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Date: 2015-01-12 Category: Extra Ordinary State: Union Government Country: India

The Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015.

Issued by Ministry of Law and Justice · Legislative Department

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Executive Summary & Key Takeaways

Executive Summary: The Mines and Minerals Development and Regulation Amendment Ordinance, 2015, was promulgated by the President of India on January 12, 2015, to further amend the Mines and Minerals Development and Regulation Act, 1957. The ordinance introduces changes regarding mining leases, establishment of District Mineral Foundations and a National Mineral Exploration Trust, and regulations for notified minerals. It also defines the rights of existing applicants and procedures for granting mining concessions through auction. Key Points / Main Content: Definitions and Amendments: * Introduces the definition of "notified minerals" as specified in the Fourth Schedule. * Defines "prospecting licence-cum-mining lease" as a two-stage concession. * Substitutes references to the Companies Act, 1956 with the Companies Act, 2013. Lease Regulations: * Allows State Governments to prevent lease lapses under specific conditions, with a maximum of two revivals. * Requires Central Government approval for granting reconnaissance permits, prospecting licenses, or mining leases for minerals in Part A and Part B of the First Schedule. * Specifies that mining leases granted after the commencement of the Ordinance shall be for 50 years. * Extends existing leases for captive purposes until March 31, 2030, and for non-captive purposes until March 31, 2020, subject to conditions. * Mandates that leases be auctioned upon expiry, with the original holder having the first right of refusal for captive use leases. District Mineral Foundation and National Mineral Exploration Trust: * Establishes District Mineral Foundations in mining-affected districts to benefit affected persons and areas. * Requires holders of mining leases or prospecting licence-cum-mining leases to pay an amount to the District Mineral Foundation, not exceeding one-third of the royalty. * Establishes a National Mineral Exploration Trust to fund regional and detailed exploration. * Requires holders of mining leases or prospecting licence-cum-mining leases to pay two percent of the royalty to the National Mineral Exploration Trust. Granting of Mining Leases: * All applications received before the commencement of the Ordinance become ineligible, with exceptions for certain cases. * Specifies conditions under which existing permit holders or licensees retain rights for obtaining prospecting licenses or mining leases. * Outlines the process for granting mining leases for notified minerals through auction. * Introduces non-exclusive reconnaissance permits, without entitling the holder to claim any future concessions. * Provides for the transfer of mining leases or prospecting license-cum-mining leases granted via auction, subject to State Government approval. Regulatory Powers and Penalties: * Empowers the Central Government to make rules for regulating mining leases for minerals specified in Part B of the First Schedule. * Allows the Central Government to amend the First and Fourth Schedules to add or delete minerals. * Increases penalties for contravening provisions related to illegal mining, with imprisonment up to five years and fines up to five lakh rupees per hectare. Central Government Oversight: * Authorizes the Central Government to issue directions to State Governments regarding mineral resource conservation, policy matters, and sustainable development. * The Central Government may revise orders made by a State Government with respect to any mineral other than a minor mineral. Special Courts: * Provides for the establishment of Special Courts by State Governments for speedy trials of offences related to illegal mining. Impact Analysis: State Governments: Impact: Required to establish District Mineral Foundations, conduct auctions for mining leases, and comply with directions from the Central Government. Action Required: Establish District Mineral Foundations, notify areas for mining leases, and implement auction procedures. Mining Lease Holders: Impact: Subject to new rules regarding lease periods, payments to District Mineral Foundations and the National Mineral Exploration Trust, and transfer of leases. Action Required: Comply with new payment requirements, adhere to revised lease terms, and obtain necessary approvals for lease transfers. Central Government: Impact: Granted broader powers to issue directives and regulate mining activities. Action Required: Formulate rules and guidelines for auctions, payments to the National Mineral Exploration Trust, and other regulatory aspects. Local Communities in Mining-Affected Districts: Impact: Benefit from the establishment of District Mineral Foundations, which aim to improve the well-being of affected areas. Action Required: Engage with the District Mineral Foundation to ensure that projects and initiatives align with community needs. Existing Applicants for Mining Leases: Impact: Most prior applications are now ineligible, with specific exceptions. Action Required: Review eligibility based on the new criteria and comply with any applicable conditions for retaining rights.

