Sat Dec 28 1957 | Others | Comments (0)
Year : 1957
Sections
CHAPTER I PRELIMINARY
CHAPTER II
General restrictions on undertaking prospecting and mining operations
4B. Conditions for efficiency in production.
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.
9C. National Mineral Exploration Trust.
Chapter III
Procedure for obtaining, prospecting licences or mining leases in respect of land in which the minerals vest in the Government
10B. Grant of mining lease in respect of notified minerals through auction. 10C. [Omitted.]
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.
Chapter IV
Rules for regulating the grant of prospecting licences and mining leases
Sections
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.
15A. Power of State Government to collect funds for District Mineral Foundation in case of minor minerals.
Chapter V
Special powers of Central government to undertake prospecting or mining operations in certain cases
17A. Reservation of areas for purposes of conservation.
Chapter VI Development of minerals
18A.Power to authorise Geological Survey of India, etc., to make investigation.
Chapter VII Miscellaneous
23C. Power of State Government to make rules for preventing illegal mining, transportation and storage of minerals.
24A. Rights and liabilities of a holder of prospecting licence or mining lease.
30A. Special provisions relating to mining leases for coal granted before 25th October, 1949.
Sections
30B. Constitution of Special Courts.
30C. Special Courts to have powers of Court of Session.
THE SECOND SCHEDULE. THE THIRD SCHEDULE. THE FOURTH SCHEDULE. THE FIFTH SCHEDULE. THE SIXTH SCHEDULE.
[28th December, 1957.]
BE it enacted by Parliament in the Eighth Year of the Republic of India as follows:?
Chapter I Preliminary
2[(Development and Regulation)] Act, 1957.
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;
(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 or a combination of any of these and the expression “concession” shall be construed accordingly;]
1[(ea)“notified minerals” means any mineral specified in the Fourth Schedule;]
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;]
3* * * * *
5[(ha) “reconnaissance operations” means any operations undertaken for preliminary prospecting of a mineral through regional, aerial, geophysical or geochemical surveys and geological mapping, but does not include pitting, trenching, drilling (except drilling of boreholes on a grid specified from time to time by the Central Government) or sub-surface excavation;
(hb) “reconnaissance permit” means a permit granted for the purpose of undertaking reconnaissance operations; 6***]
2[(hba) “Schedule” means the Schedules appended to the Act;]
7[(hc) “Special Court” means a Court of Session designated as Special Court under sub-section (1) of section 30B; and]
2[Explanation.—For the purpose of this clause, —
Chapter II
General restrictions on undertaking prospecting and mining operations
4. Prospecting or mining operations to be under licence or lease.?(1) 8[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 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 or mining lease granted before the commencement of this Act which is in force at such commencement:
9[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, 10[the Atomic Minerals
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).
6. The word “and” omitted by Act 10 of 2015, s. 2 (w.e.f. 12-1-2015). 7. Ins. by s. 2, ibid. (w.e.f. 12-1-2015).
8. Subs. by Act 38 of 1999, s. 5, for certain words (w.e.f. 18-12-1999). 9. Ins. by Act 37 of 1986, s. 2 (w.e.f. 10-2-1987).
10. Subs. by Act 38 of 1999, s. 5, for “the Atomic Minerals Division” (w.e.f. 18-12-1999).
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 1[clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), and any 2[other entities including private entities that may be notified for this purpose, subject to such conditions as may be specified by the Central Government]]:]
3[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.]
4[(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) 5[No 6[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, 7[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]].]
8[4A.Termination of prospecting 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 prospecting 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 prospecting licence or mining lease with respect to the area or any part thereof.
10[* * * * *]
4. Ins. by Act 38 of 1999, s. 5 (w.e.f. 18-12-1999).
1[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 anorder, 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 andsuch extension shall not be granted for more than once during the entire periodof 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.]
2[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.]
3[5. Restrictions on the grant of prospecting licences or mining leases.?4[(1) A State Government shall not grant a 5[mineral concession] to any person unless such person?
7[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.]
8[Provided further that the previous approval of the Central Government shall not be required for grant of 5[mineral concession] in respect of the minerals specified in Part A of the First Schedule, where,—
Explanation.?For the purposes of this sub-section, a person shall be deemed to be an Indian national,?
9[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.]
1. The provisos first, second, third and fourth subs. by Act 16 of 2021, s. 5 (w.e.f. 28-3-2021). 2. Ins. by Act 2 of 2020, s. 2 (w.e.f. 10-1-2020).
3. Subs. by Act 37 of 1986, s. 4, for section 5 (w.e.f. 10-2-1987).
4. Subs. by Act 25 of 1994, s. 3, for sub-section (1) (w.e.f. 25-1-1994).
9. Ins. by Act 16 of 2021, s. 6 (w.e.f. 28-3-2021).
(2) No mining lease shall be granted by the State Government unless it is satisfied that?
1[(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:]
2[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.]
6[(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]
7[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.]]
8[(c) any reconnaissance permit, mining lease or prospecting licence 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 9[mineral concession] in relation to any area which is not compact or contiguous.]
(2) For the purposes of this section, a person acquiring by, or in the name of, another person a
9[mineral concession] which is intended for himself shall be deemed to be acquiring it himself.
