Notes On MMDR

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CHAPTER I
PRELIMINARY
1. Short title, extent and commencement. ―
i) Act: - Mines and Minerals (Development and Regulation)
Amendment Act, 2023.
ii) It extends to the whole of India.
iii) came into force on 9th August, 2023.
2. Declaration as to expediency of Union Control. ―
The Union is declared to be in the public interest to regulate mines and
develop minerals under its control.
3. Definitions. ―
In this Act, unless the context otherwise requires, ―
i) A "composite licence" is a two-stage concession granted for
seamless prospecting and mining operations.
ii) "Dispatch" refers to the removal of minerals or mineral
products from a leased area, including the consumption of
these products within the leased area.
iii) The term "exploration licence" refers to a license granted for
reconnaissance or prospecting operations in minerals listed in
the Seventh Schedule.
iv) The term "government company" is defined as per clause (45)
of section 2 of the Companies Act, 2013 (18 of 2013).
v) The term "leased area" refers to the specific area within the
mining lease that permits mining operations, including non-
mine activities, as defined in clause (i).
vi) The term "minerals" encompasses all minerals, except for
minerals oils.
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vii) The term "minerals concession" refers to a combination of

reconnaissance permits, prospecting licenses, mining leases,
composite licenses, or exploration licenses.
viii) "Mineral oils" encompasses natural gas and petroleum.
ix) A “mining lease” is a lease granted for mining operations,
including a sub-lease granted for the same purpose.
x) "Mining operations" refer to any activities conducted for the
purpose of winning any mineral.
xi) “Minor minerals” include building stones, gravel, clay, and
sand used for prescribed purposes, as declared by the Central
Government in the Official Gazette.
xii) "Notified minerals" refer to any mineral specified in the
Fourth Schedule.
xiii) The term "prescribed" refers to the rules established under
this Act.
xiv) “Production” refers to the acquisition or raising of minerals
within a leased area for processing or dispatch purposes.
xv) A “prospecting license” is a license granted for the purpose of
conducting prospecting operations.
xvi) “Prospecting operations” refer to activities aimed at
exploring, locating, or proving a mineral deposit.
xvii) “Reconnaissance operations” involve preliminary mineral
prospecting through regional, aerial, geophysical, or
geological surveys, geological mapping, pitting, trenching,
drilling, and sub-surface excavation.
xviii) A “reconnaissance permit” is a permission granted for the
purpose of conducting reconnaissance operations.
xix) The term "schedule" refers to the Schedules that have been
added to the Act.
xx) A “Special Court” is a Court of Session designated as such
under sub-section (1) of section 30B.
xxi) The Mines Act, 1952 (35 of 1952) assigns the meanings to the
expressions "mine" and "owner".
Explanation-
A mine remains a mine until its mineable mineral reserve is
exhausted, and may have different owners from the first mining
lease until the reserve's exhaustion.
The term "mineral reserve" refers to the economically mineable
portion of a measured and indicated mineral resource.
CHAPTER II
GENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND
MINING OPERATIONS
4. Prospecting or mining operations to be under licence or lease. ―

-No person can undertake reconnaissance, prospecting, or mining
operations in any area without a reconnaissance permit, prospecting
license, exploration license, or mining lease granted under this Act and
its rules, unless this sub-section affects operations under a prospecting
license or mining lease granted before the Act's commencement.
-This sub-section does not apply to prospecting operations conducted
by the Geological Survey of India, the Indian Bureau of Mines, the
Atomic Minerals Directorate for Exploration and Research, State
Government Directorates of Mining and Geology, and the Mineral
Exploration Corporation Limited, a government company under the
Companies Act, 2013 (18 of 2013), or other entities, subject to Central
Government conditions.
-This sub-section does not apply to any mining lease in force before
the commencement of this Act in the Union territory of Goa, Daman,
and Diu.
-(1A) This Act and its rules prohibit any person from transporting,
storing, or causing to be transported or stored any mineral in any other
manner.
-(2) The Act allows State Governments to undertake reconnaissance,
prospecting, or mining operations for specified minerals in areas not
already held under any mineral concession, after consultation with the
Central Government and following rules made under section 18, after
prior consultation with the Central Government.
4A. Termination of prospecting licences, exploration licences or

mining leases. ―
(1) The Central Government can request the State Government to
terminate a prospecting license or exploration license or mining lease
for any mineral other than a minor one in any area or part thereof,
after consultation with the State Government. This is done to regulate
mines and mineral development, preserve the natural environment,
control floods, prevent pollution, avoid public health risks, ensure
safety of structures, conserve mineral resources, and maintain safety
in mines.
(2) The State Government can prematurely terminate prospecting
licenses or mining leases for minor minerals if it deems it necessary for
various reasons, such as regulation of mines, environmental
preservation, flood control, pollution prevention, public health, and
safety of buildings, monuments, or other structures, or for other
purposes as deemed fit.
(3) Premature termination of prospecting licenses, exploration
licenses, or mining leases requires a reasonable opportunity for the
holder to be heard.
(4) If a mining lease holder fails to produce and dispatch for two years
after the lease's execution or discontinues production and dispatch for
two years, the lease will lapse upon the expiry of the two-year period
or discontinuation of production and dispatch.
The State Government can extend a lease by one year within three
months of receiving an application from the holder of the lease, if they
cannot continue production and dispatch due to factors beyond their
control, and this extension cannot be granted more than once during
the entire lease period.
The lease will lapse if production and dispatch are not undertaken or
continue before the end of the extended period.
4B. Conditions for efficiency in production. –

The Central Government can, despite section 4A, establish conditions

for mining lease holders who have obtained rights, approvals, and
clearances under section 8B to ensure sustained mineral production in
the country.
5. Restrictions on the grant of mineral concession. ―

(1) The State Government is prohibited from granting a mineral
concession to any individual unless such individual—
a) An Indian national or company is defined in clause (20) of section 2
of the Companies Act, 2013 (18 of 2013).
b) meets the prescribed conditions.
The Central Government must approve any reconnaissance permit,
prospecting license, or mining lease for any specified mineral in Part A
and Part B of the First Schedule.
The Central Government's previous approval is not required for the
grant of mineral concessions for specified minerals in Part A of the First
Schedule, where—
The Central Government has issued an allocation order under section
11A, a notification of area reservation under sub-sections (1A) or (2)
of section 17A, or a vesting or allotment order under the provisions of
the Coal Mines (Special Provisions) Act, 2015 (11 of 2015).
Explanation-This sub-section defines an individual as an Indian
national for the purposes of this context.
a) The statement states that for a firm or association of individuals,
all members must be Indian citizens, and
b) for an individual, only if they are also Indian citizens.
The Central Government may not grant a composite licence or mining
lease for any minerals specified in Part B of the First Schedule in an
area whose grade is equal to or above a specified threshold value.
(2) No mining lease shall be granted by the State Government unless

it is satisfied that―
a) The Central Government has prescribed parameters for the
application for a mining lease, indicating the existence of mineral
contents in the area.
b) The Central or State Government has approved a mining plan for
the development of mineral deposits in the specified area.
A mining lease can be granted upon filing a mining plan, following a
State Government-established system for preparation, certification,
and monitoring, with Central Government approval.
6. Maximum area for which mineral concession may be granted. ―