Key Entities Referenced

Mines and Minerals Development and Regulation Amendment Ordinance, 2015: The central subject of the policy document, an ordinance further amending the Mines and Minerals Development and Regulation Act. Mines and Minerals Development and Regulation Act, 1957: The principal Act that is being amended by the ordinance. President of the Republic of India: The authority promulgating the Ordinance. Parliament: The legislative body that was not in session, leading to the ordinance being promulgated. Constitution: The legal foundation upon which the President exercises the power to promulgate ordinances via article 123. Central Government: The governing body responsible for various approvals, regulations, and prescriptions outlined in the ordinance. State Government: The governing body responsible for granting leases, establishing District Mineral Foundations and other functions as outlined in the ordinance. District Mineral Foundation: A trust to be established by State Governments in districts affected by mining operations, funded by mining lease holders.
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Wael We Ste UeHe—(T7)04/0007/2003—15 REGISTERED NO. DL—(N)04/0007/2003—15 Gazette of Gudia EXTRAORDINARY wt If— wag 1 PART II — Section 1 wit & verfera PUBLISHED BY AUTHORITY He 3] ay fered, Bra, stad 12, 2015/ Thy 22, 1936 (ze) No. 3] NEW DELHI, MONDAY, JANUARY 12, 2015/PAUSA 22, 1936 (SAKA) a am A Rr Ys Ser ot ore & fared fe ae ser deer B ET aI as Separate paging is given to this Part in order that it may be filed as a separate compilation. MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 12th January, 2015/Pausa 22, 1936 (Saka) THE MINES AND MINERALS (DEVELOPMENT AND REGULATION) AMENDMENT ORDINANCE, 2015 No.'3 oF 2015 Promulgated by the President in the Sixty-fifth Year of the Republic of India. An Ordinance further to amend the Mines and Minerals (Development and Regulation) Act, 1957. WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action; Now, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance:- CHAPTER I PRELIMINARY 1. (1) This Ordinance may be called the Mines and Minerals Short title and (Development and Regulation) Amendment Ordinance, 2015, ComMmencemient. (2) It shall come into force at once.2 THE GAZETTE OF INDIA EXTRAORDINARY {Parr {]—- Amendment of 2. In the Mines and Minerals (Development and Regulation) section 3. Act, 1957 (hereinafter referred to as the principal Act), In 67 .11957, section 3, - (i) after clause (e), the following clause shall be inserted, namely:- - ‘(ea) “notified minerals” means any mineral specified in the Fourth Schedule;’; (ii) after clause (g), the following clause shall be inserted, namely:- . ‘(ga) “prospecting licence-cum-mining lease” means a two stage concession granted for the purpose of undertaking prospecting operations followed by mining operations;’; (iii) in clause (hb), the word “and” occuring at the end shall be omitted; (iv) after clause (hb), the following clause shall be inserted, namely:- ‘(he) “Special Court” means a Court of Session designated as Special Court under sub-section (1) of section 30B; and’. Amendment of 3. In section 4 of the principal Act, in the second proviso to section 4. sub-section (1), for the words and figures “section 617 of the Companies Act, 1956”, the words, brackets and figures “clause L of 1956. (45) of section 2 of the Companies Act, 2013, and any such ‘8 of 2013. entity that may be notified for this purpose by the Central Government” shall be substituted. 4. In section 4A of the principal Act, in sub-section (4), for the Amendment of section 4A. provisos, the following provisos shall be substituted, namely:- “Provided that the State Government may, on an application made by the holder of such lease before it lapses and on being satisfied that it will not be possible for the holder of the lease to undertake mining operations or to:continue such operations. for reasons beyond his control, make an order, within a period of three months from the date of receiving of such application, subject to such conditions as may be prescribed, to the effect thatSec. 1] THE GAZETTE OF INDIA EXTRAORDINARY such lease shall not lapse: Provided further that such lease shall lapse on failure to undertake mining operations or inability to continue the same before the end of a period of six months from the date of the order of the State Government: Provided also that the State Government may, on an application made by the holder of a lease submitted within a period of six months from the date of its lapse and on being satisfied that such non-commencement or discontinuance was due to reasons beyond the control of the holder of the lease, revive the lease within a period of three months from the date of receiving the application from such prospective or retrospective date as it thinks fit but not earlier than the date of lapse of the lease: Provided also that no lease shall be revived under the third proviso for more than twice during the entire period of the lease.”. 