The Mines & Minerals Development Act, 1957

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Government of India
Ministry of Mines

MINES AND MINERALS
(DEVELOPMENT AND REGULATION) ACT, 1957
(No. 67 of 1957)

(As amended up to 10th May, 2012)

Issued by

CONTROLLER – GENERAL,
INDIAN BUREAU OF MINES,
NAGPUR

August, 2012

LIST OF AMENDING ACTS

1. The Mines and Minerals (Regulation and Development)
Amendment Act, 1958 (15 of 1958)

2. The Repealing and Amending Act, 1960 (58 of 1960)

3. The Mines and Minerals (Regulation and Development)
Amendment Act, 1972 (56 of 1972)

4. The Repealing and Amending Act, 1978 (38 of 1978)

5. The Mines and Minerals (Regulation and Development)
Amendment Act, 1986 (37 of 1986)

6. The Mines and Minerals (Regulation and Development)
Amendment Act, 1994 (25 of 1994)

7. The Mines and Minerals (Regulation and Development)
Amendment Act, 1999 (38 of 1999)

8. The Mines and Minerals (Regulation and Development)
Amendment Act, 2010 (34 of 2010)

*******

(ii)

THE MINES AND MINERALS (DEVELOPMENT AND
REGULATION) ACT, 1957

ARRANGEMENT OF SECTIONS

PRELIMINARY

SECTIONS PAGE

1. Short title, extent and commencement 1

2. Declaration as to the expediency of Union control 1

3. Definitions 1

GENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING
OPERATIONS

4. Prospecting or mining operations to be under licence or lease 2

4A. Termination of prospecting licences or mining leases 3

5. Restrictions on the grant of prospecting licences or mining leases 5

6. Maximum area for which a prospecting licence or mining lease may be granted 6

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

8. Periods for which mining leases may be granted or renewed 7

9. Royalties in respect of mining leases 8

9A. Dead rent to be paid by the lessee 8

(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 9

11. Preferential right of certain persons 9

11A. Granting of reconnaissance permit, prospecting licence or mining lease in 11
respect of coal or lignite.

12. Registers of reconnaissance permits, prospecting licences and mining leases 12

RULES FOR REGULATING THE GRANT OF RECONNAISSANCE PERMITS,
PROSPECTING LICENCES AND MINING LEASES

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

13A. Power of Central Government to make rules for the grant of prospecting licences 15
or mining leases in respect of territorial waters or continental shelf of India.

14. Sections 5 to 13 not to apply to minor minerals 16

15. Power of State Governments to make rules in respect of minor minerals 16

16. Power to modify mining leases granted before 25th October, 1949 18

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 19
operations in certain lands

17A. Reservation of area for purposes of conservation 20

DEVELOPMENT OF MINERALS

18. Mineral Development 20

18A. Power to authorise Geological Survey of India, etc. to make investigation 22

MISCELLANEOUS

19. Prospecting licences and mining leases to be void if in contravention of Act 24

20. Act and rules to apply to all renewals of prospecting licences and mining leases 24

(iv)

21. Penalties 24

22. Cognizance of offences 25

23. Offences by companies 25

23A. Compounding of offences 26

23B. Power to search 26

23C. Power of State Government to make rules for preventing 27
illegal mining, transportation and storage of minerals

24. Power of entry and inspection 28

24A. Rights and liabilities of holder of prospecting licence 28
or mining lease

25. Recovery of certain sums as arrears of land revenue 29

26. Delegation of powers 30

27. Protection of action taken in good faith 30

28. Rules and notifications to be laid before Parliament and 30
certain rules to be approved by Parliament

29. Existing rules to continue 31

30. Power of revision of Central Government 31

30A.Special provisions relating to mining leases for coal granted 31
before 25th October, 1949

31. Relaxation of rules in special cases 31

32. (Repealed) 32

33. Validation of certain acts and indemnity 32

THE FIRST SCHEDULE - SPECIFIED MINERALS 33

THE SECOND SCHEDULE - RATES OF ROYALTY 34

THE THIRD SCHEDULE - RATES OF DEAD RENT 42
1
MINES AND MINERALS
(DEVELOPMENT AND REGULATION) ACT, 1957
(No. 67 of 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: -

PRELIMINARY

Short title, extent and commencement.

