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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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
GENERAL 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 period and transfer of statutory clearances.
9. Royalties in respect of mining leases.
9A. Dead rent to be paid by the lessee.
9B. District Mineral Foundation.
9C. National Mineral Exploration Trust.
CHAPTER III
PROCEDURE FOR OBTAINING, 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. [Omitted.]
11. Grant of composite licence through auction in respect of minerals other than notified minerals.
11A. Granting of mineral concession or composite licence in respect of coal or lignite.
11B. Power of Central Government to make rules for regulating atomic minerals specified under
Part B of First Schedule.
11C. Power of Central Government to amend First Schedule and Fourth Schedule.
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.
THE FIFTH SCHEDULE.
THE SIXTH SCHEDULE.
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THE MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957
ACT NO. 67 OF 1957
[28th December, 1957.]
An Act to provide for the 1[development and regulation of mines and minerals] under the
control of the Union.
BE it enacted by Parliament in the Eighth Year of the Republic of India as follows:―
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement .―(1) This Act may be called the Mines and Minerals
2[(Development and Regulation)] Act, 1957.
(2) It extends to the whole of India.
(3) It shal l come into force on such date 3as the Central Government may, by notification in the
Official Gazette, appoint.
2. Declaration as to expediency of Union Control.―It is hereby declared that it is expedient in the
public interest that the Union should take under its control the regulation of mines and the development
of minerals to the extent hereinafter provided.
3. Definitions.―In this Act, unless the context otherwise requires,―
4[(a) “composite licence” means the prospecting licence -cum-mining lease which is a two stage
concession granted for the purpose of undertaking prospecting operations followed by mining
operations in a seamless manner;
(aa) “dispatch” means the removal of minerals or mineral products from the leased area and
includes the consumption of minerals and mineral products within such leased area;
(ab) “Government company” shall have the same meaning as assigned to it in clause (45) of
section 2 of the Companies Act, 2013 (18 of 2013);
(ac) “leased area” means the area specified in the mining lease within which the mining
operations can be undertaken and includes the non - mineralized area required and approved for the
activities falling under the definition of “mine” as referred to in clause (i);
(ad) “minerals” includes all minerals except minerals oils;
(ae) “minerals concession” means either a reconnaissance permit, prospecting licence, minig
lease, composite licence or a combination of any of these and the expression “concession” shall be
construed accordingly;]
(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;
(e) “minor minerals” means building stones, gravel, ordinary clay, ordinary sand other than sand
used for prescribed purposes, and any other mineral which the Central Government may, by
notification in the Official Gazette, declare to be a minor mineral;
1. Subs. by Act 38 of 1999, s. 2, for “regulation of mines and the development of minerals” (w.e.f. 18-12-1999).
2. Subs. by s. 3, ibid., for “(Regulation and Development)” (w.e.f. 18-12-1999).
3. 1st June, 1958, vide notification No. G.S.R. 432, dated 29th May, 1958, see Gazette of India, Extraordinary, Part II, sec. 3(i).
4. Subs. by Act 16 of 2021, s. 3, for clause (a) and (aa) (w.e.f. 28-3-2021).
5
1[(ea)“notified minerals” means any mineral specified in the Fourth Schedule;]
(f) “prescribed” means prescribed by rules made under this Act;
2[(fa) “production” or any derivative of the word “production” means the winning or raising of
mineral within the leased area for the purpose of processing or dispatch;]
(g) “prospecting licence” means a licence granted for the purpose of und ertaking prospecting
operations;
3* * * * *
(h) “prospecting operations ” means any operations undertaken for the purpose of exploring,
locating or proving mineral deposit ; 4***
5[(ha) “reconnaissance operations” means any operations undertaken for preliminary prospecting
of a mineral through regional, aerial, geophysical or geochemical surveys and geological mapping,
but does not include pitting, trenching, drilling (except drilling of boreholes on a grid specified from
time to time by the Central Government) or sub-surface excavation;
(hb) “reconnaissance permit ” means a permit granted for the purpose of undertaking
reconnaissance operations; 6***]
2[(hba) “Schedule” means the Schedules appended to the Act;]
7[(hc) “Special Court” means a Court of Session designated as Special Court under
sub-section (1) of section 30B; and]
(i) the expressions, “mine” and “owner”, have the meaning assigned to them in the Mines Act,
1952 (35 of 1952).