1) No person can acquire any mineral or prescribed group of
associated minerals in a state—
(a) one or more prospecting licenses covering over 25 square

kilometres; or
i) A reconnaissance permit, often covering thousands of square
kilometers, is issued for a total area of one or more.
The area granted under a single reconnaissance permit must not
exceed five thousand square kilometers.
ii) One or more exploration licenses covering over 5,000 square
kilometers.
ai) One or more exploration licenses covering over 5,000 square
kilometers, provided the area under a single license does not exceed
1,000 square kilometers.
(b) one or more mining leases covering over ten square kilometers in
total area.
The Central Government can increase the area limits for prospecting
licenses or mining leases in the interest of mineral or industry
development, based on specific minerals, deposits, or locations in a
specific area, for reasons recorded in writing.
(c) any mineral concession in an area that is not compact or contiguous

is not allowed.
The State Government may, for reasons recorded in writing, permit
individuals to acquire a mineral concession in non-compact or
contiguous areas if it deems it necessary for the development of any
mineral.
(2) a person acquiring a mineral concession for themselves, either by

themselves or in the name of another person.
(3) The total area under a mineral concession held by a person as a
member of a co-operative society, company, or other corporation, or
a Hindu undivided family or partner of a firm, must not exceed the
total area specified in subsection (1), ensuring that the total area held
by the person does not exceed the specified area.
7. Periods for which prospecting licences may be granted or

renewed. ―
1) The maximum duration for which a reconnaissance permit or
prospecting license can be granted is three years.
2) The State Government may specify a longer period for renewing a
prospecting license to enable the licensee to complete operations.
A prospecting license can only be granted for a maximum of five years.
No prospecting license granted for a mineral in Part A and Part B of the
First Schedule can be renewed without prior Central Government
approval.
8. Periods for which mining leases may be granted or renewed. ―

1) This section applies to minerals listed in Part A of the First Schedule.
2) The maximum duration for which a mining lease can be granted is
30 years.
The mining lease granted must not be less than twenty years in
duration.
3) A mining lease can be renewed for up to twenty years with the
Central Government's prior approval.
4) The Central Government may prescribe the duration of mining
leases for Government companies or corporations, including existing
leases, despite any other provisions in this section.
The period of mining leases, except those granted through auction,
can be extended upon payment of an additional amount as specified
in the Fifth Schedule.
The Central Government can amend the Fifth Schedule by notification
in the Official Gazette and recording reasons in writing, modifying
entries from a specified date.
5) Lessees can sell up to 50% of coal or lignite used for captive
purposes in a year after meeting the end use plant's requirements,
following a prescribed procedure by the Central Government and
payment of an additional amount as specified in the Sixth Schedule.
The Central Government can increase the percentage of coal or lignite
sold by a government company or corporation through notification in
the Official Gazette and written record.
The sale of coal from coal mines allocated to companies or
corporations awarded power projects based on competitive bids,
including Ultra Mega Power Projects, is prohibited.
The Central Government can amend the Sixth Schedule by notification

in the Official Gazette and recording reasons in writing, with effect
from a specified date.
8A. Period of grant of a mining lease for minerals other than coal,
lignite and atomic minerals. ―
1) This section applies to minerals not listed in Part A and Part B of the
First Schedule.
2) The Mines and Minerals (Development and Regulation)
Amendment Act, 2015, will grant mining leases for a fifty-year term
from its commencement.
3) All mining leases granted before the 2015 Mines and Minerals
(Development and Regulation) Amendment Act are considered
granted for fifty years.
4) The lease will be auctioned after the lease period ends, following
the procedure outlined in this Act.
This section does not prevent State Governments from initiating an
advance action for auctioning a mining lease before the lease period's
expiry.
5) The lease granted before the Mines and Minerals (Development and
Regulation) Amendment Act, 2015 (10 of 2015) for mineral use for
captive purposes can be extended up to 31st March, 2030, affecting
the expiry date of the renewal period or completion of the renewal
period, if any, or a period of fifty years from the grant date, provided
all lease terms and conditions are complied with.
Amendment Act, 2015 (10 of 2015) allows leases granted before
March 31, 2020, for mineral use other than captive purposes. This
extension is valid until the expiry of the last renewal period or the
completion of the renewal period, or a period of fifty years from the
grant date, provided all lease terms and conditions are met.
7) Lease holders with captive mineral use rights have the right to first
refusal at auction after lease period expiry.
7A) The Central Government allows a lessee to sell up to 50% of the
total mineral produced in a year for captive purposes after meeting the
end use plant's requirements, provided they pay an additional amount
specified in the Sixth Schedule.
The Central Government can increase the percentage of mineral sold
by a government company or corporation by notifying the Official
Gazette and recording the reasons in writing.
The Central Government can amend the Sixth Schedule by notification
in the Official Gazette and recording reasons in writing, modifying
entries from a specified date.
8) The Central Government may prescribe the duration of mining
leases for Government companies or corporations, including existing
leases, despite any provisions in this section.
The Central Government can extend the period of mining leases,
except those granted through auction, upon payment of an additional
amount specified in the Fifth Schedule. The Central Government can
amend the Fifth Schedule by notification in the Official Gazette and for
reasons to be recorded in writing.
Government companies or corporations whose mining leases have
been extended after the commencement of the Mines and Minerals
(Development and Regulation) Amendment Act, 2015 must also pay
the additional amount for the mineral produced.
9) This section does not apply to a mining lease granted before the
Mines and Minerals (Development and Regulation) Amendment Act,
2015, unless renewal has been rejected, determined, or lapsed.
8B. Provisions for period and transfer of statutory clearances. ―

1) All valid rights, approvals, clearances, and licenses granted to a mine
lessee, except those granted under the Atomic Energy Act, 1962 (33 of
1962), will remain valid even after the lease's expiry or termination,
and these rights will be transferred to and vested in the successful
bidder of the mining lease selected through auction under this Act.
The State Government can grant a mining lease to a government
company or corporation for up to ten years or until the selection of a
new lessee through an auction, with the Central Government's
approval. The company or corporation will be deemed to have
acquired all valid rights, approvals, clearances, and licenses vested
with the previous lessee. However, sub-section (1) of section 6 will not
apply when the lease is granted to a Government company or
corporation. For atomic minerals with a grade equal to or above the
threshold value, all valid rights, approvals, clearances, and licenses will
be transferred to the subsequently granted mining lease.
2) The new lessee can continue mining operations on the land until the
expiry or termination of the mining lease granted to it, despite any
existing laws in force.
9. Royalties in respect of mining leases. ―

1) The holder of a mining lease before the commencement of this Act
must pay royalty for any mineral removed or consumed from the
leased area after the commencement, regardless of the lease
instrument or law in force at the time.
2) The holder of a mining lease granted after the Act's commencement
must pay royalty for any mining removed or consumed by them or
their agent, manager, employee, contractor, or sub-lessee from the
leased area.
-2A) The Mines and Minerals (Regulation and Development)
Amendment Act, 1972 (56 of 1972) states that mining lease holders
are not obligated to pay royalty for coal consumed by a colliery worker,
provided the consumption is less than one-third of a tonne per month.
3) The Central Government can amend the Second Schedule by

notification in the Official Gazette to increase or decrease the royalty
rate for any mineral, effective from a specified date.
The Central Government is prohibited from increasing the royalty rate
for any mineral more than once within three years.
9A. Dead rent to be paid by the lessee. ―

1) The holder of a mining lease, whether granted before or after the
Mines and Minerals (Regulation and Development) Amendment Act,
1972, must pay the State Government annually dead rent at the
specified rate in the Third Schedule for all areas included in the lease
instrument.
Under section 9, if a mining lease holder becomes liable to pay royalty
for any mineral removed or consumed by them or their agents,
managers, employees, contractors, or sub-lessees, they must pay
either the royalty or dead rent.
2) The Central Government can amend the Third Schedule to increase
or decrease the dead rent rate for mining lease areas, with the change
taking effect from a specified date, provided it doesn't increase the
rate more than once within a three-year period.
9B. District Mineral Foundation. ―

