Bare Acts

CHAPTER IV 6 [RULES FOR REGULATING THE GRANT OF MINERAL CONCESSIONS]


13. Power of Central Government to make rules in respect of minerals.―(1) The Central
Government may, by notification in the Official Gazette, make rules for regulating the grant of 7
[mineral
concession] in respect of minerals and for purposes connected therewith.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:―
(a) the person by whom, and the manner in which, applications for 8
[mineral concession] in
respect of land in which the minerals vest in the Government may be made and the fees to be paid
therefor;
9
[(aa) the conditions as may be necessary for commencement and continuation of production by
the holders of mining leases, under section 4B;

1. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).
2. Ins. by Act 16 of 2023, s. 12 (w.e.f. 17-8-2023).
3. Subs. by s. 12, ibid., for “or of a composite licence” (w.e.f. 17-8-2023).
4. Sub-section (6) omitted by Act 16 of 2021, s. 17 (w.e.f. 28-3-2021).
5. Ins. by Act 25 of 2016, s. 3 (w.e.f. 6-5-2016).
6. Subs. by Act 16 of 2023, s. 13, for Chapter heading (w.e.f. 17-8-2023).
7. Subs. by Act 16 of 2021, s. 18, for “prospecting licences and mining leases” (w.e.f. 28-3-2021).
8. Subs. by s. 18, ibid., for “reconnaissance permits, prospecting licences and mining leases” (w.e.f. 28-3-2021).
9. Ins. by Act 2 of 2020, s. 8 (w.e.f. 10-1-2020).
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(ab) the conditions to be fulfilled by the new lessee for obtaining all necessary rights, approvals,
clearances, licences and the like under the proviso to sub-section (2) of section 8B;
1* * * * *]
(b) the time within which, and the form in which, acknowledgement of the receipt of any such
application may be sent;
(c) the matters which may be considered where applications in respect of the same land are
received on the same day;
2
[(d) the terms, conditions and process of auction by competitive bidding and allotment in
respect of coal or lignite;
(da) the regulation of grant of 3
[mineral concession] or 4
[composite licence] in respect of coal or
lignite;
(db) the details of mines and their location, the minimum size of such mines and such other
conditions which may be necessary for the purpose of coal or lignite reconnaissance, prospecting or
mining operations;
(dc) utilisation of coal or lignite including mining for sale by a company]
(e) the authority by which 3
[mineral concession] in respect of land in which the minerals vest in
the Government may be granted;
(f) the procedure for obtaining 5
[a 3
[mineral concession] in respect of any land in which the
minerals vest in a person other than the Government and the terms on which, and the conditions
subject to which, such 6
[a permit, licence or lease] may be granted or renewed;
(g) the terms on which, and the conditions subject to which, may other 1
[mineral concession]
may be granted or renewed;
(h) the facilities to be afforded by holders of mining leases to persons deputed by the
Government for the purpose of undertaking research or training in matters relating to mining
operations;
7
[(i) the fixing and collection of fees for 3
[mineral concession] surface rent, security deposit,
fines, other fees or charges and the time within which and the manner in which the dead rent or
royalty shall be payable;]
(j) the manner in which rights of third parties may be protected (whether by payment of
compensation or otherwise) in cases where any such party may be prejudicially affected by reason of
any 3
[mineral concession];
8
[(jj) parameters of existence of mineral contents under clause (a) of sub-section (2) of
section 5;]
(k) the grouping of associated minerals for the purposes of section 6;
(l) the manner in which, and the conditions subject to which, 9
[a 3
[mineral concession]] may be
transferred;