1. (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 date as the Central Govt. may, by Notification in the
Official Gazette, appoint.

Declaration as to the expediency of Union control.

2. 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.

Definitions.

3. In this Act, unless the context otherwise requires:-

(a) "minerals” includes all minerals except mineral oils;

(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 Substituted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1, No. 51,
dated 20.12.99 (No. 38 of 1999).
2 Ibid.
2

(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;

(f) "Prescribed" means prescribed by rules made under this Act;

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

(h) "prospecting operations" means any operations undertaken for the purpose of exploring,
locating or proving mineral deposit; 1[ Omitted ]

2[(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 pit ting, trenching, drilling (except drilling of bore
holes 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; and]

(i) the expressions "mine" and "owner" have the meanings assigned to them in the Mines
Act, 1952.

GENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING
OPERATIONS

Prospecting or mining operations to be under licence or lease.

4. (1) 3[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, 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

--------------------------------------------------------------------------------------------------------------------
1 Omitted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1,No. 51, dated
20.12.99 (No. 38 of 1999).
2 Inserted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1, No. 51, dated
20.12.99 (No. 38 of 1999).
3 Substituted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1, No.
51, dated 20.12.99 (No. 38 of 1999).

operations undertaken in any area in accordance with the terms and conditions of a
prospecting licence or mining lease granted before the commencement of this Act which
is in force at such commencement.

Provided further that nothing in this sub-section shall apply to any prospecting operations
undertaken by the Geological Survey of India, the Indi an Bureau of Mines, 1[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 th e Mineral Exploration Corporation
Limited, a Government Company within the meaning of Section 617 of the Companies
Act, 1956.

2[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.]

3[(1A) No person shall transport or store or cause to be transported or stored any mineral
otherwise than in accordance with th e provisions of this Act and the rules made
thereunder.]

(2) 4[No reconnaissance permit, prospecting licence or mining lease] shall be granted
otherwise than in accordance with the provisions of this Act and the rules made
thereunder.

(3) Any State Government may, after prior consultation with the Central Government
and in accordance with the rules made under Section 18, 5[ undertake
reconnaissance, prospecting or mining operations with respect to any mineral
specified in the First Schedule in any area within tha t State which is not already
held under any reconnaissance permit, prospecting licence or mining lease.]

Termination of prospecting licences or mining leases.
4A. (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
-------------------------------------------------------------------------------------------------------------------
1 Substituted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1,No. 51,
dated 20.12.99 (No. 38 of 1999).
2 Inserted by Goa, Daman and Diu Mining Concessions (Abolition & Declaration as Mining
Leases) Act, 1987 (No. 16 of 1987) with retrospective effect from the first day of October,1963.
3 Inserted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1, No. 51, dated
20.12.99 (No. 38 of 1999).
4 Substituted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1, No. 51, dated
20.12.99 (No. 38 of 1999).
5Ibid.

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.

(2) Where the State Government is of opinion that it is expedient in the interest of
regulation of mines and minerals 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 resp ect to the area or any part thereof
covered by such licence or lease.

1[ Omitted].

(3) No order making a premature termination of a prospecting 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 mining operations for a
period of two years after the date of execution of the lease or having commenced
mining operations, has discontinued the same for a period of two ye ars, the lease
shall lapse on the expiry of the period of two years from the date of execution of
the lease or, as the case may be, discontinuance of the mining operations:

Provided that the State Government may, on an application made by the holder of su ch
lease before its expiry under this sub -section and on being satisfied that it will not be
possible for the holder of the lease to undertake mining operations or to continue such
operations for reasons beyond his control, make an order, subject to such c onditions as
may be prescribed, to the effect that such lease shall not lapse:

Provided further that the State Government, may on an application by the holder

---------------------------------------------------------------------------------------------------------------------
1 Omitted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1, No. 51, dated
20.12.99 (No. 38 of 1999).

