composite licence to a preferred bidder under sub-section (2) of section 11D;]

(y) any other matter which is to be, or may be prescribed, under this Act.]

4[13A. Power of Central Government to make rules for the grant of prospecting licences or mining leases in respect of territorial waters or continental shelf of India.―(1) The Central Government may, by notification in the Official Gazette, make rules for the grant of prospecting licences or mining leases in respect of any minerals underlying the ocean within the territorial waters or the continental shelf of India.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:―

(a) the conditions, limitations and restrictions subject to which such prospecting licences or mining leases may be granted;

(b) regulation of exploration and exploitation of minerals within the territorial waters or the continental shelf of India;

(c) ensuring that such exploration or exploitation does not interfere with navigation and

(d) any other matter which is required to be, or may be, prescribed.]

1. Clause (qqk) omitted by Act 16 of 2021, s. 18 (w.e.f. 28-3-2021).

2. Subs. by s. 18, ibid., for clause (r) (w.e.f. 28-3-2021).

3. Ins. by Act 16 of 2023, s. 14 (w.e.f. 17-8-2023).

4. Ins. by Act 56 of 1972, s. 6 (w.e.f. 12-9-1972).

26

14. 1[Sections 5 to 13] not to apply to minor minerals.―The provisions of 1[sections 5 to 13] (inclusive) shall not apply to 2[quarry leases, mining leases or other mineral concessions] in respect of minor minerals.

15. Power of State Governments to make rules in respect of minor minerals.―(1) The State Government may, by notification in the Official Gazette, make rules for, regulating the grant of 3[quarry leases, mining leases or other mineral concessions] in respect of minor minerals and for purposes connected therewith.

4[(1A) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:―

(a) the person by whom and the manner in which, applications for quarry leases, mining leases or other mineral concessions may be made and the fees to be paid therefor;

(b) the time within which, and the form in which, acknowledgement of the receipt of any such applications may be sent;

(c) the matters which may be considered where applications in respect of the same land are received within the same day;

(d) the terms on which, and the conditions subject to which and the authority by which quarry leases, mining leases or other mineral concessions may be granted or renewed;

(e) the procedure for obtaining quarry leases, mining leases or other mineral concessions;

(f) the facilities to be afforded by holders of quarry leases, mining leases or other mineral concessions to persons deputed by the Government for the purpose of undertaking research or training in matters relating to mining operations;

(g) the fixing and collection of rent, royalty, fees, dead rent, fines or other charges and the time within which and the manner in which these shall be payable;

(h) the manner in which rights of third parties may be protected (whether by way of payment of compensation or otherwise) in cases where any such party is prejudicially affected by reason of any prospecting or mining operations;

(i) the manner in which rehabilitation of flora and other vegetation such as trees, shrubs and the like destroyed by reason of any quarrying or mining operations shall be made in the same area or in any other area selected by the State Government (whether by way of reimbursement of the cost of rehabilitation or otherwise) by the person holding the quarrying or mining lease;

(j) the manner in which and the conditions subject to which, a quarry lease, mining lease or other mineral concession may be transferred;

(k) the construction, maintenance and use of roads power transmission lines, tramways, railways, serial rope ways, pipelines and the making of passage for water for mining purposes on any land comprised in a quarry or mining lease or other mineral concession;

(l) the form of registers to be maintained under this Act;

(m) the reports and statements to be submitted by holders of quarry or mining leases or other mineral concessions and the authority to which such reports and statements shall be submitted;

1. Subs. by Act 37 of 1986, s. 12, for “sections 4 to 13” (w.e.f. 10-2-1987).

2. Subs. by Act 56 of 1972, s. 7, for “prospecting licences and mining leases” (w.e.f. 12-9-1972).

3. Subs. by s. 8, ibid., for “prospecting licence and mining leases” (w.e.f. 12-9-1972).

4. Ins. by Act 37 of 1986, s. 13 (w.e.f. 10-2-1987).

27

(n) the period within which and the manner in which and the authority to which applications for revision of any order passed by any authority under these rules may be made, the fees to be paid therefore, and the powers of the revisional authority; and

(o) any other matter which is to be, or may be, prescribed.]

(2) Until rules are made under sub-section (1), any rules made by a state Government regulating the grant of 1[quarry leases, mining leases or other mineral concessions] in respect of minor minerals which are in force immediately before the commencement of these Act shall continue in force.