1. The clause (ac) omitted by Act 16 of 2023, s. 14 (w.e.f. 17-8-2023).
2. Subs. by Act 2 of 2020, s. 8, for clause (d) (w.e.f. 10-1-2020).
3. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).
4. Subs. by s. 2, ibid., for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).
5. Subs. by Act 38 of 1999, s. 14, for “a prospecting licence or a mining lease” (w.e.f. 18-12-1999).
6. Subs. by s. 14, ibid., for “a licence or lease” (w.e.f. 18-12-1999).
7. Subs. by Act 37 of 1986, s. 11, for clause (i) (w.e.f. 10-2-1987).
8. Ins. by Act 10 of 2015, s. 14 (w.e.f. 12-1-2015).
9. Subs. by Act 38 of 1999, s.14, for “a prospecting licence or a mining lease” (w.e.f. 18-12-1999).
24
(m) the construction, maintenance and use of roads, power transmission lines, tramways,
railways, aerial ropeways, pipelines and the making of passages for water for mining purposes on
any land comprised in a mining lease;
(n) the form of registers to be maintained under this Act;
1* * * * *
(p) the reports and statements to be submitted by holders of 2
[mineral concession] or owners of
mines and the authority to which such reports and statements shall be submitted;
(q) the period within which applications for revision of any order passed by a State Government
or other authority in exercise of any power conferred by or under this Act, may be made 3
[the fees to
be paid therefore and the documents which shall accompany such applications] and the manner in
which such applications shall be disposed of; and
3
[(qq) the manner in which rehabilitation of flora and other vegetation, such as trees, shrubs and
the like destroyed by reason of any prospecting or mining operations shall be made in the same area
or in any other area selected by the Central Government (whether by way of reimbursement of the
cost of rehabilitation or otherwise) by the person holding the prospecting licence or mining lease;]
4***
5
[(qqa) the amount of payment to be made to the District Mineral Foundation under
sub-sections (5) and (6) of section 9B;
(qqb) the manner of usage of funds accrued to the National Mineral Exploration Trust under
sub-section (2) of section 9C;
(qqc) the composition and functions of the National Mineral Exploration Trust under
sub-section (3) of section 9C;
(qqd) the manner of payment of amount to the National Mineral Exploration Trust under
sub-section (4) of section 9C;
(qqe) the terms and conditions subject to which mining leases shall be granted under
sub-section (3) of section 10B;
(qqf) the terms and conditions, and procedure, subject to which the auction shall be conducted
including the bidding parameters for the selection under sub-section (5) of section 10B;
(qqg) the time limits for various stages in processing applications for grant of 6
[mineral concession
under section 10B, 10BA, 11, 11A, 11B, 11D], and section 17A, and their renewals;
7* * * * *
(qqi) the terms and conditions for grant of 8
[composite licence] under
sub-section (4) of section 11;
(qqj) the terms and conditions, and procedure, including the bidding parameters for the selection
under sub-section (6) of section 11;

1. Omitted by Act 37 of 1986, s. 11 (w.e.f. 10-2-1987).
2. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).
3. Ins. by Act 37 of 1986, s. 11 (w.e.f. 10-2-1987).
4. The word “and” omitted by Act 10 of 2015, s. 14 (w.e.f. 12-1-2015).
5. Ins. by s. 14, ibid. (w.e.f. 12-1-2015).
6. Subs. by Act 16 of 2023, s. 14, for the words, figures and letters “mining lease or composite licence under section 10B, 11,
11A, 11B” (w.e.f. 17-8-2023).
7. Clause (qqh) omitted by Act 16 of 2021, s. 18 (w.e.f. 28-3-2021).
8. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).
25
1
[(qqja) the terms and conditions and amount or transfer charges under the proviso to
sub-section (6) of section 12A;]
2* * * * *
3
[(r) the period of mining lease under sub-section (4) of section 8;
(s) the manner of sale of mineral by the holder of a mining lease under sub-section (5) of
section 8;
(t) themanner ofsale of mineral undersub-section (7A) ofsection 8A;
(u) the manner for reimbursement of expenditure towards reconnaissance permits or prospecting
operations under the second proviso to clause (b) of sub-section (2) of section 10A;
(v) the manner of granting mining lease to the preferred bidder under the second proviso to
sub-section (4) of section 10B;
4
[(va) the manner of notifying the areas for grant of exploration licence under sub-section (4) of
section 10BA;
(vb) the manner of granting exploration licence to the preferred bidder under the proviso to subsection (7) of section 10BA;
(vc) the manner of conducting auction for grant of exploration licence, the terms and conditions
thereof, the bidding parameters for selection, the share payable to the holder, the period for payment
and other conditions under sub-section (9) of section 10BA;
(vd) the manner of submitting geological report under sub-section (12) of section 10BA;
(ve) the amount to be paid and the manner of payment under the proviso to sub-section (14) of
section 10BA;]
(w) the manner of granting composite licence to the preferred bidder under the second proviso to
sub-section (5) of section 11;
(x) the manner of granting mining lease by the State Government tothe holder of the composite
licence under sub-section (10) of section 11;
1
[(xa) the terms and conditions and the manner of selecting a preferred bidder under sub-section (1) of
section 11D;
(xb) the manner of granting a mining lease or composite licence to a preferred bidder under sub-section (2)
of section 11D;]
(y) any other matter which is to be, or may be prescribed, under thisAct.]
5
[13A. Power of Central Government to make rules for the grant of prospecting licences or
mining leases in respect of territorial waters or continental shelf of India.―(1) The Central
Government may, by notification in the Official Gazette, make rules for the grant of prospecting licences
or mining leases in respect of any minerals underlying the ocean within the territorial waters or the
continental shelf of India.
(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any
of the following matters, namely:―
(a) the conditions, limitations and restrictions subject to which such prospecting licences or
mining leases may be granted;
(b) regulation of exploration and exploitation of minerals within the territorial waters or the
continental shelf of India;