1) The State Government is required to establish a non-profit trust
called the District Mineral Foundation in districts affected by mining-
related operations.
2) The District Mineral Foundation aims to benefit individuals and
affected areas by mining-related operations as prescribed by the State
Government.
3) The District Mineral Foundation's composition and functions can be
prescribed by the State Government, with the Central Government
providing directions on fund composition and utilization.
4) The State Government must follow the provisions in article 244 of

the Fifth and Sixth Schedules to the Constitution, the Panchayats
(Extension to the Scheduled Areas) Act, 1996, and the Scheduled
Tribes and Other Traditional Forest Dwellers (Recognition of Forest
Rights) Act, 2006.
5) The holder of a mining lease or composite license granted after the
commencement of the Mines and Minerals (Development and
Regulation) Amendment Act, 2015, must pay a percentage of the
royalty paid in terms of the Second Schedule, not exceeding one-third,
to the District Mineral Foundation of the district where mining
operations are conducted.
Amendment Act, 2015 requires mining lease holders to pay the District
Mineral Foundation in the district where mining operations are
conducted, in addition to the royalty paid in the Second Schedule. This
payment is subject to the categorization of mining leases and the
amounts payable by various lease holders as prescribed by the Central
Government.
9C. National Mineral Exploration Trust. ―

1) The Central Government will establish the National Mineral
Exploration Trust as a non-profit autonomous body through
notification.
2) The Trust's purpose is to utilize its funds for regional and detailed
exploration, as per the Central Government's prescribed methods.
3) The Trust's composition and functions are to be determined by the
Central Government.
4) The holder of a mining lease or concession must pay the Trust 2% of
the royalty paid in the Second Schedule, as per the Central
Government's prescribed method.
5) The entities mentioned in sub-section (1) of section 4 are eligible for
funding under the National Mineral Exploration Trust.
CHAPTER III
PROCEDURE FOR OBTAINING MINERAL CONCESSION IN

RESPECT OF LAND IN WHICH THE MINERALS VEST IN THE
GOVERNMENT
10. Application for mineral concession. ―
1) The application for a mineral concession on land with government-
owned minerals must be submitted to the relevant State Government
in the prescribed form and fee.
2) If an application is received under sub-section (1), the applicant will
be notified within the prescribed time and in the prescribed form.
3) The State Government may grant or refuse a permit, license, or
lease based on the application received under this section.
4) No person is eligible to apply under this section unless—
I. The individual has been chosen in accordance with the
procedures outlined in sections 10B, 10BA, 11, 11A, 11B, or 11D.
II. he was selected under the Coal Mines (Special) Provisions Act,
2015 (11 of 2015).
III. An area has been reserved in his favor under section 17A.
10A. Rights of existing concession holders and applicants. ―

Amendment Act, 2015, will render all applications received prior to its
commencement ineligible.
Amendment Act, 2015, will continue to grant eligibility to certain
categories from its commencement: -
a) applications received under section 11A of this Act.
b) Before the Mines and Minerals (Development and Regulation)
Amendment Act, 2015, a reconnaissance permit or prospecting license
for a mineral can be obtained, followed by a mining lease, if the State

Government is satisfied—
i. The individual has conducted reconnaissance or prospecting
operations to determine the mineral content of a specific land,
following the guidelines set by the Central Government.
ii. has not violated the terms and conditions of the reconnaissance
permit or the prospecting license.
iii. has not become ineligible under the provisions of this Act.
iv. a person who has not failed to apply for a prospecting license or
mining lease within three months of the expiry of their
reconnaissance permit or prospecting license, or within six
months as extended by the State Government, will lose their
right to obtain a prospecting license followed by a mining lease.
The holder of a lapsed reconnaissance permit or license will be
reimbursed for the expenditure incurred in reconnaissance or
prospecting operations.
c) The Central Government can grant a mining lease if it has received
previous approval or a letter of intent from the State Government
before the Mines and Minerals (Development and Regulation)
Amendment Act, 2015. The lease must be granted within two years of
the Act's commencement, provided that no prospecting license or
mining lease can be granted for any mineral specified in the First
Schedule without prior approval.
d) If a license or lease has lapsed, areas must be auctioned according
to the Act. For minerals in Part B of the First Schedule with an atomic
mineral grade equal to or greater than the threshold value, mineral
concessions will be granted under section 11B rules.
10B. Grant of mining lease in respect of notified minerals through

auction. ―
1) This section's provisions are not applicable to the following:
(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
maybe 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) If there's insufficient evidence to prove the mineral content of a
notified mineral in an area, the State Government can grant a
composite license, after obtaining Central Government approval,
following section 11.
3) The Central Government establishes the existence of a notified
mineral in areas, and the State Government must notify them for
mining leases, including terms and conditions. If the State Government
hasn't notified the area, the Central Government may require
notification within a specified period.
If notification isn't issued, the Central Government may notify the area
after the specified period. This ensures that mining leases are granted
to areas with notified mineral contents.
4) The State Government must select an applicant who meets the
eligibility conditions specified in this Act through competitive bidding,
including e-auction, for granting a mining lease for a notified mineral
in a specified area.
---The State Government may not grant a mining lease for any mineral
in a notified area if it has not successfully completed an auction.
--- If a mining lease or letter of intent has been terminated or lapsed,
the Central Government may require the State Government to
conduct a re-auction process within a specified period. If not
completed within this period, the Central Government may conduct
an auction for the grant of the mining lease. After the successful
completion of the auction, the Central Government will inform the
State Government about the preferred bidder and grant the lease in a
prescribed manner.
5) The Central Government is responsible for defining the terms and

procedures for conducting auctions, including bidding parameters
such as mineral production shares, royalty payments, or any
combination of these parameters.
6) The Central Government can prescribe terms and conditions for
auctions of minerals, based on categories, size, and area of deposits,
and a state or states, if necessary and expedient, provided no mine is
reserved for captive purposes.
7) The State Government will grant a mining lease to an applicant
selected following the procedure for a notified mineral in a notified
area.
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) The State Government can grant an exploration license for
reconnaissance or prospecting operations in any area for any mineral
specified in the Seventh Schedule, despite sections 10B and 11.
3) The Central Government can amend the Seventh Schedule by
notification in the Official Gazette, modifying entries from a specified
date.
4) The State Government must obtain Central Government approval

and notify the areas where exploration licenses will be granted,
subject to specific terms and conditions as prescribed.
5) The Central Government can mandate the State Government to
inform the area for exploration license within a specified period, and
if the State Government fails to do so, the Central Government can
notify the area after the fixed period.
6) The State Government will grant exploration licenses through
competitive bidding, including e-auction, to applicants who meet the
eligibility conditions specified in this Act.
7) In cases where the State Government has not completed an auction
for an exploration license or the license has been terminated or
lapsed, the Central Government may require the State Government to
conduct and complete the auction or re-auction process within a fixed
period.
If the process is not completed within this period, the Central
Government may conduct an auction for the grant of the license for
the same area after the expiry of the fixed period. The Central
Government will inform the State Government of the preferred
bidder's details and grant the exploration license to the chosen bidder
in a prescribed manner.
8) The holder of an exploration license can receive a share of the
amount quoted in the auction of mining leases, payable to the State
Government, for the area granted in the mining lease, provided the
share is only allowed for minerals specified in the Seventh Schedule.
9) The Central Government must establish rules for conducting
auctions for exploration license grants, outlining terms and conditions,
selection parameters, share payable to license holders, payment
period, and any additional conditions required. This ensures fair and
transparent auctions for mining leases.
10) The exploration license is granted for five years from its execution
date. If the holder requests an extension after three years but before
its expiry, the State Government may extend the license to two years
if it is determined that the holder cannot complete reconnaissance or
prospecting operations within the five-year period due to reasons
beyond their control.
11) After three years of executing an exploration license, the holder
can retain up to 25% of the total area for reconnaissance or
prospecting operations. The remaining area must be surrendered after
submitting a report to the State Government detailing the reasons for
retention and its boundaries.
12) The exploration license holder must submit a geological report to
the State Government within three months of the completion of
operations or the expiry date, detailing the results of reconnaissance
and prospecting operations.
13) If an exploration license holder fails to complete reconnaissance
and prospecting operations before license expiry or submit the
geological report within the specified period, the State Government
may take appropriate action, including penalty imposition.
14) The Central or State Government must initiate an auction process
for mining leases within six months of receiving a geological report
from the exploration license holder. The preferred bidder will be
selected within one year of receiving the report. If the preferred bidder
is not selected, the State Government will pay the holder of the
exploration license the specified amount and manner.
10C. Grant of non-exclusive reconnaissance permits. Omitted by the