2[Explanation.—For the purpose of this clause, —
(i) a mine continues to be a mine till exhaustion of its mineable mineral reserve and a mine
may have different owners during different times from the grant of first mining lease till
exhaustion of such mineable mineral reserve;
(ii) the expression “mineral reserve” means the economically minearble part of a measured
and indicated mineral resource.]
CHAPTER II
GENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING OPERATIONS
4. Prospecting or mining operation s to be under licence or lease .―(1) 8[No person shall
undertake any reconnaissance, prospecting or mining operations in any area, except under and in
accordance with the terms and conditions of a reconnaissance permit or of a prospecting licence or, as
the case may be, of a mining lease, granted under this Act and the rules made thereunder]:
Provided that nothing in this sub -section shall affect any prospecting or mining operat ions
undertaken in any area in accordance with terms and conditions of a prospecting licence or mining lease
granted before the commencement of this Act which is in force at such commencement:
9[Provided further that nothing in this sub -section shall apply to any prospecting operations
undertaken by the Geological Survey of India, the Indian Bureau of Mines, 10[the Atomic Minerals
1. Ins. by Act 10 of 2015, s. 2 (w.e.f. 12-1-2015).
2. Ins. by Act 16 of 2021, s. 3 (w.e.f. 28-3-2021).
3. Clause (ga) omitted by Act 16 of 2021, s. 3 (w.e.f. 28-3-2021).
4. The word “and” omitted by Act 10 of 2015, s. 2 (w.e.f. 12-1-2015)
5. Ins. by Act 38 of 1999, s. 4 (w.e.f. 18-12-1999).
6. The word “and” omitted by Act 10 of 2015, s. 2 (w.e.f. 12-1-2015).
7. Ins. by s. 2, ibid. (w.e.f. 12-1-2015).
8. Subs. by Act 38 of 1999, s. 5, for certain words (w.e.f. 18-12-1999).
9. Ins. by Act 37 of 1986, s. 2 (w.e.f. 10-2-1987).
10. Subs. by Act 38 of 1999, s. 5, for “the Atomic Minerals Division” (w.e.f. 18-12-1999).
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Directorate for Exploration and Research] of the Department of Atomic Energy of the Central
Government, the Directorates of Mining and Geology of any State Government (by whatever name
called), and the Mineral Exploration Corporation Limited., a Government company within the meaning
of 1[clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), and any 2[other entities including
private entities that may be notified for this purpose, subject to such conditions as may be specified by
the Central Government]]:]
3[Provided also that nothing in this sub -section shall apply to any mining lease (whether called
mining lease mining concession or by any other name) in force immediately before the comme ncement
of this Act in the Union territory of Goa, Daman and Diu.]
4[(1A) No person shall transport or store or cause to be transported or stored any mineral otherwise
than in accordance with the provisions of this Act and the rules made thereunder.]
(2) 5[No 6[mineral concession]] shall be granted otherwise than in accordance with the provisions of
this Act and the rules made thereunder.
5[(3)Any State Government may, after prior consultation with the Central Government and in
accordance with the rule made under section 18, 7[undertake reconnaissance, prospecting or mining
operations with respect to any mineral specified in the First Schedule in any area within that State which
is not already held under any 11[mineral concession]].]
8[4A.Termination of prospecting licences or mining leases .―(1) Where the Central Government,
after consultation with the State Government , is of opinion that it is expedient in the interest of
regulation of mines and mineral development, preservation of natural environment, control of floods,
prevention of pollution, or to avoid danger to public health or communications or to ensure safety of
buildings, monuments or other structures or for conservation of mineral resources or for maintaining
safety in the mines or for such other purposes, as the Central Government may deem fit, it may request
the State Government to make a premature terminatio n 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 9*** is of opinion that it is expedient in the interest of regulation of
mines and mineral development, preservation of natural environment, control of floods, p revention of
pollution or to avoid danger to public health or communication s 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 mine ral, make premature termination of prospecting licence or
mining lease with respect to the area or any part thereof covered by such licence or lease.