5
of a lease submitted within a period of six months from the date of its lapse and on being
satisfied that such non commencement or discontinuance was due to reasons beyond the
control of the holder of the lease, revive the lease from such prospective or retrospective
date as it thinks fit but not earlier than the date of lapse of the lease:

Provided also that no lease shall be revived under the second proviso for more than twice
during the entire period of the lease.

Restrictions on the grant of prospecting licences or mining leases.
5. (1) A State Government shall not grant a 1[ reconnaissance permit, prospecting
licence or mining lease] to any person unless such person –

(a) is an Indian national, or a company as defined in sub-section (1) of
Section 3 of the Companies Act, 1956; and

(b) satisfies such conditions as may be prescribed:

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

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.

(2) No mining lease shall be granted by the State Government unless it is
satisfied that-

2[(a) there is evidence to show that the area for which the lease is applied for
has been prospected earlier or the existence of mineral contents therein has
been established otherwise than by means of prospecting such area; and

(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

--------------------------------------------------------------------------------------------------------------------
1 Substituted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1, No. 51,
dated 20.12.99 (No. 38 of 1999).
2 Ibid.

6
specified by the Central Government, for the development of mineral deposits in
the area concerned.]

Maximum area for which a prospecting licence or mining lease may be granted.
6. (1) No person shall acquire in respect of any mineral or prescribed group of
associated minerals 1[in a State] –

(a) one or more prospecting licences covering a total area of more than
twenty-five square kilometres; or

2[(aa) one or more reconnaissance permit covering a total area of ten
thousand square kilometres:

Provided that the area granted under a single reconnaissance permit shall
not exceed five thousand square kilometres; or]

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

Provided that if the Central 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 by it, in writing, permit any person to acquire one
or more prospecting licences or mining leases covering an area in excess
of the aforesaid total area;

(c) 3[any reconnaissance permit, mining lease or prospecting licence in
respect of any area which is not compact or contiguous:

Provided that if t he 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
reconnaissance permit, prospecting licence or mining lease 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 4[reconnaissance permit, prospecting licence or mining lease] which is
intended for himself shall be deemed to be acquiring it himself.

(3) For the purposes of determining the total area referred to in sub -section(1), the
area held under a 4[reconnaissance permit, prospecting licence or mining lease] by
--------------------------------------------------------------------------------------------------------------------
1 Inserted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1, No. 51, dated 20.12.99 (No. 38
of 1999). 2 Ibid.
3 Substituted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1, No. 51, dated 20.12.99 (No.
38 of 1999). 4 Ibid.

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 sub-section (1) so that the sum total of the area held by such person,
under a 1[reconnaissance permit, prospecting licence or mining lease], whether as
such member or partner, or individually, may not, in any case, exceed the total
area specified in sub-section (1).

Periods for which prospecting licences may be granted or renewed.
7. (1) The period for which a 2[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 Fir st Schedule shall be renewed except with the previous
approval of the Central Government.

Periods for which mining leases may be granted or renewed.
8. (1) 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.

(2) A mining lease may be renewed for a period not exceeding twenty years.
4[ Omitted ].

5[(3) Notwithstanding anything contained in sub-section (2), if the State Government is
of opinion that in the interests of mineral development it is necessary so to do, it
may, for reasons to be recorded, authorise the renewal of a mining lease in respect
of minerals not specified in Part A and P art B of the First Schedule for a further
period or periods not exceeding twenty years in each case.

------------------------------------------------------------------------------------------------------------
1 Substituted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1, No. 51,
dated 20.12.99 (No. 38 of 1999). 2 Ibid. 3 Ibid.
4 Omitted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1, No. 51,
dated 20.12.99 (No. 38 of 1999).
5 Substituted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1, No. 51,
dated 20.12.99 (No. 38 of 1999).

8
(4) Notwithstanding, anything contained in sub -section (2) and sub -section (3), no
mining lease granted in respect of mineral specif ied in Part A or Part B of the
First Schedule shall be renewed except with the previous approval of the Central
Government.]

Royalties in respect of mining leases.
9. (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 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 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.