5. In section 5 of the principal Act, - Amendment of section 5. (A) in sub-section (1), - (i) in clause (a), for the words, brackets and figures “sub- section (1) of section 3 of the Companies Act, 1956”, the 1 of 1956. words, brackets and figures “clause (20) of section 2 of the Companies Act, 2013” shall be substituted; 18 of 2013. (ii) for the proviso, the following proviso shall be substituted, namely:- “Provided that in respect of any mineral specified in Part A and Part B of the First Schedule, no reconnaissance permit, prospecting licence or mining lease shall be granted except with the previous approval of the Central Government.”; (B) in sub-section (2),- (i) for clause (a), the following clause shall be substituted, namely:-4 THE GAZETTE OF INDIA EXTRAORDINARY {Part I]-— “(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:”; (11) after clause (b), the follawing proviso shall be inserted, namely:- “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.”. Amendment of 6. In section 6 of the principal Act, in sub-section (1), in clause muon (b), for the proviso, the following proviso shall be substituted, namely:- “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.” Substituionof 7, For section 8 of the principal Act, the following section section 8. . shall be substituted, namely:- “8. (1) The provisions of this section shall apply to Periods for . : : ° which mining minerals specified in Part A of the First Schedule. leases may be oO . . _. granted or (2) The maximum period for which a mining lease may be renewed. 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.”.Sec. }] THE GAZETTE OF INDIA EXTRAORDINARY 5 8. After section 8 of the principal Act, the following section Insertion of new shall be inserted, namely:- section 8A. “8A. (1) The provisions of this section shall apply to minerals other than those specified in Part A Period of prant of and Part B of a mining lease for the First Schedule. minerals other than coal, lignite and atomic minerals, (2) On and from the date of the commencement of the Mines and Minerals (Development and” Regulation) Amendment Ordinance, 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 Ordinance, 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. (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 Ordinance, 2015, where mineral is used for captive purpose, shall be extended and be deemed to have been extended upto a period ending on 31* 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 Ordinance, 2015, where mineral is used for other than captive purpose, shall be extended and be deemed to have been extended upto a period ending on 31 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 the6 THE GAZETTE OF INDIA EXTRAORDINARY [Part I[—- condition that all the terms and conditions of the lease have been complied with. (7) Any holder of a lease granted, where mineral is used for captive purpose, shall have the right of first refusal at the time of auction held for such lease after the expiry of the lease period. (8) Notwithstanding anything contained in this section, the period of mining leases, including existing mining leases, of Government companies or corporations shall be such as may be prescribed by the Central Government. (9) The provisions of this section, notwithstanding anything contained therein, shall not apply to a mining lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015, for which renewal has been rejected, or which has been determined, or lapsed. ”. Insertion ofnew 9, After section 9A of the principal Act, the following sections 9B and 9C sections shall be inserted, namely:- District Mineral “9B. (1) In any district affected by mining related Foundation. operations, the State Government shall, by notification, establish a trust, as a non-profit body, to be called the District Mineral Foundation. (2) The object of the District Mineral Foundation shall be to work for the interest and benefit of persons, and areas affected by mining related operations in such manner as may be prescribed by the State Government. (3) The composition and functions of the District Mineral Foundation shall be such as may be prescribed by the State Government. (4) The holder of a mining lease or a prospecting licence- cum-mining lease 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.Sec. 1] THE GAZETTE OF INDIA EXTRAORDINARY 7 9C. (1) The Central Government shall, by notification, National Mineral establish a Trust, as a non-profit body, to be called the Exploration Trust. National Mineral Exploration Trust. (2) The object of the Trust shall be to use the funds accrued to the Trust for the purposes of regional and detailed exploration in such manner as may be prescribed by the Central Government. (3) The composition and functions of the Trust shall be such as may be prescribed by the Central Government. (4) The holder of a mining lease or a prospecting licence- cum-mining lease shall pay to the Trust, a sum equivalent to two per cent. of the royalty paid in terms of the Second Schedule, in such manner as may be prescribed by the Central Government.” 