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

Question

section 4A - State Government on the receipt of the request by Central Government shall make an order making a premature termination of such prospecting licence or mining lease with respect to the area or any part thereof. - If the State Government is of the opinion that it is expedient in the interest of:

Answer 1

1. regulation of mines and mineral development, 2. preservation of natural environment, 3. control of floods, 4. prevention of pollution or 5. to avoid danger to public health or communications or 6. to ensure safety of buildings, monuments or other structures or 7. for such other purposes, as the State Government may deem fit, the State Government may in respect of any minor mineral, make premature termination of prospecting licence or mining lease with respect to the area or any part thereof covered by such licence or lease

Answer 2

1. undertake production and dispatch for a period of two years after the date of execution of the lease or 2. having commenced production and dispatch, has discontinued the same for a period of two years, the lease shall lapse on the expiry of the period of two years from the date of execution of the lease or, as the case may be, discontinuance of the production and dispatch

Answer 3

three ; two

Answer 4

**Restrictions on the grant of prospecting licences or mining leases** State Government shall grant a mineral concession to a person who: - is an Indian national, or company as defined under section 2(20)of the Companies Act, 2013; and - satisfies such conditions as may be prescribed. NOTE: A person shall be deemed to be an Indian national: (a) in the case of a firm or other association of individuals, only if all the members of the firm or members of the association are citizens of India; and (b) in the case of an individual, only if he is a citizen of India.

Answer 5

- an allocation order has been issued by the Central Government under section 11A; or - a notification of reservation of area has been issued by the Central Government or the State Government under sub-section (1A) or sub-section (2) of section 17A; or - a vesting order or an allotment order has been issued by the Central Government under the provisions of the Coal Mines (Special Provisions) Act, 2015

Answer 6

- Government, - Government company or corporation, in respect of any minerals specified in Part B of the First Schedule where the grade of such mineral in such area is equal to or above such threshold value as may be notified by the Central Government

Answer 7

- 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; - there is a mining plan duly approved by the Central Government, or by the State Government, in respect of such category of mines as may be specified by the Central Government, for the development of mineral deposits in the area concerned.

Answer 8

**Maximum area for which a prospecting licence or mining lease may be granted** twenty-five - For determining the total area as referred to in the above sub-section, the area held under a mineral concession by a person as a member of a co-operative society, company or other corporation or a Hindu undivided family or a partner of a firm, shall be deducted from the area as referred in the above sub-section, so that the sum total of the area held by such person, under a mineral concession, whether as such member or partner, or individually, may not, in any case, exceed the total area specified in the above sub-section. - For the purposes of this section, a person acquiring by, or in the name of, another person a mineral concession which is intended for himself shall be deemed to be acquiring it himself.

Answer 9

**Periods for which prospecting licences may be granted or renewed** The period for which a reconnaissance permit or prospecting licence may be granted shall **not exceed three years**. A prospecting licence shall, if the State Government is satisfied that a longer period is required to enable the licensee to complete prospecting operations be renewed for such period or periods as that Government may specify: - The total period for which a prospecting licence is granted does not exceed five years; - No prospecting licence granted in respect of a mineral included in Part A and Part B to the First Schedule shall be renewed except with the previous approval of the Central Government

Answer 10

**Periods for which mining leases may be granted or renewed** - The provisions of this section shall apply to minerals specified in Part A of the First Schedule. - The maximum period for which a mining lease may be granted shall not exceed thirty years: = the minimum period for which any such mining lease may be granted shall not be less than twenty years. - A mining lease may be renewed for a period not exceeding twenty years with the previous approval of the Central Government. - However, in case of Government companies or corporations, the period of mining leases including the existing mining leases, shall be such as may be prescribed by the Central Government: = The period of mining leases, other than the mining leases granted through auction, shall be extended on payment of such additional amount as specified in the Fifth Schedule = Central Government may for reasons to be recorded in writing, amend the Fifth Schedule so as to modify the entries mentioned therein in the said Schedule with effect from such date as may be specified in the said notification.

