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The Nagaland (Ownership & Transfer of Land and its Resources Act,1990

Nagaland · state statute
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THE NAGALAND OWNERSHIP AND TRANSFER OF LAND AND ITS 
                                                    RESOURCES ACT, 1990 
 
                                     (THE NAGALAND ACT NO. 1 OF 1993) 
 
                Received the assent of the Governor of Nagaland on 27-5-93 and published in 
                            the Nagaland Gazette extraordinary Dated 6th July, 1993, 
 
                                                                    An 
 
                                                                    Act. 
 
            to provide, in the public interest, for the ownership and transfer of land and its 
resources in the State of Nagaland, for the imposition of tax on mineral rights, for the 
further amendment of law relating to acquisition of land and its resources in 
Nagaland, and for matters connected therewith or incidental thereto. 
            WHEREAS by virtue of the provisions of Clause (1) (a) (iv) of Article 371-A of the 
constitution, no Act of Parliament in respect of the ownership and transfer of land and 
its resources shall apply to the State of Nagaland unless the Legislative Assembly of 
Nagaland, by a resolution, so decides 
            AND WHEREAS no such resolution has been passed by the Legislative Assembly of 
Nagaland 
            AND WHEREAS in the absence of any such resolution, it has become necessary for 
the Legislative Assembly of Nagaland to regulate by law, the ownership and transfer 
of land and its resources in the State of Nagaland,  
            IT IS, THEREFORE, enacted by the Legislative Assembly of the State of Nagaland 
in the Forty-first Year of the Republic of India as follows: 
 
 
                                                             CHAPTER 1 
                                                          PRELIMINARY 
 
          1.   (1)   This Act may be called the Nagaland (Ownership and Transfer of Land and its 
Resources) Act, 1990. 
                (2) It extends to the whole of the State of Nagaland. 
                (3) Sections 4, 10, 11, 16, 20, 60, 72, to 76, (both inclusive) and 87 shall come 
into force on the appointed day and the remaining provisions of this Act shall 
be deemed always to have come into force on the 1st day of December, 1963 
that is to say, the date on which the Constitution (Thirteenth Amendment) Act, 
1963 came into force. 
 
Definitions 
          2.      In this Act, unless the context otherwise requires, 
                   (a)   “appointed day” in relation to any provision of this Act, means such day as 
the State Government, by notification published in the Official Gazette, 
appoint in relation to that provision, and different dates may be appointed for 
different provisions of this Act, and any reference in any provision of this Act 
to the appointed day shall be construed as a reference to the commencement 
of that provision; 
                   (b) “drilling operations” means any operations, whether by drilling or otherwise, 
for the purpose of locating or proving oil-field or other sources of mineral 
deposits; 
                   (c) “Government company” means any company in which not less then fifty-one 
percent of the paid-up share capital is held by the Central Government or any 
State Government or Governments or partly by the Central Government and 
partly by one or more State Governments and includes a company which is a 
subsidiary of a Government company as so defined; 
                   (d) “land and its resources” means advantages derived from the surface of the 
land and all that is below it and which is valuable or is a source of money or 
income, and includes:- 
                         (i)   minerals, 
                        (ii) mineral oils, petroleum and petroleum products (including liquid 
petroleum gas) and 
                       (iii)   every other product of mines including forest and forest products. 
                   (e) “minerals” means all substances which can be obtained from the earth by 
mining, digging, drilling, dredging hydraulicing, quarrying or by any other 
operation, and includes mineral oils (which in turn include crude oil, natural 
gas and petroleum); 
                   (f) “mining lease” means a lease granted for the purpose of undertaking mining 
operations, and includes a sub-lease granted for all or any of such purposes; 
                   (g) “mining operations” means any operation undertaken for the purpose of 
winning any mineral. 
                   (h) “minor minerals” means building stones, gravel, ordinary clay, ordinary sand 
other than sand used for any of the prescribed purposes, and includes any 
other mineral which the State Government may, by notification, declare to be 
a minor mineral, 
                    (i) “motor conveyance” means any vehicle, vessel or aircraft for the conveyance 
of human beings, other animals or goods by land, water or air in which crude 
or mineral oils or natural gas or any other source of energy is used to generate 
the motive power; 
                    (j)  “notification” means a notification published in the Official Gazette; 
                   (k) “oil field” means any area where any operation for the purpose of obtaining 
natural gas or petroleum, or both, crude oil, partially refined oil and any of 
the products of petroleum in liquid form or solid State is be, or is to being 
carried on; 
                    (l) “Petroleum” means any liquid hydrocarbon or mixture of hydrocarbons, and 
any inflammable mixture liquid, viscous or solid, containing any 
hydrocarbon; 
                  (m)  “Prescribed” means prescribed by rules made under this Act; 
                   (n) “Prospecting licence” means a licence granted under this Act for carrying out 
prospecting operations in the State for the purpose of locating or proving die 
existence of any mineral, oil-field or other source of minerals; 
                   (o)  “Prospecting operations” means any operations (including drilling) 
undertaken for the Purpose of exploring, locating or proving the existence of 
any mineral deposit or oil-field or other source of minerals; 
                   (p)  “State” means the State of Nagaland. 
                   (q) “to transport minerals” means to move minerals from one place in the State to 
another place, whether, within or outside the State, by any means whatsoever, 
and includes movement from one place in the State to another place in the 
state across a territory which is not a part of the State; 
                    (r) “to store minerals” means to keep any mineral in one or more places in the 
State but does not include any detention happening during the ordinary 
course of transport;  
                    (s) “to import minerals” means to bring any mineral into the State by land, air, 
pipeline or otherwise; 
 