Mines and Minerals (Development and Regulation) Amendment Act,
2021
11. Grant of composite licence through auction in respect of minerals

other than notified minerals. ―
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
maybe 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) The State Government may grant a mining lease for minerals other
than notified ones in areas with evidence of mineral contents, as per
section 10B.
3) The State Government may grant a composite license for minerals
other than notified in areas with insufficient evidence of mineral
content, following the procedure outlined in this section.
4) The State Government must inform the Central Government about
the areas where a composite license will be granted for minerals other
than notified minerals, including the terms and conditions. If the State
Government fails to notify the area within a specified period, the
Central Government may require notification. If the notification is not
issued, the Central Government may notify the area after the specified
period.
5) The State Government must select an applicant for a composite
license through competitive bidding, including e-auction, who meets
the eligibility conditions specified in the Act. If the State Government
has not completed the auction for a composite license in a notified
area or if the license or letter of intent has been terminated, the
Central Government may require the State Government to conduct
the auction or re-auction process within a specified period.
If the process is not completed, the Central Government may conduct
the auction after the specified period. The State Government will then
inform the details of the preferred bidder and grant the license.
6) The Central Government is responsible for defining the terms and
procedures for conducting auctions, including bidding parameters
such as mineral production shares, royalty payments, or any

combination of these parameters.
7) The Central Government may, if deemed necessary and expedient,
establish terms, conditions, procedure, and bidding parameters for
mineral auctions based on categories, deposit size and area, and the
state or states where the auction will be conducted.
8) The State Government is required to grant a composite license to
an applicant selected following the procedure outlined in this section.
9) The holder of a composite license must complete the prospecting
operations satisfactorily within the specified period in the notice
inviting applications.
10) After conducting prospecting operations, the holder of a
composite license must submit a geological report to the State
Government, specifying the required area for a mining lease.
11A. Granting of mineral concession or composite licence in respect

of coal or lignite. —
1) The Central Government can select companies for mineral
concessions or composite licenses in coal or lignite through
competitive bidding, based on terms and conditions. These companies
can be government companies, corporations, joint ventures, or other
Indian companies.
The auction process is not applicable to coal or lignite areas considered
for allotment to a government company or corporation, or to
companies awarded a power project based on a competitive bid for
tariff, including Ultra Mega Power Projects.
2) The Central Government may, from time to time, prescribe
conditions for coal and lignite mines to ensure coordinated and
scientific development and resource utilization. This includes details of
mines, their location, minimum size, and other conditions necessary
for mining operations or mining for sale by companies.
3) The State Government can grant a mineral concession or composite

license for areas containing coal or lignite through competitive bidding
or allotment, provided the auction is not applicable to areas
considered for allocation to a government company, joint venture
company, or a power project based on competitive bids for tariff,
including Ultra Mega Power Projects. This applies to areas considered
for allocation to a government company or corporation.
11B. Power of Central Government to make rules for regulating

atomic minerals specified under Part B of First Schedule. ―
The Central Government can establish rules for regulating mining
leases or mineral concessions for minerals specified in Part B of the
First Schedule, with the State Government granting such concessions
in accordance with these rules.
11C. Power of Central Government to amend First Schedule and

Fourth Schedule. ―
The Central Government can amend the First and Fourth Schedules by
notification in the Official Gazette, adding or deleting any specified
mineral.
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) The Central Government, despite the Act, is required to select a
preferred bidder for granting mining leases or composite licenses in
areas with specified minerals in Part D of the First Schedule through
competitive bidding, including e-auction, on prescribed terms and
conditions.
2) After the successful auction, the Central Government will inform the
State Government of the preferred bidder's details, and the State
Government will grant a mining lease or composite license to the

preferred bidder.
3) The Central Government auctions mining leases or composite
licenses, and any statutory payments, accrue to the State Government
or relevant authorities, as if the auction was conducted by the State
Government.
12. Registers of mineral concession. ―

1) The State Government is required to ensure that the below
documents are maintained in the prescribed form –
(a) a register of applications for prospecting licences;
(b) a register of prospecting licensees;
(c) a register of applications for mining leases;
(d) a register of mining lessees;
(e) a register of applications for reconnaissance permits;
(f) a register of reconnaissance permits,
(g) a register of applications for exploration licences; and
(h) a register of exploration licence,
2) The State Government may set a fee for inspection of any register.
12A. Transfer of mineral concessions. ―
1) This section's provisions are not applicable to minerals listed in Part
A or Part B of the First Schedule.
2) A mining lease or composite license or exploration licence can be
transferred to an eligible person with the State Government's
approval, following the prescribed procedure, in accordance with the
provisions of this Act and its rules.
The transferee of a mining lease is not obligated to pay transfer

charges before the commencement of the Mines and Minerals
(Development and Regulation) Amendment Act, 2021.
3) If the State Government does not approve the transfer of a mining
lease or composite license within 90 days, it is considered unopposed.
However, the original lease holder must inform the State Government
of the consideration payable by the successor-in-interest, including
the consideration for prospecting operations and reports and data
generated during the operations.
4) The State Government cannot transfer a mining lease or composite
license if it disapproves within a specified notice period and for
reasons to be communicated in writing. The transfer must be
approved based on the transferee's eligibility, and it cannot be made
in contravention of any conditions under which the lease or license
was granted.
5) Transfers under this section require the transferee to accept all
conditions and liabilities under the current law for a mining lease or
composite license or exploration license. If the lease is granted for
captive purposes, it may be transferred subject to compliance with
terms and conditions and payment of transfer charges. The term
"used for captive purpose" refers to the entire quantity of mineral
extracted from the lease in a lessee's manufacturing unit.
CHAPTER IV
RULES FOR REGULATING THE GRANT OF MINERAL
CONCESSIONS
13. Power of Central Government to make rules in respect of
minerals. ―
1) The Central Government can establish rules for regulating mineral
concession grants and related purposes through notification in the
Official Gazette.
2) The rules may cover various matters, including:
a. The process for making applications for mineral concessions on
government-owned land and the fees to be paid.
i. The conditions for the commencement and continuation of
production by holders of mining leases under section 4B
may be necessary.
ii. The new lessee must meet certain conditions to obtain
necessary rights, approvals, clearances, and licenses under
the proviso to sub-section (2) of section 8B.
b. The deadline and format for sending acknowledgement of
receipt of an application.
c. The matters that can be considered when applications for the
same land are received on the same day.
d. The terms, conditions, and auction process for coal or lignite,
including competitive bidding and allotment.
i. The regulation of the grant of a mineral concession or
composite license for coal or lignite.
ii. The details of mines, their location, minimum size, and
other conditions required for coal or lignite
reconnaissance, prospecting, or mining operations.
iii. utilisation of coal or lignite including mining for sale by a
company.
e. The authority for granting mineral concessions on land owned by
the government.
f. The process for obtaining a mineral concession on land owned

