LexThe MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957
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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.
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.
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.Procedure 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
[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 3 as 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) “leased area” means the area specified in the mining 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 oils;]
(b) “mineral oils” includes natural gas and petroleum;
(c) “mining lease” means a lease granted for the purpose of undertaking mining operations, and
includes a sub-lease granted for such purpose;
(d) “mining operations ” means any operations undertaken for the purpose of winning any
mineral;
(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;
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 und ertaking prospecting
operations;
4[(ga) “prospecting licence -cum-mining lease” means a two stage concession granted for the
purpose of undertaking prospecting operations followed by mining operations;]
(h) “prospecting operations” means any operations undertaken for the purpose of exploring,
locating or proving mineral deposit ; 6***
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 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 specifi ed 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; 2***]
3[(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).
CHAPTER II
GENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING OPERATIONS
4. Prospecting or mining operation s to be under licence 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 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:
5[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, 6[the Atomic Minerals
Directorate for Exploration and Research] of the Department of Atomic Energy of the Central
Government, the Directorates of Mining and Geology of any State Government (by whatever name
called), and the Mineral Exploration Corporation Limited., a Government company within the meaning
of 7[clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), and any such entity that may be
notified for this purpose by the Central Government]:]
8[Provided also that nothing in this sub -section shall apply to any mining lease (whether called
mining lease mining concession or by any other name) in force immediately before the commencement
of this Act in the Union territory of Goa, Daman and Diu.]
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 which
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 Minerals 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., for “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 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 nat ural 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 mi nes or for such other purposes, as the Central Government may deem fit, it may request
the State Government to make a premature termination of a prospecting licence or mining lease in
respect of any mineral other than a minor mineral in any area or part th ereof, 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 2*** 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 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 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 undertake 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 lap se 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 be possible for the holder of the lease to undertake mining
operations or to continue such operations for reasons beyond his control, make an order, within a period
of three months from the date of receiving o f 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 failure 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 date of its lapse and on being satisfied that such non-
commencement or discontinuance was due to reasons beyond the control of the holder of the lease,
revive the lease within a period of three months from 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[5. Restrictions on the grant of prospec ting licences or minin g leases .―7[(1) A State
Government shall not grant a 8[reconnaissance permit, prospecting licence or mining lease] to any person
unless such person―
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. The 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. Subs. by Act 37 of 1986, s. 4, for section 5 (w.e.f. 10-2-1987).
7. Subs. by Act 25 of 1994, s. 3, for sub-section (1) (w.e.f. 25-1-1994).
8. Subs. by Act 38 of 1999, s. 7, for “prospecting licence or mining lease” (w.e.f. 18-12-1999).
7
(a) is an Indian national, or company as defined in 1[clause (20) of section 2 of the Companies
Act, 2013 (18 of 2013)]; and
(b) satisfies such conditions as may be prescribed:
2[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 wit h the
previous approval of the Central Government.]
Explanation.―For the purposes of this sub -section, a person shall be deemed to be an Indian
national,―
(a) in the case of a firm or other association of individuals, only if all the members of the firm or
members of the association are citizens of India; and
(b) in the case of an individual, only if he is a citizen of India.]
(2) No mining lease shall be granted by the State Government unless it is satisfied that―
3[(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:]
4[Provided that a mining lease may be granted upon the filing of a mining plan in accordance
with a system established by the State Government for preparation, certification, and monitoring of
such plan, with the approval of the Central Government.]
6. Maximum area for which a prospecting licence or mining lease may be granted .―5[(1) No
person shall acquire 6*** in respect of any mineral or prescribed group of associated minera ls 7[in a
State]―
(a) one or more prospecting licences covering a total area of more than tw enty-five square
kilometres; or
7[(aa) one or more reconnaissance permit covering a total area of ten thousand square
kilometres:
Provided that the area granted under a single reconnaissance permit shall not exceed five
thousand square kilometers; or]
(b) one or more mining leases covering a total area of more than ten square kilometres:
8[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 prospec ting 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.]]
1. 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).
2. Subs. by s. 5, ibid., for the proviso (w.e.f. 12-1-2015).
3. Subs. by s. 5, ibid., for clause (a) (w.e.f. 12-1-2015).
4. Ins. by s. 5, ibid. (w.e.f. 12-1-2015).
5. Subs. by Act 56 of 1972, s. 3, for sub-section (1) (w.e.f. 12-9-1972).
6. The words “in any one State” omitted by Act 37 of 1986, s. 5 (w.e.f. 10-2-1987).
7. Ins. by Act 38 of 1999, s. 8 (w.e.f. 18-12-1999).
8. Subs. by Act 10 of 2015, s. 6, for the proviso (w.e.f. 12-1-2015).
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1[(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 writin g, permit any
person to acquire a reconnaissance permit, prospecting licence or mining lease in relation to any
area which is not compact or contiguous.]
