LexThe MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957
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THE MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957
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Updated:- 16-3-2020
ARRANGEMENT OF SECTIONS
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CHAPTER I
PRELIMINARY
SECTIONS
1. Short title, extent and commencement.
2. Declaration as to expediency of Union Control.
3. Definitions.
CHAPTER II
G
ENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING OPERATIONS
4. Prospecting or mining operations to be under licence or lease.
4A.Termination of prospecting licences or mining leases.
4B. Conditions for efficiency in production.
5. Restrictions on the grant of prospecting licences or mining leases.
6. Maximum area for which a prospecting licence or mining lease may be granted.
7. Periods for which prospecting licences may be granted or renewed.
8. Periods for which mining leases may be granted or renewed.
8A. Period of grant of a mining lease for minerals other than coal, lignite and atomic minerals.
8B. Provisions for transfer of statutory clearances.
9. Royalties in respect of mining leases.
9A. Dead rent to be paid by the lessee.
9B. District Mineral Foundation.
9C. National Mineral Exploration Trust.
CHAPTER III
PROCEDURE FOR OBTAINING, 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.
10A. Rights of existing concession holders and applicants.
10B. Grant of mining lease in respect of notified minerals through auction.
10C. Grant of non-exclusive reconnaissance permits.
11. Grant of prospecting licence-cum-mining lease through auction in respect of minerals other than
notified minerals.
11A. Granting of reconnaissance permit, prospecting licence or mining lease or prospecting licence-
cum-mining lease in respect of coal or lignite.
11B. Power of Central Government to make rules for regulating atomic minerals specified under
Part B of First Schedule.
11C. Power of Central Government to amend First Schedule and Fourth Schedule.
12. Registers of prospecting licences and mining leases.
12A. Transfer of mineral concessions.
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CHAPTER IV
RULES FOR REGULATING THE GRANT OF PROSPECTING LICENCES AND MINING LEASES
SECTIONS
13. Power of Central Government to make rules in respect of minerals.
13A. Power of Central Government to make rules for grant of prospecting licences or mining leases
in respect of territorial waters or continental shelf of India.
14. [Sections 5 to 13] not to apply to minor minerals.
15. Power of State Governments to make rules in respect of minor minerals.
15A. Power of State Government to collect funds for District Mineral Foundation in case of minor
minerals.
16. Power to modify mining leases granted before 25th October, 1949.
CHAPTER V
SPECIAL POWERS OF CENTRAL GOVERNMENT TO UNDERTAKE PROSPECTING OR
MINING OPERATIONS IN CERTAIN CASES
17. Special powers of Central Government to undertake prospecting or mining operations in certain
lands.
17A. Reservation of areas for purposes of conservation.
CHAPTER VI
DEVELOPMENT OF MINERALS
18. Mineral development.
18A.Power to authorise Geological Survey of India, etc., to make investigation.
CHAPTER VII
MISCELLANEOUS
19. Prospecting licences and mining leases to be void if in contravention of Act.
20. Act and rules to apply to all renewals of prospecting licences and mining leases.
20A. Power of Central Government to issue directions.
21. Penalties.
22. Cognizance of offences.
23. Offences by companies.
23A. Compounding of offences.
23B. Power to search.
23C. Power of State Government to make rules for preventing illegal mining, transportation and
storage of minerals.
24. Power of entry and inspection.
24A. Rights and liabilities of a holder of prospecting licence or mining lease.
25. Recovery of certain sums as arrears of land revenue.
26. Delegation of powers.
27. Protection of action taken in good faith.
28. Rules and notifications to be laid before Parliament and certain rules to be approved by
Parliament.
29. Existing rules to continue.
30. Power of revision by Central Government.
30A. Special provisions relating to mining leases for coal granted before 25th October, 1949.
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SECTIONS
30B. Constitution of Special Courts.
30C. Special Courts to have powers of Court of Session.
31. Relaxation of rules in special cases.
32. [Repealed ].
33. Validation of certain acts and indemnity.
THE FIRST SCHEDULE.
THE SECOND SCHEDULE.
THE THIRD SCHEDULE.
THE FOURTH SCHEDULE.