by someone other than the government, including the terms and
conditions for granting permits or renewals.
g. The terms and conditions for granting or renewing another
mining concession are subject to certain conditions.
h. The government will provide facilities to mining lease holders for
individuals appointed to conduct research or training in mining
operations matters.
i. The collection and payment of fees for surface rent, security
deposit, fines, and other charges related to mineral concessions.
j. The protection of third-party rights in cases where they may be
adversely affected by a mineral concession.
k. The grouping of associated minerals for the purposes of section
6 is being discussed.
l. The transfer of a mineral concession is subject to certain
conditions.
m. The construction, maintenance, and use of roads, power
transmission lines, tramways, railways, aerial ropeways,
pipelines, and water passages for mining purposes on land in a
mining lease.
n. the form of registers to be maintained under this Act.
o. Omitted**
p. The reports and statements required by holders of mining
concessions or owners of mines and the authority to which they
must be submitted.
q. The revision of orders passed by State Governments or other
authorities, including fees, accompanying documents, and
disposal methods.
a. The Central Government requires the rehabilitation of flora
and vegetation destroyed by prospecting or mining operations
in the same or another area selected by the person holding
the prospecting license or mining lease, either through
reimbursement or other means.
i. The payment amount to the District Mineral Foundation
is required under sub-sections (5) and (6) of section 9B.
ii. The National Mineral Exploration Trust's usage of funds

under sub-section (2) of section 9C.
iii. The National Mineral Exploration Trust's composition
and functions are outlined in sub-section (3) of section
9C.
iv. The payment method for the National Mineral
Exploration Trust, as per sub-section (4) of section 9C.
v. The terms and conditions for granting mining leases
under sub-section (3) of section 10B are as follows.
vi. The auction will be conducted under specific terms and
conditions, including bidding parameters, as per sub-
section (5) of section 10B.
vii. The processing time limits for applications for 6 mineral
concessions under sections 10B, 10BA, 11, 11A, 11B,
11D, and 17A, as well as their renewals.
viii. Omitted*
ix. The terms and conditions for granting a composite
license under sub-section (4) of section 11.
x. The selection procedure under sub-section (6) of section
11 includes the terms and conditions, procedure, and
bidding parameters.
xi. The terms and conditions and transfer charges under the
proviso to sub-section (6) of section 12A are being
clarified.
r. the period of mining lease under sub-section (4) of section 8.
s. The sale of mineral by a mining lease holder under sub-section
(5) of section 8 is regulated.
t. the manner of sale of mineral under sub-section (7A) of section
8A.
u. The second proviso to clause (b) of sub-section (2) of section 10A
outlines the process for reimbursement of expenditure for
reconnaissance permits or prospecting operations.
v. The second proviso to sub-section (4) of section 10B outlines the
process for granting a mining lease to the preferred bidder.
i. The process for notifying areas for exploration license

grants under sub-section (4) of section 10BA.
ii. The process for granting an exploration license to the
preferred bidder under the proviso to subsection (7) of
section 10BA.
iii. The auction process for granting an exploration license, its
terms and conditions, selection parameters, share payable,
payment period, and other relevant details.
iv. the manner of submitting geological report under sub-
section (12) of section 10BA.
v. The proviso to sub-section (14) of section 10BA outlines the
payment amount and payment method.
w. The second proviso to sub-section (5) of section 11 outlines the
process for granting a composite license to the preferred bidder.
x. The State Government's process for granting mining leases to the
holder of a composite license under sub-section (10) of section
11 is discussed.
i. The text outlines the terms and conditions for selecting a
preferred bidder under sub-section (1) of section 11D.
ii. The process of granting a mining lease or composite license
to a preferred bidder under sub-section (2) of section 11D.
y. any other matter which is to be, or may be prescribed, under this
Act.
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 can issue prospecting licenses or mining
leases for minerals in India's territorial waters or continental shelf
through notification in the Official Gazette.
a) The conditions, limitations, and restrictions that may be imposed
on prospecting licenses or mining leases.
b) The regulation of mineral exploration and exploitation within

India's territorial waters or continental shelf.
c) Ensuring that exploration or exploitation does not disrupt
navigation and
d) Any other matter that needs to be prescribed or may be
prescribed.
14. Sections 5 to 13 not to apply to minor minerals. ―

Sections 5 to 13 do not apply to quarry leases, mining leases, or other
mineral concessions for minor minerals.
15. Power of State Governments to make rules in respect of minor

minerals. ―
1) The State Government can establish rules for regulating the grant of
quarry leases, mining leases, or other mineral concessions for minor
minerals through official notification.
a) The rules mentioned can cover various matters, including:
i. The process for making quarry leases, mining leases, or
other mineral concessions, as well as the fees to be paid.
ii. The deadline and format for sending acknowledgement of
application receipt.
iii. The matters that can be considered when applications for
the same land are received on the same day.
iv. The conditions and authority for granting or renewing
quarry leases, mining leases, or other mineral concessions.
v. The process of obtaining quarry leases, mining leases, or
other mineral concessions.
vi. The government provides facilities to holders of quarry
leases, mining leases, or other mineral concessions for
individuals deputed to conduct research or training in
mining operations matters.
vii. The process involves determining and collecting rent,

royalty, fees, dead rent, fines, or other charges, as well as
the payment time and manner.
viii. This document discusses the protection of third party
rights in cases where they are adversely affected by
prospecting or mining operations.
ix. The State Government requires the person holding a
quarrying or mining lease to reimburse the cost of
rehabilitating flora and vegetation destroyed by such
operations, either through reimbursement or other means.
x. The transfer conditions and procedures for quarry leases,
mining leases, or other mining concessions.
xi. The construction, maintenance, and use of roads, power
transmission lines, tramways, railways, rope ways,
pipelines, and water passages for mining purposes on land
in quarry or mining leases.
xii. The form of registers to be maintained under this Act.
xiii. The requirements for reports and statements submitted by
holders of quarry or mining leases or other mineral
concessions and the authority to which they must be
submitted.
xiv. The process for requesting revision of orders, the fees for
such applications, and the authority's powers and powers
in such cases.
xv. Any other matter which is to be, or may be, prescribed.
2) The state government's rules regulating minor mineral concessions,

such as quarry leases and mining leases, which were in effect before
the commencement of these Act, will continue in force.
3) The holder of a mining lease or mineral concession must pay royalty
or dead rent for minor minerals removed or consumed by them or
their agent, manager, employee, contractor, or sub-lessee, as per the
current rules framed by the State Government, provided the rate is not
increased more than once within three years.
4) The State Government can, by notification, establish rules for

regulating the provisions of this Act, without prejudice to sub-sections
(1), (2), and (3) for the followings:
1. The District Mineral Foundation is obligated to prioritize the
interests and benefits of individuals and areas affected by mining
under sub-section (2) of section 9B.
2. The District Mineral Foundation's composition and functions are
outlined in sub-section (3) of section 9B.
3. The payment amount for concession holders of minor minerals
under section 15A must be made to the District Mineral
Foundation.
15A. Power of State Government to collect funds for District Mineral

Foundation in case of minor minerals. ―
The State Government has the authority to impose payments on all
holders of concessions related to minor minerals to the District
Mineral Foundation in the mining district.
16. Power to modify mining leases granted before 25th October,
1949.―
1)
a) The Mines and Minerals (Regulation and Development)
Amendment Act, 1972, requires all mining leases granted before
its commencement to conform to its provisions and rules within
two years of its commencement, or as specified by the Central
Government, or as long as the Act remains in force at the time of
its commencement.
b) The Mines and Minerals (Regulation and Development)
Amendment Act, 1972, requires mining leases granted by estate
or tenure proprietors before the Act's commencement to be
brought into conformity with the Act and its rules within two
years of its commencement or as specified by the Central
Government. This applies to acquisition of estates or tenures,

agrarian reform, and other provincial or state legislative acts.
1A) If a lease is brought in conformity with the provisions of this Act
and its rules, it will continue to operate for two years from the date of
conformity, despite any provisions in section 8, despite any changes
made.
2) The Central Government can establish rules in the Official Gazette
to implement sub-section (1), specifically specifying the following:
a) The provision allows the lessee and, if not the Central
Government, the lessor to be given prior notice of proposed
modifications in an existing mining lease, allowing them to
contest the proposal.
b) The compensation for the reduction of any area covered by the
existing mining lease will be paid to the lessee.
c) The principles, methods, and authority for determining
compensation.
CHAPTER V
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) This section applies to land where minerals are held by a state or
another entity.
2) The Central Government, after consultation with the State
Government, can undertake mineral concessions in unallocated areas,
and if proposed, must notify the Official Gazette.
a) specify the boundaries of such area;
b) state whether 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) The Central Government is obligated to pay royalty, surface rent, or
dead rent for reconnaissance, prospecting, or mining operations in any
area, as if they were undertaken by a private person under a mineral
concession, at the same rate as under this Act.
4) The Central Government can, after consulting with the State
Government, declare that no mineral concessions shall be granted on
any specified land through notification in the Official Gazette.
17A. Reservation of areas for purposes of conservation. ―