10[(3) For the purposes of determining the total area referred to in sub-section (1), the area held under a 9[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 9[mineral concession], whether as such member or partner, or individually, may not, in any case, exceed the total area specified in subsection (1).]
1. Subs. by Act 10 of 2015, s. 5, for clause (a) (w.e.f. 12-1-2015).
2. Ins. by s. 5, ibid. (w.e.f. 12-1-2015).
3. Subs. by Act 56 of 1972, s. 3, for sub-section (1) (w.e.f. 12-9-1972).
4. The words “in any one State” omitted by Act 37 of 1986, s. 5 (w.e.f. 10-2-1987). 5. Ins. by Act 38 of 1999, s. 8 (w.e.f. 18-12-1999).
6. Ins. by Act 38 of 1999, s. 8 (w.e.f. 18-12-1999).
7. Subs. by Act 10 of 2015, s. 6, for the proviso (w.e.f. 12-1-2015). 8. Subs. by Act 38 of 1999, s. 8, for clause (c) (w.e.f. 18-12-1999).
9. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021). 10. Ins. by Act 56 of 1972, s. 3 (w.e.f. 12-9-1972).
1[7. Periods for which prospecting licences may be granted or renewed.?(1) The period for which 2[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 3[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.]
4[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.
Provided that the minimum period for which any such mining lease may be granted shall not be less than twenty years.
5[(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 grantedthrough 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 suchcoal or lignite up to fifty per cent. of the total coal or lignite produced in a year aftermeeting 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:
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 inthe said notification.]
6[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.
1. Subs. by Act 25 of 1994, s. 4, for section 7 (w.e.f. 25-1-1994).
5. Ins. by Act 16 of 2021, s. 7 (w.e.f. 28-3-2021).
6. Ins. by Act 10 of 2015, s. 8 (w.e.f. 12-1-2015).
1[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.]
2[(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 meetingthe 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 OfficialGazette and for the reasons to be recorded in writing, increase the said percentageof 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.]
2[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 maybe 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
1. Ins. by Act 2 of 2020, s. 4 (w.e.f. 10-1-2020).
2. Ins. by Act 16 of 2021, s. 8 (w.e.f. 28-3-2021).
(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.]
1[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 grantedto 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 throughauction, whichever is earlier and such Government company or corporation shall be deemed to have acquired all valid rights, approvals, clearances, licences and the likevested 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 inforce, 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 2[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.
3[(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.]
1. Ins. by Act 16 of 2021, s. 9 (w.e.f. 28-3-2021).
2. Subs. by Act 56 of 1972, s. 4, for “mineral removed by him” (w.e.f. 12-9-1972). 3. Ins. by s. 4, ibid. (w.e.f. 12-9-1972).
1[Provided that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of 2[three years].]
3[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 4[three years].]
5[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.
6[Provided that the Central Government may give directions regarding composition and utilisation of fund by the District Mineral Foundation.]
1. Subs. by Act 56 of 1972, s. 4, for the proviso (w.e.f. 12-9-1972). 2. Subs. by Act 37 of 1986, s. 8, for “four years” (w.e.f. 10-2-1987). 3. Ins. by Act 56 of 1972, s. 5 (w.e.f. 12-9-1972).
4. Subs. by Act 37 of 1986, s. 9, for “four years” (w.e.f. 10-2-1987).
5. Ins. by Act 10 of 2015, s. 9 (w.e.f. 12-1-2015).
6. Ins. by Act 16 of 2021, s. 10 (w.e.f. 28-3-2021).
7. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021). 8. Ins. by s. 10, ibid. (w.e.f. 28-3-2021).
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.
9C. National Mineral Exploration Trust.?(1) The Central Government shall, by notification, establish a Trust, as a 2[non-profit autonomous body], to be called the National Mineral Exploration Trust.
4[(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
Procedure for obtaining, prospecting licences or mining leases, in respect of land in which the minerals vest in the government
10. Application for prospecting licences or mining leases.?(1) An application for 5[a 3[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.
7[(4) Notwithstanding anything contained in this section, no person shall be eligible to make an application under this section unless—
or
1. Ins. by Act 16 of 2021, s. 10 (w.e.f. 28-3-2021).
1[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[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.]
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.
2[(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.
1. Ins. by Act 10 of 2015, s. 10 (w.e.f. 12-1-2015).
2. Ins. by Act 16 of 2021, s. 13 (w.e.f. 28-3-2021).
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 thresholdvalue, 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.?1[(1) The provisions of this section shall not apply to the,—
3[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 mayrequire 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.]
3[Provided that—
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 CentralGovernment may conduct auction for grant of mining lease for such area afterthe 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 sucharea to such preferred bidder in such manner as may be prescribed by the CentralGovernment.]
1. Subs. by Act 16 of 2021, s. 14, for sub-section (1) (w.e.f. 28-3-2021).
2. Subs. by s. 2, ibid., for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021). 3. Ins. by s. 14, ibid. (w.e.f. 28-3-2021).
1[Provided that no mine shall be reserved for captive purpose in the auction.]
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).