10[* * * * *]
(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 11[production and dispatch] for a period of
12[two years] after the date of execution of the lease or having commenced 11[production and dispatch],
has discontinued the same for a period of 12[two years], the lease shall lapse on the expiry of the period
of 12[two years] from the date of execution of the lease or, as the case may be, disconti nuance of the
11[production and dispatch]:
1. 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).
2. Subs. by Act 16 of 2021, s. 4, for certain words (w.e.f. 28-3-2021).
3. Ins. by Act 16 of 1987, s. 14 (w.e.f. 1-10-1963).
4. Ins. by Act 38 of 1999, s. 5 (w.e.f. 18-12-1999).
5. Subs. by s. 5, ibid., “No prospecting licence or mining lease” (w.e.f. 18-12-1999).
6. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).
7. Subs. by Act 38 of 1999, s. 5, for certain words (w.e.f. 18-12-1999).
8. Subs. by Act 37 of 1986, s. 3, for section 4A (w.e.f. 10-2-1987).
9. The words “, after consultation with the Central Government,” omitted by Act 25 of 1994, s. 2 (w.e.f. 25-1-1994).
10. Proviso omitted by Act 38 of 1999, s. 6 (w.e.f. 18-12-1999).
11. Subs. by Act 16 of 2021, s. 5, for “mining operations” (w.e.f. 28-3-2021).
12. Subs. by Act 25 of 1994, s. 2, for “one year” (w.e.f. 25-1-1994).
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1[Provided that the State Government may, on an application made by the holder of such lease before
it lapses and on being satisfied that it shall not be possible for the holder of the lease to undertake
production and dispatch or to continue such production and dispatch for reasons beyond his control, make
an order, within a period of three months from the date of receipt of such application, to extend the period of
two years by a further period not exceeding one year and such extension shall not be granted for more than
once during the entire period of lease:
Provided further that such lease shall lapse on failure to undertake production and dispatch or having
commenced the production and dispatch fails to continue the same before the end of such extended
period.]
2[4B. Conditions for efficiency in production. Notwithstanding anything contained in
section 4A, the Central Government may, in the interest of maintaining sustained production of minerals
in the country, prescribe such conditions as may be necessary for commencement and continuation of
production by the holders of mining leases who have acquired rights, approvals, clearances and the like
under section 8B.]
3[5. Restrictions on the grant of prospec ting licences or mining leases .―4[(1) A State
Government shall not grant a 5[mineral concession] to any person unless such person―
(a) is an Indian national, or company as defined in 6[clause (20) of section 2 of the Companies
Act, 2013 (18 of 2013)]; and
(b) satisfies such conditions as may be prescribed:
7[Provided that in respect of any mineral specified in Part A and Part B of the First Schedule,
no reconnaissance permit, prospecting licence or mining lease shall be granted except with the
previous approval of the Central Government.]
8[Provided further that the previous approval of the Central Government shall not be required
for grant of 5[mineral concession] in respect of the minerals specified in Part A of the First
Schedule, where,—
(i) an allocation order has been issued by the Central Government under section 11A; or
(ii) a notification of reservation of area has been issued by the Central Government or the
State Government under sub-section (1A) or sub-section (2) of section 17A; or
(iii) a vesting order or an allotment order has been issued by the Central Government under the
provisions of the Coal Mines (Special Provisions) Act, 2015 (11 of 2015).]
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.]
9[Provided also that the composite licence or mining lease shall not be granted for an area to any
person other than the Government, Government company or corporation, in respect of any minerals
specified in Part B of the First Schedule where the grade of such mineral in such area is equal to or
above such threshold value as may be notified by the Central Government.]
1. The provisos first, second, third and fourth subs. by Act 16 of 2021, s. 5 (w.e.f. 28-3-2021).
2. Ins. by Act 2 of 2020, s. 2 (w.e.f. 10-1-2020).
3. Subs. by Act 37 of 1986, s. 4, for section 5 (w.e.f. 10-2-1987).
4. Subs. by Act 25 of 1994, s. 3, for sub-section (1) (w.e.f. 25-1-1994).
5. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).