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THE MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957
ACT NO. 67 OF 1957
[28 th December , 1957.]
An Act to provide for the 1[development and regulation of mines and minerals] under the
control of the Union.
BE it enacted by Parliament in the Eighth Year of the Republic of India as follows: ―
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement .―(1) This Act may be called the Mines and Minerals
2[(Development and Regulation)] Act, 1957.
(2) It extends to the whole of India.
(3) It shall come into force on such date 3as the Central Government may, by notification in t he
Official Gazette, appoint.
2. Declaration as to expediency of Union Control .―It is hereby declared that it is expedient in the
public interest that the Union should take under it s control the regulation of mines and the developme nt
of minerals to the extent hereinafter provided.
3. Definitions .―In this Act, unless the context otherwise requires,―
4[(a) “leased area” means the area specified in the min ing lease within which mining operations
can be undertaken and includes the non-mineralised area required and approved for the activities
falling under the definition of mine as referred to in clause (i);
(aa ) “minerals” includes all minerals except mineral o ils;]
(b) “mineral oils” includes natural gas and petroleum ;
(c) “mining lease” means a lease granted for the purp ose of undertaking mining operations, and
includes a sub-lease granted for such purpose;
(d) “mining operations” means any operations undertak en for the purpose of winning any
mineral;
(e) “minor minerals” means building stones, gravel, o rdinary 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;
5[(ea )“notified minerals” means any mineral specified in the Fourth Schedule;]
(f)”prescribed” means prescribed by rules made under this Act;
(g) “prospecting licence” means a licence granted for the purpose of undertaking prospecting
operations;
4[( ga ) “prospecting licence-cum-mining lease” means a tw o stage concession granted for the
purpose of undertaking prospecting operations followed by mining operations;]
(h) “prospecting operations” means any operations und ertaken for the purpose of exploring,
locating or proving mineral deposit ; 6***
1. Subs. by Act 38 of 1999, s. 2, for “regulation o f mines and the development of minerals” (w.e.f. 18 -12-1999).
2. Subs. by s. 3, ibid ., for “(Regulation and Development)” (w.e.f. 18-12- 1999).
3. 1st June, 1958, vide notification No. G.S.R. 432, dated 29th May, 1958, see Gazette of India, Extraordinary, Part II, sec. 3( i).
4. Subs. by Act 25 of 2016, s. 2, for clause ( a) (w.e.f. 6-5-2016).
5. Ins. by Act 10 of 2015, s. 2 (w.e.f. 12-1-2015).
6. The word “and” omitted by Act 38 of 1999, s. 4 ( w.e.f. 18-12-1999).
5
1[( 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 fr om
time to time by the Central Government) or sub-surface excavation;
(hb ) “reconnaissance permit” means a permit granted fo r the purpose of undertaking
reconnaissance operations; 2***]
3[( hc ) “Special Court” means a Court of Session designat ed as Special Court under
sub-section ( 1) of section 30B; and]
(i) the expressions, “mine” and “owner”, have the mea ning assigned to them in the Mines Act,
1952 (35 of 1952).
CHAPTER II
GENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING OPERATIONS
4. Prospecting or mining operations to be under lic ence or lease .―(1) 4[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 recon naissance 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 aff ect any prospecting or mining operations
undertaken in any area in accordance with terms and conditions of a prospecting licence or mining leas e
granted before the commencement of this Act which is in force at such commencement:
5[Provided further that nothing in this sub-section shall apply to any prospecting operations
undertaken by the Geological Survey of India, the I ndian Bureau of Mines, 6[the Atomic Minerals
Directorate for Exploration and Research] of the De partment 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 Li mited., a Government company within the meaning
of 7[clause ( 45 ) of section 2 of the Companies Act, 2013 (18 of 20 13), and any such entity that may be
notified for this purpose by the Central Government]:]
8[Provided also that nothing in this sub-section sha ll 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.]
9[( 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) 10 [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.
5[( 3)Any State Government may, after prior consultation with the Central Government and in
accordance with the rule made under section 18, 11 [undertake reconnaissance, prospecting or mining
operations with respect to any mineral specified in the First Schedule in any area within that State w hich
is not already held under any reconnaissance permit, prospecting licence or mining lease].]
