Executive Summary:
The Mineral Laws Amendment Act, 2020, amends the Mines and Minerals Development and Regulation Act, 1957, and the Coal Mines Special Provisions Act, 2015. It received Presidential assent on March 13, 2020, and is deemed to have come into force on January 10, 2020. The Act remains in force for sixty days from the date of assent and will be repealed after this period.
Key Points / Main Content:
Amendments to the Mines and Minerals Development and Regulation Act, 1957:
* **Section 4B (New):** Empowers the Central Government to prescribe conditions for sustained mineral production by mining leaseholders who have acquired necessary rights and clearances under Section 8B.
* **Section 5:** Removes the requirement for Central Government approval for granting reconnaissance permits, prospecting licenses, or mining leases for minerals in Part A of the First Schedule under specific conditions related to allocation orders, reservation notifications, or vesting/allotment orders.
* **Section 8A:** Allows State Governments to initiate advance action for mining lease auctions before the existing lease expires.
* **Section 8B (New):** Outlines provisions for the transfer of statutory clearances for minerals not specified in Part A and Part B of the First Schedule to successful bidders of expiring mining leases selected through auction, valid for two years. New lessees have two years to obtain all necessary rights and approvals. The new lessee can continue mining operations for two years from the commencement of the new lease.
* **Section 10C:** Holders of non-exclusive reconnaissance permits who conduct prescribed exploration for deep-seated minerals may apply for prospecting license-cum-mining lease or a mining lease.
* **Section 11A:** Expands the scope to include prospecting license-cum-mining leases for coal or lignite. Introduces provisions for allotment to government companies or corporations or joint ventures for own consumption, sale, or other purposes determined by the Central Government, and to companies awarded power projects based on competitive bidding.
* **Section 13:** Inserts conditions for commencement/continuation of mining leases, conditions for new lessees, and exploration levels for deep-seated minerals. Modifies regulations for granting permits/leases for coal/lignite, details of mines, and utilization of coal/lignite.
* **Section 17A:** Removes the reference to "Part A" in the proviso of subsection 2A.
Amendments to the Coal Mines Special Provisions Act, 2015:
* **Section 4:** Expands the scope to include prospecting license-cum-mining leases for coal. The State Government shall grant such permits or leases to companies selected through auction.
* **Section 5:** Modifies references to subsections and lease types.
* **Section 8:** Substitutes lease types in various subsections. Allows the nominated authority to terminate vesting or allotment orders, auction or allot the coal mine, and deems the successful bidder or allottee as the prior allottee for the next auction or allotment.
* **Section 9:** Modifies the process for compensation related to land and mine infrastructure.
* **Section 18:** Modifies the condition for when allottment of Schedule II coal mines is not complete.
* **Section 20:** Substitutes language to remove reference to coal linkage holder. Allows the successful bidder or allottee to use the coal mine in any of its plants or plant of its subsidiary or holding company engaged in same specified enduses.
* **Section 31:** Includes prospecting licence-cum-mining lease and adds a clause regarding the manner of termination of vesting order or allotment order.
Repeal and Savings:
* Repeals the Mineral Laws Amendment Ordinance, 2020. Actions taken under the Ordinance are deemed to have been taken under the corresponding provisions of this Act.
Impact Analysis:
Central Government:
* Impact: Increased authority in prescribing conditions for mineral production and determining allocation criteria.
* Action Required: Implement and enforce the new regulations, including setting conditions for sustained production, prescribing procedures for deep-seated mineral exploration, and defining bidding parameters.
State Governments:
* Impact: Granted the ability to initiate advance action for mining lease auctions.
* Action Required: Prepare for and conduct auctions of mining leases before the expiry of the existing lease period.
Mining Lease Holders:
* Impact: Subject to new conditions prescribed by the Central Government for sustained mineral production.
* Action Required: Comply with the new conditions set by the Central Government for commencing and continuing mineral production.
Successful Bidders/New Lessees:
* Impact: Entitled to acquired statutory clearances for a period of two years and can continue operations on land previously mined for two years.
* Action Required: Apply for and obtain necessary rights, approvals, clearances, and licenses within two years from the grant of the new lease.