2[11. Grant of 3[composite licence] through auction in respect of minerals other than notified minerals.?4[(1) The provisions of this section shall not apply to the,—
5[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 mayrequire 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[Provided that—
1. Subs. by Act 16 of 2021, s. 14, for the proviso (w.e.f. 28-3-2021). 2. Subs. by Act 10 of 2015, s. 11, for section 11 (w.e.f. 12-1-2015).
notified area; or
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.]
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: —
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 Act 16 of 2021, s. 16, 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).
1[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;]
2[Provided that the auction by competitive bidding under this section shall not be applicable to coal or lignite—
Provided that the auction by competitive bidding under this section shall not be applicable to an area containing coal or lignite—
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).]
7[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,
1. Subs. by Act 2 of 2020, s. 7, for the long line (w.e.f. 10-1-2020). 2. Ins. by s. 7, ibid. (w.e.f. 10-1-2020).
3. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021). 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).
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.]
2[(c) a register of applications for mining leases;
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.
3[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.
6[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.]
Provided that the holder of the original mining lease or 4[composite 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.
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 Act 38 of 1999, s. 13, for clauses (c) and (d) (w.e.f. 18-12-1999).
3. Ins. by Act 10 of 2015, s. 13 (w.e.f. 12-1-2015).
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 or of a 1[composite licence], shall be made in contravention of any condition subject to which the mining lease or the 1[composite licence] was granted.
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
Rules for regulating the (grant of prospecting licences and mining leases
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 4[mineral concession] in respect of minerals and for purposes connected therewith.
6[(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;
(ac) the level of exploration in respect of deep seated minerals or such minerals and the procedure, including the bidding parameters for selection of the holders under the proviso to sub-section (2) of section 10C;]
7[(d) the terms, conditions and process of auction by competitive bidding and allotment in respect of coal or lignite;
7. Subs. by Act 2 of 2020, s. 8, for clause (d) (w.e.f. 10-1-2020).
(da) the regulation of grant of 1[mineral concession] or 2[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]
5[(i) the fixing and collection of fees for 1[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;]
6[(jj) parameters of existence of mineral contents under clause (a) of sub-section (2) of section 5;]
8* * * * *
7. Subs. by Act 38 of 1999, s.14, for “a prospecting licence or a mining lease” (w.e.f. 18-12-1999). 8. Omitted by Act 37 of 1986, s. 11 (w.e.f. 10-2-1987).
9. Ins. by Act 37 of 1986, s. 11 (w.e.f. 10-2-1987).
1[(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;]
2***
3[(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 mining lease or
4[composite licence] under sections 10B, 11, 11A, 11B, and section 17A, and their renewals;
5* * * * *
(qqi) the terms and conditions for grant of 4[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;
6[(qqja) the terms and conditions and amount or transfer charges under the proviso to sub-section (6) of section 12A;]
7* * * * *
8[(r) the period of mining lease under sub-section (4) of section 8;
1. Ins. by Act 37 of 1986, s. 11 (w.e.f. 10-2-1987).
2. The word “and” omitted by Act 10 of 2015, s. 14 (w.e.f. 12-1-2015). 3. Ins. by s. 14, ibid. (w.e.f. 12-1-2015).
1[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.
5[(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:?
1. Ins. by Act 56 of 1972, s. 6 (w.e.f. 12-9-1972).
2. Subs. by Act 37 of 1986, s. 12, for “sections 4 to 13” (w.e.f. 10-2-1987).
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 4[royalty or dead rent] in respect of any minor mineral for more than once during any period of 5[three] years.]
6[(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:?
3. Subs. by Act 37 of 1986, s. 13, for “royalty” (w.e.f. 10-2-1987).
4. Subs. by Act 37 of 1986, s. 13, for “royalty” (w.e.f. 10-2-1987). 5. Subs. by s. 13, ibid., for “four” (w.e.f. 10-2-1987).
6. Ins. by Act 10 of 2015, s. 15 (w.e.f. 12-1-2015).
1[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.]
(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 4[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.]
5[(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.]
Chapter V
Special powers of central government to undertake prospecting or mining operations in certain cases
1. Ins. by Act 10 of 2015, s. 16, (w.e.f. 12-1-2015).
2 Subs. by Act 56 of 1972, s. 9, for sub-section (1) (w.e.f. 12-9-1972).
5. Ins. by s. 6, ibid. (w.e.f. 25-1-1994).
6. The word “only” omitted by Act 56 of 1972, s. 10 (w.e.f. 12-9-1972). 7. Ins. by s. 10, ibid. (w.e.f. 12-9-1972).
4[17A. Reservation of areas for purposes of conservation.?(1) The Central Government, with a view to conserving any mineral and after consultation with the State Government, may reserve any area not already held under any prospecting licence or mining lease and, where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such area will be reserved.
5[(1A) The Central Government may in consultation with the State Government, reserve any area not already held under any prospecting licence or mining lease, for undertaking prospecting or mining operations through a Government company or corporation owned or controlled by it, and where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such area will be reserved.]
