The Mines and Minerals (Development and Regulation) Act, 1957

The Mines and Minerals (Development and Regulation) Act, 1957 (ACT NO. 67 OF 1957) [As on the 20th November, 2025] 1LIST OF AMENDING ACTS

1. The Mines and Minerals (Regulation and Development) Amendment Act, 1958 (15 of 1958).

2. The Repealing and Amending Act, 1960 (58 of 1960).

3. The Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972).

4. The Mines and Minerals (Regulation and Development) Amendment Act, 1986 (37 of 1986).

5. The Goa, Daman and Diu Mining Concessions (Abolition and Declaration as Mining Leases) Act, 1987 (16 of 1987).

6. The Mines and Minerals (Regulation and Development) Amendment Act, 1994 (25 of 1994).

7. The Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 of 1999).

8. The Mines and Minerals (Development and Regulation) Amendment Act, 2010 (34 of 2010).

9. The Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015).

10. The Coal Mines (Special Provisions) Act, 2015 (11 of 2015).

11. The Mines and Minerals (Development and Regulation) Amendment Act, 2016 (25 of 2016).

12. The Mineral Laws (Amendment) Act, 2020 (2 of 2020).

13. The Mines and Minerals (Development and Regulation) Amendment Act, 2021 (16 of 2021).

14. The Mines and Minerals (Development and Regulation) Amendment Act, 2023 (16 of 2023).

15. The Mines and Minerals (Development and Regulation) Amendment Act, 2025 (28 of 2025). ________ LIST OF ABBREVIATIONS USED Cl.,cls. . . . . . for Clause, clauses.

Ins. . . . . . ,, Inserted.

Notifn. . . . . . ,, Notification.

S., ss. . . . . . ,, Section, sections.

Sch. . . . . . . ,, Schedule.

Subs. . . . . . ,, Substituted. w.e.f. . . . . . ,, with effect from.

2THE MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957 ____________ ARRANGEMENT OF SECTIONS ____________ PRELIMINARY SECTIONS

1. Short title, extent and commencement.

2. Declaration as to expediency of Union Control.

3. Definitions.

GENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING OPERATIONS

4. Prospecting or mining operations to be under licence or lease.

4A. Termination of prospecting licences, exploration licences or mining leases.

4B. Conditions for efficiency in production.

5. Restrictions on the grant of mineral concession.

6. Maximum area for which mineral concession may be granted.

6A. Inclusion of contiguous area in the leased area or area under composite licence in case of deep-seated minerals.

7. Periods for which prospecting licences may be granted or renewed.

8. Periods for which mining leases may be granted or renewed.

8A. Period of grant of a mining lease for minerals other than coal, lignite and atomic minerals.

8B. Provisions for period and transfer of statutory clearances.

9. Royalties in respect of mining leases.

9A. Dead rent to be paid by the lessee.

9B. District Mineral Foundation.

9C. National Mineral Exploration and Development Trust.

PROCEDURE FOR OBTAINING MINERAL CONCESSION IN RESPECT OF LAND IN WHICH THE MINERALS VEST IN THE GOVERNMENT

10. Application for mineral concession.

10A. Rights of existing concession holders and applicants.

10B. Grant of mining lease in respect of notified minerals through auction.

10BA. Grant of exploration licence for minerals specified in Seventh Schedule through auction.

10C. [Omitted.]

11. Grant of composite licence through auction in respect of minerals other than notified minerals.

11A. Granting of mineral concession or composite licence in respect of coal or lignite.

11B. Power of Central Government to make rules for regulating atomic minerals specified under Part B of First Schedule.

11C. Power of Central Government to amend First Schedule and Fourth Schedule.

11D. Central Government to conduct auction for grant of mining lease or composite licence in respect of minerals specified in Part D of First Schedule.

12. Registers of mineral concession.

12A. Transfer of mineral concessions.

3RULES FOR REGULATING THE GRANT OF MINERAL CONCESSIONS SECTIONS

13. Power of Central Government to make rules in respect of minerals.

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.

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.

15B. Inclusion of other minerals in mining lease.

16. Power to modify mining leases granted before 25th October, 1949.

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 area for purposes of conservation.

DEVELOPMENT OF MINERALS

18. Mineral Development.

18A. Power to authorise Geological Survey of India, etc., to make investigation.

18B. Development of market.

MISCELLANEOUS

19. Mineral concession 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 mineral concession.

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.

4SECTIONS 30B. Constitution of Special Courts.

30C. Special Courts to have powers of Court of Session.

31. Relaxation of rules in special cases.

32. [Repealed].

33. Validation of certain acts and indemnity.

THE FIRST SCHEDULE.

THE SECOND SCHEDULE.

THE THIRD SCHEDULE.

THE FOURTH SCHEDULE.

THE FIFTH SCHEDULE.

THE SIXTH SCHEDULE.

THE SEVENTH SCHEDULE.

THE EIGHTH SCHEDULE.

5THE 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:― 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 shall come into force on such date3 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) “composite licence” means the prospecting licence-cum-mining lease which is a two stage concession granted for the purpose of undertaking prospecting operations followed by mining operations in a seamless manner;

(aa) “dispatch” means the removal of minerals or mineral products from the leased area and includes the consumption of minerals and mineral products within such leased area;

5[(aaa) “exploration licence” means a licence granted for undertaking reconnaissance operations or prospecting operations or both in respect of minerals specified in the Seventh Schedule;]

(ab) “Government company” shall have the same meaning as assigned to it in clause (45) of

section 2 of the Companies Act, 2013 (18 of 2013);

(ac) “leased area” means the area specified in the mining lease within which the mining operations can be undertaken and includes the non-mineralized area required and approved for the activities falling under the definition of “mine” as referred to in clause (i);

(ad) “minerals” includes all minerals except minerals oils;

(ae) “minerals concession” means either a reconnaissance permit, prospecting licence, mining lease, composite licence 5[, exploration licence] or a combination of any of these and the expression “concession” shall be construed accordingly;] 6[(af) “mineral exchange” means an electronic trading platform or marketplace registered in accordance with the provisions of this Act, where buyers and sellers of minerals, its concentrate or its processed forms (including metals), transact, trade and enter into contract, including in derivatives;]

(b) “mineral oils” includes natural gas and petroleum;

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 Notifn No. G.S.R. 432, dated 29th May, 1958, see Gazette of India, Extraordinary, Part II, sec. 3(i).

4. Subs. by Act 16 of 2021, s. 3, for clauses (a) and (aa) (w.e.f. 28-3-2021).

5. Ins. by Act 16 of 2023, s. 2 (w.e.f. 17-8-2023).

6. Ins. by Act 28 of 2025, s. 2 (w.e.f. 1-9-2025).

6(c) “mining lease” means a lease granted for the purpose of undertaking mining operations, and includes a sub-lease granted for such purpose;

(d) “mining operations” means any operations undertaken for the purpose of winning any mineral;

(e) “minor minerals” means building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central Government may, by notification in the Official Gazette, declare to be a minor mineral;

1[(ea) “notified minerals” means any mineral specified in the Fourth Schedule;]

(f) “prescribed” means prescribed by rules made under this Act;

2[(fa) “production” or any derivative of the word “production” means the winning or raising of mineral within the leased area for the purpose of processing or dispatch;]

(g) “prospecting licence” means a licence granted for the purpose of undertaking prospecting operations;

3* * * * *

(h) “prospecting operations” means any operations undertaken for the purpose of exploring, locating or proving mineral deposit ; 4*** 5[ 6[(ha) “reconnaissance operations” means any operations undertaken for preliminary prospecting of a mineral through regional, aerial, geophysical or geochemical surveys and geological mapping, and include pitting, trenching, drilling and sub-surface excavation;]

(hb) “reconnaissance permit” means a permit granted for the purpose of undertaking reconnaissance operations; 7***] 2[(hba) “Schedule” means the Schedules appended to the Act;] 1[(hc) “Special Court” means a Court of Session designated as Special Court under sub-section (1) of section 30B; and]

(i) the expressions, “mine” and “owner”, have the meaning assigned to them in the Mines Act, 1952 (35 of 1952).

2[Explanation.—For the purpose of this clause, —

(i) a mine continues to be a mine till exhaustion of its mineable mineral reserve and a mine may have different owners during different times from the grant of first mining lease till exhaustion of such mineable mineral reserve;

(ii) the expression “mineral reserve” means the economically minearble part of a measured and indicated mineral resource.] GENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING OPERATIONS

4. Prospecting or mining operations to be under licence or lease.―(1) 8[No person shall undertake any reconnaissance, prospecting or mining operations in any area, except under and in accordance with the terms and conditions of a reconnaissance permit or of a prospecting licence 9[or of a exploration 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 operations undertaken in any area in accordance with terms and conditions of a prospecting licence 9[or of a exploration licence],

mining lease granted before the commencement of this Act which is in force at such commencement:

1. Ins. by Act 10 of 2015, s. 2 (w.e.f. 12-1-2015).

2. Ins. by Act 16 of 2021, s. 3 (w.e.f. 28-3-2021).

3. Cl. (ga) omitted by s. 3, ibid. (w.e.f. 28-3-2021).

4. The word “and” omitted by Act 38 of 1999, s. 4 (w.e.f. 18-12-1999).

5. Ins. by s. 4, ibid. (w.e.f. 18-12-1999).

6. Subs. by Act 16 of 2023, s. 2, for clause (ha) (w.e.f. 17-8-2023).

7. The word “and” omitted by Act 10 of 2015, s. 2 (w.e.f. 12-1-2015).

8. Subs. by Act 38 of 1999, s. 5, for certain words (w.e.f. 18-12-1999).

9. Ins. by Act 16 of 2023, s. 3 (w.e.f. 17-8-2023).

71[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, 2[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 3[clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), and any 4[other entities including private entities that may be notified for this purpose, subject to such conditions as may be specified by the Central Government]]:] 5[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.] 6[(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) 7[No 8[mineral concession]] shall be granted otherwise than in accordance with the provisions of this Act and the rules made thereunder.

1[(3) Any State Government may, after prior consultation with the Central Government and in accordance with the rule made under section 18, 9[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 8[mineral concession]].] 10[11[4A.Termination of prospecting licences, exploration licences or mining leases.]―(1) Where the Central Government, after consultation with the State Government, is of opinion that it is expedient in the interest of regulation of mines and mineral development, preservation of natural environment, control of floods, prevention of pollution, or to avoid danger to public health or communications or to ensure safety of buildings, monuments or other structures or for conservation of mineral resources or for maintaining safety in the mines or for such other purposes, as the Central Government may deem fit, it may request the State Government to make a premature termination of a 12[prospecting licence or exploration licence] or mining lease in respect of any mineral other than a minor mineral in any area or part thereof, and, on receipt of such request, the State Government shall make an order making a premature termination of such 12[prospecting licence or exploration licence] or mining lease with respect to the area or any part thereof.

(2) Where the State Government 13*** is of opinion that it is expedient in the interest of regulation of mines and mineral development, preservation of natural environment, control of floods, prevention of pollution or to avoid danger to public health or communications or to ensure safety of buildings, monuments or other structures or for 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.

14[* * * * *]

1. Ins. by Act 37 of 1986, s. 2 (w.e.f. 10-2-1987).

2. Subs. by Act 38 of 1999, s. 5, for “the Atomic Minerals Division” (w.e.f. 18-12-1999).

3. 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).

4. Subs. by Act 16 of 2021, s. 4, for certain words (w.e.f. 28-3-2021).

5. Ins. by Act 16 of 1987, s. 14 (w.e.f. 1-10-1963).

6. Ins. by Act 38 of 1999, s. 5 (w.e.f. 18-12-1999).

7. Subs. by s. 5, ibid., “No prospecting licence or mining lease” (w.e.f. 18-12-1999).

8. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting license or mining lease” (w.e.f. 28-3-2021).

9. Subs. by Act 38 of 1999, s. 5, for certain words (w.e.f. 18-12-1999).

10. Subs. by Act 37 of 1986, s. 3, for section 4A (w.e.f. 10-2-1987).

11. Subs. by Act 16 of 2023, s. 4, for the marginal heading (w.e.f. 17-8-2023).

12. Subs. by s. 4, ibid., for “prospecting license” (w.e.f. 17-8-2023).

13. The words “, after consultation with the Central Government,” omitted by Act 25 of 1994, s. 2 (w.e.f. 25-1-1994).

14. Proviso omitted by Act 38 of 1999, s. 6 (w.e.f. 18-12-1999).

8(3) No order making a premature termination of a prospecting licence 1[or exploration 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 2[production and dispatch] for a period of 3[two years] after the date of execution of the lease or, having commenced 2[production and dispatch], has discontinued the same for a period of 3[two years], the lease shall lapse on the expiry of the period of 3[two years] from the date of execution of the lease or, as the case may be, discontinuance of the 2[production and dispatch]:

4[Provided that the State Government may, on an application made by the holder of such lease before it lapses and on being satisfied that it shall not be possible for the holder of the lease to undertake production and dispatch or to continue such production and dispatch for reasons beyond his control, make an order, within a period of three months from the date of receipt of such application, to extend the period of two years by a further period not exceeding one year and such extension shall not be granted for more than

once during the entire period of lease:

Provided further that such lease shall lapse on failure to undertake production and dispatch or having commenced the production and dispatch fails to continue the same before the end of such extended period].] 5[4B. Conditions for efficiency in production.—Notwithstanding anything contained in

section 4A, the Central Government may, in the interest of maintaining sustained production of minerals in the country, prescribe such conditions as may be necessary for commencement and continuation of production by the holders of mining leases who have acquired rights, approvals, clearances and the like under section 8B.] 6[7[5. Restrictions on the grant of mineral concession.]―8[(1) A State Government shall not grant a 9[mineral concession] to any person unless such person.―

(a) is an Indian national, or company as defined in 10[clause (20) of section 2 of the Companies Act, 2013 (18 of 2013)]; and

(b) satisfies such conditions as may be prescribed:

11[Provided that in respect of any mineral specified in Part A and Part B of the First Schedule, no 9[mineral concession] shall be granted except with the previous approval of the Central Government.] 12[Provided further that the previous approval of the Central Government shall not be required for grant of 9[mineral concession] in respect of the minerals specified in Part A of the First Schedule, where,—

(i) an allocation order has been issued by the Central Government under section 11A; or

(ii) a notification of reservation of area has been issued by the Central Government or the State Government under sub-section (1A) or sub-section (2) of section 17A; or

(iii) a vesting order or an allotment order has been issued by the Central Government under the provisions of the Coal Mines (Special Provisions) Act, 2015 (11 of 2015).]