1. Ins. by Act 38 of 1999, s. 4 (w.e.f. 18-12-1999).
2. The word “and” omitted by Act 10 of 2015, s. 2 ( w.e.f. 12-1-2015).
3. Ins. by s. 2, ibid . (w.e.f. 12-1-2015).
4. Subs. by Act 38 of 1999, s. 5, for certain words (w.e.f. 18-12-1999).
5. Ins. by Act 37 of 1986, s. 2 (w.e.f. 10-2-1987).
6. Subs. by Act 38 of 1999, s. 5, for “the Atomic M inerals Division” (w.e.f. 18-12-1999).
7. Subs. by Act 10 of 2015, s. 3, for “section 617 of the Companies Act, 1956 (1 of 1956)” (w.e.f. 12-1 -2015).
8. Ins. by Act 16 of 1987, s. 14 (w.e.f. 1-10-1963).
9. Ins. by Act 38 of 1999, s. 5 (w.e.f. 18-12-1999).
10. Subs. by s. 5, ibid ., “No prospecting licence or mining lease” (w.e.f. 18-12-1999).
11. Subs. by s. 5, ibid ., for certain words (w.e.f. 18-12-1999).
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1[4A.Termination of prospecting licences or mining l eases .―(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, preser vation of natural environment, control of floods,
prevention of pollution, or to avoid danger to publ ic health or communications or to ensure safety of
buildings, monuments or other structures or for con servation 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 terminatio n of a prospecting licence or mining lease in
respect of any mineral other than a minor mineral i n any area or part thereof, and, on receipt of such
request, the State Government shall make an order m aking a premature termination of such prospecting
licence or mining lease with respect to the area or any part thereof.
(2) Where the State Government 2*** is of opinion that it is expedient in the interest of regulation of
mines and mineral development, preservation of natu ral environment, control of floods, prevention of
pollution or to avoid danger to public health or co mmunications or to ensure safety of buildings,
monuments or other structures or for such other purposes, as the State Government may deem fit, it may,
by an order, in respect of any minor mineral, make premature termination of prospecting licence or
mining lease with respect to the area or any part thereof covered by such licence or lease.
3[* * * * *]
(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 under take mining operations for a period of 4[two
years] after the date of execution of the lease or having commenced mining operations, has discontinued
the same for a period of 4[two years], the lease shall lapse on the expiry of the period of 4[two years]
from the date of execution of the lease or, as the case may be, discontinuance of the mining operations:
5[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 will not b e possible for the holder of the lease to undertake mining
operations or to continue such operations for reaso ns beyond his control, make an order, within a peri od
of three months from the date of receiving of such application, subject to such conditions as may be
prescribed, to the effect that such lease shall not lapse:
Provided further that such lease shall lapse on fai lure to undertake mining operations or inability to
continue the same before the end of a period of six months from the date of the order of the State
Government:
Provided also that the State Government may, on an application made by the holder of a lease
submitted within a period of six months from the da te of its lapse and on being satisfied that such no n-
commencement or discontinuance was due to reasons b eyond the control of the holder of the lease,
revive the lease within a period of three months fr om the date of receiving the application 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 third proviso for more than twice during the
entire period of the lease.]]
6[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 lik e
under section 8B.]
1. Subs. by Act 37 of 1986, s. 3, for section 4A (w.e.f. 10-2-1987).
2. The words “, after consultation with the Central Government,” omitted by Act 25 of 1994, s. 2 (w.e.f . 25-1-1994).
3. Proviso omitted by Act 38 of 1999, s. 6 (w.e.f. 18-12-1999).
4. Subs. by Act 25 of 1994, s. 2, for “one year” (w .e.f. 25-1-1994).
5. Subs. by Act 10 of 2015, s. 4, for the provisos (w.e.f. 12-1-2015).
6. Ins. by Act 2 of 2020, s. 2 (w.e.f. 10-1-2020).
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1[5. Restrictions on the grant of prospecting licence s or mining leases .―2[(1) A State
Government shall not grant a 3[reconnaissance permit, prospecting licence or mining lease] to any person
unless such person ―
(a) is an Indian national, or company as defined in 4[clause ( 20 ) of section 2 of the Companies
Act, 2013 (18 of 2013)]; and
(b) satisfies such conditions as may be prescribed:
5[Provided that in respect of any mineral specified in Part A and Part B of the First Schedule,
no reconnaissance permit, prospecting licence or mi ning lease shall be granted except with the
previous approval of the Central Government.]