7[(2A) Where in exercise of the powers conferred by sub-section (1A) or sub-section (2), the Central Government or the State Government, as the case may be, reserves any area for undertaking prospecting or mining operations or prospecting operations followed by mining operations, the State Government shall grant prospecting licence, mining lease or composite licence, as the case may be, in respect of such area to such Government company or corporation within the period specified in this section:
Provided that in respect of any mineral specified in Part B of the First Schedule, the State Government shall grant the prospecting licence, mining lease or composite licence, as the case may be, only after obtaining the previous approval of the Central Government.]
(2B) Where the Government company or corporation is desirous of carrying out the prospecting operations or mining operations in a joint venture with other persons, the joint venture partner shall be selected through a competitive process, and such Government company or corporation shall hold more than seventy-four per cent. of the paid up share capital in such joint venture.
5. Ins. by Act 25 of 1994, s. 7 (w.e.f. 25-1-1994).
6. The words “or by the Central Government” omitted by s. 7, ibid. (w.e.f. 25-1-1994). 7. Subs. by Act 16 of 2021, s. 19, for sub-section (2A) (w.e.f. 28-3-2021).
(2C) A mining lease granted to a Government company or corporation, or a joint venture, referred to in sub-sections (2A) and (2B), shall be granted on payment of such amount as 1[specified in the Fifth Schedule].]
2[Provided 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 Schedulewith 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 granted after the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 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(10 of 2015).
4[(4) The reservation made under this section shall lapse in case no mining lease is granted within a period of five years from the date of such reservation:
Provided that where the period of five years from the date of reservation has expired before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021 or expires within a period of one year from the date of commencement of the said Act, the reservation shall lapse in case no mining lease is granted within a period of one year from the date of commencement of the said Act:
Provided further that the State Government may, on an application made by such Government company or corporation or on its own motion, and on being satisfied that it shall not be possible to grant the mining lease within the said period, make an order with reasons in writing, within a period of three months from the date of receipt of such application, to relax such period by a further period not exceeding one year:
Provided also that where the Government company or corporation in whose favour an area has been reserved under this section before the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015), has commenced production from the reserved area without execution of mining lease, such Government company or corporation shall be deemed to have become lessee of the State Government from the date of commencement of mining operations and such deemed lease shall lapse upon execution of the mining lease in accordance with this sub-section or expiry of period of one year from the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021, whichever is earlier.
(5) The termination or lapse of mining lease shall result in the lapse of the reservation under this section.]
Chapter VI Development of minerals
18. Mineral development.?(1) It shall be the duty of the Central Government to take all such steps as may be necessary 5[for the conservation and systematic development of minerals in India and for the
1. Subs. by Act 16 of 2021, s. 19, for “may be prescribed by the Central Government” (w.e.f. 28-3-2021). 2. Ins. by s. 19, ibid. (w.e.f. 28-3-2021).
3. Subs. by Act 25 of 1994, s. 7, for “Where in exercise of the powers conferred by sub-section (2) the State Government” (w.e.f. 25-1-1994).
4. Ins. by Act 16 of 2021, s. 19 (w.e.f. 28-3-2021).
2. Subs. by Act 37 of 1986, s. 15, for “for the conservation and development of minerals in India” (w.e.f. 10-2-1987).
protection of environment by preventing or controlling any pollution which may be caused by prospecting or mining operations] and 1[for such purposes] the Central Government may, by notification in the Official Gazette, make such rules as it thinks fit.
2[(i) the regulation of prospecting operations;
1[18A. Power to authorise Geological Survey of India, etc., to make investigation.?(1) Where the Central Government is of opinion that for the conservation and development of minerals in India, it is necessary to collect as precise information as possible with regard to any mineral available in or under any land in relation to which any prospecting licence or mining lease has been granted, whether by the State Government or by any other person, the Central Government may authorise the Geological Survey of India, or such other authority or agency as it may specify in this behalf, to carry out such detailed investigations for the purpose of obtaining such information as may be necessary:
Provided that in the cases of prospecting licences or mining leases granted by a State Government, no such authorisation shall be made except after consultation with the State Government.
Provided that no such authority or agency shall enter into any building or upon any enclosed court or garden attached to a dwelling-house (except with the consent of the occupier thereof) without previously giving such occupier at least seven days’ notice in writing of its intention to do so.
Provided that where the State Government or other person in whom the minerals are vested or the holder of any prospecting licence or mining lease applies to the Central Government to furnish to it or him a copy of the report submitted under sub-section (5), that State Government or other person or the holder of a prospecting licence or mining lease, as the case may be, shall bear such reasonable part of the costs of investigation as the Central Government may specify in this behalf and shall, on payment of such part of the costs of investigation, be entitled to receive from the Central Government a true copy of the report submitted to it under sub-section (5).]
1. Ins. by Act 56 of 1972, s. 11 (w.e.f. 12-9-1972).
Chapter VII Miscellaneous
Explanation.?Where a person has acquired more than one 1[mineral concession] 2*** and the aggregate area covered by such 3[permits, licences or leases], as the case may be, exceeds the maximum area permissible under section 6, only that 1[mineral concession] the acquisition of which has resulted in such maximum area being exceeded shall be deemed to be void.
4[20A. Power of Central Government to issue directions.?(1) Notwithstanding anything contained in this Act, the Central Government may issue such directions to the State Governments, as may be required for the conservation of mineral resources, or on any policy matter in the national interest, and for the scientific and sustainable development and exploitation of mineral resources.