10. After section 10 of the principal Act, the following - Insertion of nev sections shall be inserted, namely:- and 10C ate “10A. (1) All applications received prior to the date of Rights of existing commencement of the Mines and Minerals (Development oieelieante and Regulation) Amendment Ordinance, 2015, shall become ineligible. (2) Without prejudice to sub-section (1), the following shall remain eligible on and from the commencement of the Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015: — (a) applications received under section 1 1A of this Act; (b) where before the commencement of ‘the © said Ordinance.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. -THE GAZETTE OF INDIA EXTRAORDINARY [Part lI— (1) 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 Centra! Government; (1) has not committed any breach of the terms and conditions of the reconnaissance permit or the prospecting licence; (iit) has not become ineligible under the provisions of this Act; and (iv) has not failed to apply for grant of prospecting licence or mining lease, as the case may be, within a period of three months after the expiry of reconnaissance permit or prospecting licence, as the case may be, or within such further period not exceeding six months as may be extended by the State Government; (c) where the Central Government has communicated previous approval as required under sub-section (1) of section 5 for grant of Grant of mining lease in respect of notified minerals through auction. a mining lease, or if a letter of intent (by whatever name called) has been issued by the State Government to grant a mining lease, before the commencement of the Mines and Minerals (Development and Regulation) Amendment Ordinance, 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 Ordinance: 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 sub-section except with the previous approval of the Central Government. 10B. (1) The provisions of this section shall not be applicable to cases covered by section 10A or section 17A or to minerals specified in Part A or Part B of the First Schedule or to land in respect of which the minerals do not vest in the Government. (2) Where there is inadequate evidence to show the existence of mineral contents of any notified mineral in respect of any area, a State Government may, afterSec. 1] THE GAZETTE OF INDIA EXTRAORDINARY obtaining the previous approval of the Central Government, grant a prospecting licence-cum-mining lease for the said notified mineral in such area in accordance with the procedure laid down in section 11. (3) In areas where the existence of mineral contents of any notified mineral is established in the manner prescribed by the Central Government, the State Government shall notify such areas for grant of mining leases for such notified mineral, the terms and conditions subject to which such mining leases shall be granted, and any other relevant conditions, in such manner as may be prescribed by the Central Government. (4) For the purpose of granting a mining lease in respect of any notified mineral in such notified area, the State Government 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) 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: Provided that the terms and conditions may include the reservation of any particular mine or mines for a particular end use. and subject to such condition which aflow only such eligible end users to participate in the auction. (7) The State Government shall grant a mining lease to an applicant selected in accordance with the procedure laid down in this section in respect of such notified mineral in any notified area.10. THE GAZETTE OF. INDIA EXTRAORDINARY | 10C. (1) Non-exclusive reconnaissance permits.may be Grant of non- granted in respect of any. notified mineral or non-notified exclusive reconnaissance mineral .or a group of specified minerals, other, than permits. minerals specified Substitution of section 11. Grant of prospecting licence-cum- mining lease through auction in respect of minerals other than notified minerals. in Part A.or Part.B of. the First Schedule, subject to such terms and conditions as may be prescribed. by the Central Government. (2) The holder of such non-exclusive reconnaissance permit shall not be entitled to make any. claim for the grant of any prospecting licence-cum-mining lease or a mining lease.” 11. For section 11 of the principal Act, the following section shall be substituted, namely:- “11. (1) The provisions of this section shall not be applicable to cases covered by section 10A or section 17A or to minerals specified in Part A or Part B of the First Schedule or to land [Part .l]— in respect of which 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 prospecting licence-cum-mining lease for minerals. other than notified minerals in accordance with the procedure laid down in this section. (4) The State Government shall notify the areas in which ‘prospecting licence-cum-mining leases shall be granted for any minerals other than notified minerals, the terms and conditions subject to which such prospecting licence- cum-mining leases: shall be granted, and any other yelevant conditions, in such manner as may be prescribed by the Central Government. (5) For the purpose of granting prospecting licence-cum- mining leases, the State Government shall select, through auction by method of competitive bidding, including e- auction, an applicant who fulfils the eligibility conditions as specified in