Central Act 35 of 1952 
                    (t) the expressions “mine”, “minerals” and “owner” have the meanings, 
respectively, assigned to them in the Mines Act, 1952. 
 
 
                                                      CHAPTER II 
             GENER&L RESTRICTIONS ON UNDERTAKING, PROSPECTING  
                                     AND MINING OPERATIONS 
 
Prospecting or mining operations to be under licence or lease 
         3.   (1)   No person shall undertake any prospecting or mining operations in any area in 
the State except under, and in accordance with, the terms and conditions 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 Subsection shah apply to any prospecting operations 
undertaken by the Geological Survey of India, Bureau of Mines, Atomic Minerals 
Division of the Department of Atomic Energy of the Central Government, directorate of 
Mining and Geology of the State Government by whatever name called or a Government 
company or any other authority specified under this Act; 
                (2) No Prospecting licence or mining lease shall be granted otherwise than in 
accordance with the provisions of this Act and the rules made thereunder; 
              (3) The holder of a prospecting licence or a mining lease, whether granted under 
sub-section (i) of this section or continued under Sub-section 4, shall have, 
while carrying on such prospecting or mining operations, the same powers, 
and shall be subject to the same obligations, conditions and restrictions as the 
authority specified under Section 21 may exercise and be subject to the 
provisions of the said Section 21, and the provisions of the said Section except 
Sub-section (6) thereof shall apply to such holder of prospecting licence or 
mining lease to the same extent as they apply to the specified authority and for 
this purpose, reference in the said Section 21 to the “specified authority” shall 
be construed as references to such holder of prospecting licence or mining 
lease; 
 
Existing prospecting licences and mining Leases and rights acquired or liability 
incurred thereunder to continue 
          4.   (1)   Every prospecting licence or mining lease granted before the appointed day 
under any Act of Parliament and the rules made thereunder, and in force 
immediately before the appointed day, shall continue to be in force until the 
expiry of the period of validity or termination thereof, whichever is earlier, as 
if such licence or mining lease were granted under the corresponding 
provisions of this Act and the rules made thereunder. 
                (2) Every prospecting licence or mining lease which continues to be in force by 
virtue of the provisions of Sub-section (1), shall be held under the same terms, 
conditions and restrictions on which they were held immediately before the 
appointed day as if such terms, conditions and restrictions were imposed by or 
under the corresponding provisions of this Act or the rules made there under, 
and every inquiry instituted, right acquired or liability incurred, immediately 
before the appointed day may be continued, enforced or imposed, as the case 
may be, as if such inquiry were instituted, rights were acquired or liability 
were incurred under the corresponding provisions of this Act and the rules 
made there under : 
     Provided that no person shall be subjected to a penalty greater than that which might have 
been ifliced under the Act of Parliament and the rules made there under as in force at the 
time of the commission of the offence. 
 