1. Ins. by Act 16 of 2023, s. 4 (w.e.f. 17-8-2023).

2. Subs. by Act 16 of 2021, s. 5, for “mining operations” (w.e.f. 28-3-2021).

3. Subs. by Act 25 of 1994, s. 2, for “one year” (w.e.f. 25-1-1994).

4. The provisos first, second, third and fourth subs. by Act 16 of 2021, s. 5 (w.e.f. 28-3-2021).

5. Ins. by Act 2 of 2020, s. 2 (w.e.f. 10-1-2020).

6. Subs. by Act 37 of 1986, s. 4, for section 5 (w.e.f. 10-2-1987).

7. Subs. by Act 16 of 2023, s. 5, for the marginal heading (w.e.f. 17-8-2023).

8. Subs. by Act 25 of 1994, s. 3, for sub-section (1) (w.e.f. 25-1-1994).

9. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting license or mining lease” (w.e.f. 28-3-2021).

10. 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).

11. Subs. by s. 5, ibid., for the proviso (w.e.f. 12-1-2015).

12. Ins. by Act 2 of 2020, s. 3 (w.e.f. 10-1-2020).

9Explanation.―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.] 1[Provided also that the composite licence or mining lease shall not be granted for an area to any person other than the Government, Government company or corporation, in respect of any minerals specified in Part B of the First Schedule where the grade of such mineral in such area is equal to or above such threshold value as may be notified by the Central Government.]

(2) No mining lease shall be granted by the State Government unless it is satisfied that.― 2[ 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. 5[Maximum area for which mineral concession may be granted.]―6[(1) No person shall acquire 7*** in respect of any mineral or prescribed group of associated minerals 8[in a State]―

(a) one or more prospecting licences covering a total area of more than twenty-five square kilometres; or 8[(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] 9[(ab) one or more exploration licences covering a total area of more than five thousand square

kilometres:

Provided that the area granted under a single exploration licence shall not exceed one thousand square kilometres;]

(b) one or more mining leases covering a total area of more than ten square kilometres:

10[Provided that if the Central Government is of the opinion that in the interest of the development of any mineral or industry, it is necessary so to do, it may, for reasons to be recorded in writing, increase the aforesaid area limits in respect of prospecting licence or mining lease, in so far as it pertains to any particular mineral, or to any specified category of deposits of such mineral, or to any particular mineral located in any particular area.] 11[(c) any 12[mineral concession] in respect of any area which is not compact or contiguous:

Provided that if the State Government is of opinion that in the interests of the development of any mineral, it is necessary so to do, it may, for reasons to be recorded in writing, permit any person to acquire a 12[mineral concession] in relation to any area which is not compact or contiguous.]]

1. Ins. by Act 16 of 2021, s. 6 (w.e.f. 28-3-2021).

2. Subs. by Act 38 of 1999, s. 7, for clauses (a) and (b) (w.e.f. 18-12-1999).

3. Subs. by Act 10 of 2015, s. 5, 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 16 of 2023, s. 6, for the marginal heading (w.e.f. 17-8-2023).

6. Subs. by Act 56 of 1972, s. 3, for sub-section (1) (w.e.f. 12-9-1972).

7. The words “in any one State” omitted by Act 37 of 1986, s. 5 (w.e.f. 10-2-1987).

8. Ins. by Act 38 of 1999, s. 8 (w.e.f. 18-12-1999).

9. Ins. by Act 16 of 2023, s. 6 (w.e.f. 17-8-2023).

10. Subs. by Act 10 of 2015, s. 6, for the proviso (w.e.f. 12-1-2015).

11. Subs. by Act 38 of 1999, s. 8, for clause (c) (w.e.f. 18-12-1999).

12. Subs. by Act 16 of 2023, s. 6, for “reconnaissance permit, mining lease or prospecting licence” (w.e.f. 17-8-2023).

10(2) For the purposes of this section, a person acquiring by, or in the name of, another person a 1[mineral concession] which is intended for himself shall be deemed to be acquiring it himself.

2[(3) For the purposes of determining the total area referred to in sub-section (1), the area held under a 1[mineral concession] by a person as a member of a co-operative society, company or other corporation, or a Hindu undivided family or a partner of a firm, shall be deducted from the area referred to in sub-section (1) so that the sum total of the area held by such person, under a 1[mineral concession], whether as such member or partner, or individually, may not, in any case, exceed the total area specified in sub-section (1).] 3[6A. Inclusion of contiguous area in the leased area or area under composite licence in case of deep-seated minerals.—(1) Notwithstanding anything contained in section 10,—

(a) a holder of a mining lease of deep-seated mineral, may apply for a one-time extension of the existing leased area to include therein a contiguous area not exceeding ten per cent. of the existing leased area;

(b) a holder of a composite licence in respect of deep-seated mineral, may apply for a one-time extension of the area under the composite licence, to include therein a contiguous area not exceeding thirty per cent. of the existing area under the licence.

(2) Upon receipt of such application, the State Government may extend the existing leased area or the area under composite licence, as the case may be, to include therein the contiguous area subject to such terms and conditions and on payment of such additional amount as may be prescribed by the Central Government.

Explanation.—For the purposes of this section, the expression “deep-seated minerals” means such minerals which occur at a depth of more than two hundred meters from the surface of land with poor surface manifestations.] 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[(4) Notwithstanding anything contained in this section, in case of Government companies or corporations, the period of mining leases including the existing mining leases, shall be such as may be

prescribed by the Central Government:

1. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting license or mining lease” (w.e.f. 28-3-2021).

2. Ins. by Act 56 of 1972, s. 3 (w.e.f. 12-9-1972).

3. Ins. by Act 28 of 2025, s. 3 (w.e.f. 1-9-2025).

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 Act 16 of 2021, s. 7 (w.e.f. 28-3-2021).

11Provided that the period of mining leases, other than the mining leases granted through auction, shall

be extended on payment of such additional amount as specified in the Fifth Schedule:

Provided further that the Central Government may, by notification in the Official Gazette and for reasons to be recorded in writing, amend the Fifth Schedule so as to modify the entries mentioned therein in the said Schedule with effect from such date as may be specified in the said notification.

(5) Any lessee may, where coal or lignite is used for captive purpose, sell such coal or lignite up to fifty per cent. of the total coal or lignite produced in a year after meeting the requirement of the end use plant linked with the mine in such manner as may be prescribed by the Central Government and on

payment of such additional amount as specified in the Sixth Schedule:

Provided that the Central Government may, by notification in the Official Gazette and for the reasons to be recorded in writing, increase the said percentage of coal or lignite that may be sold by a Government

company or corporation:

Provided further that the sale of coal shall not be allowed from the coal mines allotted to a company or corporation that has been awarded a power project on the basis of competitive bid for tariff (including Ultra Mega Power Projects):

Provided also that the Central Government may, by notification in the Official Gazette and for reasons to be recorded in writing, amend the Sixth Schedule so as to modify the entries mentioned therein with effect from such date as may be specified in the said notification.] 1[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 Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015), shall be deemed to have been granted for a period of fifty years.

(4) On the expiry of the lease period, the lease shall be put up for auction as per the procedure specified in this Act.

2[Provided that nothing contained in this section shall prevent the State Governments from taking an advance action for auction of the mining lease before the expiry of the lease period.]

(5) Notwithstanding anything contained in sub-sections (2), (3) and sub-section (4), the period of lease granted before the date of 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 fifty years from the date of grant of such lease, whichever is later, subject to the condition that all the terms and conditions of the lease have been complied with.

(6) Notwithstanding anything contained in sub-sections (2), (3) and sub-section (4), the period of lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015), where mineral is used for other than captive purpose, shall be extended and be deemed to have been extended up to a period ending on the 31st March, 2020 with effect from the date of expiry of the period of renewal last made or till the 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.

3[(7A) Any lessee may, where mineral is used for captive purpose, sell mineral 4*** after meeting the requirement of the end use plant linked with the mine in such manner as may be prescribed by the Central

Government and on payment of such additional amount as specified in the Sixth Schedule:

1. Ins. by Act 10 of 2015, s. 8 (w.e.f. 12-1-2015).

2. Ins. by Act 2 of 2020, s. 4 (w.e.f. 10-1-2020).

3. Ins. by Act 16 of 2021, s. 8 (w.e.f. 28-3-2021).

4. The words “up to fifty per cent. of the total mineral produced in a year” omitted by Act 28 of 2025, s. 4 (w.e.f. 1-9-2025).

121[Provided that the State Government may permit sale of dumps which has been stacked up to such date as may be specified by the Central Government in the leased area on payment of additional amount specified in the Sixth

Schedule:]

Provided further that the Central Government may, by notification in the Official Gazette and for reasons to be recorded in writing, amend the Sixth Schedule so as to modify the entries mentioned therein with effect from such date as may be specified in the said notification.]

(8) Notwithstanding anything contained in this section, the period of mining leases, including existing mining leases, of Government companies or corporations shall be such as may be prescribed by the Central Government.

2[Provided that the period of mining leases, other than the mining leases granted through auction, shall be

extended on payment of such additional amount as specified in the Fifth Schedule:

Provided further that the Central Government may, by notification in the Official Gazette and for reasons to be recorded in writing, amend the Fifth Schedule so as to modify the entries mentioned therein with effect from such date as may be specified in the said notification.

Explanation.—For the removal of doubts, it is hereby clarified that all such Government companies or corporations whose mining lease has been extended after the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015), shall also pay such additional amount as specified in the Fifth Schedule for the mineral produced after the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021.]

(9) The provisions of this section, notwithstanding anything contained therein, shall not apply to a mining lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015), for which renewal has been rejected, or which has been determined, or lapsed.] 3[8B. Provisions for period and transfer of statutory clearances.―(1) Notwithstanding anything contained in this Act or any other law for the time being in force, all valid rights, approvals, clearances, licences and the like granted to a lessee in respect of a mine (other than those granted under the provisions of the Atomic Energy Act, 1962 (33 of 1962), and the rules made thereunder) shall continue to be valid even after expiry or termination of lease and such rights, approvals, clearances, licences and the like shall be transferred to, and vested; subject to the conditions provided under such laws; in the successful bidder of the mining lease selected through auction under this

Act:

Provided that where on the expiry of such lease period, mining lease has not been executed pursuant to an auction under provisions of sub-section (4) of section 8A, or lease executed pursuant to such auction has been terminated within a period of one year from such auction, the State Government may, with the previous approval of the Central Government, grant lease to a Government company or corporation for a period not exceeding ten years or till selection of new lessee through auction, whichever is earlier and such Government company or corporation shall be deemed to have acquired all valid rights, approvals, clearances, licences and the

like vested with the previous lessee:

Provided further that the provisions of sub-section (1) of section 6 shall not apply where such mining lease is

granted to a Government company or corporation under the first proviso:

Provided also that in case of atomic minerals having grade equal to or above the threshold value, all valid rights, approvals, clearances, licences and the like in respect of expired or terminated mining leases shall be deemed to have been transferred to, and vested in the Government company or corporation that has been subsequently granted the mining lease for the said mine.

(2) Notwithstanding anything contained in any other law for the time being in force, it shall be lawful for the new lessee to continue mining operations on the land till expiry or termination of mining lease granted to it, in which mining operations were being carried out by the previous lessee.]

9. Royalties in respect of mining leases.―(1) The holder of a mining lease granted before the commencement of this Act shall, notwithstanding anything contained in the instrument of lease or in any law in force at such commencement, pay royalty in respect of any 4[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 granted on or after the commencement of this Act shall pay royalty in respect of any 4[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.

1. Subs. by Act 28 of 2025, s. 4, for the proviso (w.e.f. 1-9-2025).

2. Ins. by Act 16 of 2021, s. 8 (w.e.f. 28-3-2021).

3. Subs. by s. 9, ibid., for section 8B (w.e.f. 28-3-2021).

4. Subs. by Act 56 of 1972, s. 4, for “mineral removed by him” (w.e.f. 12-9-1972).

131[(2A) The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) 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:

2[Provided that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of 3[three years].] 4[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 time being in force, pay to the State Government, every year, dead rent at such rate, as may be specified, for the time being, in the Third Schedule, for all the areas included in the instrument of

lease:

Provided that where the holder of such mining lease becomes liable, under section 9, to pay royalty for any mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee from the leased area, he shall be liable to pay either such royalty, or the dead rent in respect of that area, whichever is greater.

(2) The Central Government may, by notification in the Official Gazette, amend the Third Schedule so as to enhance or reduce the rate at which the dead rent shall be payable in respect of any area covered by a mining lease and such enhancement or reduction shall take effect from such date as may be

specified in the notification:

Provided that the Central Government shall not enhance the rate of the dead rent in respect of any such area more than once during any period of 5[three years].] 6[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.

7[Provided that the Central Government may give directions regarding composition and utilisation of fund by the District Mineral Foundation.]

(4) The State Government while making rules under sub-sections (2) and (3) shall be guided by the provisions contained in article 244 read with Fifth and Sixth Schedules to the 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).

1. Ins. by Act 56 of 1972, s. 4 (w.e.f. 12-9-1972).

2. Subs. by s. 4, ibid., for the proviso (w.e.f. 12-9-1972).

3. Subs. by Act 37 of 1986, s. 8, for “four years” (w.e.f. 10-2-1987).

4. Ins. by Act 56 of 1972, s. 5 (w.e.f. 12-9-1972).

5. Subs. by Act 37 of 1986, s. 9, for “four years” (w.e.f. 10-2-1987).

6. Ins. by Act 10 of 2015, s. 9 (w.e.f. 12-1-2015).

7. Ins. by Act 16 of 2021, s. 10 (w.e.f. 28-3-2021).

14(5) The holder of a mining lease or a 1[composite licence] granted on or after the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 2[, other than those covered under the provisions of sub-section (2) of section 10A], shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount 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 of a mining lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 3[and those covered under the provisions of sub-section (2) of section 10A], shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount not exceeding the royalty paid in terms of the Second Schedule in such manner and subject to the 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. 4[National Mineral Exploration and Development Trust.]―(1) The Central Government shall, by notification, establish a Trust, as a 5[non-profit autonomous body], to be called the 6[National Mineral Exploration and Development Trust].