this Act.THE GAZETTE OF INDIA EXTRAORDINARY Sec. 1} 11 (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 include a share-in the production of the mineral, or any payment linked to the royalty payable, or any. other relevant parameter, or any combination or modification of them. (7) Without prejudice to the generality of sub-section (6), the Central Government shall, if it is of the opinion that it is necessary and expedient to do so, prescribe terms and conditions, procedure and bidding parameters in respect of categories of minerals, size and area of mineral d2posits and a State or States, subject to which the auction shall be conducted. (8) The State Government shall grant a prospecting licence-cum-mining lease to an applicant selected in accordance with the procedure laid down in this section. (9) The holder of a prospecting licence-cum-mining lease shall be required to complete, within the period laid down in section 7, the prospecting operations satisfactorily as specified in the notice inviting applications. (10) A holder of a prospecting licence-cum-mining lease, who completes the prospecting operation as laid down in sub-section (9) and establishes the existence of mineral contents in the area in conformity with such parameters as may be prescribed for this purpose by the Central Government, shall be required to apply for a mining lease for such area and shall have the right to get the mining lease and thereafter undertake mining operations in accordance with the provisions of this Act.”. 12. After section 11A of the principal Act, the following sections shall be inserted, namely:- “11B. The Central Government may, by notification in the Official Gazette, make rules for regulating the grant Insertion of new sections 11B and lic. of Power of Central Government to mining leases or other mineral concessions in respect of make rules for minerals specified in Part B of the First Schedule and for regulating atomic purposes connected therewith, and the State Government minerals specified under Part B of shall grant a reconnaissance permit, prospecting licence or First Schedule. mining lease in respect of any such mineral in accordance with such rules.12 ‘THE GAZETTE OF INDIA EXTRAORDINARY {Part I]— Power of 11C. The Central Government may, by notification in the Central Official Gazette, amend the First Schedule and the Fourth aGomveenrdn menFti rtsot Schedule so as to : add or delete any mi.n eral as m. ay be Schedule and specified in the notification.”. Fourth : Schedule. Insertion of 13, After section 12 of the principal Act, the following n2eAw. section section shall be inserted, namely:- Transfer of “12A. (1) The provisions of this section shall not apply to mineral minerals specified. in Part, A or Part B of the First concessions, Schedule. (2) A holder of a mining lease or a prospecting licence- cum-mining lease granted in accordance with the procedure laid down in section 10B or section 11 may, with the. previous approval of the State Government, transfer his mining. lease or prospecting licence-cum- mining lease, 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 prospecting licence- cum- mining lease ‘in accordance with the provisions of this Act and the rules made thereunder. - (3) If the State Government does not convey its previous approval for transfer of such mining lease or prospecting licence-cum-mining lease, 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 prospecting licence-cum-mining lease 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 prospecting licence-cum-minhing lease, 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:Sec. 1] THE GAZETTE OF INDIA EXTRAORDINARY 13 Provided that no such transfer of a mining. lease or of a prospecting licence-cum-mining lease, shall be made in contravention of any condition subject to which the mining lease or the prospecting licence-cum-mining lease 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 prospecting licence- cum-mining lease, as the case may be. (6) The transfer of mineral concessions shall be allowed only for concessions which are granted through auction.” 14. In section 13 of the principal Act, in sub-section (2), — (i) after clause (j), the following clause shall be inserted, namely:- “Gj) parameters of existence of mineral contents under clause (a) of sub-section (2) of section 5;”; (11) in clause (qq), the word “and” occuring at the end shall be omitted; (iti) after clause (qq), the following clauses shall ‘be inserted, namely:- “(qqa) the amount of payment :to be. made to the: District Mineral Foundation under sub-section Amendment of section 13 (4) of.section 9B; (qqb) the manner of usage of funds accrued to the National Mineral Exploration Trust under sub-section (2) of section 9C: (qqc) the composition and fimetions of the National Mineral Exploration Trust under sub-section (3) of section 9C;14 ‘THE GAZETTE OF INDIA EXTRAORDINARY [Part li— (qqd) the manner of payment of amount to the National Mineral Exploration Trust under sub-section (4) of section 9C; (qqe) the terms and conditions subject to which mining leases shall be granted under sub-section (3) of section 10B; (qqf) the terms and conditions, and procedure, subject to