Termination of prospecting licence or mining lease 
          5.   (1)   Where 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 communication or to ensure safety of buildings, monuments 
or other structures or for the conservation of mineral resources or for safety in 
mines, or for such other purposes as the State Government may think fit, it is 
necessary in the public interest so to do in respect of any area within the State, 
it may make an order making a premature termination of such prospecting 
licence or mining lease with respect to such area or part thereof, and granting a 
fresh prospecting license or mining lease in respect of such area in favour of 
such Government company or corporation owned or controlled by 
Government as it may think fit : 
     Provided that no such termination shall be made after giving to the holder of such 
prospecting licence or the lease of such mining lease a reasonable opportunity of being 
heard. 
                 (2) Where the holder of a prospecting licence or mining lease fails to undertake 
prospecting or mining operations for a period of one year from the date of the 
issue of the licence or, as the case may be, lease, or having commenced 
prospecting or mining operations, has discontinued the same for a period of 
one year, the prospecting licence or the mining lease, as the case may be, shall 
lapse on the expiry of the period of one year from the date for issue or as the 
case may be, the discontinuance of the prospecting or mining operations : 
     Provided that the State Government may, on an application made by the holder of such 
licence or lease before the expiry of the said period of one year, and on being satisfied that 
it will not be possible for the holder of such licence or lease to undertake prospecting or 
mining operations or to continue such operations for reasons beyond his control, make an 
order, subject to such conditions as may be prescribed, to the effect that the said licence or 
lease shall not lapse. 
                 (3) Where a prospecting licence or mining lease has lapsed under Sub-section (2) 
the State Government may, on an application made to it by the, holder of such 
licence or 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 such licence or lease, 
revive the licence or lease, as the case may be, from such prospective or 
retrospective date as it thinks fit but not earlier than the date of lapse of the 
licence or lease : 
     Provided that no licence or lease shall be revived under this Sub-section for more than 
twice during the entire period of the licence or lease, as the case may be. 
 
Restrictions on the grant of prospecting licence or mining lease 
          6.    (1)   No prospecting licence or mining lease shall be granted to any person unless 
he- 
                        (a)   holds a certificate of approval in the prescribed form from the State 
Government, 
                        (b)   satisfies such other conditions as may be prescribed. 
 
Explanation :   For the purpose of this Sub-section, a person shall be deemed to hold a 
certificate of approval notwithstanding that at the relevant time his certificate of approval has 
expired, if an application for its renewal is pending at that time. 
                 (2) No prospecting licence or mining lease shall be granted to any person who is 
not an Indian national. 
 
Explanation :   For the purpose of this Sub-section, a person shall he deemed to be an Indian 
national, 
 
Central Act 1 of 1956 
                        (a)   in the case of a public company as defined in the Companies Act, 1956, 
only if a majority of the directors of the company are citizens of India and 
not less than fifty-one percent of the share capital thereof is held by 
persons who are either citizens of India or companies as defined in the 
said Act: 
                        (b) in the case of a private company as defined in said Act, only if all the 
members of the company are citizens of India; 
                        (c) in the case of a firm or other association of individuals, only if the 
partners or members of the firm or association are citizens of India; and 
                        (d)   in the case of an individual, if he is a citizen of India, 
                 (3) No prospecting licence or mining lease shall be granted unless the State 
Government is satisfied that —. 
                        (a) there is evidence to show that the area for which prospecting licence or 
lease has been applied for has been prospected earlier and the existence of 
mineral prospects therein has been established : 
     Provided that nothing in this Clause shall apply to any area if such area has already been 
prospected by a Department or an agency of the Government and the existence of mineral 
contents there has been established; 
                        (b) there is a mining plan duly approved by the State Government for the 
development of mineral deposits in the area concerned. 
 