6[Provided further that the previous approval of the Central Government shall not be required
for grant of reconnaissance permit, prospecting lic ence or mining lease in respect of the minerals
specified in Part A of the First Schedule, where,—
(i) an allocation order has been issued by the Central Government under section 11A; or
(ii ) a notification of reservation of area has been is sued by the Central Government or the
State Government under sub-section (1A) or sub-section ( 2) of section 17A; or
(iii ) a vesting order or an allotment order has been is sued by the Central Government under
the provisions of the Coal Mines (Special Provisions) Act, 2015 (11 of 2015).]
Explanation .―For the purposes of this sub-section, a person shal l 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 ―
7[(a) there is evidence to show the existence of minera l contents in the area for which the
application for a mining lease has been made in acc ordance with such parameters as may be
prescribed for this purpose by the Central Government;]
(b) there is a mining plan duly approved by the Centr al 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:]
8[Provided that a mining lease may be granted upon t he filing of a mining plan in accordance
with a system established by the State Government f or preparation, certification, and monitoring of
such plan, with the approval of the Central Government.]
6. Maximum area for which a prospecting licence or min ing lease may be granted .―9[(1)No
person shall acquire 10 *** in respect of any mineral or prescribed group o f associated minerals 11 [in a
State] ―
(a) one or more prospecting licences covering a total area of more than twenty-five square
kilometres; or
1. Subs. by Act 37 of 1986, s. 4, for section 5 (w.e.f. 10-2-1987).
2. Subs. by Act 25 of 1994, s. 3, for sub-section (1) (w.e.f. 25-1-1994).
3. Subs. by Act 38 of 1999, s. 7, for “prospecting licence or mining lease” (w.e.f. 18-12-1999).
4. Subs. by Act 10 of 2015, s. 5, for “sub-section ( 1) of section 3 of the Companies Act, 1956 (1 of 1956)” (w.e.f. 12-1-2015).
5. Subs. by s. 5, ibid ., for the proviso (w.e.f. 12-1-2015).
6. Ins. by Act 2 of 2020, s. 3 (w.e.f. 10-1-2020).
7. Subs. by Act 10 of 2015, s. 5, for clause ( a) (w.e.f. 12-1-2015).
8. Ins. by s. 5, ibid . (w.e.f. 12-1-2015).
9. Subs. by Act 56 of 1972, s. 3, for sub-section (1) (w.e.f. 12-9-1972).
10. The words “in any one State” omitted by Act 37 of 1986, s. 5 (w.e.f. 10-2-1987).
11. Ins. by Act 38 of 1999, s. 8 (w.e.f. 18-12-1999).
8
1[(aa ) one or more reconnaissance permit covering a total area often thousand square kilometres:
Provided that the area granted under a single recon naissance permit shall not exceed five
thousand square kilometers; or]
(b) one or more mining leases covering a total area of more than ten square kilometres:
2[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 resp ect of prospecting licence or mining lease, in so f ar
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.]]
3[(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, f or 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 acquir ing by, or in the name of, another person a
4[reconnaissance permit, prospecting licence or mini ng lease] which is intended for himself shall be
deemed to be acquiring it himself.
5[( 3) For the purposes of determining the total area re ferred to in sub-section ( 1), the area held under
a 4[reconnaissance permit, prospecting licence or mini ng lease] 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 sub- section ( 1) so that the sum total of the area held by
such person, under a 4[reconnaissance permit, prospecting licence or mini ng lease], whether as such
member or partner, or individually, may not, in any case, exceed the total area specified in sub-secti on
(1).]
6[7. Periods for which prospecting licences may be gr anted or renewed .―(1) The period for
which 7[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 operati ons 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 grante d in respect of 8[a mineral included in Part A and
Part B to] the First Schedule shall be renewed exce pt with the previous approval of the Central
Government.]