6. 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).
7. Subs. by s. 5, ibid., for the proviso (w.e.f. 12-1-2015).
8. Ins. by Act 2 of 2020, s. 3 (w.e.f. 10-1-2020).
9. Ins. by Act 16 of 2021, s. 6 (w.e.f. 28-3-2021).
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(2) No mining lease shall be granted by the State Government unless it is satisfied that―
1[(a) there is evidence to show the existence of mineral contents in the area for which the
application for a mining lease has been made in accordance with such parameters as may be
prescribed for this purpose by the Central Government;]
(b) there is a mining plan duly approved by the Central Government, or by the State
Government, in respect of such category of mines as may be specified by the Central Government,
for the development of mineral deposits in the area concerned:]
2[Provided that a mining lease may be granted upon the filing of a mining plan in accordance
with a system established by the State Governm ent for preparation, certification, and monitoring of
such plan, with the approval of the Central Government.]
6. Maximum area for which a prospecting licence or mining lease may be granted .―3[(1)No
person shall acquire 4*** in respect of any mineral or prescribed group of associated minera ls 5[in a
State]―
(a) one or more prospecting licences covering a total area of more than tw enty-five square
kilometres; or
6[(aa) one or more reconnaissance permit covering a total area often thousand square kilometres:
Provided that the area granted under a single reconnaissance permit shall not exceed five
thousand square kilometers; or]
(b) one or more mining leases covering a total area of more than ten square kilometres:
7[Provided that if the Central Government is of the opinion that in the interest of the
development of any mineral or industry, it is necessary so to do, it may, for reasons to be recorded in
writing, increase the aforesaid area limits in respect of prospecting licence or mining lease, in so far
as it pertains to any particular mineral, or to any specified category of deposits of such mineral, or to
any particular mineral located in any particular area.]]
8[(c) any reconnaissance permit, mining lease or prospecting licence in respect of any area which
is not compact or contiguous:
Provided that if the State Government is of opinion that in the interests of the development
of any mineral, it is necessary so to do, it may, for reasons to be recorded in writing, permit any
person to acquire a 9[mineral concession ] in relation to any area which is not compact or
contiguous.]
(2) For the purposes of this section, a person acquiring by, or in the name of, another person a
9[mineral concession] which is intended for himself shall be deemed to be acquiring it himself.
10[(3) For the purposes of determining the total area referred to in sub-section (1), the area held under
a 9[mineral concession] by a person as a member of a co-operative society, company or other corporation
or a Hindu undivided family or a partner of a firm, shall be deducted from the area referred to in sub -
section (1) so that the sum total of the area held by such person, under a 9[mineral concession], whether
as such member or partner, or individually, may not, in any case, exceed the total area specified in sub -
section (1).]
1. Subs. by Act 10 of 2015, s. 5, for clause (a) (w.e.f. 12-1-2015).
2. Ins. by s. 5, ibid. (w.e.f. 12-1-2015).
3. Subs. by Act 56 of 1972, s. 3, for sub-section (1) (w.e.f. 12-9-1972).
4. The words “in any one State” omitted by Act 37 of 1986, s. 5 (w.e.f. 10-2-1987).
5. Ins. by Act 38 of 1999, s. 8 (w.e.f. 18-12-1999).
6. Ins. by Act 38 of 1999, s. 8 (w.e.f. 18-12-1999).
7. Subs. by Act 10 of 2015, s. 6, for the proviso (w.e.f. 12-1-2015).
8. Subs. by Act 38 of 1999, s. 8, for clause (c) (w.e.f. 18-12-1999).
9. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).
10. Ins. by Act 56 of 1972, s. 3 (w.e.f. 12-9-1972).
9
1[7. Periods for which prospecting licences may be granted or renewed .―(1) The period for
which 2[a reconnaissance permit or prospecting licence] may be granted shall not exceed three years.