5. Subs. by Act 10 of 2015, s. 19, for sub-sections (1) and (2) (w.e.f. 12-1-2015).
1[(4) Whenever any person raises, transports or causes to be raised or transported, without any lawful authority, any mineral from any land, and, for that purpose, uses any tool, equipment, vehicle or any other thing, such mineral tool, equipment, vehicle or any other thing shall be liable to be seized by an officer or authority specially empowered in this behalf.
(4A) Any mineral, tool, equipment, vehicle or any other thing seized under sub-section (4), shall be liable to be confiscated by an order of the court competent to take cognizance of the offence under sub-section (1) and shall be disposed of in accordance with the directions of such court.]
(5) Whenever any person raises, without any lawful authority, any mineral from any land, the State Government may recover from such person the mineral so raised, or, where such mineral has already been disposed of, the price thereof, and may also recover from such person, rent, royalty or tax, as the case may be, for the period during which the land was occupied by such person without any lawful authority.
2[(6) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an offence under sub-section (1) shall be cognizable.]
3[Explanation.—On and from the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021, the expression “raising, transporting or causing to raise or transport any mineral without any lawful authority” occurring in this section, shall mean raising, transporting or causing to raise or transportany mineral by a person without prospecting licence, mining lease or composite licence or in contravention of the rules made under section 23C.]
Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
Explanation.?For the purposes of this section,?
4[23A. Compounding of offences.?(1) Any offence punishable under this Act or any rule made thereunder may, either before or after the institution of the prosecution, be compounded by the person authorised under section 22 to make a complaint to the court with respect to that offence, on payment to that person, for credit to the Government, of such sum as that person may specify:
1. Subs. by Act 38 of 1999, s. 17, for sub-section (4) (w.e.f. 18-12-1999).
2. Ins. by Act 37 of 1986, s. 16 (w.e.f. 10-2-1987).
3. Ins. by Act 16 of 2021, s. 20 (w.e.f. 28-3-2021).
4. Ins. by Act 56 of 1972, s. 13 (w.e.f. 12-9-1972).
Provided that in the case of an offence punishable with fine only, no such sum shall exceed the maximum amount of fine which may be imposed for that offence.
(2) Where an offence is compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the offender in respect of the offence so compounded, and the offender, if in custody, shall be released forthwith.]
1[23B. Power to search.?If any gazetted officer of the Central or a State Government authorised by the Central Government 2[or a State Government, as the case may be,] in this behalf by genera! or special order has reason to believe that any mineral has been raised in contravention of the provisions of this Act or rules made thereunder or any document or thing in relation to such mineral is secreted in any place 3[or vehicle], he may search for such mineral, document or thing and the provisions of section 100 of the Code of Criminal Procedure, 1973 (2 of 1974), shall apply to every such search.]
3[23C. Power of State Government to make rules for preventing illegal mining, transportation and storage of minerals.?(1) The State Government may, by notification in the Official Gazette, make rules for preventing illegal mining, transportation and storage of minerals and for the purposes connected therewith.
1. Ins. by Act 25 of 1994, s. 9 (w.e.f. 25-1-1994).
2. Ins. by Act 38 of 1999, s. 18 (w.e.f. 18-12-1999).
3. Ins. by s. 19, ibid. (w.e.f. 18-12-1999).
(2) Every person authorised by the 1[Central Government or a State Government] under sub-section (1) shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, and every person to whom an order or summons is issued by virtue of the powers conferred by clause (e) or clause (f) of that sub-section shall be legally bound to comply with such order or summons, as the case may be.
1[24A. Rights and liabilities of a holder of prospecting licence or mining lease.?(1) On the issue of a 2[mineral concession] under this Act and the rules made thereunder, it shall be lawful for the 3[holder of such permit, licence or lease], his agents or his servants or workmen to enter the lands over which 4[such permit, lease or licence had been granted] at all times during its currency and carry out all such 5[reconnaissance, prospecting or mining operations] as may be prescribed:
Provided that no person shall enter into any building or upon an enclosed court or garden attached to a dwelling-house (except with the consent of the occupier thereof) without previously giving such occupier at least seven days’ notice in writing of his intention to do so.
25. Recovery of certain sums as arrears of land revenue.?8[(1)] Any rent, royally, tax, fee or other sum due to the Government under this Act or the rules made thereunder or under the terms and conditions of any 2[mineral concession] may, on a certificate of such officer as may be specified by the State Government in this behalf by general or special order, be recovered in the same manner as an arrear of land revenue.
9[(2) Any rent, royalty, tax, fee or other sum due to the Government either under this Act or any rule made thereunder or under the terms and conditions of any 2[mineral concession] may, on a certificate of such officer as may be specified by the State Government in this behalf by general or special order, be recovered in the same manner as if it were an arrear of land revenue and every such sum which becomes due to the Government after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972), together with the interest due thereon shall be a first charge on the assets of the holder of the 2[mineral concession], as the case may be.]