Answer 11

** Period of grant of a mining lease for minerals other than coal, lignite and atomic minerals** This section shall apply to minerals other than those specified in Part A and Part B of the First Schedule.On and from the date of the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, all mining leases shall be granted for the period of fifty years. All mining leases granted before the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 shall be deemed to have been granted for a period of fifty years. On the expiry of the lease period, the lease shall be put up for auction as per the procedure specified in this Act. = Nothing in this section shall prevent the State Governments from taking an advance action for auction of the mining lease before the expiry of the lease period

Answer 12

Sixth Schedule 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. - The period of mining leases, other than the mining leases granted through auction shall be extended on payment of such additional amount as specified in the Fifth Schedule: - Central Government may amend the Fifth Schedule so as to modify the entries mentioned therein with effect from such date as maybe specified in the said notification. NOTE: All such Government companies or corporations whose mining lease has been extended after the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, shall also pay such additional amount as specified in the Fifth Schedule for the mineral produced after the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021. - This section shall not apply to a mining lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 for which renewal has been rejected, or which has been determined, or lapsed

Answer 13

**Provisions for period and transfer of statutory clearances** All valid rights, approvals, clearances, licences and the like granted to a lessee in respect of a mine (other than those granted under the provisions of the Atomic Energy Act, 1962 shall continue to be valid even after expiry or termination of lease and such rights, approvals, clearances, licences and the like shall be transferred to, and vested; subject to the conditions provided under such laws; in the successful bidder of the mining lease selected through auction. = where on the expiry of such lease period, mining lease has not been executed pursuant to an auction under provisions of section 8A(4), or lease executed pursuant to such auction has been terminated within a period of one year from such auction, the State Government may, with the previous approval of the Central Government, grant lease to a Government company or corporation for a period **not exceeding ten years** or till selection of new lessee through auction, whichever is earlier and such Government company or corporation shall be deemed to have acquired all valid rights, approvals, clearances, licences and the like vested with the previous lessee: = The provisions of section 6(1) shall not apply where such mining lease is granted to a Government company or corporation under the first proviso: = In case of atomic minerals having grade equal to or above the threshold value, all valid rights, approvals, clearances, licences and the like in respect of expired or terminated mining leases shall be deemed to have been transferred to, and vested in the Government company or corporation that has been subsequently granted the mining lease for the said mine. - It shall be lawful for the new lessee to continue mining operations on the land till expiry or termination of mining lease granted to it, in which mining operations were being carried out by the previous lessee

Answer 14

**Royalties in respect of mining leases** The holder of a mining lease granted before, on or after the commencement of this Act shall, pay royalty in respect of any mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee from the leased, at the rate for the time being specified in the Second Schedule in respect of that mineral. The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 shall not be liable to pay any royalty in respect of any coal consumed by a workman engaged in a colliery provided that such consumption by the workman does not exceed one-third of a tonne per month. Central Government may amend the Second Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral with effect from such date as may be specified in the notification: = Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of three years.

Answer 15

**Dead rent to be paid by the lessee** The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972, shall pay to the State Government, every year, dead rent at such rate, as may be specified, for the time being, in the Third Schedule, for all the areas included in the instrument of lease: = Where the holder of such mining lease becomes liable, under section 9, to pay royalty for any mineral removed or consumed by him or by his agent, manager, employee, contractor or sublessee from the leased area, he shall be liable to pay either such royalty, or the dead rent in respect of that area, whichever is greater. Central Government may amend the Third Schedule so as to enhance or reduce the rate at which the dead rent shall be payable in respect of any area covered by a mining lease and such enhancement or reduction shall take effect from such date as may be specified in the notification: = Central Government shall not enhance the rate of the dead rent in respect of any such area more than once during any period of three years

