17. Special powers of Central Government to undertake prospecting or mining operations in
certain lands.―(1) The provisions of this section shall apply 2*** in respect of land in which the
minerals vest in the Government of a State 3
[or any other person].
(2) Notwithstanding anything contained in this Act, the Central Government, after consultation with
the State Government, may undertakes
4
[mineral concession] in any area not already held under any
4
[mineral concession] and where it proposes to do so, it shall, by notification in the Official Gazette―
(a) specify the boundaries of such area;
(b) state whether 5
[reconnaissance, prospecting or mining operations] will be carried out in the
area; and
(c) specify the mineral or minerals in respect of which such operations will be carried out.
(3) Where, in exercise of the powers conferred by sub-section (2), the Central Government
undertakes 5
[reconnaissance, prospecting or mining operations] in any area, the Central Government
shall be liable to pay 6
[reconnaissance permit fee or prospecting fee] royalty, surface rent or dead rent, as
the case may be, at the same rate at which it would have been payable under this Act, if such
5
[reconnaissance, prospecting or mining operations] had been undertaken by a private person under
a
4
[mineral concession].
(4) The Central Government, with a view to enabling it to exercise the powers conferred on it by
sub-section (2) may, after consultation with the State Government, by notification in the Official
Gazette, declare that no 4
[mineral concession] shall be granted in respect of any land specified in the
notification.
7
[17A. Reservation of areas for purposes of conservation.―(1) The Central Government, with a
view to conserving any mineral and after consultation with the State Government, may reserve any area
not already held under any prospecting licence 8
[or exploration licence] or mining lease and, where it
1. Ins. by Act 25 of 1994, s. 6 (w.e.f. 25-1-1994).
2. The word “only” omitted by Act 56 of 1972, s. 10 (w.e.f. 12-9-1972).
3. Ins. by s. 10, ibid. (w.e.f. 12-9-1972).
4. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021).
5. Subs. by Act 38 of 1999, s. 15, for “prospecting or mining operations” (w.e.f. 18-12-1999).
6. Subs. by s. 15, ibid., for “prospecting fee” (w.e.f. 18-12-1999).
7. Ins. by Act 37 of 1986, s. 14 (w.e.f. 10-2-1987).
8. Ins. by Act 16 of 2023, s. 15 (w.e.f. 17-8-2023).
29
proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and
the mineral or minerals in respect of which such area will be reserved.
1
[(1A) The Central Government may in consultation with the State Government, reserve any area not
already held under any prospecting licence 2
[or exploration licence] or mining lease, for undertaking
prospecting or mining operations through a Government company or corporation owned or controlled by
it, and where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries
of such area and the mineral or minerals in respect of which such area will be reserved.]
(2) The State Government may, with the approval of the Central Government, reserve any area not
already held under any prospecting licence 2
[or exploration licence] or mining lease, for undertaking
prospecting or mining operations through a Government company or corporation owned or controlled by
it 3*** and where it proposes to do so, it shall, by notification in the Official Gazette, specify the
boundaries of such area and the mineral or minerals in respect of which such areas will be reserved.
4
[(2A) Where in exercise of the powers conferred by sub-section (1A) orsub-section (2), the Central
Government or the State Government, as the case may be, reserves any area for undertaking prospecting
or mining operations or prospecting operations followed by mining operations, the State Government
shall grant prospecting licence, mining lease or composite licence, as the casemay be, in respect of such
area to such Government company or corporation within the period specified in this section:
Provided that in respect of any mineral specified in Part B of the First Schedule, the State
Government shall grant the prospecting licence, mining lease or composite licence, as the case may be,
only after obtaining the previous approval of the Central Government.]
(2B) Where the Government company or corporation is desirous of carrying out the prospecting
operations or mining operations in a joint venture with other persons, the joint venture partner shall be
selected through a competitive process, and such Government company or corporation shall hold more
than seventy-four per cent. of the paid up share capital in such joint venture.
(2C) A mining lease granted to a Government company or corporation, or a joint venture, referred to
in sub-sections (2A) and (2B), shall be granted on payment of such amount as 5
[specified in the Fifth
Schedule].]
6
[Provided that the Central Government may, by notification in the Official Gazette and for reasonsto
be recorded in writing, amend the FifthSchedule so as to modify the entries mentioned therein in the said
Schedulewith 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 granted after the commencement of the Mines and Minerals
(Development and Regulation) Amendment Act, 2015, shall also pay such additional amount asspecified in
the Fifth Schedule for the mineral produced after the commencement of the Mines and Minerals
(Development and Regulation)AmendmentAct, 2021(10 of 2015).
(3)
7
[Where in exercise of the powers conferred by sub-section (1A) or sub-section (2) the Central
Government or the State Government, as the case may be,] undertakes prospecting or mining operations
in any area in which the minerals vest in a private person, it shall be liable to pay prospecting fee,
royalty, surface rent or dead rent, as the case may be, from time to time at the same rate at which it
would have been payable under this Act if such prospecting or mining operations had been undertaken
by a private person under prospecting licence or mining lease.]
1. Ins. by Act 25 of 1994, s. 7 (w.e.f. 25-1-1994).
2. Ins. by Act 16 of 2023, s. 15 (w.e.f. 17-8-2023)
3. The words “or by the Central Government” omitted by s. 7, ibid. (w.e.f. 25-1-1994).
4. Subs. by Act 16 of 2021, s. 19, for sub-section (2A) (w.e.f. 28-3-2021).
5. Subs. by s. 19, ibid., for “may be prescribed by the Central Government” (w.e.f. 28-3-2021).
6. Ins. by s. 19, ibid. (w.e.f. 28-3-2021).
7. Subs. by Act 25 of 1994, s. 7, for “Where in exercise of the powers conferred by sub-section (2) the State Government”
(w.e.f. 25-1-1994).
30
1
[(4) The reservation made under this section shall lapse in case no mining lease is granted within a
period of five years from the date of such reservation:
Provided that where the period of five years from the date of reservation has expired before the date
of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021 or
expires within a period of one year from the date of commencement of the said Act, the reservation shall
lapse in case no mining lease is granted within a period of one year from the dateof commencement of the
saidAct:
Provided further that the State Government may, on an application made by such Government
company or corporation or on its own motion, and on being satisfied that it shall not be possible to grant
the mining lease within the said period, make an order with reasons in writing, within a period of three
months from the date of receipt of such application, to relax such period by a further period not
exceeding one year:
Provided also that where the Government company or corporation in whose favour an area has been
reserved under this section before the commencement of the Mines and Minerals (Development and
Regulation) Amendment Act, 2015 (10 of 2015), has commenced production from the reserved area
without execution of mining lease, such Government company or corporation shall be deemed to have
become lessee of the State Government from the date of commencement of mining operations and such
deemed lease shall lapse upon execution of the mining lease in accordance with this sub-section or expiry
of period of one year from the date of commencement of the Mines and Minerals (Development and
Regulation)AmendmentAct, 2021, whicheveris earlier.
(5) The termination or lapse of mining lease shall result in the lapse of the reservation under this
section.]