1. Ins. by Act 37 of 1986, s. 17 (w.e.f. 10-2-1987).
(2) Without prejudice to the generality of the rule making power vested in the Central Government, no rules made with reference to clause (c) of sub-section (2) of section 16 shall come into force until they have been approved, whether with or without modifications, by each House of Parliament.
2[(3) Every rule and every notification made by the State Government under this Act shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists one House, before that House.]
3[30. Power of revision by Central Government.?The Central Government may, of its own motion or on an application made within the prescribed time by an aggrieved party,?
1. Subs. by Act 56 of 1972, s. 15, for sub-section (1) (w.e.f. 12-9-1972).
2. Ins. by Act 25 of 1994, s. 10 (w.e.f. 25-1-1994).
3. Subs. by s. 20, for section 30 (w.e.f. 12-1-2015).
Provided that in cases covered by clause (b) the Central Government shall, before passing any order under this clause, give an opportunity of being heard or to represent in the matter.]
1[30A. Special provisions relating to mining leases for coal granted before 25th October, 1949.?Notwithstanding anything contained in this Act, the provisions of sub-section (1) of section 9 and sub-section (1) of section 16 shall not apply to or in relation to mining leases granted before the 25th day of October, 1949, in respect of coal, but the Central Government, if it is satisfied that it is expedient so to do, may, by notification in the Official Gazette, direct that all or any of the said provisions (including any rules made under sections 13 and 18) shall apply to or in relation to such leases subject to such exceptions and modifications, if any, as may be specified in that or in any subsequent notification.]
2[30B. Constitution of Special Courts.?(1) The State Government may, for the purposes of providing speedy trial of offences for contravention of the provisions of sub-section (1) or sub-section (1A) of section 4, constitute, by notification, as many Special Courts as may be necessary for such area or areas, as may be specified in the notification.
30C. Special Courts to have powers of Court of Session.?Save as otherwise provided in this Act, the Code of Criminal Procedure, 1973 (2 of 1974), shall apply to the proceedings before the Special Court and for the purpose of the provisions of this Act, the Special Court shall be deemed to be a Court of Session and shall have all powers of a Court of Session and the person conducting a prosecution before the Special Court shall be deemed to be a public prosecutor.]
s. 2 and the First Schedule (w.e.f. 26-12-1960).
1. Ins. by Act 15 of 1958, s. 2 (w.e.f. 15-5-1958).
2. Ins. by Act 10 of 2015, s. 21 (w.e.f. 12-1-2015).
3 Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).
1[THE FIRST SCHEDULE
[See sections 4(3), 5(1), 7(2) and 2[8(1), 8A(1), 10A, 10B(1), 10C(1), 11(1), 11B, 11C, 12A(1), and 17A(2A)]]
Specified minerals
PART A
Hydro carbons/energy minerals
PART B
Atomic minerals
3[7. Titanium bearing minerals and ores (ilmenite, rutile and leucoxene).]
4[11. Zirconium-bearing minerals and ores including Zircon.]
PART C
Metallic and non-metallic minerals
5***
1. Subs. by Act 25 of 1994, s. 12, for the First Schedule (w.e.f. 25-1-1994). 2. Subs. by Act 10 of 2015, s. 22, for “8(2)” (w.e.f. 12-1-2015).
3. Subs. by Act 38 of 1999, s. 24, for item 7 (w.e.f. 18-12-1999).
4. Subs. by s. 24, ibid., for item 11 (w.e.f. 18-12-1999).
5. Omitted by s. 24, ibid. (w.e.f. 18-12-1999).
1[SECOND SCHEDULE
(See section 9)
RATES OF ROYALTY IN RESPECT OF MINERALS AT ITEMS 1 TO 9, 11 TO 40 AND 42 TO 55
|
1. Apatite and Rock Phosphate: (i) Apatite |
Five per cent. of average sale price on ad valorem basis. |
|
(ii) Rock Phosphate
|
Twelve and half per cent. of average sale price on ad valorem basis. Six per cent. of average sale price on ad valorem basis. |
|
2. Asbestos: (i) Chrysotile |
Eight Hundred and Eighty rupees per tonne. |
|
(ii) Amphibole |
Fifteen per cent. of average sale price on ad valorem basis. |
|
3. Barytes: |
Six and half per cent. of average sale price on ad valorem basis. |
|
4. Bauxite and Laterite: |
(a) Metallurgical Grade: Zero point six zero per cent. of London Metal Exchange Aluminium metal price chargeable on the contained aluminium metal in ore produced for those dispatched for use in alumina and aluminium metal extraction. |
|
|
(b) Non Metallurgical Grade: Twenty five per cent. of average sale price on ad valorem basis for those dispatched for use other than alumina andaluminium metal extraction. |
|
Two per cent. of average sale price on ad valorem basis.