9[8. Periods for which mining leases may be granted or renewed .―(1) The provisions of this
section shall apply to minerals specified in Part A of the First Schedule.
(2) The maximum period for which a mining lease may be granted shall not exceed thirty years:
1. Ins. by Act 38 of 1999, s. 8 (w.e.f. 18-12-1999).
2. Subs. by Act 10 of 2015, s. 6, for the proviso (w.e.f. 12-1-2015).
3. Subs. by Act 38 of 1999, s. 8, for clause ( c) (w.e.f. 18-12-1999).
4. Subs. by s. 8, ibid ., for “prospecting licence or mining lease” (w.e.f . 18-12-1999).
5. Ins. by Act 56 of 1972, s. 3 (w.e.f. 12-9-1972).
6. Subs. by Act 25 of 1994, s. 4, for section 7 (w.e.f. 25-1-1994).
7. Subs. by Act 38 of 1999, s. 9, for “a prospectin g licence” (w.e.f. 18-12-1999).
8. Subs. by s. 9, ibid ., for “a mineral included in” (w.e.f. 18-12-1999).
9. Subs. by Act 10 of 2015, s. 7, for section 8 (w.e.f. 12-1-2015).
9
Provided that the minimum period for which any such mining lease may be granted shall not be less
than twenty years.
(3) A mining lease may be renewed for a period not ex ceeding twenty years with the previous
approval of the Central Government.]
1[8A. Period of grant of a mining lease for minerals other than coal, lignite and atomic
minerals .―(1) The provisions of this section shall apply to minerals other than those specified in Part A
and Part B of the First Schedule.
(2) On and from the date of the commencement of the M ines and Minerals (Development and
Regulation) Amendment Act, 2015 (10 of 2015), all mining leases shall be granted for the period of fifty
years.
(3) All mining leases granted before the commencement of the Mines and Minerals (Development
and Regulation) Amendment Act, 2015 (10 of 2015) sh all be deemed to have been granted for a period
of fifty years.
(4) On the expiry of the lease period, the lease shal l be put up for auction as per the procedure
specified in this Act.
2[Provided that nothing contained in this section shall prevent the State Governments from taking an
advance action for auction of the mining lease before the expiry of the lease period.]
(5) Notwithstanding anything contained in sub-section s ( 2), ( 3) and sub-section ( 4), the period of
lease granted before the date of commencement of th e Mines and Minerals (Development and
Regulation) Amendment Act, 2015 (10 of 2015), where mineral is used for captive purpose, shall be
extended and be deemed to have been extended up to a period ending on the 31st March, 2030 with
effect from the date of expiry of the period of renewal last made or till the completion of renewal period,
if any, or a period of fifty years from the date of grant of such lease, whichever is later, subject t o the
condition that all the terms and conditions of the lease have been complied with.
(6) Notwithstanding anything contained in sub-section s ( 2), ( 3) and sub-section ( 4), the period of
lease granted before the date of commencement of th e Mines and Minerals (Development and
Regulation) Amendment Act, 2015 (10 of 2015), where mineral is used for other than captive purpose,
shall be extended and be deemed to have been extend ed up to a period ending on the 31st March, 2020
with effect from the date of expiry of the period o f renewal last made or till the completion of renew al
period, if any, or a period of fifty years from the date of grant of such lease, whichever is later, subject to
the condition that all the terms and conditions of the lease have been complied with.
(7) Any holder of a lease granted, where mineral is u sed for captive purpose, shall have the right of
first refusal at the time of auction held for such lease after the expiry of the lease period.
(8) Notwithstanding anything contained in this sectio n, the period of mining leases, including
existing mining leases, of Government companies or corporations shall be such as may be prescribed by
the Central Government.
(9) The provisions of this section, notwithstanding a nything contained therein, shall not apply to a
mining lease granted before the date of commencemen t of the Mines and Minerals (Development and
Regulation) Amendment Act, 2015 (10 of 2015), for which renewal has been rejected, or which has been
determined, or lapsed.]