2[(3) The holder of a mining lease or any other mineral concession granted under any rule made under sub-section (1) shall pay 3[royalty or dead rent, whichever is more] in respect of minor minerals removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee at the rate prescribed for the time being in the rules framed by the State Government in respect of minor minerals:

Provided that the State Government shall not enhance the rate of 3[royalty or dead rent] in respect of any minor mineral for more than once during any period of 4[three] years.]

5[(4) Without prejudice to sub-sections (1), (2) and sub-section (3), the State Government may, by notification, make rules for regulating the provisions of this Act for the following, namely:―

(a) the manner in which the District Mineral Foundation shall work for the interest and benefit of persons and areas affected by mining under sub-section (2) of section 9B;

(b) the composition and functions of the District Mineral Foundation under sub-section (3) of section 9B; and

(c) the amount of payment to be made to the District Mineral Foundation by concession holders of minor minerals under section 15A.]

6[15A. Power of State Government to collect funds for District Mineral Foundation in case of minor minerals.―The State Government may prescribe the payment by all holders of concessions related to minor minerals of amounts to the District Mineral Foundation of the district in which the mining operations are carried on.]

16. Power to modify mining leases granted before 25th October, 1949.―7[(1) (a) All mining leases granted before the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972) 8[if in force at the date of commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1994 (25 of 1994), shall be brought in conformity with the provisions of this Act and the rules made thereunder within two years from the date of the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1994], or such further time as the Central Government may, by general or special order, specify in this behalf.

(b) Where the rights under any mining lease, granted by the proprietor of an estate or tenure before the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972), have vested, on or after the 25th day of October, 1949, in the State Government in pursuance of the provisions of any Act of any Provincial or State Legislature which provides for the acquisition of estates or tenures or provides for agrarian reform, such mining lease shall be brought into conformity with the provisions of this Act and the rules made thereunder within 9[two years from the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1994 (25 of 1994)], or within such further time as the Central Government may, by general or special order, specify in this behalf.]

1. Subs. by Act 56 of 1972, s. 8, for “prospecting licence and mining leases” (w.e.f. 12-9-1972).

2. Ins. by s. 8, ibid. (w.e.f. 12-9-1972).

3. Subs. by Act 37 of 1986, s. 13, for “royalty” (w.e.f. 10-2-1987).

4. Subs. by s. 13, ibid., for “four” (w.e.f. 10-2-1987).

5. Ins. by Act 10 of 2015, s. 15 (w.e.f. 12-1-2015).

6. Ins. by s. 16, ibid. (w.e.f. 12-1-2015).

7. Subs. by Act 56 of 1972, s. 9, for sub-section (1) (w.e.f. 12-9-1972).

8. Subs. by Act 25 of 1994, s. 6, for certain words (w.e.f. 25-1-1994).

9. Subs. by s. 6, ibid., for “six months from the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972” (w.e.f. 25-1-1994).

28 1[(1A) Where any action is taken under clause (a) or clause (b) of sub-section (1) to bring the period of any lease in conformity with the provisions of this Act and the rules made thereunder, then notwithstanding anything contained in section 8, the period of such lease shall continue to operate for a period of two years from the date of bringing such lease in conformity with the provisions of this Act.]

(2) The Central Government may, by notification in the Official Gazette, make rules for the purpose of giving effect to the provisions of sub-section (1) and in particular such rules shall provide—

(a) for giving previous notice of the modification or alteration proposed to be made in any existing mining lease to the lessee and where the lessor is not the Central Government, also to the lessor and for affording him an opportunity of showing cause against the proposal;

(b) for the payment of compensation to the lessee in respect of the reduction of any area covered by the existing mining lease; and

(c) for the principles on which, the manner in which, and the authority by which, the said compensation shall be determined.

CHAPTER V SPECIAL POWERS OF CENTRAL GOVERNMENT TO UNDERTAKE PROSPECTING OR MINING OPERATIONS IN CERTAIN CASES

17. Special powers of Central Government to undertake prospecting or mining operations in certain lands.―(1) The provisions of this section shall apply 2*** in respect of land in which the minerals vest in the Government of a State 3[or any other person].

(2) Notwithstanding anything contained in this Act, the Central Government, after consultation with the State Government, may undertakes 4[mineral concession] in any area not already held under any 4[mineral concession] and where it proposes to do so, it shall, by notification in the Official Gazette―

(a) specify the boundaries of such area;

(b) state whether 5[reconnaissance, prospecting or mining operations] will be carried out in the area; and

(c) specify the mineral or minerals in respect of which such operations will be carried out.

(3) Where, in exercise of the powers conferred by sub-section (2), the Central Government undertakes 5[reconnaissance