Fifteen per cent. of average sale price on ad valorem basis. |
|
7. Calcite: |
Fifteen per cent. of average sale price on ad valorem basis. |
|
8. China clay or Kaolin: (including ball clay and white shale, white clay) (i) Crude |
Eight per cent. of average sale price on ad valorem basis. |
|
(ii) Processed(including washed) |
Twelve per cent. of average sale price on ad valorem basis. |
|
9. Clay others: |
Twenty rupees per tonne. |
|
10. Coal (including Lignite): |
* |
|
11. Chromite: |
Fifteen per cent. of average sale price on ad valorem basis. |
|
12. Columbite-tantalite: |
Ten per cent. of average sale price on ad valorem basis. |
1. Subs. by notification No. G.S.R. 630(E), for the Second Schedule (w.e.f. 1-9-2014).
|
13. Copper: |
Four point six two per cent. of London Metal Exchange Copper metal price chargeable on the contained copper metal in ore produced. |
|
14. Diamond: |
Eleven point five per cent. of average sale price on ad valorem basis. |
|
15. Dolomite: |
Seventy-five rupees per tonne. |
|
16. Dunite: |
Thirty rupees per tonne. |
|
17. Felspar: |
Fifteen per cent. of average sale price on ad valorem basis. |
|
18. Fire Clay: (including plastic, pipe, lithomargic and natural pozzolanic clay) |
Twelve per cent. of average sale price on ad valorem basis. |
|
19. Fluorspar: (also called fluorite) |
Eight per cent. of average sale price on ad valorem basis. |
|
20. Garnet: (i) Abrasive |
Four per cent. of average sale price on ad valorem basis. |
|
(ii) Gem |
Ten per cent. of average sale price on ad valorem basis. |
|
21. Gold: (i) Primary |
Four per cent. of London Bullion Market Association Price (commonly referred to as London Price) chargeable on the gold metal in ore produced. |
|
(ii) By-product gold |
Three point three per cent. of London Bullion Market Association Price (commonly referred to as London Price) chargeable on the by-product gold metal actually produced. |
|
22. Graphite: (i) With 80 per cent. or more fixed carbon |
Two hundred and twenty-five rupees per tonne. |
|
(ii) With 40 per cent. or more fixed carbon but less than 80 per cent. fixed carbon |
One hundred and fifty rupees per tonne. |
|
(iii) With 20 per cent. or more fixed carbon but less than 40 per cent. fixed carbon |
Sixty-five rupees per tonne. |
|
(iv) With less than 20 per cent. fixed carbon |
Twenty-five rupees per tonne. |
|
23. Gypsum: |
Twenty per cent. of average sale price on ad valorem basis. |
|
24. Iron Ore: (CLO, Lumps, fines and concentrates all grades) |
Fifteen per cent. of average sale price on ad valorem basis. |
|
25. Lead: |
(a) Eight point five per cent. of London Metal Exchange Lead metal price chargeable on the contained lead metal in ore produced. |
|
|
(b) Fourteen point five per cent. of London Metal Exchange Lead metal price chargeable on the contained lead metal in the concentrate produced. |
|
26. Limestone: (i) L. D. Grade (less than 1.5 per cent. silica content) |
Ninety rupees per tonne. |
|
(ii) Others |
Eighty rupees per tonne. |
|
27. Lime kankar: |
Eighty rupees per tonne. |
|
28. Limeshell: |
Eighty rupees per tonne. |
|
29. Magnesite: |
Three per cent. of average sale price on ad valorem basis. |
|
30. Manganese Ore: (i) Ore of all grade |
Five per cent. of average sale price on ad valorem basis. |
|
(ii) Concentrates |
One point seven per cent. of average sale price on ad valorem basis. |
|
31. Marl: |
Sixty rupees per tonne. |
|
32. Crude Mica, waste mica and scrap mica: |
Four per cent. of average sale price on ad valorem basis. |
|
33. Monazite: |
One hundred and twenty-five rupees per tonne. |
|
34. Nickel: |
Zero point one two per cent. of London Metal Exchange Nickel metal price chargeable on the contained nickel metal in ore produced. |
|
35. Ochre: |
Twenty-four rupees per tonne. |
|
36. Pyrites: |
Two per cent. of average sale price on ad valorem basis. |
|
37. Pyrophyllite: |
Twenty per cent. of average sale price on ad valorem basis. |
|
38. Quartz: |
Fifteen per cent. of average sale price on ad valorem basis. |
|
39. Ruby: |
Ten per cent. of average sale price on ad valorem basis. |
|
40. Sand (others): |
Twenty rupees per tonne. |
|
41. Sand for stowing: |
** |
|
42. Shale: |
Sixty rupees per tonne. |
|
43. Silica sand and moulding sand andQuartzite: |
Ten per cent. of average sale price on ad valorem basis. |
|
44. Sillimanite: |
Two point five per cent. of average sale price on ad valorem basis. |
|
45. Silver: (i) By-product |
Seven per cent. of London Metal Exchange Price chargeable on by-product silver metal actually produced. |
|
(ii) Primary Silver |
Five per cent. of London Metal Exchange Silver Metal Price chargeable on the contained silver metal in ore produced. |
|
46. Slate: |
Forty-five rupees per tonne. |
|
47. Talc, Steatite and Soapstone: |
Eighteen per cent. of average sale price on ad valorem basis. |
|
48. Tin: |
Seven point five per cent. of London Metal Exchange Tin metal price chargeable on the contained tin metal in ore produced. |
|
49. Tungsten: |
Twenty rupees per unit per cent. of contained WO3 per tonne of ore and on pro rata basis. |
|
50. Uranium: |
Two per cent. of annual compensation amount received by M/s. Uranium Corporation of India Ltd., to be apportioned among the States on the basis of data provided by Department of Atomic Energy. |
|
51. Vanadium: |
Twenty per cent. of average sale price on ad valorem basis. |
|
52. Vermiculite: |
Five per cent. of average sale price on ad valorem basis. |
|
53. Wollastonite: |
Fifteen per cent. of average sale price on ad valorem basis. |
|
54. Zinc: |
(a) Nine point five per cent. of London Metal Exchange Zinc metal price on ad valorem basis chargeable on contained zinc metal in ore produced. |
|
|
(b) Ten per cent. of London Metal Exchange Zinc metal price on ad valorem basis chargeable on contained zinc metal in concentrate produced. |
|
55. All other minerals not herein before specified (Agate, Corundum, Diaspore, Felsite, Fuschite-Quartzite, Jasper, Kyanite, Perlite, Pyroxenite, Rock Salt, Selenite, etc.) |
Twelve per cent. of average sale price on ad valorem basis. |
Notes:?