Maximum area for which a prospecting licence or a mining lease can be granted 
           7.   (1)  No person shall acquire in the State in respect of any mineral or prescribed 
group of associated minerals 
                        (a) One or more prospecting licences covering a total area of more than 
twenty-five square kilometers in the case of minerals (other than mineral 
oils) and two hundred and twenty-five square kilometers in the case of 
mineral oils; 
                        (b) One more mining lease covering a total area of not more than ten square 
kilometers, in case of all minerals (except mineral oil) and seventy five 
square kilometers in case of mineral oils: 
     Provided that if the State Government is of opinion that in the interest 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) Any prospecting licence or mining lease in respect of an area which is not 
compact or contiguous; 
     Provided that if the State Government is of opinion that in the interest, 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 a prospecting licence or mining lease in relation to any area 
which is not compact or contiguous. 
                 (2) For the purpose of this Section, a person acquiring by, or in the name of 
another person, a prospecting licence or mining lease which is intended of for 
himself shall be deemed to be acquiring it himself. 
                 (3) For the purpose of determining the total area referred to in Sub-section (1), the 
area held under a prospecting licence or mining lease by a person as a member 
of a co-operative society, company or other corporation, or a partner of a firm, 
shall be deducted from the area refereed to in Subsection (1) so that the sum 
total of area held by such person, under a prospecting licence or a 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 licence may be granted or renewed 
           8.   (1)   The period for which a prospecting licence may he grants shall not - 
                        (i)   in the case of mica, exceed two years; and 
                       (ii)   in the case of any other mineral, exceed four years. 
                (2) If the State Government is satisfied that longer period is required, in the public 
interest, to enable the licencees to complete prospecting operations it may 
renew a prospecting licence for a further period of one year at a time, but such 
further period shall not exceed four years in the aggregate. 
 
 
Periods for which mining leases may be granted or renewed  
          9.   (1)   The period for which a mining lease may be granted shall not exceed twenty 
years. 
                (2) A mining lease may be renewed for two periods but each of such period shall 
not exceed ten years 
                (3) Notwithstanding anything contained in Sub-section (2), if the State 
Government is of opinion that in the interest of mineral development, it is 
necessary so to do in the public interest, it may, for reasons to be recorded by 
it in writing, authorize renewal of a mining lease for a further period or 
periods not exceeding in the each case the period or periods not exceeding in 
each case the period for which the mining lease was originally granted. 
 
Royalties in respect of mining leases 
        10.   (1) The holder of a mining lease granted, or continue under Section 4, on or after 
the appointed day shall, notwithstanding anything contained in the instrument 
of lease, pay to the State Government royalty in respect of any mineral 
removed or consumed by him or by his agent, manager, employee, contractor 
or sub lease from the leased area at the rate for the time specified in the First 
Schedule in respect of that mineral. 
                (2) Notwithstanding anything contained in Sub-section (1) the holder of a mining 
lease, whether granted before or after the appointed day, shall not be 1iable to 
pay any royalty in respect of any coal consumed by workman engaged in 
acolliery, provided that such consumption by the workman does not exceed 
one-third of a tone per month : 
     Provided further that no royalty shall be payable in respect of any crude oil, casing head 
condensate as natural gas which is unavoidably lost or returned to the reservoir or is used 
for operations relating to the production of petroleum or natural gas or both. 
                (3) The State Government may, by notification, amend the First Schedule so as to 
enhance or reduce the rate at which royalty shall be payable in respect of any 
mineral with effect from such date as may be specified in the notification: 
     Provided that the State Government shall not enhance the rate of royalty in respect of any 
mineral more then once during any period of two years. 
Dead rent to be paid by leases 
 
        11.   (1) The holder of a mining lease granted or continued under Section 4, on or after 
the appointed day shall, notwithstanding anything contained in the instrument 
of lease, pay to the State Government dead rent at such rates as may be 
specified for the time being in the Second Schedule, for all the areas of the 
State included in the instrument of lease. 
                (2) The State Government may, by notification, amend the Second Schedule so as 
to enhance or reduce the rate at which 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 State Government shall not enhance the rate of dead rent in respect of 
any such area more than once during any period to two years. 
               