7[(2) The object of the Trust shall be to use the funds accrued to the Trust within India, including the offshore areas, and outside India for the purposes of regional and detailed exploration and development of mines and minerals in such manner as may be prescribed by the Central Government.]

(3) The composition and functions of the Trust shall be such as may be prescribed by the Central Government.

(4) The holder of a mining lease or a 1[composite licence] shall pay to the Trust, a sum equivalent to 8[three per cent.] of the royalty paid in terms of the Second Schedule, in such manner as may be prescribed by the Central Government.] 9[(5) The entities specified and notified under sub-section (1) of section 4 shall be eligible for funding under the 6[National Mineral Exploration and Development Trust].] 10[PROCEDURE FOR OBTAINING MINERAL CONCESSION IN RESPECT OF LAND IN WHICH THE MINERALS VEST IN THE GOVERNMENT]

10. 11[Application for mineral concession.]―(1) An application for 12[a 13[mineral concession]] in respect of any land in which the minerals vest in the Government shall be made to the State Government concerned in the prescribed form and shall be accompanied by the prescribed fee.

(2) Where an application is received under sub-section (1), there shall be sent to the applicant an acknowledgment of its receipt within the prescribed time and in the prescribed form.

(3) On receipt of an application under this section, the State Government may, having regard to the

1. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

2. Ins. by s. 10, ibid. (w.e.f. 28-3-2021).

3. Ins. by s. 10, ibid. (w.e.f. 28-3-2021).

4. Subs. by Act 28 of 2025, s. 5, for marginal heading (w.e.f. 1-9-2025).

5. Subs. by Act 16 of 2021, s. 11, for “non-profit body” (w.e.f. 28-3-2021).

6. Subs. by Act 28 of 2025, s. 5, for “National Mineral Exploration Trust” (w.e.f. 1-9-2025).

7. Subs. by s. 5, ibid., for sub-section (2) (w.e.f. 1-9-2025).

8. Subs. by s. 5, ibid., for “two per cent.” (w.e.f. 1-9-2025).

9. Ins. by Act 16 of 2021, s. 11 (w.e.f. 28-3-2021).

10. Subs. by Act 16 of 2023, s. 7, for Chapter heading (w.e.f. 17-8-2023).

11. Subs. by s. 8, ibid., for the marginal heading (w.e.f. 17-8-2023).

12. Subs. by Act 38 of 1999, s. 11, for “a prospecting licence or a mining lease” (w.e.f. 18-12-1999).

13. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting license or mining lease” (w.e.f. 28-3-2021).

15provisions of this Act and any rules made thereunder, grant or refuse to grant the 1[permit, licence or lease].

2[(4) Notwithstanding anything contained in this section, no person shall be eligible to make an application under this section unless—

(a) he has been selected in accordance with the procedure specified under 3[sections 10B, 10BA, 11, 11A, 11B or 11D];

(b) he has been selected under the Coal Mines (Special) Provisions Act, 2015 (11 of 2015); or

(c) an area has been reserved in his favour under section 17A.] 4[10A. Rights of existing concession 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;

5[Provided that for the cases covered under this clause including the pending cases, the right to obtain a prospecting licence followed by a mining lease or a mining lease, as the case may be, shall lapse on the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021:

Provided further that the holder of a reconnaissance permit or prospecting licence whose rights lapsed under the first proviso, shall be reimbursed the expenditure incurred towards reconnaissance or prospecting operations in such manner as may be prescribed by the Central 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

1. Subs. by Act 38 of 1999, s. 11, for “licence or lease” (w.e.f. 18-12-1999).

2. Ins. by Act 16 of 2021, s. 12 (w.e.f. 28-3-2021).

3. Subs. by Act 16 of 2023, s. 8, for “sections 10B, 11, 11A or the rules made under section 11B” (w.e.f. 17-8-2023).

4. Ins. by Act 10 of 2015, s. 10 (w.e.f. 12-1-2015).

5. Ins. by Act 16 of 2021, s. 13 (w.e.f. 28-3-2021).

16of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, the mining lease shall be granted subject to fulfilment 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.

1[(d) in cases where right to obtain licence or lease has lapsed under, clauses (b) and (c), such areas shall be put up for auction as per the provisions of this Act.

Provided that in respect of the minerals specified in Part B of the First Schedule where the grade of atomic mineral is equal to or greater than the threshold value, the mineral concession for such areas shall be granted in accordance with the rules made under section 11B.] 10B. Grant of mining lease in respect of notified minerals through auction.―2[(1) The provisions of this section shall not apply to the,—

(a) cases falling under section 17A;

(b) minerals specified in Part A of the First Schedule;

(c) minerals specified in Part B of the First Schedule where the grade of atomic mineral is equal to or greater than such threshold value as may be notified by the Central Government from time to time;

or

(d) 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 Government may 3*** grant a 4[composite licence] 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 mining leases shall be granted, and any other relevant conditions, in such manner as may be prescribed by the Central Government.

5[Provided that where the State Government has not notified such area for grant of mining lease after establishment of existence of mineral contents of any mineral (whether notified mineral or otherwise), the Central Government may require the State Government to notify such area within a period to be fixed in consultation with the State Government and in cases where the notification is not issued within such period, the Central Government may notify such area for grant of mining lease after the expiry of the period so specified.]

(4) For the purpose of granting a mining lease in respect of any notified mineral in such notified area, the State Government shall 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[Provided that—

(a) where the State Government has not successfully completed auction for the purpose of granting a mining lease in respect of any mineral (whether notified mineral or otherwise) in such notified area; or

(b) upon completion of such auction, the mining lease or letter of intent for grant of mining lease has been terminated or lapsed for any reason whatsoever,

1. Ins. by Act 16 of 2021, s. 13 (w.e.f. 28-3-2021).

2. Subs. by s. 14, ibid., for sub-section (1) (w.e.f. 28-3-2021).

3. The words “, after obtaining the previous approval of the Central Government,” omitted by Act 28 of 2025, s. 6 (w.e.f. 1-9- 2025).

4. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

5. Ins. by s. 14, ibid. (w.e.f. 28-3-2021).

17the Central Government may require the State Government to conduct and complete the auction or re-auction process, as the case may be, within a period to be fixed in consultation with the State Government and in cases where such auction or re-auction process is not completed within such period, the Central Government may conduct auction for grant of mining lease for such area after the expiry of

the period so specified:

Provided further that upon successful completion of the auction, the Central Government shall intimate the details of the preferred bidder in the auction to the State Government and the State Government shall grant mining lease for such area to such preferred bidder in such manner as may be prescribed by the Central Government.]

(5) The Central Government shall prescribe the terms and conditions, and procedure, subject to 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:

1[Provided that no mine shall be reserved for captive purpose 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.

2[10BA. Grant of exploration licence for minerals specified in Seventh Schedule through auction.—

(1) The provisions of this section shall not apply to—

(a) the areas covered under section 17A;

(b) the minerals specified in Part A of the First Schedule;

(c) the minerals specified in Part B of the First Schedule where the grade of atomic mineral is equal to or greater than such threshold value as may be notified by the Central Government from time to time;

(d) any land in respect of which the minerals do not vest in the Government.

(2) Notwithstanding anything contained in sections 10B and 11, an exploration licence may be granted in any area by the State Government for the purpose of undertaking reconnaissance or prospecting operations or both in respect of any mineral specified in the Seventh Schedule.

(3) The Central Government may, by notification in the Official Gazette, and for reasons to be recorded in writing, amend the Seventh Schedule so as to modify the entries therein with effect from such date as may be specified in the said notification.

(4) The State Government shall, after obtaining the previous approval of the Central Government, and in such manner as may be prescribed by the Central Government, notify the areas in which exploration licence shall be granted, subject to such terms and conditions as may be specified in the notification.

(5) The Central Government may require the State Government to notify the area for grant of exploration licence within such period as may be fixed in consultation with the State Government, and in case the State Government does not notify the area within such period, the Central Government may, after the expiry of the period so fixed, notify the area for grant of exploration licence.

(6) The State Government shall, for the purpose of granting exploration licence through auction by method of competitive bidding, including e-auction, select an applicant who fulfils the eligibility conditions as specified in this Act and grant exploration licence to such applicant.

(7) Where—

1. Subs. by Act 16 of 2021, s. 14, for the proviso (w.e.f. 28-3-2021).

2. Ins. by Act 16 of 2023, s. 9 (w.e.f. 17-8-2023).

18(a) the State Government has not successfully completed auction for the grant of exploration licence; or

(b) after completion of auction, the exploration licence or letter of intent for grant of exploration licence has been terminated or lapsed for any reason whatsoever, the Central Government may require the State Government to conduct and complete the auction or re-auction process, as the case may be, within such period as may be fixed in consultation with the State Government, and in cases where such auction or re-auction process is not completed within such period, the Central Government may, after the expiry of the period so fixed, conduct auction for the grant of exploration licence for such area:

Provided that upon successful completion of the auction, the Central Government shall intimate the details of the preferred bidder in the auction to the State Government and the State Government shall grant exploration licence for such area to such preferred bidder in such manner as may be prescribed by the Central Government.

(8) The holder of exploration licence shall be entitled to a share of applicable amount quoted in the auction of mining leases payable by the lessee to the State Government in respect of the area granted in mining lease pursuant

to the prospecting operations undertaken by the holder of such exploration licence:

Provided that the share in applicable amount payable to the holder of exploration licence by the lessee of such area shall be allowed only in respect of the minerals specified in the Seventh Schedule.

(9) The Central Government shall by rules provide for the manner of conducting auction for grant of exploration licence, including its terms and conditions, the bidding parameters for selection, share payable to the holder of exploration licence from out of the applicable amount quoted in auction of mining leases payable by the lessee of such area, the period for such payment and such other conditions as may be necessary.

(10) Notwithstanding anything contained in section 7,—

(a) the exploration licence shall be granted for a period of five years from the date of execution of the exploration licence;

(b) if, after three years from the date of execution of exploration licence, but before the date of its expiry, the holder of the exploration licence makes an application for the extension of the period of that licence, the State Government may, on being satisfied that within the period of five years, it shall not be possible for the holder of such licence to complete the reconnaissance or prospecting operations for reasons beyond his control, extend the said period to a further period not exceeding two years.

(11) After three years from the date of execution of the exploration licence, the holder of such licence may retain an area not exceeding twenty-five per cent. of the total area covered under that licence for the purpose of continuing reconnaissance or prospecting operations and shall surrender the remaining area after submitting a report to the State Government stating the reasons for retention of the area proposed to be retained by him and the boundaries of that area.

(12) The holder of the exploration licence shall, within three months of the completion of the operations for which licence has been granted, or of the date of expiry of the exploration licence, whichever is earlier, submit a geological report to the State Government explaining the result of the reconnaissance and prospecting operations, in such manner as may be prescribed.

(13) If the holder of the exploration licence fails to complete the reconnaissance and prospecting operations before expiry of the exploration licence, or fails to submit the geological report within the period specified in sub-section (12), the State Government may take such action as it deems fit, including imposition of penalty.

(14) Within six months from the date of receipt of the geological report from the holder of the exploration licence, the Central Government or the State Government shall initiate the auction process for grant of one or more separate mining leases under section 10B or section 11 or section 11D, as the case may be, in respect of the area where existence of mineral content is established and shall select the preferred bidder for grant of such mining

leases within one year from the date of receipt of the geological report:

Provided that in case the preferred bidder is not selected within the period so specified, the State Government shall pay to the person who was the holder of exploration licence such amount, and in such manner, as may be prescribed.] 10C. [Grant of non-exclusive reconnaissance permits.] Omitted by the Mines and Minerals (Development and Regulation) Amendment Act, 2021 (16 of 2021), s. 15 (w.e.f. 28-3-2021).] 191[11. Grant of 2[composite licence] through auction in respect of minerals other than notified minerals.―3[(1) The provisions of this section shall not apply to the,—

(a) cases falling under section 17A;

(b) minerals specified in Part A of the First Schedule;

(c) minerals specified in Part B of the First Schedule where the grade of atomic mineral is equal to or greater than such threshold value as may be notified by the Central Government from time to time;

or

(d) land in respect of which the minerals do not vest in the Government.]

(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 2[composite licence] 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 2[composite licence] shall be granted for any minerals other than notified minerals, the terms and conditions subject to which such 2[composite licence] shall be granted, and any other relevant conditions, in such manner as may be prescribed by the Central Government.

4[Provided that where the State Government has not notified such area for grant of Composite licence of any mineral (whether notified mineral or otherwise), the Central Government may require the State Government to notify such area within a period to be fixed in consultation with the State Government and in cases where the notification is not issued within such period, the Central Government may notify such area for grant of Composite licence after the expiry of the period so specified.]

(5) For the purpose of granting 2[composite licence], the State Government shall select, through auction by method of competitive bidding, including e-auction, an applicant who fulfils the eligibility conditions as specified in this Act.

4[Provided that—

(a) where the State Government has not successfully completed auction for the purpose of granting a composite licence in respect of any mineral (whether notified mineral or otherwise) in such notified area; or

(b) upon completion of such auction, the composite licence or letter of intent for grant of composite licence has been terminated or lapsed for any reason whatsoever, the Central Government may require the State Government to conduct and complete the auction or re-auction process, as the case may be, within a period to be fixed in consultation with the State Government and in cases where such auction or re-auction process is not completed within such period, the Central Government may conduct auction for grant of composite licence for such area after the expiry

of the period so specified:

Provided further that upon successful completion of the auction, the Central Government shall intimate the details of the preferred bidder in the auction to the State Government and the State Government shall grant composite licence for such area to such preferred bidder in such manner as may be prescribed by the Central Government.]

(6) The Central Government shall prescribe the terms and conditions, and procedure, subject to which the auction shall be conducted, including the bidding parameters for the selection, which may

1. Subs. by Act 10 of 2015, s. 11, for section 11 (w.e.f. 12-1-2015).

2. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

3. Subs. by s. 16, ibid., for sub-section (1) (w.e.f. 28-3-2021).

4. Ins. by s. 16, ibid. (w.e.f. 28-3-2021).

20include 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 mineral deposits and a State or States, subject to which the auction shall be conducted.

(8) The State Government shall grant a 1[composite licence] to an applicant selected in accordance with the procedure laid down in this section.

(9) The holder of a 1[composite licence] shall be required to complete, within the period laid down in

section 7, the prospecting operations satisfactorily as specified in the notice inviting applications.