Answer 16

**District Mineral Foundation** In any district affected by mining related operations, the State Government shall, by notification, establish a trust, as a non-profit body, to be called the District Mineral Foundation. Object of the 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. Composition and functions of the Foundation shall be such as may be prescribed by the State Government. = Central Government may give directions regarding composition and utilization of fund by the District Mineral Foundation. State Government while making rules shall be guided by the provisions contained in article 244 read with Fifth and Sixth Schedules to the Constitution relating to administration of the Scheduled Areas and Tribal Areas and the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 and the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. The holder of a mining lease or a composite licence granted on or after the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015,other than those covered under the provisions of section 10A(2), 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. The holder of a mining lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 other than those covered under the provisions of section 10A(2), shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount not exceeding the royalty paid in terms of the Second Schedule in such manner and subject to the categorization of the mining leases and the amounts payable by the various categories of lease holders, as may be prescribed by the Central Government

Answer 17

**National Mineral Exploration Trust** Central Government shall establish a Trust, as anon-profit autonomous body, to be called the National Mineral Exploration Trust. 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. Composition and functions of the Trust shall be such as may be prescribed by the Central Government. The holder of a mining lease or a mineral concession 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. The entities specified and notified under section 4(1) shall be eligible for funding under the National Mineral Exploration Trust.

Answer 18

**Application for prospecting licences or mining leases** An application for a mineral concession for any land in which the minerals vest in the Government shall be made to the State Government concerned in the prescribed form and shall be accompanied by the prescribed fee. On the receipt of application: = an acknowledgment of its receipt has to be sent to the applicant within the prescribed time and in the prescribed form; = the State Government may grant or refuse to grant the permit, licence or lease. A person shall not be eligible to make an application under this section, unless: = he has been selected in accordance with the procedure specified under sections 10B, 11, 11A or the rules made under section 11B;ohe has been selected under the Coal Mines (Special) Provisions Act, 2015; or = an area has been reserved in his favour under section 17A

Answer 19

**Rights of existing concession holders and applicants** All applications received prior to the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, shall become ineligible. Where the Central Government has communicated previous approval as required under section 5(1) for grant of a mining lease, or if a letter of intent (by whatever name called) has been issued by the State Government to grant a mining lease, before the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, the mining lease shall be granted subject to fulfilment of the conditions of the previous approval or of the letter of intent within a period of two years from the date of commencement of the said Act: = in respect of any mineral specified in the First Schedule, no prospecting licence or mining lease shall be granted except with the previous approval of the Central Government. In cases where right to obtain licence or lease has lapsed than such areas shall be put up for auction. = in respect of the minerals specified in Part B of the First Schedule where the grade of atomic mineral is equal to or greater than the threshold value, the mineral concession for such areas shall be granted in accordance with the rules made under section 11B

Answer 20

- applications received under section 11A of this Act; - where before the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 a reconnaissance permit or prospecting licence has been granted in respect of any land for any mineral, the permit holder or the licensee shall have a right for obtaining a prospecting licence followed by a mining lease, or a mining lease, as the case may be, in respect of that mineral in that land, if the State Government is satisfied that the permit holder or the licensee, as the case may be: = has undertaken reconnaissance operations or prospecting operations, as the case may be, to establish the existence of mineral contents in such land in accordance with such parameters as may be prescribed by the Central Government; = has not committed any breach of the terms and conditions of the reconnaissance permit or the prospecting licence; = has not become ineligible under the provisions of this Act; and = 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; ~ the cases covered under this clause including the pending cases, the right to obtain a prospecting licence followed by a mining lease or a mining lease, as the case may be, shall lapse on the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021: ~ the holder of a reconnaissance permit or prospecting licence whose rights lapsed as provided above, shall be reimbursed the expenditure incurred towards reconnaissance or prospecting operations in such manner as may be prescribed by the Central Government - Where the Central Government has communicated previous approval as required under section 5(1) for grant of a mining lease, or if a letter of intent (by whatever name called) has been issued by the State Government to grant a mining lease, before the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, the mining lease shall be granted subject to fulfilment of the conditions of the previous approval or of the letter of intent within a period of two years from the date of commencement of the said Act: = in respect of any mineral specified in the First Schedule, no prospecting licence or mining lease shall be granted except with the previous approval of the Central Government.In cases where right to obtain licence or lease has lapsed than such areas shall be put up for auction. = in respect of the minerals specified in Part B of the First Schedule where the grade of atomic mineral is equal to or greater than the threshold value, the mineral concession for such areas shall be granted in accordance with the rules made under section 11B.