 
                                                        CHAPTER III 
  PROCEDURE FOR OBTAINING PROSPECTING LICENCES OR  
                               MINING LEASES IN RESPECT OF LAND 
 
Application for prospecting licence or mining lease 
        12.   (1) An application for a prospecting licence or mining lease in respect of any land 
within the State in which minerals vest in the State Government shall be made 
to the State Government in the prescribed from and shall be accompanied by 
the prescribed fee. 
                (2) Where an application received under Sub-section (1) there shall be sent to the 
applicant an acknowledgement of its receipt within the prescribed time 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 the rules made thereunder, 
grant or refuse to grant the licence or lease 
 
     Provided that no such refusal shall be made except after giving to the applicant a 
reasonable opportunity of being heard. 
 
Preferential rights of certain persons 
        13.   (1) Where prospecting licence has been granted in respect of any land within the 
State, the holder of the licence shall have a preferential right for obtaining a 
mining lease in respect of that land over any other person: 
     Provided that the State Government is satisfied that the licencee had not committed any 
breach of the terms and conditions of the prospecting licence and is otherwise a fit person 
for being granted the mining lease. 
                (2) Subject to the provisions of Sub-section (1), where two or more persons have 
applied for prospecting licence or a mining lease in respect of the same land, 
the applicant whose application was received earlier shall have a preferential 
right for the grant of the licence or lease, as the case may be, over the 
applicant whose application was received later: 
     Provided that where any such application is received on the same day, the State 
Government may, after taking into consideration the matters specified in Sub-section(3), 
grant the prospecting licence or mining lease, as the case may be, to such one of the 
applicants as it may deem fit. 
                (3)   The matters referred to in Sub-section (2) are the following: 
                       (a)   any special knowledge of, or experience in, 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)   Such other matters as may be prescribed. 
                (4) Notwithstanding anything contained in Sub-section (2) but subject to the 
provisions of Sub-section (1), the State Government may, for any specified 
reasons to be recorded by it in writing, grant a prospecting licence or a mining, 
grant a prospecting licence or a mining lease to an applicant whose application 
was received later in preference to an applicant whose application was 
received earlier. 
 
Register of prospecting licences and mining leases 
        14.   (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 applications for mining leases; 
                       (c)   a register of applications for prosecuting leases; 
                       (d)   a register of mining leases. 
                (2) Every such register shall be open to inspection by any person on payment of 
such fee as may be prescribed. 
 
 
                                                           
 
 
 
 
 
 
 
 
 
 
 
 
 
CHATER IV 
                            RULES FOR REGULATING THE GRANT OF 
                        PROSPECTING LICENCES AND MINING LEASES 
 