Holders of Non-Exclusive Reconnaissance Permits:
* Impact: Eligible to apply for prospecting licenses-cum-mining leases or mining leases for deep-seated minerals.
* Action Required: Submit applications to the State Government as per the prescribed procedures.
Coal Mine Allottees/Bidders:
* Impact: Subject to potential termination of vesting or allotment orders.
* Action Required: Comply with prescribed procedures for termination of vesting orders or allotment orders.
Key Entities Referenced
Mineral Laws Amendment Act, 2020: The title of the act which is the subject of this notification.
Mines and Minerals Development and Regulation Act, 1957: The principal act being amended by the Mineral Laws Amendment Act, 2020.
Coal Mines Special Provisions Act, 2015: Another act being amended by the Mineral Laws Amendment Act, 2020.
Parliament: The legislative body that enacted the Mineral Laws Amendment Act, 2020.
Central Government: The government body with authority over various aspects of mineral regulation, as defined in the document.
State Government: The government body that works in conjunction with the Central Government on mineral regulation.
First Schedule: A schedule within the Mines and Minerals Development and Regulation Act, 1957, which lists specific minerals.
Dr. G. Narayana Raju: Secretary to the Govt. of India.
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MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 13th March, 2020/Phalguna 23, 1941 (Saka)
The following Act of Parliament received the assent of the President on the
13th March, 2020, and is hereby published for general information:—
THE MINERAL LAWS (AMENDMENT) ACT, 2020
NO. 2 OF 2020
[13th March, 2020.]
An Act further to amend the Mines and Minerals (Development and Regulation)
Act, 1957 and to amend the Coal Mines (Special Provisions) Act, 2015.
BE it enacted by Parliament in the Seventy-first Year of the Republic of India as
follows:—
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Mineral Laws (Amendment) Act, 2020. Short title,
commencement
(2) It shall be deemed to have come into force on the 10th day of January, 2020. and operation.
(3) Without prejudice to the effect of the amendments made by this Act, it shall remain
in force for a period of sixty days from the date of assent by the President and shall be
deemed to have been repealed after the expiry of the said period.2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
CHAPTER II
AMENDMENTS TO THE MINES AND MINERALS
(DEVELOPMENT AND REGULATION) ACT, 1957
Insertion of 2. In the Mines and Minerals (Development and Regulation) Act, 1957 (hereafter in 67 of 1957.
new section this Chapter referred to as the principal Act), after section 4A, the following section shall be
4B.
inserted, namely:—
Conditions "4B. Notwithstanding anything contained in section 4A, the Central Government
for efficiency may, in the interest of maintaining sustained production of minerals in the country,
in production.
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.".
Amendment 3. In section 5 of the principal Act, in sub-section (1), after the proviso, the following
of section 5. proviso shall be inserted, namely:—
"Provided further that the previous approval of the Central Government shall
not be required for grant of reconnaissance permit, prospecting licence or mining
lease in respect of the minerals specified in Part A of the First Schedule, where,—
(i) an allocation order has been issued by the Central Government under
section 11A; or
(ii) a notification of reservation of area has been 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.
Amendment 4. In section 8A of the principal Act, in sub-section (4), the following proviso shall be
of section 8A. inserted, namely:—
"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.".
Insertion of 5. After section 8A of the principal Act, the following section shall be inserted,
new section 8B. namely:—
Provisions for "8B. (1) The provisions of this section shall apply to minerals, other than the
transfer of minerals specified in Part A and Part B of the First Schedule.
statutory
clearances. (2) Notwithstanding anything contained in this Act or any other law for the
time being in force, the successful bidder of mining leases expiring under the provisions
of sub-sections (5) and (6) of section 8A and selected through auction as per the
procedure provided under this Act and the rules made thereunder, shall be deemed to
have acquired all valid rights, approvals, clearances, licences and the like vested with
the previous lessee for a period of two years:
Provided that subject to such conditions as may be prescribed, such new
lessee shall apply and obtain all necessary rights, approvals, clearances, licences and
the like within a period of two years from the date of grant of new lease.