(2A) The holder of a mining lease, whether granted befo re or after the commencement
of Mines and Minerals (Regulation and Development) Amendment Act, 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 f rom such date as may be specified
in the notification:

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

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

9
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 three years.

PROCEDURE FOR OBTAINING PROSPECTING LICENCES OR
MINING LEASES IN RESPECT OF LAND IN WHICH THE MINERALS
VEST IN THE GOVERNMENT

Application for prospecting licences or mining leases.

10. (1) An application for 1[a reconnaissance permit, prospecting licence or mining lease]
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 acknowledgement of its receipt within the prescribed time and
in the prescribed form.

(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 2[ permit, licence or lease].

Preferential right of certain persons

3[11. (1) Where a reconnaissance permit or prospecting licence has been granted in respect
of any land, the permit holder or the licensee shall have a preferential right for
obtaining a prospecting licence or mining lease, as the case may be, in respect of
that land over any other person:

Provided that the State Government is satisfied that the permit holder or the
licensee, as the case may be, -

(a) has undertaken reconnaissance operations or prospecting operations, as the
case may be, to establish mineral resources in such land;

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

(d) has not failed to apply for grant of prospecting licence or mining lease, as
the case may be , within three months after the expiry of reconnaissance
permit or prospecting licence, as the case may be, or within such further
period as may be extended by the said Government.

(2) Subject to the provisions of sub -section (1),where the State Government has not
notified in the Official Gazette the area for grant of reconnaissance permit or
prospecting licence or mining lease, as the case may be, and two or more persons
have applied for a reconnaissance permit, prospecting licence or a mining lease in
respect of any land in such area, the applicant whose application was received
earlier, shall have a preferential right to be considered for grant of reconnaissance
permit, prospecting licence or mining lease, as the case may be, over the applicant
whose application was received later:

Provided that where an area is available for grant of reconnaissance permit, prospecting
licence or mining lease, as the case may be, and the State Government has invited
applications by notification in the Official Gazette for grant of such permit, licence or
lease, all the applications received during the period specified in such notification and the
applications which had been received prior to the publication of such notification in
respect of the lan ds within such area and had not been disposed of , shall be deemed to
have been received on the same day for the purposes of assigning priority under this sub -
section.

Provided further that where any such applications are received on the same day, the State
Government, after taking into consideration the matters specified in sub -section (3), may
grant the reconnaissance permit, prospecting licence or mining lease, as the case may be,
to such one of the applicants as it may deem fit.

11
(3) The matters referred to in sub-section (2) are the following:-

(a) any special knowledge of, or experience in, reconnaissance operations,
prospecting operations or mining operations, as the case may be,
possessed by the applicant;
(b) the financial resources of the applicant;
(c) the nature and quality of the technical staff employed or to be employed
by the applicant;
(d) the investment which the applicant proposes to make in the mines and in
the industry based on the minerals;
(e) such other matters as may be prescribed.

(4) Subject to the provisions of sub -section(1), where the State Government notifies
in the Official Gazette an area for grant of reconnaissance permit, prospecting
licence or mining lease, as the case may be, all the applications rec eived during
the period as specified in such notification, which shall not be less than thirty
days, shall be considered simultaneously as if all such applications have been
received on the same day and the State Government, after taking into
consideration the matters specified in sub -section(3), may grant the
reconnaissance permit, prospecting licence or mining lease, as the case may be, to
such one of the applicants as it may deem fit.

(5) Notwithstanding anything contained in sub -section (2), but subjec t to the
provisions of sub-section (1), the State Government may, for any special reasons
to be recorded, grant a reconnaissance permit, prospecting licence or a mining
lease, as the case may be, to an applicant whose application was received later in
preference to an applicant whose application was received earlier:

Provided that in respect of minerals specified in the First Schedule, prior approval of the
Central Government shall be obtained before passing any order under this sub-section.]

Granting of reconnaissance permit, prospecting licence or mining lease in respect of coal or
lignite.