1. Ins. by Act 10 of 2015, s. 8 (w.e.f. 12-1-2015).
2. Ins. by Act 2 of 2020, s. 4 (w.e.f. 10-1-2020).
10
1[8B. Provisions for transfer of statutory clearances . ―(1) The provisions of this section shall
apply to minerals, other than the minerals specified in Part A and Part B of the First Schedule.
(2) Notwithstanding anything contained in this Act or any other law for the time being in force, the
successful bidder of mining leases expiring under t he provisions of sub-sections ( 5) and ( 6) of
section 8A and selected through auction as per the procedure provided under this Act and the rules made
thereunder, shall be deemed to have acquired all va lid rights, approvals, clearances, licences and the like
vested with the previous lessee for a period of two years:
Provided that subject to such conditions as may be prescribed, such new lessee shall apply and
obtain all necessary rights, approvals, clearances, licences and the like within a period of two years from
the date of grant of new lease.
(3) Notwithstanding anything contained in any other law for the time being in force, it shall be
lawful for the new lessee to continue mining operat ions on the land, in which mining operations were
being carried out by the previous lessee, for a period of two years from the date of commencement of the
new lease.]
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 r espect 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.
(2) The holder of a mining lease granted on or after the commencement of this Act shall 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 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.]
(3) The Central Government may, by notification in th e Official Gazette, amend the Second
Schedule so as to enhance or reduce the rate at whi ch royalty shall be payable in respect of any miner al
with effect from such date as may be specified in the notification:
4[Provided that the Central Government shall not enh ance the rate of royalty in respect of any
mineral more than once during any period of 5[three years].]
6[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 M inerals (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 S tate 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:
1. Ins. by Act 2 of 2020, s. 5 (w.e.f. 10-1-2020.)
2. Subs. by Act 56 of 1972, s. 4, for “mineral remo ved by him” (w.e.f. 12-9-1972).
3. Ins. by s. 4, ibid . (w.e.f. 12-9-1972).
4. Subs. by s. 4, ibid ., for the proviso (w.e.f. 12-9-1972).
5. Subs. by Act 37 of 1986, s. 8, for “four years” (w.e.f. 10-2-1987).
6. Ins. by Act 56 of 1972, s. 5 (w.e.f. 12-9-1972).
11
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 hi s 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 th e Official Gazette, amend the Third Schedule
so as to enhance or reduce the rate at which the de ad 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 enha nce the rate of the dead rent in respect of any
such area more than once during any period of 1[three years].]
2[9B. District Mineral Foundation .―(1) In any district affected by mining related operat ions, the
State Government shall, by notification, establish a trust, as a non-profit body, to be called the Dis trict
Mineral Foundation.
(2) The object of the District Mineral Foundation sha ll be to work for the interest and benefit of
persons, and areas affected by mining related opera tions in such manner as may be prescribed by the
State Government.
(3) The composition and functions of the District Min eral Foundation shall be such as may be
prescribed by the State Government.
(4) The State Government while making rules under sub -sections ( 2) and ( 3) shall be guided by the
provisions contained in article 244 read with Fifth and Sixth Schedules to the Constitution relating t o
administration of the Scheduled Areas and Tribal Areas and the Provisions of the Panchayats (Extension
to the Scheduled Areas) Act, 1996 (40 of 1996) and the Scheduled Tribes and Other Traditional Forest
Dwellers (Recognition of Forest Rights) Act, 2006 (2 of 2007).
(5) The holder of a mining lease or a prospecting lic ence-cum-mining lease granted on or after the
date of commencement of the Mines and Minerals (Dev elopment and Regulation) Amendment Act,
2015, shall, in addition to the royalty, pay to the District Mineral Foundation of the district in whi ch 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-thi rd of such royalty, as may be prescribed by the
Central Government.
(6) The holder of a mining lease granted before the d ate of commencement of the Mines and
Minerals (Development and Regulation) Amendment Act , 2015, shall, in addition to the royalty, pay to
the District Mineral Foundation of the district in which the mining operations are carried on, an amou nt
not exceeding the royalty paid in terms of the Seco nd Schedule in such manner and subject to the
categorisation of the mining leases and the amounts payable by the various categories of lease holders, as
may be prescribed by the Central Government .