(3) Notwithstanding anything contained in any other law for the time being in
force, it shall be lawful for the new lessee to continue mining operations on the land,
in which mining operations were being carried out by the previous lessee, for a period
of two years from the date of commencement of the new lease.".SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3
6. In section 10C of the principal Act, in sub-section (2), the following shall be Amendment
inserted, namely:— of
section 10C.
"Provided that the holder of non-exclusive reconnaissance permit who carries
out the prescribed level of exploration in respect of deep seated minerals or such
minerals as may be notified by the Central Government, may submit an application to
the State Government for the grant of any prospecting licence-cum-mining lease as
per the procedure laid down under section 11 or a mining lease as per the procedure
laid down under section 10B and with a view to increase the reconnaissance and
prospecting operations of such minerals, the Central Government shall prescribe
such procedure, including the bidding parameters for selection of such holders.
Explanation.—For the purposes of this sub-section, the expression "deep
seated minerals" means such minerals which occur at a depth of more than three
hundred meters from the surface of land with poor surface manifestations.".
7. In section 11A of the principal Act,— Amendment
of
(i) in the marginal heading, after the words "or mining lease", the words "or
section 11A.
prospecting licence-cum-mining lease in respect of coal or lignite" shall be inserted;
(ii) in sub-section (1)—
(a) in the opening portion, for the words "in respect of any area containing
coal or lignite", the words "or prospecting licence-cum-mining lease in respect
of coal or lignite" shall be substituted;
(b) for the long line, the following long line shall be substituted, namely:—
"to carry on coal or lignite reconnaissance or prospecting or mining
operations, for own consumption, sale or for any other purpose as may
be determined by the Central Government";
(c) the following proviso shall be inserted, namely:—
"Provided that the auction by competitive bidding under this
section shall not be applicable to coal or lignite—
(a) where such area is considered for allotment to a
Government company or corporation or a joint venture company
formed by such company or corporation or between the Central
Government or the State Government, as the case may be, for own
consumption, sale or for any other purpose as may be determined
by the Central Government;
(b) where such area is considered for allotment 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).";
(iii) in sub-section (3),—
(a) after the words "mining lease", the words "or prospecting
licence-cum-mining lease" shall be inserted;
(b) for the words "competitive bidding or otherwise", the words
"competitive bidding or through allotment" shall be substituted.
8. In section 13 of the principal Act, in sub-section (2),— Amendment
of
(i) after clause (a), the following clauses shall be inserted, namely:—
section 13.
"(aa) the conditions as may be necessary for commencement and
continuation of production by the holders of mining leases, under section 4B;
(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;4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
(ac) the level of exploration in respect of deep seated minerals or such
minerals and the procedure, including the bidding parameters for selection of
the holders under the proviso to sub-section (2) of section 10C;";
(ii) for clause (d), the following clauses shall be substituted, namely:—
"(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 reconnaissance permit, prospecting licence,
mining lease or prospecting licence-cum-mining lease 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;".
Amendment of 9. In section 17A of the principal Act, in sub-section (2A), in the proviso, the words
section 17A. and letter "Part A and" shall be omitted.
CHAPTER III
AMENDMENTS TO THE COAL MINES (SPECIAL PROVISIONS) ACT, 2015
Amendment of 10. In section 4 of the Coal Mines (Special Provisions) Act, 2015 (hereafter in this 11 of 2015.
section 4. Chapter referred to as the principal Act),—
(i) in sub-section (2),—
(a) in the opening portion, for the words "in respect of any area containing
coal", the words "or prospecting licence-cum-mining lease in respect of coal"
shall be substituted;
(b) for the long line, the following long line shall be substituted, namely:—
"to carry on coal reconnaissance or prospecting or mining
operations, for own consumption, sale or for any other purpose as
may be determined by the Central Government, and the State
Government shall grant such reconnaissance permit, prospecting
licence, mining lease or prospecting licence-cum-mining lease in
respect of Schedule I coal mine to such company as selected through
auction by competitive bidding under this section.";
(ii) sub-section (3) shall be omitted.