1) The Central Government, after consultation with the State
Government, can reserve unoccupied areas not under any
prospecting, exploration, or mining licenses. If it does so, it must
specify the area's boundaries and the minerals to be reserved.
1A) The Central Government can reserve unallocated areas for
prospecting or mining operations through a government company or
corporation, in consultation with the State Government. The Central
Government must specify the boundaries and mineral or minerals for

which the area will be reserved in the Official Gazette.
2) The State Government can reserve areas not already under
prospecting or exploration licenses or mining leases with the Central
Government's approval. If they do so, they must specify the
boundaries and mineral or minerals for which these areas will be
reserved in the Official Gazette.
2A) The Central or State Government reserves areas for prospecting or
mining operations, and the State Government must grant a
prospecting license, mining lease, or composite license to a
government company or corporation within a specified period.
For minerals specified in Part B of the First Schedule, the State
Government must obtain prior approval from the Central Government
before granting the license.
2B) If a government company or corporation plans to conduct
prospecting or mining operations in a joint venture with other
individuals, the partner must be chosen through a competitive process
and hold over 74% of the paid-up share capital.
2C) A mining lease granted to a government company, corporation, or
joint venture is granted on payment specified in the Fifth Schedule.
The Central Government can amend the Fifth Schedule by notification
in the Official Gazette, modifying entries from a specified date.
Government companies or corporations granted mining leases after
the commencement of the Mines and Minerals (Development and
Regulation) Amendment Act, 2015, must also pay an additional
amount specified in the Fifth Schedule for mineral produced after the
amendment.
3) The Central Government or State Government, under certain
powers, may undertake prospecting or mining operations in areas with
private mineral ownership. They are liable to pay prospecting fees,
royalty, surface rent, or dead rent at the same rate as if the operations
were undertaken by a private person under a prospecting license or

mining lease.
4) The reservation made under this section will lapse if no mining lease
is granted within five years of its date, unless the period expires before
the commencement of the Mines and Minerals (Development and
Regulation) Amendment Act, 2021 or within one year.
The State Government may, upon application by a government
company or corporation, relax the reservation period by a further
period not exceeding one year within three months of receipt of the
application.
If a government company or corporation starts production from a
reserved area before the Mines and Minerals (Development and
Regulation) Amendment Act, 2015, without a mining lease, they
become a lessee of the State Government. The lease will lapse upon
the execution of the mining lease or one year from the start of the Act,
whichever is earlier.
5) The termination or lapse of mining lease shall result in the lapse of
the reservation under this section.
CHAPTER VI
DEVELOPMENT OF MINERALS
18. Mineral development. ―
1) The Central Government is tasked with conserving and developing
minerals in India, while also protecting the environment by preventing
pollution from prospecting or mining operations. They can make rules
for this purpose through notification in the Official Gazette.
(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 alt 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 and authority for minerals samples from mines, as
well as the State Government's or other specified authority's authority
for taking samples from such mines.
(h) Mine owners are required to submit specified special or periodic
returns and reports, specifying the form and authority for submission.
(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 authority and methods for issuing directions to mine owners to
conserve minerals, prevent pollution, and protect the environment
from prospecting or mining operations, ensuring systematic
development and environmental protection.
(m) the maintenance and submission of such plans, registers or
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;
(0) The Central Government authorizes individuals conducting mining
or prospecting operations to provide facilities for research or training
in mining or geology-related matters.
(p) The procedure for imposing fines for violating rules and the
authority to impose such fines.
(q) The authority, period, form, and manner for reversing orders
passed by authority under this Act, fee, and accompanying documents
for such applications.
3) All rules made under this section shall be binding on the
Government.
18A. Power to authorise Geological Survey of India, etc., to make

investigation. ―
1) The Central Government may authorize the Geological Survey of
India or other agencies to conduct detailed investigations for the
conservation and development of minerals in India, provided that the
authorization is made after consultation with the State Government.
This is particularly important for minerals available in or under land
granted prospecting, exploration, or mining licenses. The purpose is to
gather as much information as possible for accurate mineral

conservation and development.
2) The Geological Survey of India, its servants, and workmen are legally
authorized to conduct the study under sub-section (1).
(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) If the survey cannot be completed on the marked boundaries, it is
necessary to remove any standing crop, fence, or jungle.
No authority or agency can enter a building or enclosed court or
garden attached to a dwelling-house without the occupier's consent,
unless they give at least seven days' written notice.
3) The Central Government must pay or tender payment for any
damage caused during or before taking action, and in case of dispute
regarding the amount or the person to whom it should be paid, the
Central Government will refer the dispute to the principal civil court
with jurisdiction over the land in question.
4) The existence of a dispute mentioned in sub-section (3) does not
prevent the action taken under sub-section (2).
5) The Geological Survey of India or the agency responsible for the
investigation must submit a detailed report to the Central Government
detailing the extent and nature of any mineral deposits on or under
the land.
6) The costs of the investigation made under this section shall be borne
by the Central Government:
If the State Government, mineral vested person, or holder of a

prospecting license or mining lease requests the Central Government
to provide a copy of the report, they must bear a reasonable portion
of the investigation costs specified by the Central Government. They
will then receive a true copy of the report upon payment of the
investigation costs.
CHAPTER VII
MISCELLANEOUS
19. Mineral concession to be void if in contravention of Act. ―
The Act prohibits the acquisition, renewal, or acquisition of any
mineral concession in contravention of its provisions or rules. If a
person acquires multiple concessions and their aggregate area
exceeds the maximum allowed under section 6, only the one that
exceeded the maximum area is considered void.
20. Act and rules to apply to all renewals of prospecting licences and
mining leases. ―
This Act's provisions and rules apply to the renewal of prospecting
licenses or mining leases granted before and after the Act's
commencement, as they apply to renewals granted after the Act's
commencement.
20A. Power of Central Government to issue directions. ―

1) The Central Government has the authority to issue directions to
State Governments for the conservation of mineral resources, national
policy matters, and scientific and sustainable development and
exploitation of these resources.
2) The Central Government has the power to issue directions on
various matters, including:
(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. ―
1) Violations of sub-sections (1) or (1A) of section 4 can result in
imprisonment for up to five years and a fine of up to five lakh rupees
per hectare.
2) The Act may establish rules that can lead to imprisonment for up to
two years, a fine of up to five lakh rupees, or both, and an additional
fine of up to fifty thousand rupees for every day the contravention
continues after the first conviction.
3) If a person trespasses land in violation of section 4, they may be
ordered to evict by the State Government or authorized authorities,
who may also seek police assistance if necessary to evict the
trespasser.
4) If someone raises, transports, or causes to be raised or transported
mineral from land without lawful authority, using any tool, equipment,
or vehicle, they may be seized by an officer or authority specially
empowered in this matter.
4A) Seized items, including minerals, tools, equipment, and vehicles,
may be confiscated by a court competent to determine the offense
under sub-section (1) and disposed of in accordance with their
direction.
5) The State Government can recover the mineral raised from a