9C. National Mineral Exploration Trust .―(1) The Central Government shall, by notification,
establish a Trust, as a non-profit body, to be called the National Mineral Exploration Trust.
(2) The object of the Trust shall be to use the funds accrued to the Trust for the purposes of regional
and detailed exploration in such manner as may be prescribed by the Central Government.
(3) The composition and functions of the Trust shall be such as may be prescribed by the Central
Government.
1. Subs. by Act 37 of 1986, s. 9, for “four years” (w.e.f. 10-2-1987).
2. Ins. by Act 10 of 2015, s. 9 (w.e.f. 12-1-2015).
12
(4) The holder of a mining lease or a prospecting lic ence-cum-mining lease shall pay to the Trust, a
sum equivalent to two per cent. of the royalty paid in terms of the Second Schedule, in such manner as
may be prescribed by the Central Government.]
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 1[a
reconnaissance permit, prospecting licence or mining lease] in respect of any land in which the minera ls
vest in the Government shall be made to the State G overnment concerned in the prescribed form and
shall be accompanied by the prescribed fee.
(2) Where an application is received under sub-sectio n ( 1), there shall be sent to the applicant an
acknowledgment 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 thereunde r, grant or refuse to grant the 2[permit, licence or
lease].
3[10A. Rights of existing concession holders and app licants .―(1) All applications received prior
to the date of commencement of the Mines and Minera ls (Development and Regulation) Amendment
Act, 2015, shall become ineligible.
(2) Without prejudice to sub-section ( 1), the following shall remain eligible on and from the date of
commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015: ―
(a) applications received under section 11A of this Act;
(b) where before the commencement of the Mines and Mi nerals (Development and Regulation)
Amendment Act, 2015 a reconnaissance permit or prospecting licence has been granted in respect of
any land for any mineral, the permit holder or the licensee shall have a right for obtaining a
prospecting licence followed by a mining lease, or a mining lease, as the case may be, in respect of
that mineral in that land, if the State Government is satisfied that the permit holder or the licensee, as
the case may be, ―
(i) has undertaken reconnaissance operations or prosp ecting operations, as the case may be,
to establish the existence of mineral contents in such land in accordance with such parameters as
may be prescribed by the Central Government;
(ii ) has not committed any breach of the terms and con ditions of the reconnaissance permit
or the prospecting licence;
(iii ) has not become ineligible under the provisions of this Act; and
(iv ) has not failed to apply for grant of prospecting licence or mining lease, as the case may
be, within a period of three months after the expir y of reconnaissance permit or prospecting
licence, as the case may be, or within such further period not exceeding six months as may be
extended by the State Government;
(c) where the Central Government has communicated pre vious approval as required under
sub-section ( 1) of section 5 for grant of a mining lease, or if a letter of intent (by whatever name
called) has been issued by the State Government to grant a mining lease, before the commencement
of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, the mining lease
1. Subs. by Act 38 of 1999, s. 11, for “a prospecti ng licence or a mining lease” (w.e.f. 18-12-1999).
2. Subs. by s. 11, ibid ., for “licence or lease” (w.e.f. 18-12-1999).
3. Ins. by Act 10 of 2015, s. 10 (w.e.f. 12-1-2015).
13
shall be granted subject to fulfilment of the condi tions of the previous approval or of the letter of
intent within a period of two years from the date of commencement of the said Act:
Provided that in respect of any mineral specified i n 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.
10B. Grant of mining lease in respect of notified m inerals through auction. ―(1) The provisions
of this section shall not be applicable to cases co vered by section 10A or section 17A or to minerals
specified in Part A or Part B of the First Schedule or to land in respect of which the minerals do not vest
in the Government.
(2) Where there is inadequate evidence to show the ex istence of mineral contents of any notified
mineral in respect of any area, a State Government may, after obtaining the previous approval of the
Central Government, grant a prospecting licence-cum -mining lease for the said notified mineral in such
area in accordance with the procedure laid down in section 11.
(3) In areas where the existence of mineral contents of any notified mineral is established in the
manner prescribed by the Central Government, the State Government shall notify such areas for grant of
mining leases for such notified mineral, the terms and conditions subject to which such mining leases
shall be granted, and any other relevant conditions , in such manner as may be prescribed by the Centra l
Government.