Amendment 11. In section 5 of the principal Act, in sub-section (1),—
of section 5.
(i) for the words, brackets and figures "sub-sections (1) and (3)", the words,
brackets and figures "sub-sections (1) and (2)" shall be substituted;
(ii) for the words "or mining lease in respect of any area containing coal", the
words ", mining lease or prospecting licence-cum-mining lease in respect of such
Schedule I coal mine" shall be substituted;
(iii) in the first proviso, for the words "in accordance with the permit, prospecting
licence or mining lease, as the case may be", the words "as may be determined by the
Central Government" shall be substituted.
Amendment 12. In section 8 of the principal Act,—
of section 8.
(i) in sub-section (4), in clause (b), for the words "a mining lease", the words
"prospecting licence, mining lease or prospecting licence-cum-mining lease, as the
case may be" shall be substituted;SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5
(ii) in sub-section (8), for the words "a prospecting licence or a mining lease",
the words "prospecting licence, mining lease or prospecting licence-cum-mining lease"
shall be substituted;
(iii) in sub-section (9), for the words "a prospecting licence or a mining lease",
the words "prospecting licence, mining lease or prospecting licence-cum-mining lease"
shall be substituted;
(iv) after sub-section (12), the following sub-sections shall be inserted,
namely:—
"(13) The vesting order or allotment order may be terminated by the
nominated authority in such manner as may be prescribed.
(14) Upon termination of vesting order or allotment order, the nominated
authority may auction the coal mine under section 4 or allot the coal mine under
section 5 as may be determined by the Central Government.
(15) The successful bidder or allottee of the coal mine whose vesting
order or allotment order has been terminated shall be deemed to be the prior
allottee for the purposes of immediate next auction or allotment of the said coal
mine.".
13. In section 9 of the principal Act,— Amendment
of section 9.
(i) in the opening portion, for the portion beginning with the words "The proceeds
arising out of land" and ending with the words "as may be prescribed.", the following
shall be substituted, namely:—
"The compensation for land and mine infrastructure in relation to a
Schedule I coal mine as valued in accordance with section 16 shall be deposited
by the successful bidder or allottee with the nominated authority and shall be
disbursed maintaining, inter alia, the following priority of payments and in
accordance with the relevant laws and such rules as may be prescribed.";
(ii) in clause (b), for the words "compensation payable", the words "amount
payable" shall be substituted.".
14. In section 18 of the principal Act, in sub-section (1), for the words and figure Amendment
"allotment of Schedule I coal mines is not complete", the words and figures "allotment of of section 18.
Schedule II coal mines is not complete, or vesting order or allotment order issued under this
Act has been terminated in case of a coal mine under production," shall be substituted.
15. In section 20 of the principal Act,— Amendment
of section 20.
(i) in sub-section (1), for the words "A successful bidder or allottee or coal
linkage holder shall", the words "A successful bidder or allottee shall" shall be
substituted;
(ii) for sub-section (2), the following sub-section shall be substituted, namely:—
"(2) A successful bidder or allottee may also use the coal mine from a
particular Schedule I coal mine, in any of its plants or plant of its subsidiary or
holding company engaged in same specified end-uses in such manner as may
be prescribed.".
16. In section 31 of the principal Act, in sub-section (2),— Amendment
of section 31.
(i) in clause (b), for the words "prospecting licence or mining lease", the words
"prospecting licence, mining lease or prospecting licence-cum-mining lease" shall be
substituted;6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— SEC. 1]
(ii) after clause (l), the following clause shall be inserted, namely:—
"(la) the manner of termination of vesting order or allotment order under
sub-section (13) of section 8;".
Repeal and 17. (1) The Mineral Laws (Amendment) Ordinance, 2020 is hereby repealed. Ord. 1 of
savings. 2020.
(2) Notwithstanding such repeal, anything done or any action taken under the principal
Act, as amended by the said Ordinance, shall be deemed to have been done or taken under
the corresponding provisions of the principal Act as amended by this Act.
————
DR. G. NARAYANA RAJU,
Secretary to the Govt. of India.
UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.
MGIPMRND—5890GI—13-03-2020.