(2) A prospecting licence shall, if the State Government is satisfied that a longer period is required to
enable the licensee to complete prospecting operations b e renewed for such period or periods as that
Government may specify:
Provided that the total period for which a prospecting licence is granted does not exceed five years:
Provided further that no prospecting licence granted in respect of 3[a mineral included in Part A and
Part B to] the First Schedule shall be renewed except with the previous approval of the Central
Government.]
4[8. Periods for which mining leases may be granted or renewed .―(1) The provisions of this
section shall apply to minerals specified in Part A of the First Schedule.
(2) The maximum period for which a mining lease may be granted shall not exceed thirty years:
Provided that the minimum period for which any such mining lease may be granted shall not be less
than twenty years.
(3) A min ing lease may be renewed for a period not exceeding twenty years with the previous
approval of the Central Government.]
5[(4) Notwithstanding anything contained in this section, in case of Government companies or
corporations, the period of mining leases including the existing mining leases, shall be such as may be
prescribed by the Central Government:
Provided that the period of mining leases, other than the mining leases granted through auction, shall
be extended on payment of such additional amount as specified in the Fifth Schedule:
Provided further that the Central Government may, by notification in the Official Gazette and for
reasons to be recorded in writing, amend the Fifth Schedule so as to modify the entries mentioned therein
in the said Schedule with effect from such date as may be specified in the said notification.
(5) Any lessee may, where coal or lignite is used for captive purpose, sell such coal or lignite up to
fifty per cent. of the total coal or lignite produced in a year after meeting the requirement of the end use
plant linked with the mine in such manner as may be prescribed by the Central Government and on
payment of such additional amount as specified in the Sixth Schedule:
Provided that the Central Government may, by notification in the Official Gazette and for the reasons to
be recorded in writing, increase the said percentage of coal or lignite that may be sold by a Government
company or corporation:
Provided further that the sale of coal shall not be allowed from the coal mines allotted to a company
or corporation that has been awarded a power project on the basis of competitive bid for tariff (including
Ultra Mega Power Projects):
Provided also that the Central Government may, by notification in the Official Gazette and for
reasons to be recorded in writing, amend the Sixth Schedule so as to modify the entries mentioned therein
with effect from such date as may be specified in the said notification.]
6[8A. Period of grant of a mining lease for minerals other than coal, lignite and atomic
minerals.―(1) The provisions of this section shall apply to minerals other than those specified in Part A
and Part B of the First Schedule.
1. Subs. by Act 25 of 1994, s. 4, for section 7 (w.e.f. 25-1-1994).
2. Subs. by Act 38 of 1999, s. 9, for “a prospecting licence” (w.e.f. 18-12-1999).
3. Subs. by s. 9, ibid., for “a mineral included in” (w.e.f. 18-12-1999).
4. Subs. by Act 10 of 2015, s. 7, for section 8 (w.e.f. 12-1-2015).
5. Ins. by Act 16 of 2021, s. 7 (w.e.f. 28-3-2021).
6. Ins. by Act 10 of 2015, s. 8 (w.e.f. 12-1-2015).
10
(2) On and from the date of the commencement of the Mines and Minerals (Development and
Regulation) Amendment Act, 2015 (10 of 2015), all mining leases shall be granted for the period of fifty
years.
(3) All mining leases granted before the commencement of the Mines and Minerals (Development
and Regulation) Amendment Act, 2015 (10 of 2015) shall be deemed to have been granted for a period
of fifty years.
(4) On the expiry of the lease period, the lease shall be put up for auction as per the procedure
specified in this Act.
1[Provided that nothing contained in this section shall prevent the State Governments from taking an
advance action for auction of the mining lease before the expiry of the lease period.]
(5) Notwithstanding anything contained in sub -sections ( 2), ( 3) and sub -section ( 4), the period of
lease granted before the date of com mencement of the Mines and Minerals (Development and
Regulation) Amendment Act, 2015 (10 of 2015) , where mineral is used for captive purpose, shall be
extended and be deemed to have been extended up to a period ending on the 31st March, 2030 with
effect from the date of expiry of the period of renewal last made or till the completion of renewal period,
if any, or a period of fifty years from the date of grant of such lease, whichever is later, subject to the
condition that all the terms and conditions of the lease have been complied with.