(2) For the purposes of this section, a person acquiring by, or in the name of, another person a
2[reconnaissance permit, prospecting licence or mining lease ] which is intended for himself shall be
deemed to be acquiring it himself.
3[(3) For the purposes of determining the total area referred to in sub -section (1), the area held under
a 2[reconnaissance permit, prospecting licence or mining 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 2[reconnaissance permit, prospecting licence or mining lease], whether as such member
or partner, or individually, may not, in any case, exceed the total area specified in sub-section (1).]
4[7. Periods for which prospecting licences may be granted or renewed .―(1) The period for
which 5[a reconnaissance permit or prospecting licence] may be granted shall not exceed three years.
(2) A prospecting licence shall, if the State Government is satisfied that a longer period is required to
enable the licensee to complete prospecting operations be renewed for such period or periods as that
Government may specify:
Provided that the total period for which a prospecting licence is granted does not exceed five years:
Provided further that no prospecting licence granted in respect of 6[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.]
7[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 mining lease may be renewed for a period not exceeding twenty years with the previous
approval of the Central Government.]
8[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 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 Miner als (Development
and Regulation) Amendment Act, 2015 (10 of 2015) shall be deemed to have been granted for a period
of fifty years.
1. Subs. by Act 38 of 1999, s. 8, for clause (c) (w.e.f. 18-12-1999).
2. Subs. by s. 8, ibid., for “prospecting licence or mining lease” (w.e.f. 18-12-1999).
3. Ins. by Act 56 of 1972, s. 3 (w.e.f. 12-9-1972).
4. Subs. by Act 25 of 1994, s. 4, for section 7 (w.e.f. 25-1-1994).
5. Subs. by Act 38 of 1999, s. 9, for “a prospecting licence” (w.e.f. 18-12-1999).
6. Subs. by s. 9, ibid., for “a mineral included in” (w.e.f. 18-12-1999).
7. Subs. by Act 10 of 2015, s. 7, for section 8 (w.e.f. 12-1-2015).
8. Ins. by s. 8, ibid. (w.e.f. 12-1-2015).
9
(4) On the expiry of the lease period, the lease shall be put up for auction as per the procedure
specified in this Act.
(5) 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 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 fi fty 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 pe riod 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 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.
(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.
(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.
(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.]
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 1[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 1[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.
2[(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 provided that such
consumption by the workman does not exceed one-third of a tonne per month.]
(3) The Central Government may, by notification in the Official Gazette, amend the Second
Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral
with effect from such date as may be specified in the notification:
3[Provided that the Central Government shall not enhance the rate of royalty in respect of any
mineral more than once during any period of 4[three years].]
1. Subs. by Act 56 of 1972, s. 4, for “mineral removed by him” (w.e.f. 12-9-1972).
2. Ins. by s. 4, ibid. (w.e.f. 12-9-1972).
3. Subs. by s. 4, ibid., for the proviso (w.e.f. 12-9-1972).
4. Subs. by Act 37 of 1986, s. 8, for “four years” (w.e.f. 10-2-1987).
10
1[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 y ear, 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 suc h 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 2[three years].]
3[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 manner 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.
(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 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 l ease or a prospecting licence -cum-mining lease granted on or after the
date 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 distric t in which the
mining operations are carried on, an amount which is equivalent to such percentage of the royalty paid in
terms of the Second Schedule, not exceeding one -third of such royalty, as may be prescribed by the
Central Government.
(6) The holder o f a mining lease granted before the date 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 ar e carried on, an amount
not exceeding the royalty paid in terms of the Second 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.
1. Ins. by Act 56 of 1972, s. 5 (w.e.f. 12-9-1972).
2. Subs. by Act 37 of 1986, s. 9, for “four years” (w.e.f. 10-2-1987).
3. Ins. by Act 10 of 2015, s. 9 (w.e.f. 12-1-2015).
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(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 prospecting licence -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 licence s or mining lease s.―(1) An application for 1[a
reconnaissance permit, prospecting licence or mining lease] in respect of any land in which the minerals
vest in the Government shall be made to the State Government concerned in the prescribed form and
shall be accompanied by the prescribed fee.
(2) Where an application is received under sub -section (1), there shall be sent to the applicant an
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 2[permit, licence or
lease].
3[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 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 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 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 expiry 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 previous 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 prospecting 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).
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shall be granted subject to fulfil ment of the conditions 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 in the First Schedule, no prospecting
licence or mining lease shall be granted under clause ( b) of this subsection except with the
previous approval of the Central Government.
10B. Grant of mining lease in respect of noti fied minerals through auction.―(1) The provisions
of this section shall not be applicable to cases covered 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 existence of mineral contents of any notified
mineral in respect of any area, a State Governmen t 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 mi ning leases
shall be granted, and any other relevant conditions, in such manner as may be prescribed by the Central
Government.