(4) For the purpose of granting a mining lease in res pect of any notified mineral in such notified
area, the State Government shall select, through au ction by a method of competitive bidding, including
e-auction, an applicant who fulfils the eligibility conditions as specified in this Act.
(5) The Central Government shall prescribe the terms and conditions, and procedure, subject to
which the auction shall be conducted, including the bidding parameters for the selection, which may
include a share in the production of the mineral, o r any payment linked to the royalty payable, or any
other relevant parameter, or any combination or modification of them.
(6) Without prejudice to the generality of sub-section ( 5), the Central Government shall, if it is of the
opinion that it is necessary and expedient to do so , prescribe terms and conditions, procedure and
bidding parameters in respect of categories of mine rals, size and area of mineral deposits and a State or
States, subject to which the auction shall be conducted:
Provided that the terms and conditions may include the reservation of any particular mine or mines
for a particular end-use and subject to such condit ion which allow only such eligible end users to
participate in the auction.
(7) The State Government shall grant a mining lease t o an applicant selected in accordance with the
procedure laid down in this section in respect of such notified mineral in any notified area.
10C. Grant of non-exclusive reconnaissance permits. ―(1) Non-exclusive reconnaissance permits
may be granted in respect of any notified mineral o r non-notified mineral or a group of specified
minerals, other than minerals specified in Part A o r Part B of the First Schedule, subject to such ter ms
and conditions as may be prescribed by the Central Government.
(2) The holder of such non-exclusive reconnaissance p ermit shall not be entitled to make any claim
for the grant of any prospecting licence-cum-mining lease or a mining lease.]
1[Provided that the holder of non-exclusive reconnai ssance permit who carries out the prescribed
level of exploration in respect of deep seated minerals or such minerals as may be notified by the Central
Government, may submit an application to the State Government for the grant of any prospecting
licence-cum-mining lease as per the procedure laid down under section 11 or a mining lease as per the
procedure laid down under section 10B and with a vi ew to increase the reconnaissance and prospecting
1. Ins. by Act 2 of 2020, s. 6 (w.e.f. 10-1-2020).
14
operations of such minerals, the Central Government shall prescribe such procedure, including the
bidding parameters for selection of such holders.
Explanation. —For the purposes of this sub-section, the expressi on “deep seated minerals” means
such minerals which occur at a depth of more than t hree hundred meters from the surface of land with
poor surface manifestations.]
1[11. Grant of prospecting licence-cum-mining lease through auction in respect of minerals
other than notified minerals. ―(1) The provisions of this section shall not be appli cable to cases
covered by section 10A or section 17A or to mineral s specified in Part A or Part B of the First Schedu le
or to land in respect of which minerals do not vest in the Government.
(2) In areas where there is evidence to show the exis tence of mineral contents as required by
clause ( a) of sub-section ( 2) of section 5, the State Government shall grant a mining lease for minerals
other than notified minerals following the procedure laid down in section 10B.
(3) In areas where there is inadequate evidence to show the existence of mineral contents as required
under clause ( a) of sub-section ( 2) of section 5, the State Government shall grant a prospecting licence-
cum-mining lease for minerals other than notified m inerals in accordance with the procedure laid down
in this section.
(4) The State Government shall notify the areas in wh ich prospecting licence-cum-mining leases
shall be granted for any minerals other than notifi ed minerals, the terms and conditions subject to wh ich
such prospecting licence-cum-mining leases shall be granted, and any other relevant conditions, in suc h
manner as may be prescribed by the Central Government.
(5) For the purpose of granting prospecting licence-c um-mining leases, the State Government shall
select, through auction by method of competitive bi dding, including e-auction, an applicant who fulfil s
the eligibility conditions as specified in this Act.
(6) The Central Government shall prescribe the terms and conditions, and procedure, subject to
which the auction shall be conducted, including the bidding parameters for the selection, which may
include a share in the production of the mineral, o r any payment linked to the royalty payable, or any
other relevant parameter, or any combination or modification of them.
(7) Without prejudice to the geExcerpt shown. Open the full act in Lexace.