Power of State Government to make rules in respect of minerals 
        15.   (1)   The State Government may by notification, make rules regulating the grant of 
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 au or any of the following matters namely: 
                        (a)   the persons by whom and the manner in which applications for 
prospecting licence, quarry lease, mining lease or other concessions may 
be made and the fees to be paid therefore; 
                        (b) the time within which and the form in which acknowledgement of the 
receipt of any such application may be sent; 
                      (c) the matters which may be considered where applications in respect of the 
same land are received within the same day; 
                        (d) the persons to whom certificates of approval may be granted, the form of 
such certificate and the fee payable for the grant or renewal of such 
certificate; 
                        (e) the terms on which, and tile conditions subject to which and the authority 
by which prospecting licences, quarry leases, mining leases or other 
mineral concessions may he granted or renewed in respect of land of 
which minerals vest in the State Government; 
                        (f) the procedure for obtaining prospecting licences, quarry leases, mining 
leases or other mineral concessions; 
                        (g) 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 
operation; 
                        (h) the fixing and collection of rent, royalty, cess, dead rent, fines or other 
charges and the time within which and the manner in which these shall be 
payable; 
                         (i) the manner in which right of any owner of land may he protected 
(whether by way of payment of compensation or otherwise) in cases 
where any owner is prejudicially affected by reason or any prospecting or 
mining operations; and the person by whom and the manner in which 
such protections shall, be made, or, as the case may be, the compensation 
shall be paid, and in the event of any dispute as to such protective work or 
as to the amount or such compensation, the authority by whom such 
disputes shall he settled; 
                        (j) the manner, in which rehabilitation of flora and other vegetation, such as 
trees, shrubs and the like, destroyed by reasons of any prospecting, 
quarrying or mining operations shall he made in the same area or any 
other area selected by the State Government (whether by way of 
reimbursement of the cost to rehabilitation or otherwise) by the person 
holding the prospecting licence, quarrying or mining lease; 
                        (k) the construction, maintenances and use of road, transmission lines, 
tramways, railways, aerial, ropeways, pipelines and the making of 
passage for water for mining purposes on any land comprised in a quarry 
or mining lease or other mineral concession; 
                         (l)   the form of registers to be maintained under this Act; 
                       (m) the reports and Statements to be submitted by holders of prospecting 
licences, quarry or mining leases or other mineral concessions and the 
authority to which such reports and Statements shall be submitted; 
                        (n) the period within which and the manner in which and the authority to 
which appeal or revision of any order passed by any authority under these 
rules may be made, the fees to be paid therefore, and the powers of the 
appellate and revisional authority; and 
                        (o)   any other matter which is to be, or may be, prescribed. 
 
Sections 3 to 15 not to apply to minor minerals 
        16. The provisions of Sections 3 to 15 (both inclusive) shall not apply to quarry 
leases, mining leases or other mining concessions in respect of minor minerals. 
 
Power of State Government to make rules in respect of minor minerals 
        17.   (1) The State Government may, by notification, make rules for regulating the 
grant of quarry leases or other mining concessions in respect of minor 
minerals and for purposes connected therewith. 
                (2) Until rules are made under Sub-section (1), the State Government may, 
declare by notification, that the rules made by such State Government as is 
specified in the notification, regulating the grant of quarry leases, mining 
leases or other minerals concessions in respect of minor minerals which were 
in force immediately before the appointed day, shall continue to be in force. 
 
 
 
 
 
 
 
 
                                                    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER V 
             SPECIAL POWERS OF STATE GOVERNMENT TO UNDERTAKE                      
PROSPECTING OR MINING OPERATION IN CERTAIN CASES 
 
Special power of State Government to undertake prospecting or mining operation in 
any land within the State 
        18.   (1)   The provisions of this section shall apply to land within the State. 
                (2) Notwithstanding anything contained in this Act, the State Government may 
undertake prospecting or mining operations in any area not already held under 
any prospecting licence or mining lease, and where it proposes to do so, it 
shall, by notification, 
                        (a)   specify the boundaries of such areas; 
                        (b)   State whether prospecting or mining operations will be carried out in the 
areas; and 
                        (c) specify the mineral or minerals in respect of which such operations will 
be carried out. 
                (3) The State Government may, with a view to enabling it to exercise the powers 
conferred on it by Subsection (2), by notification, declare that no prospecting 
licence or mining lease shall be granted in respect of any land specified in the 
notification. 
 
Power of State Government to make reservation to area for conservation etc. 
        19.   (1) The State Government may, if it is of opinion that with a view to conserving 
any mineral it is necessary, in the public interest, so to do, reserve any area 
which is not already held under any prospecting licence or mining lease, for 
the purpose of such conservation. 
     Provided that before making any such reservation, the State Government shall specify by 
notification, the boundaries of such area and the mineral or minerals in respect of which 
such area is proposed to be reserved and shall take a decision after considering such 
objections with regard to the proposed action as may be received by it within thirty days 
from the date of publication of the notification aforesaid. 
                (2) The State Government may, if it is of opinion that it is necessary in the public 
interest so to do, reserve any area, which is not already held under a 
prospecting licence or mining lease, for undertaking mining operations in that 
area through a Government company or corporation owned or controlled by 
the State Government. 
     Provided that before making am such reservation, the State Government shall specify by 
notification, the boundaries of such area and the mineral or minerals in respect of which 
such area is proposed to he reserved for a Government company or corporation owned or 
controlled by the State Government to undertake mining operations in that area and no 
such reservation shall he made except after considering such objections as may he received 
by the State Government within thirty days from the date of publication of the notification 
a for said. 
 