(6) Notwithstanding anything contained in sub -sections ( 2), ( 3) and sub -section ( 4), the period of
lease granted before the date of commencement of the Mines and Minerals (Development and
Regulation) Amendment Act, 2015 (10 of 2015) , where mineral is used for other than captive purpose,
shall be extended and be deemed to have been extended up to a period ending on the 31st March, 2020
with effect from the date of expiry of the period of renewal last made or till the comp letion of renewal
period, if any, or a period of fifty years from the date of grant of such lease, whichever is later, subject to
the condition that all the terms and conditions of the lease have been complied with.
(7) Any holder of a lease granted, where mineral is used for captive purpose, shall have the right of
first refusal at the time of auction held for such lease after the expiry of the lease period.
2[(7A) Any lessee may, where mineral is used for captive purpose, sell mineral up to fifty per cent. of
the total mineral produced in a year after meeting the requirement of the end use plant linked with the mine
in such manner as may be prescribed by the Central Government and on payment of such additional
amount as specified in the Sixth Schedule:
Provided that the Central Government may, by notification in the Official Gazette and for the reasons to
be recorded in writing, increase the said percentage of mineral that may be sold by a Government company
or corporation:
Provided further that the Central Government may, by notification in the Official Gazette and for
reasons to be recorded in writing, amend the Sixth Schedule so as to modify the entries mentioned therein
with effect from such date as may be specified in the said notification.]
(8) Notwithstanding anything contained in this section, the period of mining leases, including
existing mining leases, of Government companies or corporations shall be such as may be prescribed by
the Central Government.
2[Provided that the period of mining leases, other than the mining leases granted through auction, shall
be extended on payment of such additional amount as specified in the Fifth Schedule:
Provided further that the Central Government may, by notification in the Official Gazette and for
reasons to be recorded in writing, amend the Fifth Schedule so as to modify the entries mentioned therein
with effect from such date as may be specified in the said notification.
Explanation.—For the removal of doubts, it is hereby clarified that all such Government companies
or corporations whose mining lease has been extended after the commencement of the Mines and Minerals
1. Ins. by Act 2 of 2020, s. 4 (w.e.f. 10-1-2020).
2. Ins. by Act 16 of 2021, s. 8 (w.e.f. 28-3-2021).
11
(Development and Regulation) Amendment Act, 2015 (10 of 2015), shall also pay such additional
amount as specified in the Fifth Schedule for the mineral produced after the commencement of the Mines
and Minerals (Development and Regulation) Amendment Act, 2021.]
(9) The provisions of this section, notwithstanding anything contained therein, shall not apply to a
mining lease granted before the date of commencement of the Mines and Minerals (Development and
Regulation) Amendment Act, 2015 (10 of 2015), for which renewal has been rejected, or which has been
determined, or lapsed.]
1[8B. Provisions for period and transfer of statutory clearances.―(1) Notwithstanding anything
contained in this Act or any other law for the time being in force, all valid rights, approvals, clearances,
licences and the like granted to a lessee in respect of a mine (other than those granted under the provisions
of the Atomic Energy Act, 1962 (33 of 1962) and the rules made thereunder) shall continue to be valid
even after expiry or termination of lease and such rights, approvals, clearances, licences and the like
shall be transferred to, and vested; su bject to the conditions provided under such laws; in the successful
bidder of the mining lease selected through auction under this Act:
Provided that where on the expiry of such lease period, mining lease has not been executed pursuant
to an auction under provisions of sub-section (4) of section 8A, or lease executed pursuant to such
auction has been terminated within a period of one year from such auction, the State Government may,
with the previous approval of the Central Government, grant lease to a Government company or
corporation for a period not exceeding ten years or till selection of new lessee through auction, whichever
is earlier and such Government company or corporation shall be deemed to have acquired all valid rights,
approvals, clearances, licences and the like vested with the previous lessee:
Provided further that the provisions of sub-section (1) of section 6 shall not apply where such mining
lease is granted to a Government company or corporation under the first proviso:
Provided also that in case of atomic minerals having grade equal to or above the threshold value, all
valid rights, approvals, clearances, licences and the like in respect of expired or terminated mining leases
shall be deemed to have been transferred to, and vested in the Government company or corporation that has
been subsequently granted the mining lease for the said mine.