person's land without lawful authority, the price of the mineral, and
rent, royalty, or tax for the period the person occupied the land
without lawful authority.
Amendment Act, 2021, amends the Code of Criminal Procedure, 1973,
to include the term "raising, transporting or causing to raise or
transport any mineral without any lawful authority" as defined by the
Act, excluding persons without prospecting license, mining lease, or
composite licence, or in contravention of section 23C rules.
22. Cognizance of offences. ―
The Central or State Governments authorize a person authorized to
file a written complaint for any offense punishable under this Act.
23. Offences by companies. ―
1) If a company commits an offense under this Act or its rules, anyone
in charge of the company's business at the time is considered guilty
and liable for punishment. However, this sub-section does not apply if
the offence was committed without the company's knowledge or if the
person exercised due diligence to prevent it.
2) If an offense under this Act is committed with the consent or
connivance of a company's director, manager, secretary, or other
officer, they are considered guilty and are liable for prosecution and
punishment.
"company" as any corporate body, including firms or associations, and
"director" as a partner in a firm.
23A. Compounding of offences. ―
1) The Act allows a person authorized to make a complaint to the court
for an offence to be compounded before or after the prosecution, on
payment of a specified sum for credit to the Government. However,
for offenses punishable by fine only, the sum cannot exceed the
maximum fine.
2) Compounding an offense under sub-section (1) prevents further

proceedings against the offender, and if in custody, they are released
immediately.
23B. Power to search. ―
If a Central or State Government officer suspects a mineral has been
raised in violation of the Act or its rules, or if any related documents
are secreted, they may search for the 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.
23C. Power of State Government to make rules for preventing illegal
mining, transportation and storage of minerals. ―
1) The State Government has the authority to establish rules in the
Official Gazette to prevent illegal mining, transportation, and storage
of minerals.
(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) The regulation of mineral transportation from areas granted
permission to excavate minerals under prospecting licenses, mining
leases, quarrying licenses, or permits.
(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 and authority for submitting revision applications for
orders passed by an authority, the fees to be paid, and the authority's
powers for handling such applications.
(g) Prevention of illegal mining, transportation, and storage of minerals
by prescribing any other necessary or possible matters.
3) The Central Government, despite section 30, cannot revise orders

made by a State Government or authorized officers under rules
outlined in sub-sections (1) and (2).
24. Power of entry and inspection. ―
1) The Central or State Government may, by general order, determine
the working position of any mine or abandoned mine, or for other
purposes related to this Act or its rules.
(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) The act involves examining any document, book, register, or record
owned by or connected to a mine, placing identification marks, and
extracting or making copies of such materials.
(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 authorized person under sub-section (1) is considered a public
servant under section 21 of the Indian Penal Code. Any person issued
an order or summons by the Central or State Government is legally
obligated to comply with the order or summons.
24A. Rights and liabilities of a holder of mineral concession. ―
1) The Act allows the holder of a permit, license, or lease to enter the
lands granted during its validity for reconnaissance, prospecting, or
mining operations. However, no person can enter a building or
enclosed court or garden attached to a dwelling-house without the
owner's consent, and must give at least seven days' written notice of
their intention to do so.
2) The holder of a mining concession is responsible for compensating

the occupier of the land under the permit, license, or lease for any loss
or damage likely to result from reconnaissance, mining, or prospecting
operations.
3) The State Government will determine the compensation amount
under sub-section (2) in accordance with the prescribed method.
25. Recovery of certain sums as arrears of land revenue. ―

1) The State Government can recover any rent, royally, tax, fee, or
other sum due to the Government under this Act or its rules, on a
certificate from an officer specified by general or special order.
2) Any sum due to the government under the Act or its rules can be
recovered on a certificate from an officer specified by the State
Government. This amount becomes due after the commencement of
the Mines and Minerals (Regulation and Development) Amendment
Act, 1972 (56 of 1972), and is a first charge on the assets of the holder
of the mineral concession.
6. Delegation of powers. ―
1) The Central Government can direct that any power under this Act
may be exercisable by other entities, subject to specified conditions,
through notification in the Official Gazette.
(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 can direct that any power exercisable under
this Act may be exercised by any officer or authority subordinate to it,
subject to conditions specified in the notification, by notification in the
Official Gazette.
3) The Central Government's rules under this Act can grant powers and
duties to the State Government or any subordinate authority.
27. Protection of action taken in good faith. ―

This Act prohibits any person from being sued, prosecuted, or facing
legal proceedings for any actions taken in good faith or intended to be
taken under this Act.
28. Rules and notifications to be laid before Parliament and certain

rules to be approved by Parliament. ―
1) The Central Government's rules and notifications must be
presented to each House of Parliament during their session for a total
of thirty days. If both Houses agree to modify or annul the rule or
notification before the session ends, it will have effect only in modified
form or have no effect. Any modification or annulment will not affect
the validity of anything previously done under the rule or notification.
2) The Central Government holds the rule-making power, but rules
referencing clause (c) of sub-section (2) of section 16 cannot be
implemented until approved by each House of Parliament.
3) The State Government's rules and notifications must be promptly
presented to each House of the State Legislature, if it consists of two
or one House, respectively.
29. Existing rules to continue. ―

The Mines and Minerals (Regulation and Development) Act, 1948 (53
of 1948) applies to rules made under this Act, if they relate to matters
covered by the Act and are not inconsistent with it. These rules will
continue in force until replaced by new rules made under this Act.
30. Power of revision by Central Government. ―

The Central Government can, either by its own motion or upon an
aggrieved party's application within the prescribed time,
a) The State Government or other authority may revise orders

made under this Act regarding any mineral other than minor
minerals.
b) The State Government or other authority can pass an order if no
order has been made within the prescribed time for any mineral
other than minor minerals,
provided that the Central Government gives an opportunity to be
heard or represented in the matter before passing such order.
30A. Special provisions relating to mining leases for coal granted

before 25th October, 1949.―
The Act states that sub-sections (1) of section 9 and 16 do not apply to
mining leases granted before October 25, 1949, for coal. However, the
Central Government may, if deemed expedient, direct that all
provisions, including rules under sections 13 and 18, apply to such
leases, subject to any exceptions and modifications specified in the
Official Gazette.
30B. Constitution of Special Courts. ―

1) The State Government can establish as many Special Courts as
necessary for speedy trial of offenses for contravention of section 4
provisions, as specified in a notification.
2) A Special Court, consisting of a Judge appointed by the State
Government with the High Court's concurrence, is established.
3) A person cannot be appointed as a Special Court judge unless they
have served as a District and Sessions Judge.
4) The Special Court's order can be appealed to the High Court within
sixty days of its issuance.
30C. Special Courts to have powers of Court of Session. ―

The Code of Criminal Procedure, 1973 (2 of 1974) applies to
proceedings before the Special Court, which is deemed a Court of
Session with all the powers of a Court of Session, and the person
conducting a prosecution is considered a public prosecutor.
31. Relaxation of rules in special cases. ―

The Central Government can grant, renew, or transfer mineral
concessions or mine operations for mineral development, if necessary,
by order in writing and recording reasons, on terms and conditions
different from those outlined in section 13, if it believes it is necessary
for mineral development.
33. Validation of certain acts and indemnity. ―

The Mines and Minerals (Regulation and Development) Act, 1948 (53
of 1948) governs the regulation and development of mines and
minerals. All acts, proceedings, and sentences passed by the
government or any authority, believed to be in accordance with the
Act, are valid and operative. No legal proceedings can be maintained
against anyone based on the belief that these acts, proceedings, or
sentences were not done or passed in accordance with law.
THE FIRST SCHEDULE