1. Ins. by Act 25 of 2016, s. 4 (w.e.f. 6-5-2016).
2. Clause (qqk) omitted by Act 16 of 2021, s. 18 (w.e.f. 28-3-2021).
3. Subs. by s. 18, ibid., for clause (r) (w.e.f. 28-3-2021).
4. Ins. by Act 16 of 2023, s. 14 (w.e.f. 17-8-2023).
5. Ins. by Act 56 of 1972, s. 6 (w.e.f. 12-9-1972).
26
(c) ensuring that such exploration or exploitation does not interfere with navigation and
(d) any other matter which is required to be, or may be, prescribed.]
14. 1
[Sections 5 to 13] not to apply to minor minerals.―The provisions of 1
[sections 5 to 13]
(inclusive) shall not apply to 2
[quarry leases, mining leases or other mineral concessions] in respect of
minor minerals.
15. Power of State Governments to make rules in respect of minor minerals.―(1) The State
Government may, by notification in the Official Gazette, make rules for, regulating the grant of 3
[quarry
leases, mining leases or other mineral concessions] in respect of minor minerals and for purposes
connected therewith.
4
[(1A) In particular and without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:―
(a) the person by whom and the manner in which, applications for quarry leases, mining leases
or other mineral concessions may be made and the fees to be paid therefor;
(b) the time within which, and the form in which, acknowledgement of the receipt of any such
applications may be sent;
(c) the matters which may be considered where applications in respect of the same land are
received within the same day;
(d) the terms on which, and the conditions subject to which and the authority by which quarry
leases, mining leases or other mineral concessions may be granted or renewed;
(e) the procedure for obtaining quarry leases, mining leases or other mineral concessions;
(f) the facilities to be afforded by holders of quarry leases, mining leases or other mineral
concessions to persons deputed by the Government for the purpose of undertaking research or
training in matters relating to mining operations;
(g) the fixing and collection of rent, royalty, fees, dead rent, fines or other charges and the time
within which and the manner in which these shall be payable;
(h) the manner in which rights of third parties may be protected (whether by way of payment of
compensation or otherwise) in cases where any such party is prejudicially affected by reason of any
prospecting or mining operations;
(i) the manner in which rehabilitation of flora and other vegetation such as trees, shrubs and the
like destroyed by reason of any quarrying or mining operations shall be made in the same area or in
any other area selected by the State Government (whether by way of reimbursement of the cost of
rehabilitation or otherwise) by the person holding the quarrying or mining lease;
(j) the manner in which and the conditions subject to which, a quarry lease, mining lease or other
mineral concession may be transferred;
(k) the construction, maintenance and use of roads power transmission lines, tramways, railways,
serial rope ways, pipelines and the making of passage for water for mining purposes on any land
comprised in a quarry or mining lease or other mineral concession;
(l) the form of registers to be maintained under this Act;