2[(10) On completion of the prospecting operations, the holder of the composite licence shall submit the result of the prospecting operations in the form of a geological report to the State Government specifying the area required for mining lease and the State Government shall grant mining lease for such area, to the holder of the composite licence in such manner as may be prescribed by the Central Government.]] 3[11A. Granting of 4[mineral concession] 5[or 1[composite licence] in respect of coal or lignite].—(1) Notwithstanding anything contained in this Act, the Central Government may, for the purpose of granting 4[mineral concession] 6[or 1[composite licence] in respect of coal or lignite] select any of the following companies through auction by competitive bidding, on such terms and conditions as may be prescribed, namely: —

(a) 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, or any other company incorporated in India; or

(b) a company or a joint venture company formed by two or more companies, 7[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;] 8[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).]

(2) The Central Government may, with a view to rationalise coal and lignite mines referred to in sub-section (1), so as to ensure the coordinated and scientific development and utilisation of resources consistent with the growing requirements of the country, from time to time, prescribe—

1. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

2. Subs. by s. 16, ibid., for sub-section (10) (w.e.f. 28-3-2021).

3. Subs. by Act 11 of 2015, s. 30 and Sch. IV, for section 11A (w.e.f. 21-10-2014).

4. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting license or mining lease” (w.e.f. 28-3-2021).

5. Ins. by Act 2 of 2020, s. 7 (w.e.f. 10-1-2020).

6. Subs. by Act 2 of 2020, s. 7, for “in respect of any area containing coal or lignite” (w.e.f. 10-1-2020).

7. Subs. by s. 7, ibid., for the long line (w.e.f. 10-1-2020).

8. Ins. by s. 7, ibid. (w.e.f. 10-1-2020).

21(i) the details of mines and their location;

(ii) the minimum size of such mines;

(iii) such other conditions, which in the opinion of that Government may be necessary for the purpose of mining operations or mining for sale by a company.

(3) The State Government shall grant such 1[mineral concession] 2[or 3[composite licence]] in respect of any area containing coal or lignite to such company as selected through auction by 4[competitive bidding or through allotment] under this section:

Provided that the auction by competitive bidding under this section 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 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;

(b) where such area is considered for allocation to a company or corporation or 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 clause (20) of section 2 of the Companies Act, 2013 (18 of 2013).] 5[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 1[mineral concession] in respect of any such mineral in accordance with such rules.

11C. Power of Central Government to amend First Schedule and Fourth Schedule.―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.] 6[11D.Central Government to conduct auction for grant of mining lease or composite licence in respect of minerals specified in Part D of First Schedule.—(1) Notwithstanding anything contained in this Act, the Central Government shall, for the purpose of granting mining lease or composite licence in any area in respect of any mineral specified in the Part D of the First Schedule, select, through auction by method of competitive bidding, including e-auction, a preferred bidder who fulfils the eligibility conditions as specified in section 5, on such terms and conditions, and in such manner, as may be prescribed.

(2) Upon successful completion of the auction, the Central Government shall intimate the details of the preferred bidder in the auction to the State Government and the State Government shall grant mining lease or composite licence for such area, to such preferred bidder, in such manner, as may be prescribed by the Central Government.

1. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting license or mining lease” (w.e.f. 28-3-2021).

2. Ins. by Act 2 of 2020, s. 7 (w.e.f. 10-1-2020).

3. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

4. Subs. by Act 2 of 2020, s. 7, for “competitive bidding or otherwise” (w.e.f. 10-1-2020).

5. Ins. by Act 10 of 2015, s. 12 (w.e.f. 12-1-2015).

6. Ins. by Act 16 of 2023, s. 10 (w.e.f. 17-8-2023).

22(3) The royalty, dead rent, applicable amount quoted in the auction and any other statutory payment in relation to the mining lease or composite licence auctioned by the Central Government shall accrue to the State Government or concerned authorities, as the case may be, as if the auction has been conducted by the State Government.]

12. 1[Registers of mineral concession.]―(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; 3***

(f) a register of reconnaissance permits;] 4[(g) a register of applications for exploration licences; and

(h) a register of exploration licences,] 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.

5[12A. Transfer of mineral concessions.―(1) The provisions of this section shall not apply to minerals specified in Part A or Part B of the First Schedule.

(2) A holder of a mining lease or a 6[composite licence 7[or exploration licence]] granted in accordance with the procedure laid down in 8[this Act] may, with the previous approval of the State Government, transfer his mining lease or 6[composite licence 7[or exploration licence]], as the case may be, in such manner as may be prescribed by the Central Government, to any person eligible to hold such mining lease or 6[composite licence 7[or exploration licence]] in accordance with the provisions of this Act and the rules made thereunder.

9[Provided that the transferee of mining lease shall not be required to pay the amount or transfer charges referred to in sub-section (6), as it stood prior to the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021 (16 of 2021), after such commencement but no refund shall be made of the charges already paid.]

1. Subs. by Act 16 of 2023, s. 11, for the marginal heading (w.e.f. 17-8-2023).

2. Subs. by Act 38 of 1999, s. 13, for clauses (c) and (d) (w.e.f. 18-12-1999).

3. The word “and” omitted by Act 16 of 2023, s. 11 (w.e.f. 17-8-2023).

4. Ins. by s. 11, ibid. (w.e.f. 17-8-2023).

5. Ins. by Act 10 of 2015, s. 13 (w.e.f. 12-1-2015).

6. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

7. Ins. by Act 16 of 2023, s. 12 (w.e.f. 17-8-2023).

8. Subs. by Act 16 of 2021, s. 17, for “section 10B or section 11” (w.e.f. 28-3-2021).

9. Ins. by s. 17, ibid. (w.e.f. 28-3-2021).

23(3) If the State Government does not convey its previous approval for transfer of such mining lease or 1[composite licence 2[or exploration licence]], as the case may be, within a period of ninety days from the date of receiving such notice, it shall be construed that the State Government has no objection to such

transfer:

Provided that the holder of the original mining lease or 1[composite licence 2[or exploration licence]] shall intimate to the State Government the consideration payable by the successor-in-interest for the transfer, including the consideration in respect of the prospecting operations already undertaken and the reports and data generated during the operations.

(4) No such transfer of a mining lease or 1[composite licence 2[or exploration licence]], referred to in sub-section (2), shall take place if the State Government, within the notice period and for reasons to be communicated in writing, disapproves the transfer on the ground that the transferee is not eligible as per

the provisions of this Act:

Provided that no such transfer of a mining lease 3[or composite licence], shall be made in contravention of any condition subject to which the mining lease or the 1[composite licence 2[or exploration licence]] was granted.

(5) All transfers effected under this section shall be subject to the condition that the transferee has accepted all the conditions and liabilities under any law for the time being in force which the transferor was subject to in respect of such a mining lease or 1[composite licence 2[or exploration licence]], as the case may be.

4* * * * * 5[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 6[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 6[mineral concession] in respect of land in which the minerals vest in the Government may be made and the fees to be paid therefor;

7[(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;

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. Subs. by Act 16 of 2023, s. 13, for Chapter heading (w.e.f. 17-8-2023).

6. Subs. by Act 16 of 2021, s. 18, for “reconnaissance permits, prospecting licences and mining leases” (w.e.f. 28-3-2021).

7. Ins. by Act 2 of 2020, s. 8 (w.e.f. 10-1-2020).

241* * * * *]

(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, any other 3[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 8[reconnaissance, prospecting or mining operations];

9[(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;

10[(ka) terms and conditions and additional amount under sub-section (2) of section 6A;]

(l) the manner in which, and the conditions subject to which, 5[a 3[mineral concession]] may be transferred;

1. Cl. (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 license 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. Subs. by Act 38 of 1999, s. 14, for “prospecting or mining operations” (w.e.f. 18-12-1999).

9. Ins. by Act 10 of 2015, s. 14 (w.e.f. 12-1-2015).

10. Ins. by Act 28 of 2025, s. 7 (w.e.f. 1-9-2025).

25(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; 4*** 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;] 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 6[National Mineral Exploration and Development Trust] under sub-section (2) of section 9C;

(qqc) the composition and functions of the 6[National Mineral Exploration and Development Trust] under sub-section (3) of section 9C;

(qqd) the manner of payment of amount to the 6[National Mineral Exploration and Development 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 7[mineral concession under section 10B, 10BA, 11, 11A, 11B, 11D], and section 17A, and their renewals;

8* * * * *

(qqi) the terms and conditions for grant of 9[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. Cl. (o) 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 license 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 28 of 2025, s. 7, for “National Mineral Exploration Trust” (w.e.f. 1-9-2025).

7 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).

8. Cl. (qqh) omitted by Act 16 of 2021, s. 18 (w.e.f. 28-3-2021).

9. Subs. by s. 2, ibid., for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021).

261[(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) the manner of sale of mineral under sub-section (7A) of section 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 sub-section (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 to the holder of the composite licence under sub-section (10) of section 11;

4[(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;] 5[(xc) conditions for inclusion of any mineral other than minor mineral in a lease granted in respect of a minor mineral under sub-section (5) of section 15B;]

(y) any other matter which is to be, or may be prescribed, under this Act.] 6[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:―

1. Ins. by Act 25 of 2016, s. 4 (w.e.f. 6-5-2016).

2. Cl. (qqk) omitted by Act 16 of 2021, s. 18 (w.e.f. 28-3-2021).

3. Subs. by s. 18, ibid., for cl. (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 28 of 2025, s. 7 (w.e.f. 1-9-2025).

6. Ins. by Act 56 of 1972, s. 6 (w.e.f. 12-9-1972).

27(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;

(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;

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).

28(k) the construction, maintenance and use of roads, power transmission lines, tramways, railways, serial ropeways, 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;

(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 this 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 4[royalty or dead rent] in respect of any minor mineral for more than once during any period of 5[three] years.] 6[(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.] 7[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.] 8[15B. Inclusion of other minerals in mining lease.— (1) A holder of a mining lease may apply to the State Government for inclusion of any other mineral in his mining lease on the basis of a geological report in relation to that lease and the State Government shall permit inclusion of such mineral within sixty days of such application, subject to the payment of such additional amount on dispatch of the included mineral as specified in the Eighth Schedule.

(2) The Central Government may, by notification in the Official Gazette, and for reasons to be recorded in writing, amend the Eighth Schedule so as to modify the entries mentioned therein with effect from such date as may be specified in the said notification.

1. Subs. by Act 56 of 1972, s. 8, for “prospecting licences 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 “royalty” (w.e.f. 10-2-1987).

5. Subs. by s. 13, ibid., for “four” (w.e.f. 10-2-1987).

6. Ins. by Act 10 of 2015, s. 15 (w.e.f. 12-1-2015).

7. Ins. by s. 16, ibid. (w.e.f. 12-1-2015).

8. Ins. by Act 28 of 2025, s. 8 (w.e.f. 1-9-2025).

29(3) The holder of mining lease shall submit such reports or returns to the State Government and any other authority in respect of the included mineral as may be specified by the Central Government.

(4) The provision of this section shall apply for inclusion of any minor mineral in a lease granted in respect of a mineral other than minor mineral and the State Government may, by notification in the Official Gazette, specify the royalty and other payments to be made by the lessee on dispatch of such included minor mineral.

(5) Inclusion of any mineral other than minor mineral in a lease granted in respect of a minor mineral shall be made in accordance with the conditions as may be prescribed for this purpose by the Central Government and such rules may provide for all or any of the matters, namely:—

(i) the extent of presence of mineral other than minor mineral as compared to minor mineral in the lease;

(ii) termination of the lease in the interest of regulation of mines and mineral development and grant of a fresh lease in the area as a lease in respect of mineral other than minor mineral;

(iii) regulation of such lease as a lease granted for mineral other than minor minerals;

(iv) additional payment as specified in the Eighth Schedule to be made upon inclusion of a mineral other than minor mineral.

(6) Any mineral may be included under this section in a mining lease granted in respect of atomic mineral specified in Part B of the First Schedule where the grade of atomic mineral is equal to or above the notified threshold value with prior approval of the Central Government.

(7) No atomic mineral as specified in Part B of the First Schedule where the grade of atomic mineral is equal to or above the notified threshold value shall be included in the mining lease granted in respect of minerals other than such atomic minerals.]

16. Power to modify mining leases granted before 25th October, 1949.―1[(1) (a) All mining leases granted before the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972) 2[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 3[two years from the commencement of the Mines 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.] 4[(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—

1. Subs. by Act 56 of 1972, s. 9, for sub-section (1) (w.e.f. 12-9-1972).

2. Subs. by Act 25 of 1994, s. 6, for certain words (w.e.f. 25-1-1994).

3. Subs. by s. 6, ibid., for certain words (w.e.f. 25-1-1994).

4. Ins. by s. 6, ibid. (w.e.f. 25-1-1994).

30(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.

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.―(1) The provisions of this section shall apply 1*** in respect of land in which the minerals vest in the Government of a State 2[or any other person].

(2) Notwithstanding anything contained in this Act, the Central Government, after consultation with the State Government, may undertake 3[mineral concession] in any area not already held under any 3[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 4[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 4[reconnaissance, prospecting or mining operations] in any area, the Central Government shall be liable to pay 5[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 4[reconnaissance, prospecting or mining operations] had been undertaken by a private person under a 3[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 3[mineral concession] shall be granted in respect of any land specified in the

notification.

6[17A. Reservation of area 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 7[or exploration licence] or mining lease 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.

8[(1A) The Central Government may in consultation with the State Government, reserve any area not already held under any prospecting licence 7[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 7[or exploration licence] or mining lease, for undertaking prospecting or mining operations through a Government company or corporation owned or controlled by

1. The word “only” omitted by Act 56 of 1972, s. 10 (w.e.f. 12-9-1972).

2. Ins. by s. 10, ibid. (w.e.f. 12-9-1972).

3. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting license or mining lease” (w.e.f. 28-3-2021).

4. Subs. by Act 38 of 1999, s. 15, for “prospecting or mining operations” (w.e.f. 18-12-1999).

5. Subs. by s. 15, ibid., for “prospecting fee” (w.e.f. 18-12-1999).

6. Ins. by Act 37 of 1986, s. 14 (w.e.f. 10-2-1987).

7. Ins. by Act 16 of 2023, s. 15 (w.e.f. 17-8-2023).

8. Ins. by Act 25 of 1994, s. 7 (w.e.f. 25-1-1994).

31it 1*** 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.