SPECIFIED MINERALS
PART A PART B PART C PART D
(Hydro (Atomic minerals) (Metallic (Critical and
carbons/energy and non- Strategic
minerals) metallic Minerals)
minerals)
1. Coal and 1. Minerals of the 1. Asbestos. 1. Beryl and
lignite. "rare earths" other
group containing 2. Bauxite. beryllium
Uranium and bearing
Thorium. 3. Chrome minerals.
ore.
2. Phosphorites 2. Cadmium
and other 4. Copper bearing
phosphatic ores ore. minerals.
containing
Uranium. 5. Gold. 3. Cobalt
bearing
3. Pitchblende and 6. Iron ore. minerals.
other Uranium
ores. 7. Lead. 4. Gallium
bearing
4. Uraniferous 9. minerals.
allanite, monazite Manganese
and other thorium ore. 5.
minerals. Glauconite.
10. Precious
5. Uranium stones. 6. Graphite.
bearing tailings
left over from ores 11. Zinc 7. Indium
after extraction of bearing
copper and gold, minerals.
ilmenite and other 8. Lithium

titanium ores. bearing
minerals.
6. Beach sand
minerals, that is, 9.
economic heavy Molybdenum
minerals found in bearing
the teri or beach minerals.
sands, which
include ilmenite, 10. Nickel
rutile, leucoxene, bearing
garnet, monazite, minerals.
zircon and
sillimanite 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.
SECOND SCHEDULE
It is about “RATES OF ROYALTY IN RESPECT OF MINERALS”.
THIRD SCHEDULE
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 3rd and 4th Year of 5th Year onwards
Lease Lease
400 1000 2000
2. The rate specified in paragraph 1 is increased by two times for leases

granted for medium value minerals.
3. The rate specified in paragraph 1 is increased by three times for
leases granted for high-value minerals.
4. The lease rate for precious metals and stones is four times the rate
specified in paragraph 1.
(a) “precious metals and stones” mean 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.
THE FOURTH SCHEDULE

Notified Minerals
1. Bauxite.
2. Iron ore.
3. Limestone.
4. Manganese ore.
THE FIFTH SCHEDULE
The additional amount in this Schedule will be added to royalties or

payments to the District Mineral Foundation and National Mineral
Exploration Trust, or any other statutory payment.
THE SIXTH SCHEDULE

The sixth schedule is about:
(i) For non-auctioned captive mines (other than coal and lignite).
(ii) For auctioned captive mines (other than coal and lignite).
(iii) For coal and lignite.
THE SEVENTH SCHEDULE

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.
No person can acquire any mineral or

prescribed group of associated minerals in a
state—
i) A reconnaissance permit,
(a) one or more prospecting licenses covering
often covering thousands of
over 25 square kilometres; or
square kilometers, is issued
for a total area of one or
more.
The area granted under a
single reconnaissance permit
must not exceed five
thousand square
kilometers.
ii) One or more exploration

licenses covering over 5,000
square kilometers.
ai) One or more exploration licenses covering

over 5,000 square kilometers, provided the
area under a single license does not exceed
1,000 square kilometers.
(b) one or more mining leases covering over

ten square kilometers in total area.
The maximum duration for which a three years.

reconnaissance permit or prospecting license
can be granted is______.
A prospecting license can only be granted for a five years.

maximum of________.
The maximum duration for which a mining 30 years.

lease can be granted is_______.
The mining lease granted must not be less than twenty years.
_______in duration.
A mining lease can be renewed for up to twenty years.

_______with the Central Government's prior
approval.
The Mines and Minerals (Development and fifty-year.

Regulation) Amendment Act, will grant mining
leases for minerals other than coal, lignite and
atomic minerals for a _______term from its
commencement.
The Mines and Minerals (Regulation and one-third of a tonne per

Development) Amendment Act, 1972 (56 of month.
1972) states that mining lease holders are not
obligated to pay royalty for coal consumed by a
colliery worker, provided the consumption is
less than_________.
The exploration license is granted for five years,

_______from its execution date. If the holder
requests an extension after _______but before
its expiry, the State Government may extend three years,
the license to ______if it is determined that the
holder cannot complete reconnaissance or
prospecting operations within the two years,
________period due to reasons beyond their
control.
five-year
The exploration license holder must submit a three months
geological report to the State Government
within ________of the completion of
operations or the expiry date, detailing the
results of reconnaissance and prospecting
operations.
The Central or State Government must initiate six months
an auction process for mining leases within
_______of receiving a geological report from
the exploration license holder. The preferred
bidder will be selected within one year of
receiving the report.
If the State Government does not approve the 90 days
transfer of a mining lease or composite license
within_______, it is considered unopposed.
However, the original lease holder must inform
the State Government of the consideration
payable by the successor-in-interest, including
the consideration for prospecting operations
and reports and data generated during the
operations.
The reservation made under this section will five years
lapse if no mining lease is granted within
________of its date, unless the period expires
before the commencement of the Mines and
Minerals (Development and Regulation)
Amendment Act, 2021 or within one year.
The State Government may, upon application one year

by a government company or corporation,
relax the reservation period by a further period
not exceeding ________within three months
of receipt of the application.
No authority or agency can enter a building or seven days'
enclosed court or garden attached to a
dwelling-house without the occupier's
consent, unless they give at least
________written notice.
Violations of sub-sections (1) or (1A) of section five years
4 can result in imprisonment for up to
_____and a fine of up to five lakh rupees per
hectare.
The Act may establish rules that can lead to two years,
imprisonment for up to_____, a fine of up
to______, or both, and an additional fine of up
to _______for every day the contravention five lakh rupees,
continues after the first conviction.
fifty thousand rupees.

The Central Government's rules and thirty days.
notifications must be presented to each House
of Parliament during their session for a total
of________.
The Special Court's order can be appealed to sixty days

the High Court within ________of its issuance.
--------------------------------------The End_______________________

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vii) The term "minerals concession" refers to a combination of

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

4A. Termination of prospecting licences, exploration licences or

4B. Conditions for efficiency in production. –

The Central Government can, despite section 4A, establish conditions

5. Restrictions on the grant of mineral concession. ―

(2) No mining lease shall be granted by the State Government unless

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

(a) one or more prospecting licenses covering over 25 square

(c) any mineral concession in an area that is not compact or contiguous

(2) a person acquiring a mineral concession for themselves, either by

7. Periods for which prospecting licences may be granted or

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

The Central Government can amend the Sixth Schedule by notification

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

9. Royalties in respect of mining leases. ―

3) The Central Government can amend the Second Schedule by

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

9B. District Mineral Foundation. ―

4) The State Government must follow the provisions in article 244 of

9C. National Mineral Exploration Trust. ―

PROCEDURE FOR OBTAINING MINERAL CONCESSION IN

10A. Rights of existing concession holders and applicants. ―

for a mineral can be obtained, followed by a mining lease, if the State

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

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

5) The Central Government is responsible for defining the terms and

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

4) The State Government must obtain Central Government approval

10C. Grant of non-exclusive reconnaissance permits. Omitted by the

11. Grant of composite licence through auction in respect of minerals

(a) cases falling under section 17A;

such as mineral production shares, royalty payments, or any

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

3) The State Government can grant a mineral concession or composite

11B. Power of Central Government to make rules for regulating

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

11D.Central Government to conduct auction for grant of mining lease

Government will grant a mining lease or composite license to the

12. Registers of mineral concession. ―

The transferee of a mining lease is not obligated to pay transfer

f. The process for obtaining a mineral concession on land owned

ii. The National Mineral Exploration Trust's usage of funds

i. The process for notifying areas for exploration license

13A. Power of Central Government to make rules for the grant of

b) The regulation of mineral exploration and exploitation within

14. Sections 5 to 13 not to apply to minor minerals. ―

15. Power of State Governments to make rules in respect of minor

vii. The process involves determining and collecting rent,

2) The state government's rules regulating minor mineral concessions,

4) The State Government can, by notification, establish rules for

15A. Power of State Government to collect funds for District Mineral

Government. This applies to acquisition of estates or tenures,

17A. Reservation of areas for purposes of conservation. ―

Government must specify the boundaries and mineral or minerals for

were undertaken by a private person under a prospecting license or

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

gather as much information as possible for accurate mineral