(2) Notwithstanding anything contained in any other law for the time being in force, it shall be lawful
for the new lessee to continue mining operations on the land till expiry or termination of mining lease
granted to it, in which mining operations were being carried out by the previous lessee.]
9. Royalties in respect of mining leases .―(1) The holder of a mining lease granted before the
commencement of this Act shall, notwithstanding anything contained in the instrument of lease or in any
law in force at such commencement, pay royalty in respect of any 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 g ranted 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 D evelopment) 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 prov ided that such
consumption by the workman does not exceed one-third of a tonne per month.]
1. Ins. by Act 16 of 2021, s. 9 (w.e.f. 28-3-2021).
2. Subs. by Act 56 of 1972, s. 4, for “mineral removed by him” (w.e.f. 12-9-1972).
3. Ins. by s. 4, ibid. (w.e.f. 12-9-1972).
12
(3) The Central Government may, by notification in the Official Gazette, amend the Second
Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral
with effect from such date as may be specified in the notification:
1[Provided that the Central Government shall not enhance the rate of royalty in respect of any
mineral more than once during any period of 2[three years].]
3[9A. Dead rent to be paid by the lessee .―(1) The holder of a mining lease, whether granted
before or after the commencement of the Mines and Minerals (Regulation and Development)
Amendment Act, 1972, shall notwithstanding anything contained in the instrument of lease or in any
other law for the lime being in force, pay to the State Government, every year, dead rent at such rate, as
may be specified, for the time being, in the Third Schedule, for all the areas included in the instrument of
lease:
Provided that where the holder of such mining lease becomes liable, under section 9, to pay royalty
for any mineral removed or consumed by him or by his agent, manager , employee, contractor or
sub-lessee from the leased area, he shall be liable to pay either such royalty, or the dead rent in respect of
that area, whichever is greater.
(2) The Central Government may, by notification in the Official Gazette, amend the Third Schedule
so as to enhance or reduce the rate at which the dead rent shall be payable in respect of any area covered
by a mining lease and such enhancement or reduction shall take effect from such date as may be
specified in the notification:
Provided that the Central Government shall not enhance the rate of the dead rent in respect of any
such area more than once during any period of 4[three years].]
5[9B. District Mineral Foundation .―(1) In any district affected by mining related operations, the
State Government shall, by notification , establish a trust, as a non -profit body, to be called the District
Mineral Foundation.
(2) The object of the District Mineral Foundation shall be to work for the interest and benefit of
persons, and areas affected by mining related operations in such man ner as may be prescribed by the
State Government.
(3) The composition and functions of the District Mineral Foundation shall be such as may be
prescribed by the State Government.
6[Provided that the Central Government may give directions regarding composition and utilisation
of fund by the District Mineral Foundation.]
(4) The State Government while making rules under sub -sections (2) and (3) shall be guided by the
provisions contained in article 244 read with Fifth and Sixth Schedules to the Consti tution relating to
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 7[composite licence ] granted on or after the date of
commencement of the Mines and Minerals (Development and Regulation ) Amendment Act, 2015 8[,
other than those covered under the provisions of sub-section (2) of section 10A], shall, in addition to the
1. Subs. by Act 56 of 1972, s. 4, for the proviso (w.e.f. 12-9-1972).
2. Subs. by Act 37 of 1986, s. 8, for “four years” (w.e.f. 10-2-1987).
3. Ins. by Act 56 of 1972, s. 5 (w.e.f. 12-9-1972).
4. Subs. by Act 37 of 1986, s. 9, for “four years” (w.e.f. 10-2-1987).
5. Ins. by Act 10 of 2015, s. 9 (w.e.f. 12-1-2015).
6. Ins. by Act 16 of 2021, s. 10 (w.e.f. 28-3-2021).
7. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).