Answer 21

**Grant of mining leasein respect of notified minerals through auction** This section shall not apply to: = cases falling under section 17A; = minerals specified in Part A of the First Schedule; = 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 = land in respect of which the minerals do not vest in the Government.

Answer 22

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. = where the State Government has not notified such area for grant of mining lease after establishment of existence of mineral contents of any mineral (whether notified mineral or otherwise), the Central Government may require the State Government to notify such area within a period to be fixed in consultation with the State Government and in cases where the notification is not issued within such period, the Central Government may notify such area for grant of mining lease after the expiry of the period so specified. For granting a mining lease for any notified mineral in the notified areas, 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. = where the State Government has not successfully completed auction for the purpose of granting a mining lease in respect of any mineral (whether notified mineral or otherwise) in such notified area; or = upon completion of such auction, the mining lease or letter of intent for grant of mining lease has been terminated or lapsed for any reason whatsoever, the Central Government may require the State Government to conduct and complete the auction or re-auction process, as the case may be, within a period to be fixed in consultation with the State Government and in cases where such auction or re-auction process is not completed within such period, the Central Government may conduct auction for grant of mining lease for such area after the expiry of the period so specified: = upon successful completion of the auction, the Central Government shall intimate the details of the preferred bidder in the auction to the State Government and the State Government shall grant mining lease for such area to such preferred bidder in such manner as may be prescribed by the Central Government. 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. = 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: No mine shall be reserved for captive purpose in the auction. 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

Answer 23

**Grant of composite licence through auction in respect of minerals other than notified minerals** This section shall not apply to the: = cases falling under section 17A; = minerals specified in Part A of the First Schedule; = 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 = land in respect of which the minerals do not vest in the Government.In areas where: = there is evidence to show the existence of mineral contents as required by section 5(2)(a), the State Government shall grant a mining lease for minerals other than notified minerals following the procedure laid down in section 10B. = there is inadequate evidence to show the existence of mineral contents as required under section 5(2)(a), the State Government shall grant a composite licence for minerals other than notified minerals in accordance with the procedure laid down in this section

Answer 24

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. = 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. State Government shall grant a composite licence to the selected applicant. The holder of a composite licence shall be required to complete, within the period laid down in section 7, the prospecting operations satisfactorily as specified in the notice inviting applications. On completion of the prospecting operations, the holder of the composite licence shall submit the result of the prospecting operations in the form of a geological report to the State Government specifying the area required for mining lease and the State Government shall grant mining lease for such area, to the holder of the composite licence in such manner as may be prescribed by the Central Government.

Answer 25

**Granting of mineral concession or composite licence in respect of coal or lignite** Central Government may, for the purpose of granting mineral concession or composite licence for coal or lignite select any of the following companies through auction by competitive bidding: = a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be, or any other company incorporated in India; or = a company or a joint venture company formed by two or more companies to carry on coal or lignite reconnaissance or prospecting or mining operations, for own consumption, sale or for any other purpose as may be determined by the Central Government

Answer 26

Central Government may, with a view to rationalize coal and lignite mines, so as to ensure the coordinated and scientific development and utilisation of resources consistent with the growing requirements of the country, from time to time, prescribe: = the details of mines and their location; = the minimum size of such mines; = such other conditions, which in the opinion of that Government may be necessary for the purpose of mining operations or mining for sale by a company State Government shall grant such mineral concession or composite licence in respect of any area containing coal or lignite to such company as selected through auction by competitive bidding or through allotment under this section: the auction by competitive bidding under this section shall not be applicable to an area containing coal or lignite: = where such area is considered for allocation to a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be; = where such area is considered for allocation to a company or corporation or that has been awarded a power project on the basis of competitive bids for tariff (including Ultra Mega Power Projects).