1. Subs. by Act 37 of 1986, s. 12, for “sections 4 to 13” (w.e.f. 10-2-1987).
2. Subs. by Act 56 of 1972, s. 7, for “prospecting licences and mining leases” (w.e.f. 12-9-1972).
3. Subs. by s. 8, ibid., for “prospecting licence and mining leases” (w.e.f. 12-9-1972).
4. Ins. by Act 37 of 1986, s. 13 (w.e.f. 10-2-1987).
27
(m) the reports and statements to be submitted by holders of quarry or mining leases or other
mineral concessions and the authority to which such reports and statements shall be submitted;
(n) the period within which and the manner in which and the authority to which applications for
revision of any order passed by any authority under these rules may be made, the fees to be paid
therefore, and the powers of the revisional authority; and
(o) any other matter which is to be, or may be, prescribed.]
(2) Until rules are made under sub-section (1), any rules made by a state Government regulating the
grant of 1
[quarry leases, mining leases or other mineral concessions] in respect of minor minerals which
are in force immediately before the commencement of these Act shall continue in force.
2
[(3) The holder of a mining lease or any other mineral concession granted under any rule made
under sub-section (1) shall pay 3
[royalty or dead rent, whichever is more] in respect of minor minerals
removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee at the rate
prescribed for the time being in the rules framed by the State Government in respect of minor minerals:
Provided that the State Government shall not enhance the rate of 3
[royalty or dead rent] in respect of
any minor mineral for more than once during any period of 4
[three] years.]
5
[(4) Without prejudice to sub-sections (1), (2) and sub-section (3), the State Government may, by
notification, make rules for regulating the provisions of this Act for the following, namely:―
(a) the manner in which the District Mineral Foundation shall work for the interest and benefit
of persons and areas affected by mining under sub-section (2) of section 9B;
(b) the composition and functions of the District Mineral Foundation under sub-section (3) of
section 9B; and
(c) the amount of payment to be made to the District Mineral Foundation by concession holders
of minor minerals under section 15A.]
6
[15A. Power of State Government to collect funds for District Mineral Foundation in case of
minor minerals.―The State Government may prescribe the payment by all holders of concessions
related to minor minerals of amounts to the District Mineral Foundation of the district in which the
mining operations are carried on.]
16. Power to modify mining leases granted before 25th October, 1949.―7
[(1) (a) All mining leases
granted before the commencement of the Mines and Minerals (Regulation and Development) Amendment
Act, 1972 (56 of 1972) 8
[if in force at the date of commencement of the Mines and Minerals (Regulation and
Development) Amendment Act, 1994 (25 of 1994), shall be brought in conformity with the provisions of this
Act and the rules made thereunder within two years from the date of the commencement of the Mines and
Minerals (Regulation and Development) Amendment Act, 1994], or such further time as the Central
Government may, by general or special order, specify in this behalf.
(b) Where the rights under any mining lease, granted by the proprietor of an estate or tenure before the
commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of
1972), have vested, on or after the 25th day of October, 1949, in the State Government in pursuance of the
provisions of any Act of any Provincial or State Legislature which provides for the acquisition of estates or
tenures or provides for agrarian reform, such mining lease shall be brought into conformity with the
provisions of this Act and the rules made thereunder within 9
[two years from the commencement of the Mines

1. Subs. by Act 56 of 1972, s. 8, for “prospecting licence and mining leases” (w.e.f. 12-9-1972).
2. Ins. by s. 8, ibid. (w.e.f. 12-9-1972).
3. Subs. by Act 37 of 1986, s. 13, for “royalty” (w.e.f. 10-2-1987).
4. Subs. by s. 13, ibid., for “four” (w.e.f. 10-2-1987).
5. Ins. by Act 10 of 2015, s. 15 (w.e.f. 12-1-2015).
6. Ins. by s. 16, ibid. (w.e.f. 12-1-2015).
7. Subs. by Act 56 of 1972, s. 9, for sub-section (1) (w.e.f. 12-9-1972).
8. Subs. by Act 25 of 1994, s. 6, for certain words (w.e.f. 25-1-1994).
9. Subs. by s. 6, ibid., for “six months from the commencement of the Mines and Minerals (Regulation and Development)
Amendment Act, 1972” (w.e.f. 25-1-1994).
28
and Minerals (Regulation and Development) Amendment Act, 1994 (25 of 1994)], or within such further time
as the Central Government may, by general or special order, specify in this behalf.]
1
[(1A) Where any action is taken under clause (a) or clause (b) of sub-section (1) to bring the period
of any lease in conformity with the provisions of this Act and the rules made thereunder, then
notwithstanding anything contained in section 8, the period of such lease shall continue to operate for a
period of two years from the date of bringing such lease in conformity with the provisions of this Act.]
(2) The Central Government may, by notification in the Official Gazette, make rules for the purpose
of giving effect to the provisions of sub-section (1) and in particular such rules shall provide—
(a) for giving previous notice of the modification or alteration proposed to be made in any
existing mining lease to the lessee and where the lessor is not the Central Government, also to the
lessor and for affording him an opportunity of showing cause against the proposal;
(b) for the payment of compensation to the lessee in respect of the reduction of any area covered
by the existing mining lease; and
(c) for the principles on which, the manner in which, and the authority by which, the said
compensation shall be determined.

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