2[ 3[(2A) 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, 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 case may 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 4[specified in the Fifth

Schedule:].] 5[Provided that the Central Government may, by notification in the Official Gazette and for reasons to be recorded in writing, amend the Fifth Schedule so as to modify the entries mentioned therein in the said Schedule with effect from such date as may be specified in the said notification.

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 (10 of 2015), shall also pay such additional amount as specified in the Fifth Schedule for the mineral produced after the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021 (16 of 2021).]

(3) 6[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.] 7[(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 (16 of 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 date of

commencement of the said Act:

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

1. The words “or by the Central Government” omitted by Act 25 of 1994, s. 7 (w.e.f. 25-1-1994).

2. Ins. by Act 10 of 2015, s. 17 (w.e.f. 12-1-2015).

3. Subs. by Act 16 of 2021, s. 19, for sub-section (2A) (w.e.f. 28-3-2021).

4. Subs. by s. 19, ibid., for “may be prescribed by the Central Government” (w.e.f. 28-3-2021).

5. Ins. by s. 19, ibid. (w.e.f. 28-3-2021).

6. 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).

7. Ins. by Act 16 of 2021, s. 19 (w.e.f. 28-3-2021).

32months 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) Amendment Act, 2021 (16 of 2021), whichever is earlier.

(5) The termination or lapse of mining lease shall result in the lapse of the reservation under this

section.] DEVELOPMENT OF MINERALS

18. Mineral Development.―(1) It shall be the duty of the Central Government to take all such steps as may be necessary 1[for the conservation and systematic development of minerals in India and for the protection of environment by preventing or controlling any pollution which may be caused by prospecting or mining operations] and 2[for such purposes] the Central Government may, by notification in the Official Gazette, make such rules as it thinks fit.

(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 opening of new mines and the regulation of mining operations in any area;

(b) the regulation of the excavation or collection of minerals from any mine;

(c) the measures to be taken by owners of mines for the purpose of beneficiation of ores, including the provision of suitable contrivances for such purpose;

(d) the development of mineral resources in any area;

(e) the notification of all new borings and shaft sinkings and the preservation of bore-hole records, and specimens of cores of all new bore-holes;

(f) the regulation of the arrangements for the storage of minerals and the stocks thereof that may be kept by any person;

(g) the submission of samples of minerals from any mine by the owner thereof and the manner in which and the authority to which such samples shall be submitted; and the taking of samples of any minerals from any mine by the State Government or any other authority specified by it in that behalf;

(h) the submission by owners of mines of such special or periodical returns and reports as may be specified, and the form in which and the authority to which such returns and reports shall be submitted;

3[(i) the regulation of prospecting operations;

(j) the employment of qualified geologists or mining engineers to supervise prospecting or mining operations;

(k) the disposal or discharge of waste slime or tailings arising from any mining or metallurgical operations carried out in a mine;

(l) the manner in which and the authority by which directions may be issued to the owners of any mine to do or refrain from doing certain things in the interest of conservation or systematic

1. Subs. by Act 37 of 1986, s. 15, for “for the conservation and development of minerals in India” (w.e.f. 10-2-1987).

2. Subs. by s. 15, ibid., for “for that purpose” (w.e.f. 10-2-1987).

3. Ins. by s. 15, ibid. (w.e.f. 10-2-1987).

33development of minerals or for the protection of environment by preventing or controlling pollution which may be caused by prospecting or mining operations;

(m) the maintenance and submission of such plans, registers of records as may be specified by the Government;

(n) the submission of records or reports by persons carrying on prospecting or mining operations regarding any research in mining or geology carried out by them;

(o) the facilities to be afforded by persons carrying out prospecting or mining operations to persons authorised by the Central Government for the purpose of undertaking research or training in matters relating to mining or geology;

(p) the procedure for and the manner of imposition of fines for the contravention of any of the rules framed under this section and the authority who may impose such fines; and

(q) the authority to which, the period within which, the form and the manner in which applications for revision of any order passed by any authority under this Act and the rules made thereunder may be made, the fee to be paid and the documents which should accompany such applications.]

(3) All rules made under this section shall be binding on the Government.

1[18A. Power to authorise Geological Survey of India, etc., to make investigation.―(1) Where the Central Government is of opinion that for the conservation and development of minerals in India, it is necessary to collect as precise information as possible with regard to any mineral available in or under any land in relation to which any prospecting licence 2[or exploration licence] or mining lease has been granted, whether by the State Government or by any other person, the Central Government may authorise the Geological Survey of India, or such other authority or agency as it may specify in this behalf, to carry out such detailed investigations for the purpose of obtaining such information as may be

necessary:

Provided that in the cases of prospecting licences 2[or exploration licence] or mining leases granted by a State Government, no such authorisation shall be made except after consultation with the State Government.

(2) On the issue of any authorisation under sub-section (1), it shall be lawful for the Geological Survey of India or the specified authority or agency, and its servants and workmen—

(a) to enter upon such land,

(b) to dig or bore into the sub-soil,

(c) to do all other acts necessary to determine the extent of any mineral available in or under such land,

(d) to set out boundaries of the land in which any mineral is expected to be found,

(e) to mark such boundaries and line by placing marks,

(f) where otherwise the survey cannot be completed on the boundaries and line marked, to cut down and clear away any part of any standing crop, fence or jungle:

Provided that no such authority or agency shall enter into any building or upon any enclosed court or garden attached to a dwelling-house (except with the consent of the occupier thereof) without previously giving such occupier at least seven days’ notice in writing of its intention to do so.

(3) Whenever any such action of the nature specified in sub-section (2) is to be taken, the Central Government shall, before or at the time when such action is taken, pay or tender payment for all necessary damage which is likely to be caused, and in case of dispute as to the sufficiency of the amount so paid or tendered or as to the person to whom it should be paid or tendered, the Central Government

1. Ins. by Act 56 of 1972, s. 11 (w.e.f. 12-9-1972).

2. Ins. by Act 16 of 2023, s. 16 (w.e.f. 17-8-2023).

34shall refer the dispute to the principal civil court of original jurisdiction having jurisdiction over the land in question.

(4) The fact that there exists any such dispute as is referred to in sub-section (3) shall not be a bar to the taking of any action under sub-section (2).

(5) After the completion of the investigation, the Geological Survey of India or the specified authority or agency by which the investigation was made shall submit to the Central Government a detailed report indicating therein the extent and nature of any mineral which lies deposited in or under the land.

(6) The costs of the investigation made under this section shall be borne by the Central Government:

Provided that where the State Government or other person in whom the minerals are vested or the holder of any prospecting licence 1[or exploration licence] or mining lease applies to the Central Government to furnish to it or him a copy of the report submitted under sub-section (5), that State Government or other person or the holder of a prospecting licence 1[or exploration licence] or mining lease, as the case may be, shall bear such reasonable part of the costs of investigation as the Central Government may specify in this behalf and shall, on payment of such part of the costs of investigation, be entitled to receive from the Central Government a true copy of the report submitted to it under sub-section (5).] 2[18B. Development of market.— (1) The Central Government shall endeavour to promote development of market, including trading of minerals, its concentrate or its processed forms (including metals) through mineral exchanges in such manner as may be prescribed by the Central Government.

(2) The Central Government may, by notification in the Official Gazette, appoint any authority to register and regulate mineral exchanges.

(3) 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) registration of mineral exchanges and revocation of such registration;

(b) regulation of all aspects and activities of mineral exchanges and market oversight;

(c) levy of fees and other charges;

(d) maintenance of a data bank of information on activities relating to mineral trading on mineral exchanges;

(e) prevention of cartelization, insider trading, circular trading, market manipulation and any other matter which is detrimental to the participants of the mineral exchanges;

(f) grievance redressal of participants of mineral exchanges; and

(g) any other matter which is to be, or may be, prescribed.] MISCELLANEOUS

19. 3[Mineral concession to be void if in contravention of Act.]―Any 4[mineral concession] granted, renewed or acquired in contravention of the provisions of this Act or any rules or orders made thereunder shall be void and of no effect.

Explanation.―Where a person has acquired more than one 4[mineral concession] 5*** and the aggregate area covered by such 6[permits, licences or leases], as the case may be, exceeds the maximum area permissible under section 6, only that 4[mineral concession] the acquisition of which has resulted in such maximum area being exceeded shall be deemed to be void.

1. Ins. by Act 16 of 2023, s. 16 (w.e.f. 17-8-2023).

2. Ins. by Act 28 of 2025, s. 9 (w.e.f. 1-9-2025).

3. Subs. by Act 16 of 2023, s. 17, for the marginal heading (w.e.f. 17-8-2023).

4. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting license or mining lease” (w.e.f. 28-3-2021).

5. The words “in any State” omitted by Act 25 of 1994, s. 8 (w.e.f. 25-1-1994).

6. Subs. by Act 38 of 1999, s. 16, for “licences or leases” (w.e.f. 18-12-1999).

3520. Act and rules to apply to all renewals of prospecting licences and mining leases.―The provisions of this Act and the rules made thereunder shall apply in relation to the renewal after the commencement of this Act of any prospecting licence or mining lease granted before such commencement as they apply in relation to the renewal of a prospecting licence or mining lease granted after such commencement.

1[20A. Power of Central Government to issue directions.―(1) Notwithstanding anything contained in this Act, the Central Government may issue such directions to the State Governments, as may be required for the conservation of mineral resources, or on any policy matter in the national interest, and for the scientific and sustainable development and exploitation of mineral resources.

(2) In particular, and without prejudice to the generality of the foregoing powers, the Central Government may also issue directions in respect of the following matters, namely:―

(i) improvement in procedure for grant of mineral concessions and to ensure co-ordination among agencies entrusted with according statutory clearances;

(ii) maintenance of internet-based databases including development and operation of a mining tenement system;

(iii) implementation and evaluation of sustainable development frameworks;

(iv) reduction in waste generation and related waste management practices and promotion of recycling of materials;

(v) minimising and mitigating adverse environmental impacts particularly in respect of ground water, air, ambient noise and land;

(vi) ensuring minimal ecological disturbance, in terms of bio-diversity, flora, fauna and habitat;

(vii) promoting restoration and reclamation activities so as to make optimal use of mined out land for the benefit of the local communities; and

(viii) such other matters as may be necessary for the purposes of implementation of this Act.]

21. Penalties.―2[(1) Whoever contravenes the provisions of sub-section (1) or sub-section (1A) of

section 4 shall be punishable with imprisonment for a term which may extend to five years and with fine which may extend to five lakh rupees per hectare of the area.

(2) Any rule made under any provision of this Act may provide that any contravention thereof shall be punishable with imprisonment for a term which may extend to two years or with fine which may extend to five lakh rupees, or with both, and in the case of a continuing contravention, with additional fine which may extend to fifty thousand rupees for every day during which such contravention continues after conviction for the first such contravention.] 3[(3) Where any person trespasses into any land in contravention of the provisions of sub-section (1) of section 4, such trespasser may be served with an order of eviction by the State Government or any authority authorised in this behalf by that Government and the State Government or such authorised authority may, if necessary, obtain the help of the police to evict the trespasser from the land.

4[(4) Whenever any person raises, transports or causes to be raised or transported, without any lawful authority, any mineral from any land, and, for that purpose, uses any tool, equipment, vehicle or any other thing, such mineral tool, equipment, vehicle or any other thing shall be liable to be seized by an officer or authority specially empowered in this behalf.

(4A) Any mineral, tool, equipment, vehicle or any other thing seized under sub-section (4), shall be liable to be confiscated by an order of the court competent to take cognizance of the offence under sub-section (1) and shall be disposed of in accordance with the directions of such court.]

1. Ins. by Act 10 of 2015, s. 18 (w.e.f. 12-1-2015).

2. Subs. by s. 19, ibid., for sub-sections (1) and (2) (w.e.f. 12-1-2015).

3. Ins. by Act 56 of 1972, s. 12 (w.e.f. 12-9-1972).

4. Subs. by Act 38 of 1999, s. 17, for sub-section (4) (w.e.f. 18-12-1999).

36(5) Whenever any person raises, without any lawful authority, any mineral from any land, the State Government may recover from such person the mineral so raised, or, where such mineral has already been disposed of, the price thereof, and may also recover from such person, rent, royalty or tax, as the case may be, for the period during which the land was occupied by such person without any lawful authority.] 1[(6) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an offence under sub-section (1) shall be cognizable.] 2[Explanation.—On and from the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021 (16 of 2021), the expression “raising, transporting or causing to raise or transport any mineral without any lawful authority” occurring in this section, shall mean raising, transporting or causing to raise or transport any mineral by a person without prospecting licence, mining lease or composite licence 3[, exploration licence] or in contravention of the rules made under section 23C.]

22. Cognizance of offences.―No court shall take cognizance of any offence punishable under this Act or any rules made thereunder except upon complaint in writing made by a person authorised in this behalf by the Central Government or the State Government.

23. Offences by companies.―(1) If the person committing an offence under this Act or any rules made thereunder is a company, every person who at the time the offence was committed was in charge of, and was responsible to the company for the conduct of the business of the company, shall be deemed

to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed with the consent or connivance of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.―For the purposes of this section,―

(a) “company” means any body corporate and includes a firm or other association of individuals;

(b) “director” in relation to a firm means a partner in the firm.

4[23A. Compounding of offences.―(1) Any offence punishable under this Act or any rule made thereunder may, either before or after the institution of the prosecution, be compounded by the person authorised under section 22 to make a complaint to the court with respect to that offence, on payment to that person, for credit to the Government, of such sum as that person may specify:

Provided that in the case of an offence punishable with fine only, no such sum shall exceed the maximum amount of fine which may be imposed for that offence.

(2) Where an offence is compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the offender in respect of the offence so compounded, and the offender, if in custody, shall be released forthwith.] 5[23B. Power to search.―If any gazetted officer of the Central or a State Government authorised by the Central Government 6[or a State Government, as the case may be,] in this behalf by general or special order has reason to believe that any mineral has been raised in contravention of the provisions of this Act or rules made thereunder or any document or thing in relation to such mineral is secreted in any place 6[or vehicle], he may search for such mineral, document or thing and the provisions of section 100 of the Code of Criminal Procedure, 1973 (2 of 1974), shall apply to every such search.]