8. Ins. by s. 10, ibid. (w.e.f. 28-3-2021).
13
royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried
on, an amount which is equivalent to such percentag e of the royalty paid in terms of the Second
Schedule, not exceeding one-third of such royalty, as may be prescribed by the Central Government.
(6) The holder of a mining lease granted before the date of commencement of the Mines and
Minerals (Development and Regulation) Amendment Act, 2015 1[other than those covered under the
provisions of sub-section (2) of section 10A], shall, in addition to the royalty, pay to the District Mineral
Foundation of the district in which the mining operations are carried on, an amount not exceeding the
royalty paid in terms of the Second Schedule in such manner and subject to the categorisa tion 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 2[non-profit autonomous body], to be called the National Mineral Exploration
Trust.
(2) The object of the Trust shall be to use the funds accrued to the Trust for the purposes of regional
and detailed exploration in such manner as may be prescribed by the Central Government.
(3) The composition and functions of the Trust shall be such as may be prescribed by the Central
Government.
(4) The holder of a mining lease or a 3[mineral concession] shall pay to the Trust, a sum equivalent
to two per cent. of the royalty paid in terms of the Second Schedule, in such manner as may be
prescribed by the Central Government.]
4[(5) The entities specified and notified under sub-section (1) of section 4 shall be eligible for funding
under the National Mineral Exploration Trust.]
CHAPTER III
PROCEDURE FOR OBTAINING, PROSPECTING LICENCES OR MINING LEASES, IN RESPECT OF LAND IN WHICH
THE MINERALS VEST IN THE GOVERNMENT
10. Application for prospecting licence s or mining lease s.―(1) An application for 5[a 3[mineral
concession]] in respect of any land in which the minerals vest in the Government shall be made to the
State Government concerned in the prescribed form and shall be accompanied by the prescribed fee.
(2) Where an application is received under sub -section ( 1), there shall be sent to the applicant an
acknowledgment of its receipt within the prescribed time and in the prescribed form.
(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 6[permit, licence or
lease].
7[(4) Notwithstanding anything contained in this section, no person shall be eligible to make an
application under this section unless—
(a) he has been selected in accordance with the procedure specified under sections 10B, 11, 11A or
the rules made under section 11B;
(b) he has been selected under the Coal Mines (Special) Provisions Act, 2015 (11 of 2015);
or
(c) an area has been reserved in his favour under section 17A.]
1. Ins. by Act 16 of 2021, s. 10 (w.e.f. 28-3-2021).
2. Subs. by s. 11, ibid., for “non-profit body” (w.e.f. 28-3-2021).
3. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).
4. Ins. by Act 16 of 2021, s. 11 (w.e.f. 28-3-2021).
5. Subs. by Act 38 of 1999, s. 11, for “a prospecting licence or a mining lease” (w.e.f. 18-12-1999).
6. Subs. by s. 11, ibid., for “licence or lease” (w.e.f. 18-12-1999).
7. Ins. by Act 16 of 2021, s. 12 (w.e.f. 28-3-2021).
14
1[10A. Rights of existing conc ession holders and applicants .―(1) All applications received prior
to the date of commencement of the Mines and Minerals (Development and Regulation) Amendment
Act, 2015, shall become ineligible.
(2) Without prejudice to sub -section (1), the following shall remain eligible on and from the date of
commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015:―
(a) applications received under section 11A of this Act;
(b) where before the commencement of the Mines and Minerals (Development and Regulation)
Amendment Act, 2015 a reconnaissance permit or prospecting licence has been granted in respect of
any land for any m ineral, the permit holder or the licensee shall have a right for obtaining a
prospecting licence followed by a mining lease, or a mining lease, as the case may be, in respect of
that mineral in that land, if the State Government is satisfied that the permit holder or the licensee, as
the case may be,―
(i) has undertaken reconnaissance operations or prospecting operations, as the case may be,
to establish the existence of mineral contents in such land in accordance with such parameters as
may be prescribed by the Central Government;
(ii) has not committed any breach of the terms and conditions of the reconnaissance permit
or the prospecting licence;
(iii) has not become ineligible under the provisions Excerpt shown. Open the full act in Lexace.