 
 
 
                                                         
 
 
CHAPTER VI 
                                        DEVELOPMENT OF MINERALS 
 
Mineral development 
        20.   (1) It shall be the duty of the of the State Government to take all such steps as 
may be necessary for the conservation and development of minerals in the 
State, and for the protection of environment by preventing or controlling any 
pollution which may be caused by prospecting or mining operations and, for 
the purpose, the State Government may, by notifications, make such rules it 
may think fit. 
                (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 opening of new mines and the regulation of mining operations in any 
area 
                        (b) the regulation of the excavation or collection of minerals from any mine. 
                        (c) the measures to be taken by leases of mines for the purpose of 
beneficiation of ores, including the provision of suitable contrivances for 
such purpose 
                        (d)   the development of mineral resources in any area. 
                        (e) the notification of all new borings and shaft sinking and the preservation 
or bore-hole records, and specimens of cores of all new bore-holes. 
                        (f) the regulation of the arrangements for the storage of minerals and the 
stocks thereof that may be kept by any person. 
                        (g) the submission of samples of minerals from any mine by the lessees 
thereof and the manner in which, and the authority to which, such 
samples shall be submitted, and the taking of samples of any minerals 
from any mine by the State Government or any other authority specified 
by it in that behalf: 
                        (h) the submission by lessees of mines of such special or periodical returns 
and reports as may be specified, and the form in which and the authority 
to which such returns and reports shall be submitted 
                                     (i)   regulation of prospecting operations; 
                                                (j) the employment of qualified geologists or mining engineers to supervise 
prospecting or mining operations; 
                                                (k) the disposal or discharge of waste, slime or tailings arising from any 
mining or metallurgical operations carried out in the mine; 
                                                (1) the manner in which, and the authority by which, directions may be 
issued to the owners of any mine to do or refrain from doing such things 
as may be prescribed in the interests of conservation or systematic 
development of minerals or for the protection of environment by 
preventing or controlling pollution which may be caused by prospecting 
or mining operations; 
                                               (m) maintenance and submission of such plans, register or records as may be 
specified by the State Government; 
                                                (n) submission of records or reports by persons carrying on prospecting or 
mining operations regarding any research in mining or geology carried 
out by them; 
                                                (o) facilities to be afforded by persons carrying out prospecting or mining 
operations to persons authorized by the State Government for the purpose 
of undertaking research or training in matters relating to mining or 
geology; 
                                                (p) procedure for, and manner of, imposition of fines for the contravention of 
any of the rules made under this section and the authority who may 
impose such fines ; 
                        (q) the authority to which the period within which, the form and manner in 
which, application for revision of any order passed by any authority under 
this section or any rule made thereunder may he made, the fee to the paid 
for, and the documents which should accompany such application. 
                         (r) All rules made under this section shall be binding on the State 
Government. 
 