1. Ins. by Act 37 of 1986, s. 16 (w.e.f. 10-2-1987).

2. Ins. by Act 16 of 2021, s. 20 (w.e.f. 28-3-2021).

3. Ins. by Act 16 of 2023, s. 18 (w.e.f. 17-8-2023).

4. Ins. by Act 56 of 1972, s. 13 (w.e.f. 12-9-1972).

5. Ins. by Act 25 of 1994, s. 9 (w.e.f. 25-1-1994).

6. Ins. by Act 38 of 1999, s. 18 (w.e.f. 18-12-1999).

371[23C. Power of State Government to make rules for preventing illegal mining, transportation and storage of minerals.―(1) The State Government may, by notification in the Official Gazette, make rules for preventing illegal mining, transportation and storage of minerals and for the 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) establishment of check-posts for checking of minerals under transit;

(b) establishment of weigh-bridges to measure the quantity of mineral being transported;

(c) regulation of mineral being transported from the area granted under a prospecting licence or a mining lease or a quarrying licence or a permit, in whatever name the permission to excavate minerals, has been given;

(d) inspection, checking and search of minerals at the place of excavation or storage or during transit;

(e) maintenance of registers and forms for the purposes of these rules;

(f) the period within which and the authority to which applications for revision of any order passed by any authority be preferred under any rule made under this section and the fees to be paid therefor and powers of such authority for disposing of such applications; and

(g) any other matter which is required to be, or may be, prescribed for the purpose of prevention of illegal mining, transportation and storage of minerals.

(3) Notwithstanding anything contained in section 30, the Central Government shall have no power to revise any order passed by a State Government or any of its authorised officers or any authority under the rules made under sub-sections (1) and (2).]

24. Power of entry and inspection.―(1) For the purpose of ascertaining the position of the working, actual or prospective, of any mine or abandoned mine or for any other purpose connected with this Act or the rules made thereunder, any person authorised by the 2[Central Government or a State Government] in this behalf, by general 3*** order, may―

(a) enter and inspect any mine;

(b) survey and take measurements in any such mine;

(c) weigh, measure or take measurements of the stocks of minerals lying at any mine;

(d) examine any document, book, register, or record in the possession or power of any person having the control of, or connected with, any mine and place marks of identification thereon, and take extracts from or make copies of such document, book, register or record;

(e) order the production of any such document, book, register, record, as is referred to in clause (d); and

(f) examine any person having the control of, or connected with, any mine.

(2) Every person authorised by the 2[Central Government or a State Government] under sub-section (1) shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860), and every person to whom an order or summons is issued by virtue of the powers conferred by clause (e) or clause (f) of that sub-section shall be legally bound to comply with such order or summons, as the case may be.

1. Ins. by Act 38 of 1999, s. 19 (w.e.f. 18-12-1999).

2. Subs. by s. 20, ibid., for “Central Government” (w.e.f. 18-12-1999).

3. The words “or special” omitted by s. 20, ibid. (w.e.f. 18-12-1999).

381[24A. 2[Rights and liabilities of a holder of mineral concession.]―(1) On the issue of a 3[mineral concession] under this Act and the rules made thereunder, it shall be lawful for the 4[holder of such permit, licence or lease], his agents or his servants or workmen to enter the lands over which 5[such permit, lease or licence had been granted] at all times during its currency and carry out all such 6[reconnaissance, prospecting or mining operations] as may be prescribed:

Provided that no person shall enter into any building or upon an enclosed court or garden attached to a dwelling-house (except with the consent of the occupier thereof) without previously giving such occupier at least seven days’ notice in writing of his intention to do so.

(2) The holder of a 3[mineral concession] referred to in sub-section (1) shall be liable to pay compensation in such manner as may be prescribed to the occupier of the surface of the land granted under 7[such permit, licence or lease] for any loss or damage which is likely to arise or has arisen from or in consequence of the 8[reconnaissance, mining or prospecting operations].

(3) The amount of compensation payable under sub-section (2) shall be determined by the State Government in the manner prescribed.]

25. Recovery of certain sums as arrears of land revenue.―9[(1)] Any rent, royalty, tax, fee or other sum due to the Government under this Act or the rules made thereunder or under the terms and conditions of any 3[mineral concession] may, on a certificate of such officer as may be specified by the State Government in this behalf by general or special order, be recovered in the same manner as an arrear of land revenue.

10[(2) Any rent, royalty, tax, fee or other sum due to the Government either under this Act or any rule made thereunder or under the terms and conditions of any 3[mineral concession] may, on a certificate of such officer as may be specified by the State Government in this behalf by general or special order, be recovered in the same manner as if it were an arrear of land revenue and every such sum which becomes due to the Government after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972), together with the interest due thereon shall be a first charge on the assets of the holder of the 3[mineral concession], as the case may be.]

26. Delegation of powers.―(1) The Central Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act may, in relation to such matters and subject to such conditions, if any, as may be specified in the notification be exercisable also by―

(a) such officer or authority subordinate to the Central Government; or

(b) such State Government or such officer or authority subordinate to a State Government, as may be specified in the notification.

(2) The State Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act may, in relation to such matters and subject to such conditions, if any, as may be specified in the notification, be exercisable also by such officer or authority subordinate to the State Government as may be specified in the notification.

(3) Any rules made by the Central Government under this Act may confer powers and impose duties or authorise the conferring of powers and imposition of duties upon any State Government or any officer or authority subordinate thereto.

27. Protection of action taken in good faith.―No suit, prosecution or other legal proceedings shall lie against any person for anything which is in good faith done or intended to be done under this Act.

1. Ins. by Act 37 of 1986, s. 17 (w.e.f. 10-2-1987).

2. Subs. by Act 16 of 2023, s. 19, for the marginal heading (w.e.f. 17-8-2023).

3. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting license or mining lease” (w.e.f. 28-3-3021).

4. Subs. by Act 38 of 1999, s. 21, for “holder of such licence or lease” (w.e.f. 18-12-1999).

5. Subs. by s. 21, ibid., for “such lease or licence had been granted” (w.e.f. 18-12-1999).

6. Subs. by s. 21, ibid., for “prospecting or mining operations” (w.e.f. 18-12-1999).

7. Subs. by s. 21, ibid., for “such licence or lease” (w.e.f. 18-12-1999).

8. Subs. by s. 21, ibid., for “mining or prospecting operations” (w.e.f. 18-12-1999).

9. S. 25 re-numbered as sub-section (1) thereof by Act 56 of 1972, s. 14 (w.e.f. 12-9-1972).

10. Ins. by s. 14, ibid. (w.e.f. 12-9-1972).

3928. Rules and notifications to be laid before Parliament and certain rules to be approved by Parliament.―1[(1) Every rule and every notification made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.]

(2) Without prejudice to the generality of the rule making power vested in the Central Government, no rules made with reference to clause (c) of sub-section (2) of section 16 shall come into force until they have been approved, whether with or without modifications, by each House of Parliament.

2[(3) Every rule and every notification made by the State Government under this Act shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists one House, before that House.]

29. Existing rules to continue.―All rules made or purporting to have been made under the Mines and Minerals (Regulation and Development) Act, 1948 (53 of 1948), shall, in so far as they relate to matters for which provision is made in this Act and are not inconsistent therewith, be deemed to have been made under this Act as if this Act had been in force on the date on which such rules were made and shall continue in force unless and until they are superseded by any rules made under this Act.

3[30. Power of revision by Central Government.―The Central Government may, of its own motion or on an application made within the prescribed time by an aggrieved party,―

(a) revise any order made by a State Government or other authority in exercise of the powers conferred on it by or under this Act with respect to any mineral other than a minor mineral; or

(b) where no such order has been made by the State Government or other authority in exercise of the powers conferred on it by or under this Act with respect to any mineral other than a minor mineral within the time prescribed therefore, pass such order as it may think fit and appropriate in

the circumstances:

Provided that in cases covered by clause (b) the Central Government shall, before passing any

order under this clause, give an opportunity of being heard or to represent in the matter.] 4[30A. Special provisions relating to mining leases for coal granted before 25th October,

1949.―Notwithstanding anything contained in this Act, the provisions of sub-section (1) of section 9 and sub-section (1) of section 16 shall not apply to or in relation to mining leases granted before the 25th day of October, 1949, in respect of coal, but the Central Government, if it is satisfied that it is expedient so to do, may, by notification in the Official Gazette, direct that all or any of the said provisions (including any rules made under sections 13 and 18) shall apply to or in relation to such leases subject to such exceptions and modifications, if any, as may be specified in that or in any subsequent notification.] 5[30B. Constitution of Special Courts.―(1) The State Government may, for the purposes of providing speedy trial of offences for contravention of the provisions of sub-section (1) or sub-section (1A) of section 4, constitute, by notification, as many Special Courts as may be necessary for such area or areas, as may be specified in the notification.

(2) A Special Court shall consist of a Judge who shall be appointed by the State Government with the concurrence of the High Court.

1. Subs. by Act 56 of 1972, s. 15, for sub-section (1) (w.e.f. 12-9-1972).

2. Ins. by Act 25 of 1994, s. 10 (w.e.f. 25-1-1994).

3. Subs. by 10 of 2015, s. 20, for section 30 (w.e.f. 12-1-2015).

4. Ins. by Act 15 of 1958, s. 2 (w.e.f. 15-5-1958).

5. Ins. by Act 10 of 2015, s. 21 (w.e.f. 12-1-2015).

40(3) A person shall not be qualified for appointment as a judge of a Special Court unless he is or has been a District and Sessions Judge.

(4) Any person aggrieved by the order of the Special Court may prefer an appeal to the High Court within a period of sixty days from the date of such order.

30C. Special Courts to have powers of Court of Session.―Save as otherwise provided in this Act, the Code of Criminal Procedure, 1973 (2 of 1974), shall apply to the proceedings before the Special Court and for the purpose of the provisions of this Act, the Special Court shall be deemed to be a Court of Session and shall have all powers of a Court of Session and the person conducting a prosecution before the Special Court shall be deemed to be a public prosecutor.]

31. Relaxation of rules in special cases.―The Central Government may, if it is of opinion that in the interests of mineral development it is necessary so to do, by order in writing and for reasons to be recorded, authorise in any case the grant, renewal or transfer of any 1[mineral concession], or the working of any mine for the purpose of searching for or winning any mineral, on terms and conditions different from those laid down in the rules made under section 13.

32. [Amendments to Act 53 of 1948] Rep. by the Repealing and Amending Act, 1960 (58 of 1960), s. 2 and Sch. I (w.e.f. 26-12-1960).

33. Validation of certain acts and indemnity.―All acts of executive authority done, proceedings taken and sentences passed under the Mines and Minerals (Regulation and Development) Act, 1948 (53 of 1948), with respect to the regulation of mines and the development of minerals during the period commencing on the 26th day of January, 1950, and ending with the date of commencement of this Act by the Government or by any officer of the Government or by any other authority, in the belief or purported belief that the acts, proceedings of sentences were being done, taken or passed under the said Act, shall be as valid and operative as if they had been done, taken or passed in accordance with law, and no suit or other legal proceeding shall be maintained or continued against any person whatsoever, on the ground that any such acts, proceedings or sentences were not done, taken or passed in accordance with law.

1. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting license or mining lease” (w.e.f. 28-3-2021).

411[THE FIRST SCHEDULE [See sections 4(3), 5(1), 7(2) and 2[8(1), 8A(1), 10A, 10B(1), 10C(1), 11(1), 11B, 11C, 3[11D], 12A(1) and 17A(2A)]] SPECIFIED MINERALS PART A Hydro carbons/energy minerals

1. Coal and lignite.

4[PART B Atomic minerals

1. Minerals of the "rare earths" group containing Uranium and Thorium.

2. Phosphorites and other phosphatic ores containing Uranium.

3. Pitchblende and other Uranium ores.

4. Uraniferous allanite, monazite and other thorium minerals.

5. Uranium bearing tailings left over from ores after extraction of copper and gold, ilmenite and other titanium ores.

6. Beach sand minerals, that is, economic heavy minerals found in the teri or beach sands, which include ilmenite, rutile, leucoxene, garnet, monazite, zircon and sillimanite.] PART C Metallic and non-metallic minerals

1. Asbestos.

2. Bauxite.

3. Chrome ore.

4. Copper ore.

5. Gold.

6. Iron ore.

7. Lead.

5***

9. Manganese ore.

10. Precious stones.

11. Zinc.] 6[PART D Critical and Strategic Minerals

1. Beryl and other beryllium bearing minerals.

2. Cadmium bearing minerals.

3. Cobalt bearing minerals.

1. Subs. by Act 25 of 1994, s. 12, for Sch. I (w.e.f. 25-1-1994).

2. Subs. by Act 10 of 2015, s. 22, for “8(2)” (w.e.f. 12-1-2015).

3. Ins. by Act 16 of 2023, s. 20 (w.e.f. 17-8-2023).

4. Subs. by s. 20, ibid., for Part B (w.e.f. 17-8-2023).

5. Omitted by Act 38 of 1999, s. 24 (w.e.f. 18-12-1999).

6. Ins. by Act 16 of 2023, s. 20 (w.e.f. 17-8-2023).

424. Gallium bearing minerals.

5. Glauconite.

6. Graphite.

7. Indium bearing minerals.

8. Lithium bearing minerals.

9. Molybdenum bearing minerals.

10. Nickel bearing minerals.

11. Niobium bearing minerals.

12. Phosphate (without uranium).

13. Platinum group of elements bearing minerals.

14. Potash.

15. Minerals of the "rare earths" group not containing Uranium and Thorium.

16. Rhenium bearing minerals.

17. Selenium bearing minerals.

18. Tantalum bearing minerals.

19. Tellurium bearing minerals.

20. Tin bearing minerals.

21. Titanium bearing minerals and ores (ilmenite, rutile and leucoxene).

22. Tungsten bearing minerals.

23. Vanadium bearing minerals.

24. Zirconium bearing minerals and ores including zircon.] 431[SECOND SCHEDULE (See Section 9) RATES OF ROYALTY IN RESPECT OF MINERALS AT ITEMS 1 TO 9, 11 TO 40 AND 42 TO 55

1. Apatite and Rock Phosphate:

(i) Apatite Five per cent. of average sale price on ad valorem basis.

(ii) Rock Phosphate Twelve and half per cent. of average sale price on ad valorem basis.

(a) Above 25% P O 2 5 Six per cent. of average sale price on ad valorem

(b) Upto 25% P O 2 5 basis.