1[11A. The Central Government may, for the purpose of granting reconnaissance permit,
prospecting licence or mining lease in respect of an area containing coal or li gnite, select
through auction by competitive bidding on such terms and conditions as may be
prescribed, a company engaged in -

(i) production of iron and steel;
(ii) generation of power;
------------------------------------------------------------------------------------------------------------
1 Inserted by M M (R D) Amendment Act, 2010, vide G.O.I. Ext. Part II, Section 1, No. 43,
dated 9.9.2010 (No. 34 of 2010).
S.O. 263(E) Ext. Part II Section 3 Sub Section (ii) Govt. dt.13 Feb. 2012 appoints 13th Feb 2012 as the
date of which the provisions of Section 11A shall come into force.

(iii) washing of coal obtained from a mine; or

(iv) such other end -use as the Central Government may, by notification in the Official
Gazette, specify,

and the State Gover nment shall grant such reconnaissance permit, prospecting licence or
mining lease in respect of coal or lignite to such company as selected through auction by
competitive bidding under this section:

Provided that the auction by competitive bidding shall n ot be applicable to an area
containing coal or lignite –

(a) where such area is considered for allocation to a Government company or corporation
for mining or such other specified end-use;

(b) where such area is considered for allocation to a company or corpo ration 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
Section 3 of the Companies Act, 1956 and includes a foreign company within the meaning of
Section 591 of that Act]

Registers of reconnaissance permits, prospecting licences and mining leases

12. (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 licences;

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

(d) a register of mining leases;

(e) a register of applications for reconnaissance permits; and

(f) a register of reconnaissance permits; ]

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.

RULES FOR REGULATING THE GRANT OF RECONNAISSANCE
PERMITS, PROSPECTING LICENCES AND MINING LEASES

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

13. (1) The Central Government may, by notification in the Official Gazette, make rules
for regulating the grant of 1[reconnaissance permits, prospecting licences and
mining leases] 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
1[reconnaissance permits, prospecting licences or mining leases] in
respect of land in which the minerals vest in the Government 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 application may be sent;

(d) 2[ The terms and conditions of auction by competitive bidding for
selection of the company under section 11A;]

(e) the authority by which 1[reconnaissance permits, prospecting licences or
mining leases] in respect of land in which the minerals vest in the
Government may be granted;

---------------------------------------------------------------------------------------------------------------------
1 Substituted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1, No. 51,
dated 20.12.99 (No. 38 of 1999).

2 Inserted by MMDR Amendment Act, 2010 vide G.O.I Ext. Part II, Section -I No.43 dated 9.9.2010
(No.34 of 2010).

(f) the procedure for obtaining 1[a reconnaissance permit, a prospecting
licence or a mining lease] 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 2[a permit, licence or lease] may be
granted or renewed;

(g) the terms on which, and the conditions subject to which, any other
3[reconnaissance permit, prospecting licence or mining lease] 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 under taking research or training in
matters relating to mining operations;

(i) the fixing and collection of fees for 4[reconnaissance permits, prospecting
licences or mining leases], surface rent, security deposit, fines, other fees
or charges and the time w ithin 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 5[reconnaissance,
prospecting or mining operations];

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

(l) the manner in which, and the conditions subject to which, 1[a
reconnaissance permit , a prospecting licenc e or a mining lease] 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;

(o) (omitted);

(p) the reports and statements to be submitted by holders of 1[reconnaissance
permits or prospecting licences] 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, the fees to be paid therefor and the
documents which shall accompany such applications and the manner in
which such applications shall be disposed of;

(qq) the manner in which rehabilitation of flora and other vegetation, such as
trees, shrubs and the like destroyed by reaso n 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; and

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

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.

13A. (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;

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

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

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

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

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

(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;

(d) the terms on which, and the conditions subject to which and the authority
by which quarry leases, mining leases or ot her 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 ma nner in which these shall be
payable;

(h) the manner in which the 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 mi ning
operations;

(i) the manner in which the rehabilitation of flora and other vegetation, such
as trees, shrubs and the like destroyed by reasons 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, aerial ropeways, pipelines and the making of passage
for wate

Excerpt shown. Open the full act in Lexace.

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The Mines &amp; Minerals Development Act, 1957

The Mines & Minerals Development Act, 1957