which the auction shall be conducted including the bidding parameters for the selection under sub-section (5) of section 10B; (qqg) the time limits for various stages in processing applications for grant of mining lease or prospecting licence-cum-mining lease under sections 10B, 11, 11A, 11B, and section 17A, and their renewals; (qqh) the terms and conditions for grant of non-exclusive reconnaissance permits under sub-section (1) of section 10C; (qqi) the terms and conditions for grant of prospecting licence-cum-mining leases 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; (qqk) the amount to be payable by a Government company or corporation, or a joint venture for grant of mining lease under sub-section (2C) of section 17A; and”. Amendment of 15. In section 15 of the principal Act, after sub-section (3), the section >: following sub-section shall be inserted, namely:- “(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 under sub-section (2) of section OB;Sec. 1] THE GAZETTE OF INDIA EXTRAORDINARY 15 (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.”. 16. After section 15.of:the principal Act, the following section shall.be. inserted, namely:- “15A. The State Government may prescribe the payment by all holders of concessions related to minor minerals of amounts Insertion of new section 15A. Power of State Government to to the District Mineral Foundation of the district collect funds for _in which the mining operations are carried on.”. District | Mineral Foundation in case of minor minerals. 17. Im section 17A of the principal Act, after sub-section, (2), Amendment of section 17A. the following sub-sections shall be inserted, namely:- “(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, the State Government shall grant prospecting licence or mining lease, as the case may be, in respect of such area to such Government company or corporation: Provided that in respect of any mineral specified in Part A and Part B of the First Schedule, the State Government shall grant the prospecting licence or mining lease, 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.16 THE GAZETTE OF INDIA EXTRAORDINARY {Part I]— (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 may be prescribed by the Central Government.”. Insertion of 18, After section 20 of the principal Act, the following section ane0w. section shall be inserted, namely:- Power of “20A. (1) Notwithstanding anything contained in this Central Act, the Central Government may issue such directions to Gisosvuee rnment to the State Governments, as may be requi.red for the directions. 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,Sec. 1] THE GAZETTE OF INDIA EXTRAORDINARY 17 (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.”. 19. In section 21 of the principal Act, for sub-sections (1) and Amendment — of (2), the following sub-sections shall be substituted, namely:- section 21. “(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.”. 20. For section 30 of the principal Act, the following section Substitution of -shall be substituted, namely:- section 30. “30. The Central Government may, of its own motion or Power of on an application made within the prescribed time by an revision by aggri; eved party, - CGeonvterranlment. (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 mineral18 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— within the time prescribed therefor, 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.”. Insertion of new 21. After section 30A of the principal Act, the following “ae 30B and sections shall be inserted, namely:- Constitution of “30B. (1) The State Government may, for the purposes of Special Courts. 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. (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.”. special Courts to 30C. Save as otherwise provided in this Act, the Code of pave powers OF Criminal Procedure, 1973, shall apply to the proceedings 2 of 1974. 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. Amendment of 22. In the principal Act, in the First Schedule, for the figures First Schedule. and brackets “8(2)”, the figures, brackets, letters and word “8(1), SA(1), 10A, 10B(1), 10C(1), 11(1), 11B, 11C, 12AQ), and 17A(2A)” shall be substituted.Sec. 1] THE GAZETTE OF INDIA EXTRAORDINARY 19 23. In the principal Act, after the Third Schedule, the Insertion of a new following Schedule shall be inserted, namely:- Schedule. “THE FOURTH SCHEDULE [See clause (ea) of section 3] Notified Minerals 1. Bauxite. 2. Iron ore. 3. Limestone. 4 Manganese ore.”. 24. (1) If any difficulty arises in giving effect to the provisions Power to remove of the Mines and Minerals (Development and Regulation) “!!*ultes: Amendment Ordinance, 2015, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of the said Ordinance, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of a period of two years from the commencement of the said Ordinance. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. PRANAB MUKHERJ EE, President. DR. SANJAY SINGH, Secy. to the Government of India. PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI—2015. GMGIPMRND-—4116GK(CRC)—12-01-2015.

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