2. Asbestos:

(i) Chrysotile Eight Hundred and Eighty rupees per tonne.

(ii) Amphibole Fifteen per cent. of average sale price on ad valorem basis.

3. Barytes: Six and half per cent. of average sale price on ad valorem basis.

4. Bauxite and Laterite: (a) Metallurgical Grade:

Zero point six zero per cent. of London Metal Exchange Aluminium metal price chargeable on the contained aluminium metal in ore produced for those dispatched for use in alumina and aluminium metal extraction.

(b) Non Metallurgical Grade:

Twenty five per cent. of average sale price on ad valorem basis for those dispatched for use other than alumina & aluminium metal extraction.

2[4A. Beryllium Two per cent. of the average sale price of Beryllium metal chargeable on the Beryllium metal contained in the ore produced.]

5. Brown Ilmenite (Leucoxene), Ilmenite, Two per cent. of average sale price on ad

Rutile and Zircon: valorem basis.

3[6. Cadmium:

(i) Primary Four per cent. of the average sale price of Cadmium metal chargeable on the Cadmium metal contained in the ore produced.

(ii) By-product Two per cent. of the average sale price of

1. Subs. by Notifn. No. G.S.R. 630(E), for Sch. II (w.e.f. 1-9-2014).

2. Ins. by Notifn. No. G.S.R. 152(E), dated 1st March, 2024.

3. Subs. by ibid., dated 1st March, 2024.

44Cadmium metal chargeable on the by-product Cadmium metal contained in the ore produced.] 1[6A. Caesium: Two per cent. of the average sale price of Caesium metal chargeable on the Caesium metal contained in the ore produced.]

7. Calcite: Fifteen per cent. of average sale price on ad valorem basis.

8. China clay or Kaolin: (including ball clay and white shale, white clay)

(i) Crude Eight per cent. of average sale price on ad valorem basis.

(ii) Processed Twelve per cent. of average sale price on ad valorem basis. (including washed)

9. Clay others: Twenty rupees per tonne.

10. COAL:

A. Coal produced in all the States and Union territories except the State of West Bengal.

(1) Royalty on Coal:

The rate of royalty on coal shall be @ 14% (Fourteen percent.) ad-valorem on price of coal, as reflected in the invoice, excluding taxes, levies and other charges.

2[Provided that for the coal produced from the coal blocks or mines auctioned for the purpose of sale of coal (commercial mining), the rate of royalty @ 14% (Fourteen percent.) ad-valorem shall be calculated on the notional price or the actual price, whichever is higher.

Explanation:– For the purposes of this sub-entry,—

(i) Notional price means the price arrived at after adjusting the representative price with the sub-index of National Coal Index of the relevant basket of coal grade(s) on the date on which royalty becomes payable, where representative price shall be a product of;

(a) weights (volume of coal in different components of notified price, auction price and imported price channel) of the base year specified in the tender document for auction of relevant coal block or mine; and

(b) latest available prices of these components at the time of issuance of the tender document for auction of relevant coal block or mine.

(ii) Actual price means the sale invoice value of coal, net of statutory dues including taxes, levies, royalty, contribution to National Mineral Exploration Trust and District Mineral Foundation;

(iii) National Coal Index is the coal index determined in accordance with the guidelines dated the 4th June, 2020 issued by the Central Government in the Ministry of Coal and includes sub-indices notified for various grades of coal published by the Central Government.]

1. Ins. by Notifn. G.S.R. No. 858(E), dated 20th November, 2025.

2. Ins. by Notifn. G.S.R. No. 445 (E), dated 14th July, 2020.

45(2) Royalty on Lignite:

The rate of royalty on lignite shall be @ 6% (Six per cent.) ad-valorem on transfer price of lignite, as ratified by the Central Electricity Regulatory Commission (CERC) and for lignite sold to other consumers, the royalty shall be @ 6% (Six per cent.) ad-valorem on the price of lignite as reflected in the invoice, excluding taxes, levies and other charges.

(3) Royalty on coal and lignite produced from captive mines:

For calculating royalty on coal and lignite produced from captive mines, the price of coal and lignite shall mean the basic pithead price of Run of Mine (ROM) coal and lignite, as notified by the Coal India Ltd./Singareni Collieries Company Ltd./Neyvely Lignite Corporation, for similar Gross Calorific Value (GCV) of coal or lignite for the mines, nearest to that captive mine;

Provided that for the coal and lignite produced from the coal and lignite blocks, allocated under the Government dispensation route for commercial use, the respective ad-valorem royalty shall be applicable on the price notified by the respective State Governments.

(4) Adjustment of royalty against levying of cess:

For the States other than West Bengal, for the levy of cess or other taxes specific to coal bearing lands, the royalty allowed shall be adjusted for the local cesses or such taxes, so as to limit the overall revenue yield.

B. Coal produced in the State of West Bengal:

Royalty on coal in Rupees per tonne Group Quality of Coal Seven rupees only per tonne Group- Steel Gr-I I Steel Gr-II Washery-I Direct Feed Six rupees and fifty paise only per tonne Group- Washery-II II Washery-III Semi Coking Gr-I Semi Coking Gr-II Non-Coking Coal having GCV (Kcal/Kg) range of 6701 and above Non-Coking Coal having GCV (Kcal/Kg) range of 6401-6700 Non-Coking Coal having GCV (Kcal/Kg) range of 6101-6400 Five rupees and fifty paise only per tonne Group- Washery-IV III Non-Coking Coal having GCV (Kcal/Kg) range of 5801-6100 46Non-Coking Coal having GCV (Kcal/Kg) range of 5501-5800 Non-Coking Coal having GCV (Kcal/Kg) range of 5201-5500 Four rupees and thirty paise only per tonne Group- Non-Coking Coal having GCV (Kcal/Kg) range of 4901-5200 IV Non-Coking Coal having GCV (Kcal/Kg) range of 4601-4900 Non-Coking Coal having GCV (Kcal Kg) range of 4301-4600 Two rupees and fifty paise only per tonne Group- Non-Coking Coal having GCV (Kcal/Kg) range of 4001-4300 V Non-Coking Coal having GCV (Kcal/Kg) range of 3701-4000 Non-Coking Coal having GCV (Kcal/Kg) range of 3401-3700 Non-Coking Coal having GCV (Kcal/Kg) range of 3101-3400 Non-Coking Coal having GCV = < 3100

Explanation:

1. For the purpose of grading of coal, the specification of each grade of the coal shall be as prescribed under rule 3 of the Colliery Control Rules, 2004.

2. The Notification shall come into force on the date of its publication in the Official Gazette.] 1[10A. Cobalt:

(i) Primary Four per cent. of the average sale price of Cobalt metal chargeable on the Cobalt metal contained in the ore produced.

(ii) By-product Two per cent. of the average sale price of Cobalt metal chargeable on the by-product Cobalt metal contained in the ore produced.]

11. Chromite: Fifteen per cent. of average sale price on ad valorem basis.

12. Columbite-tantalite: Ten per cent. of average sale price on ad valorem basis.

13. Copper: Four point six two per cent. of London Metal Exchange Copper metal price chargeable on the contained copper metal in ore produced.

14. Diamond: Eleven point five per cent. of average sale price on ad valorem basis.

15. Dolomite: Seventy-five rupees per tonne.

1. Ins. by Notifn. No. G.S.R. 152(E), dated 1st March, 2024.

4716. Dunite: Thirty rupees per tonne.

1[16A. Emerald: Ten per cent. of average sale price on ad valorem basis.]

17. Felspar: Fifteen per cent. of average sale price on ad valorem basis.

18. Fire Clay: Twelve per cent. of average sale price on ad valorem basis. (including plastic, pipe, lithomargic and natural pozzolanic clay)

19. Fluorspar: Eight per cent. of average sale price on ad valorem basis. (also called fluorite) 2[19A. Gallium:

(i) Primary Four per cent. of the average sale price of Gallium metal chargeable on the Gallium metal contained in the ore produced.

(ii) By-product Two per cent. of the average sale price of Gallium metal chargeable on the by-product Gallium metal contained in the ore produced.]

20. Garnet:

(i) Abrasive Four per cent. of average sale price on ad valorem basis.

(ii) Gem Ten per cent. of average sale price on ad valorem basis.

1[20A. Glauconite and Potash: Two point five per cent. of price for Muriate of Potash published by the Government of India, Ministry of Chemicals and Fertilizers, Department of Fertilizers chargeable on the contained K O in ore produced for those 2 dispatched for making such Muriate of Potash.]

21. Gold: Four per cent. of London Bullion Market Association Price (commonly referred to as

(i) Primary London Price) chargeable on the gold metal in ore produced.

(ii) By-product gold Three point three per cent. of London Bullion Market Association Price (commonly referred to as London Price) chargeable on the by-product gold metal actually produced.

1. Ins. by Notifn. No. G.S.R. 204(E), dated 15th March, 2022.

2. Ins. by Notifn. No. G.S.R. 152(E), dated 1st March, 2024.

481[22. Graphite:

(i) With eighty per cent. or more fixed Two per cent. of average sale price on ad carbon valorem basis.

(ii) With less than eighty per cent. fixed Four per cent. of average on ad valorem basis.] carbon

23. Gypsum: Twenty per cent. of average sale price on ad valorem basis.

2[23A. Indium Two per cent. of average sale price of Indium metal chargeable on the Indium metal contained in the ore produced.]

24. Iron Ore: Fifteen per cent. of average sale price on ad valorem basis. (CLO, Lumps, fines and concentrates all grades)

25. Lead: (a) Eight point five per cent. of London Metal Exchange Lead metal price chargeable on the contained lead metal in ore produced.

(b) Fourteen point five per cent. of London Metal Exchange Lead metal price chargeable on the contained lead metal in the concentrate produced.

26. Limestone: Ninety rupees per tonne.

(i) L. D. Grade (less than 1.5 per cent. silica content)

(ii) Others Eighty rupees per tonne.

27. Lime kankar: Eighty rupees per tonne.

28. Limeshell: Eighty rupees per tonne.

3[28A. Lithium: Three per cent. of London Metal Exchange price chargeable on the Lithium metal in the ore produced.]

29. Magnesite: Three per cent. of average sale price on ad valorem basis.

30. Manganese Ore:

Five per cent. of average sale price on ad

(i) Ore of all grade valorem basis.

(ii) Concentrates One point seven per cent. of average sale price on ad valorem basis.

31. Marl: Sixty rupees per tonne.

1. Subs. by Notifn. No. G.S.R. 858(E), dated 20th November, 2025.

2. Ins. by Notifn. No. G.S.R. 152(E), dated 1st March, 2024.

3. Ins. by Notifn. No. G.S.R. 736(E), dated 12th October, 2023.

4932. Crude Mica, waste mica and scrap mica: Four per cent. of average sale price on ad valorem basis.

1[32A. Molybdenum: Seven point five per cent. of London Metal Exchange Molybdenum metal price chargeable on the contained Molybdenum metal in ore produced.]

33. 2[Monazite occurring and beach sand One hundred and twenty-five rupees per tonne. minerals]:

34. Nickel: Zero point one two per cent. of London Metal Exchange Nickel metal price chargeable on the contained nickel metal in ore produced.

3[34A. Niobium:

(i) Primary (produced from ores other than Three per cent. of average sale price of Niobium Columbite-tantalite) metal chargeable on the Niobium metal contained in the ore produced.

(ii) By-product (product from ores other Three per cent. of average sale price of Niobium than Columbite-tantalite) metal chargeable on the by-product Niobium metal contained in the ore produced.]

35. Ochre:

Twenty-four rupees per tonne.

1[35A

Platinum Group of Metals:

Four per cent. of London Bullion Market

(i) Platinum and Palladium;

Association price chargeable on the Platinum and Palladium metals in ore produced;

(ii) Rhodium, Iridium and Ruthenium;

Four per cent. of Johnson Mathey Precious Metals Management price chargeable on the Rhodium, Iridium and Ruthenium metals in ore produced;

(iii) Osmium:

Four per cent. of Osmium-Preis.com price chargeable on the Osmium metal in ore produced.]

36. Pyrites: Two per cent. of average sale price on ad valorem basis.

37. Pyrophyllite: Twenty per cent. of average sale price on ad valorem basis.

38. Quartz: Fifteen per cent. of average sale price on ad valorem basis.

1. Ins. by Notifn. No. G.S.R. 204(E), dated 15th March, 2022.

2. Subs. by Notifn. No. G.S.R. 736(E), dated 12th October, 2023.

3. Ins. by ibid. dated 12th October, 2023.

501[38A. Rare Earth Elements (produced from ores One per cent. of average sale price of Rare Earth other than Monazite occurring in beach Oxide (REO) chargeable on the Rare Earth Oxide sand minerals): contained in the ore produced.] 2[38B. Rhenium Two per cent. of the average sale price of Rhenium metal chargeable on the Rhenium metal contained in the ore produced.] 3[38C. Rubidium: Two per cent. of the average sale price of Rubidium metal chargeable on the Rubidium metal contained in the ore produced.]

39. Ruby: Ten per cent. of average sale price on ad valorem basis.

40. Sand (others): Twenty rupees per tonne.

41. Sand for stowing: * 4[41A. Selenium:

(i) Primary Four per cent. of the average sale price of Selenium metal chargeable on the Selenium metal contained in eh ore produced.

(ii) By-product Two per cent. of the average sale price of Selenium metal chargeable on the by-product Selenium metal contained in the ore produced.]

42. Shale: Sixty rupees per tonne.

43. Silica sand and moulding sand and Ten per cent. of average sale price on ad valorem

Quartzite: basis.

5[44. “Sillimanite, Kyanite and Andalusite: Twelve per cent. of average sale price on ad valorem basis.]

45. Silver: Seven per cent. of London Metal Exchange Price

(i) By-product chargeable on by-product silver metal actually produced.

(ii) Primary Silver Five per cent. of London Metal Exchange Silver Metal Price chargeable on the contained silver metal in ore produced.

46. Slate: Forty-five rupees per tonne.

47. Talc, Steatite and Soapstone: Eighteen per cent. of average sale price on ad valorem basis.

2[47A. Tantalum (produced from ores other than Columbite-tantalite):

Four per cent. of the average sale price of

(i) Primary Tantalum metal chargeable on the Tantalum metal contained in the ore produced.