Answer 27

1. Section 11B. To make rules for regulating atomic minerals specified under Part B of First Schedule and the State Government shall grant a mineral concession in respect of any such mineral in accordance with such rules. 2. Section 11C. To amend First Schedule and Fourth Schedule so as to add or delete any mineral as may be specified in the notification. 3. Section 13. To make rules in respect of minerals

Answer 28

Central Government may make rules for regulating the grant of mineral concession in respect of minerals and may provide for all or any of the following matters: = the person by whom, and the manner in which, applications for mineral concession in respect of land in which the minerals vest in the Government may be made and the fees to be paid therefor; = the conditions as may be necessary for commencement and continuation of production by the holders of mining leases, under section 4B; = the conditions to be fulfilled by the new lessee for obtaining all necessary rights, approvals, clearances, licences and the like under the proviso to section 8B(2); = the level of exploration in respect of deep-seated minerals or such minerals and the procedure, including the bidding parameters for selection of the holders under the proviso to section 10C(2); = the time within which, and the form in which, acknowledgement of the receipt of any such application may be sent; = the matters which may be considered where applications in respect of the same land are received on the same day; = the terms, conditions and process of auction by competitive bidding and allotment in respect of coal or lignite; = the regulation of grant of mineral concession or composite licence in respect of coal or lignite; = the details of mines and their location, the minimum size of such mines and such other conditions which may be necessary for the purpose of coal or lignite reconnaissance, prospecting or mining operations; = utilisation of coal or lignite including mining for sale by a company; = the authority by which mineral concession] in respect of land in which the minerals vest in the Government may be granted; = the procedure for obtaining a mineral concession in respect of any land in which the minerals vest in a person other than the Government and the terms on which, and the conditions subject to which, such a permit, licence or lease may be granted or renewed; = the terms on which, and the conditions subject to which, may other 5[mineral concession] may be granted or renewed; = the facilities to be afforded by holders of mining leases to persons deputed by the Government for the purpose of undertaking research or training in matters relating to mining operations; = the grouping of associated minerals for the purposes of section 6; = the manner in which, and the conditions subject to which, a mineral concession may be transferred; = the construction, maintenance and use of roads, power transmission lines, tramways, railways, aerial ropeways, pipelines and the making of passages for water for mining purposes on any land comprised in a mining lease; = the form of registers to be maintained under this Act; = the fixing and collection of fees for mineral concession surface rent, security deposit, fines, other fees or charges and the time within which and the manner in which the dead rent or royalty shall be payable; = the manner in which rights of third parties may be protected (whether by payment of compensation or otherwise) in cases where any such party may be prejudicially affected by reason of any mineral concession; = parameters of existence of mineral contents under section 5(2)(a); = the grouping of associated minerals for the purposes of section 6;othe manner in which, and the conditions subject to which, 11[a 5[mineral concession]] may be transferred; = the construction, maintenance and use of roads, power transmission lines, tramways, railways, aerial ropeways, pipelines and the making of passages for water for mining purposes on any land comprised in a mining lease; = the form of registers to be maintained under this Act; = the reports and statements to be submitted by holders of5[mineral concession or owners of mines and the authority to which such reports and statements shall be submitted; = the period within which applications for revision of any order passed by a State Government or other authority in exercise of any power conferred by or under this Act, may be made 9 the fees to be paid therefore and the documents which shall accompany such applications] and the manner in which such applications shall be disposed of; and = the manner in which rehabilitation of flora and other vegetation, such as trees, shrubs and the like destroyed by reason of any prospecting or mining operations shall be made in the same area or in any other area selected by the Central Government (whether by way of reimbursement of the cost of rehabilitation or otherwise) by the person holding the prospecting licence or mining lease; = the amount of payment to be made to the District Mineral Foundation under sub-sections (5) and (6) of section 9B; = the manner of usage of funds accrued to the National Mineral Exploration Trust under sub-section (2) of section 9C; = the composition and functions of the National Mineral Exploration Trust under sub-section (3) of section 9C; = the manner of payment of amount to the National Mineral Exploration Trust under sub-section (4) of section 9C; = the terms and conditions subject to which mining leases shall be granted under sub-section (3) of section 10B; = 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; = the time limits for various stages in processing applications for grant of mining lease or composite licence under sections 10B, 11, 11A, 11B, and section 17A, and their renewals; = the terms and conditions for grant of composite licence under sub-section (4) of section 11; = the terms and conditions, and procedure, including the bidding parameters for the selection under sub-section (6) of section 11; = the terms and conditions and amount or transfer charges under the proviso to sub-section (6) of section 12A; = the period of mining lease under sub-section (4) of section 8; = the manner of sale of mineral by the holder of a mining lease under sub-section (5) of section 8; other manner of sale of mineral under sub-section (7A) of section 8A; = the manner for reimbursement of expenditure towards reconnaissance permits or prospecting operations under the second proviso to clause (b) of sub-section (2) of section 10A; = the manner of granting mining lease to the preferred bidder under the second proviso to subsection (4) of section 10B; = the manner of granting composite licence to the preferred bidder under the second proviso to sub-section (5) of section 11; = the manner of granting mining lease by the State Government to the holder of the composite licence under sub-section (10) of section 11; = any other matter which is to be, or may be prescribed, under this Act.