1[THIRD SCHEDULE
(See section 9A) Rates of Dead Rent
|
RATES OF DEAD RENT IN RUPEES PER HECTARE PER ANNUM |
||
|
From 2nd Year of Lease |
3rd and 4th Year of Lease |
5th Year onwards |
|
400 |
1000 |
2000 |
Note:
Notified Minerals
1[THE FOURTH SCHEDULE
[See clause (ea) of section 3]
1[THE FIFTH SCHEDULE
[See sections 8(4), 8A(8) and 17A(2C)]
|
S. No. |
Mineral |
Additional amount on grant or extension of mining lease |
|
1. |
Iron ore and chromite |
Equivalent to one hundred and fifty per cent. of the royalty payable |
|
2. |
Copper |
Equivalent to fifty per cent. of the royalty payable |
|
3. |
Coal and lignite |
Equivalent to the royalty payable |
|
4. |
Other minerals (other Equivalent to the royalty payablethan coal and lignite) |
Equivalent to the royalty payable |
Explanation.—For the purposes of this Schedule, the additional amount shall be in addition to royalty or payment to the District Mineral Foundation and National Mineral Exploration Trust or any other statutory payment.
THE SIXTH SCHEDULE
[See sections 8(5) and 8A(7A)]
|
S. No. |
Mineral |
Additional Amount |
|
1. |
Bauxite |
|
|
|
(i) Metallurgical Grade |
Equivalent to one hundred and fifty per cent. of the royalty payable |
|
|
Non-Metallurgical Grade |
Equivalent to the royalty payable |
|
2. |
Chromite |
|
|
|
(i) Up to forty per cent. of Cr2O3 |
Equivalent to the royalty payable |
|
|
(ii) forty per cent. and more of Cr2O3 and concentrates |
Equivalent to two hundred per cent. of the royalty payable |
|
3. |
Iron ore |
|
|
|
Lumps, ROM and concentrates |
Equivalent to two hundred and fifty per cent. of the royalty payable |
|
|
Fines |
Equivalent to one hundred and fifty per cent.of the royalty payable |
|
4. |
Limestone |
|
|
|
L.D. Grade (less than 1.5 per cent. silica content) |
Equivalent to two hundred per cent. of the |
|
|
(ii) Other grades |
Equivalent to the royalty payable |
|
5. |
Manganese |
|
|
|
(i) Less than thirty-five per cent. of manganese content |
Equivalent to the royalty payable |
|
|
(ii) Thirty-five per cent. and above of manganese content |
Equivalent to five hundred per cent. of the royalty payable |
|
6. |
Other minerals |
Equivalent to the royalty payable |
|
(ii) For auctioned captive mines (other than coal and lignite): |
||
|
S. No. |
Quantity of sale |
Additional Amount |
|
1. |
Sale of mineral up to twenty-five per cent. of annual production |
Nil |
|
2. |
Sale of mineral more than twenty-five per cent. and up to fifty per cent. of annual production |
Equivalent to fifty per cent. of the royalty payable |
|
(iii) For coal and lignite: |
||
|
S. No |
Type of mine |
Additional Amount |
|
1. |
(i) Captive coal and lignite mines, auctioned for power sector through reverse bidding under the Coal Mines (Special Provisions) Act, 2015 (11 of 2015) |
Equivalent to two hundred per cent. of the royalty payable |
|
|
(ii) Captive coal and lignite mines allocated through allotment route [other than mines covered under item no. (iv)] |
Equivalent to the royalty payable |
|
|
(iii) Captive coal and lignite mines allocated through auction route [other than mines covered under item nos. (i) and (iv)] |
Equivalent to the royalty payable |
|
|
(iv) For captive coal and lignite mines that were auctioned and allotted with condition allowing sale of coal up to twenty-five per cent. of annual production— |
|
|
|
(a) for sale of coal up totwenty-five per cent. of annual production |
Additional amount payable as per the condition mentioned in the tender document or allotment document |
|
|
(b) for sale of coal more than twenty-five per cent.and up to fifty per cent. of annual production |
Fifty per cent. of the royalty payable |
Explanation.—For the purposes of this Schedule, it is hereby clarified that—