Power to authorize Geological Survey of India etc. to make investigation: 
        21.   (1)    Where the State Government is of opinion that for the conservation and 
development of any mineral in the State 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, the State Government may authorize the Geological Survey of India 
or such 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. 
                (2) On the issue of an authorization under Sub-section (1), it shall he lawful for 
the Geological Survey of India or the specified authority or agency and its 
servants and workmen. 
                         (a)   to enter upon such land,  
                         (b)   to dig or bore into the sub-soil, 
                         (c)   to do all other Acts necessary to determine the extent of any mineral 
available in or under such land, 
                         (d) to set out boundaries of the land in which any mineral is expected to be 
found, 
                         (e)    to mark such boundaries and line by placing marks. 
                         (f) where otherwise the survey cannot be completed on the boundaries and 
line marked, to cut down and clear away any part of any standing crop, 
fence or jungle; 
     Provided that no such authority or agency shall enter into any building or upon any 
enclosed courtyard or garden attached to the dwelling house (except with the consent of 
the occupier thereof) without previously giving such occupier atleast seven days’ notice in 
writing of its intention to do so, 
                (3) Whenever any action of the nature specified in Sub-section (2) is to he taken, 
the State Government shall, before or at the time when such action in taken, 
pay or tender payment for all necessary damage which is likely to be caused, 
and in case of dispute as to the sufficiency of the amount so paid or tendered 
or as to the person to whom it would be paid or tendered, the State 
Government shall refer the dispute to such authority as is empowered to 
exercise the functions or the principal civil court of original jurisdiction over 
the land in question. 
                (4) The fact that there exists any such dispute as is referred to in Sub-sections (3) 
shall not be a bar to the taking of any action under Sub-section (2) 
                (5) After the completion of the investigation, the Geological Survey of India or 
the specified authority or agency by which the investigation was made shall 
submit to the State Government a detailed report indicating therein the extent 
and nature of any mineral which lies deposited in or under the land. 
                (6) The costs of investigation made under this section shall be borne by the State 
Government. 
     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 State 
Government to furnish to him a copy of the report submitted under Sub-section (5), the 
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 State 
Government may specify in this behalf and shall, on payment of such part of the costs of 
investigation, be entitled to receive form the State Government a true copy of the report 
submitted to it under Sub- section (5). 
 
 
                                                        CHAPTER VII 
                         OBLIGATIONS OF HOLDER OF PROSPECTING 
                                      LICENCES AND MINING LEASES 
 
Notice to be given of prospecting or mining operations 
        22.    (1) The holder of a prospecting licence and the holder of a mining lease shall, 
before the commencement of any prospecting or, as the case may be, mining 
operations, given to such authority as the State Government may, by 
notification, specify, a notice in writing, in such form and containing such 
particulars as may be prescribed, of his intention to commence such 
prospecting of mining operations. 
                 (2) Any notice given under Sub section (1) shall he so given as to reach the 
specified authority atleast one month before the commencement of any such 
prospecting or mining operation. 
 
Duties and responsibilities of holder of prospecting licences or mining lease 
        23.    (1) The holder of every prospecting licence or mining lease shall he responsible 
for making financial and other provisions and for taking such other steps as 
may be necessary for compliance with the provisions of this Act and the rules 
made thereunder to ensure the safety of the mines and minerals that may be 
explored or exploited as a result of such prospecting or mining operations and 
for the safety and security of the persons employed for the purpose of 
carrying out such operations. 
             (2) The holder of a prospecting licence or mining lease shall each be responsible 
for the compliance with the rules made under Sub-section (1) and it shall not 
be a defence that such holder of licence or lease had appointed a manager or 
other officials to carry out such prospecting or mining operations. 
             (3) The holder of a prospecting licence or a mining lease shall also be 
responsible to make such provisions for the health and safety of the persons 
employed in connection with such prospecting or mining operations as may 
be prescribed. 
 
Power of inspection of State Government 
        24.   (1) If the State Government on any authority empowered by it in this behalf has 
any reason to believe that any mine or part thereof or any matter or thing or 
practice in, or connected with, the prospecting or mining operations, or 
control, su- pervision management or direction thereof, is dangerous to 
human life or safety or defective so as to threaten, or tend to threaten the 
bodily injury to any person, that Government or as the case may be, that 
authority may give a notice in writing to the holder of the prospecting licence 
or mining lease, stating therein the particulars it respect of which that 
Government or authority consider the mine or part thereof or the matter thing 
or practice to be dangerous or defective and require the same to be remedied 
within such time and in such manner as may be specified in the notice. 
                (2) Without prejudice to the provisions of Sub-section (1), the State Government 
or the authority empowered under Sub section (1) may, by order in writing, 
addressed to the holder of, the prospecting licence or mining lease, prohibit 
the extraction or reduction of pillars or blocks of minerals in

Excerpt shown. Open the full act in Lexace.

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