1. Ins. by Notifn. No. G.S.R. 736(E), dated 12th October, 2023.

2. Ins. by Notifn. No. G.S.R. 152(E), dated 1st March, 2024.

3. Ins. by Notifn. No. G.S.R. 858(E), dated 20th November, 2025.

4. Ins. by Notifn. No. G.S.R. 152(E), dated 1st March, 2024.

5. Subs. by Notifn. No. G.S.R. 204(E), dated 15th March, 2022. *. Rates of royalty in respect of item No.41 relating to Sand for stowing revised vide notification number G.S.R. 214(E), dated the 11th April, 1997, will remain in force until revised through a separate notification by the Ministry of Coal.

51Two per cent. of the average sale price of

(ii) By-product Tantalum metal chargeable on the by-product Tantalum metal contained in the ore produced.

47B. Tellurium: Two per cent. of the average sale price of Tellurium metal chargeable on the Tellurium metal contained in the ore produced.]

48. Tin: Seven point five per cent. of London Metal Exchange Tin metal price chargeable on the contained tin metal in ore produced.

1[48A. Titanium (produced form ore other than Brown Ilmenite (Leucoxene), Ilmenite and Rutile occurring in Beach Sand Minerals found in teri or beach sands):

(i) Primary Four per cent. of the average sale price of Titanium metal chargeable on the Titanium metal contained in the ore produced.

(ii) By-product Two per cent. of the average sale price of Titanium metal chargeable on the by-product Titanium metal contained in the ore produced.] 1[49. Tungsten: Three per cent. of the average sale price of Tungsten Trioxide (WO ) on contained WO per 3 3 tonne of ore on pro rata basis.]

50. Uranium: Two per cent. of annual compensation amount received by M/s. Uranium Corporation of India Ltd., to be apportioned among the States on the basis of data provided by Department of Atomic Energy.

1[51. Vanadium:

Four per cent. of the average sale price of

(i) Primary Vanadium Pentoxide on contained V O per 2 5 tonne of ore on pro rata basis.

(ii) By-product Two per cent. of the average sale price of Vanadium Pentoxide on contained V O per 2 5 tonne of ore on pro rata basis.]

52. Vermiculite: Five per cent. of average sale price on ad valorem basis.

53. Wollastonite: Fifteen per cent. of average sale price on ad valorem basis.

54. Zinc: (a) Nine point five per cent. of London Metal Exchange Zinc metal price on ad valorem basis chargeable on contained zinc metal in ore produced.

1. Subs. by Notifn. No. G.S.R. 152(E), dated 1st March, 2024.

52(b) Ten per cent. of London Metal Exchange Zinc metal price on ad valorem basis chargeable on contained zinc metal in concentrate produced.

1[54A. Zircon: Two per cent. of average sale price on ad valorem basis.] 2[54B. Zirconium: One per cent. of the average sale price of Zirconium metal chargeable on the Zirconium metal contained in the ore produced.]

55. All other minerals not herein before Twelve per cent. of average sale price on ad specified (Agate, Corundum, Diaspore, valorem basis.

Felsite, Fuschite-Quartzite, Jasper, 3*** Perlite, Pyroxenite, Rock Salt, Selenite etc.)

Notes :-

1. * Rates of royalty in respect of item No. 10 relating to Coal (including Lignite) as revised vide

notification number G.S.R. 349(E), dated the 10th May, 2012 read with corrigendum G.S.R. 525(E), dated the 14th June, 2012 of the Government of India in the Ministry of Coal shall remain in force until revised through a separate notification by the Ministry of Coal.

2. ** Rates of royalty in respect of item No. 41 relating to Sand for stowing revised vide notification number G.S.R. 214(E), dated the 11th April, 1997, will remain in force until revised through a separate

notification by the Ministry of Coal.]

1. Subs. by Notifn. No. G.S.R. 152(E), dated 1st March, 2024.

2. Ins. by Notifn. No. G.S.R. 858(E), dated 20th November, 2025.

3. The entry “Kyanite,” omitted by Notifn. No. G.S.R 204(E), dated 15th March, 2022.

531[THIRD SCHEDULE (See section 9A) Rates of Dead Rent

1. Rates of dead rent applicable to the leases granted for low value minerals are as under:

RATES OF DEAD RENT IN RUPEES PER HECTARE PER ANNUM From 2nd Year of Lease 3rd and 4th Year of Lease 5th Year onwards 400 1000 2000

2. Two times the rate specified at paragraph 1 above in case of lease granted for medium value minerals.

3. Three times the rate specified at paragraph 1 above in case of lease granted for high value minerals.

4. Four times the rate specified at paragraph 1 above in case of lease granted for precious metals and stones.

Note:

1. For the purpose of this notification:—

(a) "precious metals and stones" means gold, silver, diamond, ruby, sapphire and emerald;

(b) "high value minerals" means semi-precious stones (agate, gem garnet), corundum, copper, lead, zinc, and asbestos (chrysotile variety);

(c) "medium value minerals" means chromite, manganese ore, kyanite, sillimanite, vermiculite, magnesite, wollastonite, perlite, diaspore, apatite, rock phosphate, fluorite (fluorspar), barytes, and iron ore;

(d) "low value minerals" means the minerals other than precious metals and stones, high value minerals and medium value minerals.]

1. Subs. by Notifn. No. G.S.R.631(E), for “Third Schedule” (w.e.f. 1-9-2014).

541[THE FOURTH SCHEDULE [See clause (ea) of section 3] Notified Minerals

1. Bauxite.

2. Iron ore.

3. Limestone.

4. Manganese ore.]

1. Ins. by Act 10 of 2015, s. 23 (w.e.f. 12-1-2015).

551[THE FIFTH SCHEDULE [See sections 8(4), 8A(8) and 17A(2C)] S. No. Mineral Additional amount on grant or extension of mining lease

1. Iron ore and chromite Equivalent to one hundred and fifty per cent. of the royalty payable 2[2. Minerals specified in Part-D of the First Nil Schedule 2A. Minerals specified in Seventh Schedule Equivalent to fifty per cent. of the royalty (other than those specified in Part-D of payable] the First Schedule)

3. Coal and lignite Equivalent to the royalty payable

4. Other minerals (other than coal and Equivalent to the royalty payable lignite)

Explanation.—For the purposes of this Schedule, the additional amount shall be in addition to royalty or payment to the District Mineral Foundation and 3[National Mineral Exploration and Development Trust] or any other statutory payment.

1. Ins. by Act 16 of 2021, s. 21 (w.e.f. 28-3-2021).

2. Ins. by Act 28 of 2025, s. 10 (w.e.f. 1-9-2025).

3. Subs. by s. 10, ibid., for “National Mineral Exploration Trust” (w.e.f. 1-9-2025).

56THE SIXTH SCHEDULE [See sections 8(5) and 8A(7A)]

(i) For non-auctioned captive mines (other than coal and lignite):

S. No. Mineral Additional Amount

1. Bauxite Equivalent to one hundred and fifty per

(i) Metallurgical Grade cent. of the royalty payable Equivalent to the royalty payable

(ii) Non-Metallurgical Grade

2. Chromite Equivalent to the royalty payable

(i) Up to forty per cent. of Cr2O3 Equivalent to two hundred per cent. of

(ii) forty per cent. and more of Cr2O3 and the royalty payable concentrates

3. Iron ore

(i) Lumps, ROM and concentrates Equivalent to two hundred and fifty per cent. of the royalty payable

(ii) Fines Equivalent to one hundred and fifty per cent. of the royalty payable

4. Limestone

(i) L.D. Grade (less than 1.5 per cent. silica Equivalent to two hundred per cent. of content) the royalty payable

(ii) Other grades Equivalent to the royalty payable

5. Manganese

(i) Less than thirty-five per cent. of manganese Equivalent to the royalty payable content

(ii) Thirty-five per cent. and above of Equivalent to five hundred per cent. of manganese content the royalty payable Minerals specified in Part-D of the First Nil] 1[5A Schedule Other minerals Equivalent to the royalty payable

6.

(ii) For auctioned captive mines (other than coal and lignite):

S. No. Quantity of sale Additional Amount Sale of mineral up to twenty-five per cent. of Nil

1. annual production Sale of mineral more than twenty-five per cent. Equivalent to fifty per cent. of the royalty

2. and up to fifty per cent. of annual production payable

1. Ins. by Act 28 of 2025, s. 11 (w.e.f. 1-9-2025).

57(iii) For coal and lignite:

Additional Amount S. No Type of mine Equivalent to two hundred per cent. of

1. (i) Captive coal and lignite mines, auctioned for the royalty payable power sector through reverse bidding under the Coal Mines (Special Provisions) Act, 2015 (11 of 2015) Equivalent to the royalty payable

(ii) Captive coal and lignite mines allocated through allotment route [other than mines covered under item no. (iv)] Equivalent to the royalty payable

(iii) Captive coal and lignite mines allocated through auction route [other than mines covered under item nos. (i) and (iv)]

(iv) For captive coal and lignite mines that were auctioned and allotted with condition allowing sale of coal up to twenty-five per cent. of annual production—

(a) for sale of coal up to twenty-five per Additional amount payable as per the cent. of annual production condition mentioned in the tender document or allotment document

(b) for sale of coal more than twenty-five Fifty per cent. of the royalty payable per cent. and up to fifty per cent. of annual production

Explanation.—For the purposes of this Schedule, it is hereby clarified that—

(i) the additional amount shall be in addition to royalty or payment to the District Mineral Foundation and 1[National Mineral Exploration and Development Trust] or any other statutory payment or payment specified in the tender document or the auction premium (wherever applicable).

(ii) Ad valorem royalty for the purpose of calculating the additional amount for coal and lignite shall be based on National Coal Index and Representative Price of coal excluding the taxes, levies and other charges.]

1. Subs. by Act 28 of 2025, s. 11, for “National Mineral Exploration Trust” (w.e.f. 1-9-2025).

581[THE SEVENTH SCHEDULE [See sections 3 (aaa), 10BA(2) and 10BA(3)] Minerals

1. Apatite.

2. Beryl and other beryllium bearing minerals.

3. Cadmium bearing minerals.

4. Cobalt bearing minerals.

5. Copper bearing minerals.

6. Diamond.

7. Gold.

8. Graphite.

9. Indium bearing minerals.

10. Lead bearing minerals.

11. Lithium bearing minerals.

12. Molybdenum bearing minerals.

13. Niobium bearing minerals.

14. Nickel bearing minerals.

15. Potash.

16. Platinum group of elements bearing minerals.

17. Minerals of ‘rare earths’ group.

18. Rhenium bearing minerals.

19. Rock Phosphate.

20. Selenium.

21. Silver.

22. Tantalum bearing minerals.

23. Tellurium bearing minerals.

24. Tin bearing minerals.

25. Titanium bearing minerals and ores (ilmenite, rutile and leucoxene).

26. Tungsten bearing minerals.

27. Vanadium bearing minerals.

28. Zinc bearing minerals.

29. Zirconium bearing minerals and ores including zircon.]

1. Ins. by Act 16 of 2023, s. 21 (w.e.f. 17-8-2023).

591[THE EIGHTH SCHEDULE [See section 15B (1), (2) and (5)] Type of mining lease Additional amount in Additional amount in case the included case the included mineral is not a mineral specified in Part-D mineral is a mineral of the First Schedule or the Seventh specified in Part-D of Schedule the First Schedule or the Seventh Schedule

(1) (2) (3)

(i) Auctioned Nil. Nil mining lease (including coal and lignite mining lease auctioned on revenue share basis for sale of coal).

(ii) Non-auctioned Nil. Equivalent to amount of royalty on the mining lease. included mineral.

(iii) Coal and Nil. Equivalent to amount of royalty on the lignite mining lease included mineral. auctioned on per tonne basis or power tariff basis.

Explanation.—For the purpose of this Schedule, it is hereby clarified that—

(i) the additional amount shall be in addition to royalty or payment to the District Mineral Foundation and National Mineral Exploration and Development Trust or any other statutory payment;

(ii) in case an additional amount specified in the Fifth Schedule is paid by the lessee in respect of a mineral, no additional amount under this Schedule shall be payable in respect of such included mineral;

(iii) in case of auctioned mines,—

(a) auction premium shall not be payable in respect of the included mineral if the included mineral is a mineral specified in Part-D of the First Schedule or the Seventh Schedule;

(b) auction premium shall be payable in respect of the included mineral if the included mineral is not a mineral specified in Part-D of the First Schedule or the Seventh Schedule.]

1. Ins. by Act 28 of 2025, s. 12 (w.e.f. 1-9-2025).

60STATEMENT OF OBJECTS AND REASONS The differentiation made between petroleum and other minerals in items 53 & 54 of the Union List has rendered separate enactments for the two necessary. The present Bill deals only with other minerals.

At present both are dealt with under the Mines & Minerals (Regulation Development) Act, 1948 (53 of 1948).

Opportunity has been taken of putting forward this legislation to make some necessary changes in the provisions of the existing Act dictated by experience. These changes to: (ⅰ) The prescription of a maximum limit of 50 square miles for a prospecting licence [Clause 6

(1)].

(ii) The grant of a second renewal to the holder of a mining lease for iron ore and bauxite under certain circumstances [Clause 8 (2)]:

(iii) The authorisation of the Central Government to undertake prospecting and mining operations in any land after prior consultation with the State Government [Clause 16]:

(iv) The promulgation of rules for the beneficiation of low grade ores (Clame17 (2) c):

(v) The recovery of royalty, dead rent and other sums due to Government in the same manner as arrears of land revenue [Clause 24]; and

(vi) The delegation of certain powers to State Governments and by State Governments to their subordinate authorities. (Clause 25):

A number of provisions hitherto dealt with under the rule making powers of the Central Government have been transferred to the Act in order to restrict the scope of subsidiary legislation. These provisions

are:-

(i) No concession shall be granted to a person not in possession of a certificate of approval.

(ii) The maximum period for which a prospecting licence or a mining lease may be granted [Clauses 7 &8]:

(iii) Authorisation of State Governments to prescribe prospecting licence fees within specified limits (Clause 9):

(iv) The power to prescribe rates of royalty for various minerals (Clause 10 and Schedule 2):

(v) Applications for prospecting licences and mining leases to be made in prescribe forms [Clause 11 (1)]:

(vi) The priorities to be observed in the grant of prospecting licences and mining lease [Clause 12

(2)]:

(vii) The power to make rules for regulating the grant of mineral concessions (Clause 14).

NEW DELHI: K.D. MALAVIYA.

22nd June, 1957. _________ 61