(4) For the purpose of granting a mining lease in respect of any notified mineral in such notified
area, the State Government sh all select, through auction 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 t o
which the auction shall be conducted, including the bidding parameters for the selection, which may
include a share in the production of the mineral, or 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 minerals, 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 a nd subject to such condition which allow only such eligible end users to
participate in the auction.
(7) The State Government shall grant a mining lease to 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 or non -notified mineral or a group of specified
minerals, other than minerals specified in Part A or Part B of the First Schedule, subject to such terms
and conditions as may be prescribed by the Central Government.
(2) The holder of such non -exclusive reconnaissance permit shall not be entitled to make any claim
for the grant of any prospecting licence-cum-mining lease or a mining lease.]
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 applicable to cases
covered 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 minerals do not vest in the Government.
1. Subs. by Act 10 of 2015, s. 11, for section 11 (w.e.f. 12-1-2015).
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(2) In areas where there is evidence to show the existence 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 minerals in accordance with the procedure laid down
in this section.
(4) The State Government shall notify the areas in which prospecting licence -cum-mining leases
shall be granted for any minerals other than notified minerals, the terms and conditions subject to which
such prospecting licence-cum-mining leases shall be granted, and any other relevant conditions, in such
manner as may be prescribed by the Central Government.
(5) For the purpose of granting prospecting licence -cum-mining leases, the State Government shall
select, through auction by method of com petitive bidding, including e -auction, an applicant who fulfils
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, includ ing the bidding parameters for the selection, which may
include a share in the production of the mineral, or any payment linked to the royalty payable, or any
other relevant parameter, or any combination or modification of them.
(7) Without prejudice to the generality of sub-section (6), 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 minerals, size and area of mine ral deposits and a State or
States, subject to which the auction shall be conducted.
(8) The State Government shall grant a prospecting licence -cum-mining lease to an applicant
selected in accordance with the procedure laid down in this section.
(9) The ho lder of a prospecting licence -cum-mining lease shall be required to complete, within the
period laid down in section 7, the prospecting operations satisfactorily as specified in the notice inviting
applications.
(10) A holder of a prospecting licence -cum-mining lease, who completes the prospecting operation
as laid down in sub-section (9) and establishes the existence of mineral contents in the area in conformity
with such parameters as may be prescribed for this purpose by the Central Government, shall be required
to apply for a mining lease for such area and shall have the right to get the mining lease and thereafter
undertake mining operations in accordance with the provisions of this Act.]
1[11A. Procedure in respect of coal or lignite .―The Central Government may, for the purpose of
granting reconnaissance permit, prospecting licence or mining lease in respect of an area containing coal
or lignite, select, through auction by competitive bidding on such terms and conditions as may be
prescribed, a company engaged in,―
(i) production of iron and steel;
(ii) generation of power;
(iii) washing of coal obtained from a mine; or
(iv) such other end use as the Central Government may, by notification in the Official Gazette,
specify,
and the State Government shall grant such reconnaissance permit, prospecting licence or mining lease in
respect of coal or lignite to such company as selected through auction by competitive bidding under this
section:
1. Ins. by Act 34 of 2010, s. 2 (w.e.f. 13-2-2012).
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Provided that the auction by competitive bidding shall not be applicable to an area containing coal or
lignite,―
(a) where such area is considered for allocation to a Government company or corporation for
mining or such other specified end use;
(b) where such area is considered for allocation to a company or corporation that has been
awarded a power project on the basis of competitive bids for tariff (including Ultra Mega Power
Projects).
Explanation.―For the purposes of this section, “company” means a company as defined in section 3
of the Companies Act, 1956 (1 of 1956) and includes a foreign company within the meani ng of section
591 of that Act.]
1[11B. Power of Central Government to make rules for regulating atomic minerals specified
under Part B of First Schedule.―The Central Government may, by notification in the Official Gazette,
make rules for regulating the grant of mining leases or other mineral concessions in respect of minerals
specified in Part B of the First Schedule and for purposes connected therewith, and the State Government
shall grant a reconnaissance permit, prospecting licence or mining lease in respect of any such mineral in
accordance with such rules.
11C. Power of Central Government to amend First Schedule and Fourth Sched ule.―The
Central Government may, by notification in the Official Gazette, amend the First Schedule and the
Fourth Schedule so as to add or delete any mineral as may be specified in the notification.]
12. Registers of prospecting licences and mining leases.―(1) The State Government shall cause to
be maintained in the prescribed form―
(a) a register of applications for prospecting licences;
(b) a register of prospecting licensees;
2[(c) a register of applications for mining leases;
(d) a register of mining lessees;
(e) a register of applications for reconnaissance permits; and
(f) a register of reconnaissance permits,]
in each of which shall be entered such particulars as may be prescribed.
(2) Every such register shall be open to inspection by any person on payment of such fee as the State
Government may fix.
3[12A. Tr ansfer of mineral concExcerpt shown. Open the full act in Lexace.