Answer 29

**To make rules for grant of prospecting licences or mining leases in respect of territorial waters or continental shelf of India**. Such rules may provide for: = the conditions, limitations and restrictions subject to which such prospecting licences or mining leases may be granted; = regulation of exploration and exploitation of minerals within the territorial waters or the continental shelf of India; = ensuring that such exploration or exploitation does not interfere with navigation and = any other matter which is required to be, or may be, prescribed.

Answer 30

**Registers of prospecting licences and mining leases** State Government shall cause to be maintained in the prescribed form: = a register of applications for prospecting licences; = a register of prospecting licensees; = a register of applications for mining leases; = a register of mining lessees; = a register of applications for reconnaissance permits; and = a register of reconnaissance permits, = in each of which shall be entered such particulars as may be prescribed. Every such register shall be open to inspection by any person on payment of such fee as the State Government may fix

Answer 31

Transfer of mineral concessions This section shall not apply to minerals specified in Part A or Part B of the First Schedule. A holder of a mining lease or a composite licence granted with the previous approval of the State Government, transfer his mining lease or composite licence, as the case may be, in the manner prescribed by the Central Government, to any person eligible to hold such mining lease or composite licence. = transferee of mining lease shall not be required to pay the amount or transfer charges, as it stood prior to the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021, after such commencement but no refund shall be made of the charges already paid.

Answer 32

If State Government does not convey its previous approval for transfer of such mining lease or composite licence, as the case may be, within a period of ninety days from the date of receiving such notice, it shall be construed that the State Government has no objection to such transfer: the holder of the original mining lease or composite licence shall intimate to the State Government the consideration payable by the successor-in-interest for the transfer, including the consideration in respect of the prospecting operations already undertaken and the reports and data generated during the operations. No such transfer of a mining lease or composite licence 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: no such transfer of a mining lease or of a composite licence, shall be made in contravention of any condition subject to which the mining lease or the composite licence was granted. All transfers effected herein 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 composite licence, as the case may be. = where a mining lease has been granted otherwise than through auction ad where mineral from such mining lease is being used for captive purpose, such mining lease may be permitted to be transferred subject to compliance of such terms and conditions and payment of such amount or such amount or transfer charges as may be prescribed. the expression “used for captive purpose” shall mean the use of the entire quantity of mineral extracted from the mining lease in a manufacturing unit owned by the lessee

Answer 33

**Special powers of Central Government to undertake prospecting or mining operations in certain lands** The provisions of this section shall apply on land in which the minerals vest in the Government of a State or any other person. Central Government, after consultation with the State Government, may undertakes mineral concession in any area not already held under any mineral concession and where it proposes to do so, it shall, by notification in the Official Gazette: = specify the boundaries of such area; = state whether 4[reconnaissance, prospecting or mining operations] will be carried out in the area; and = specify the mineral or minerals in respect of which such operations will be carried out. If the Central Government undertakes reconnaissance, prospecting or mining operations in any area, the Central Government shall be liable to pay reconnaissance permit fee or prospecting fee royalty, surface rent or dead rent, as the case may be, at the same rate at which it would have been payable under this Act, if such reconnaissance, prospecting or mining operations had been undertaken by a private person under a mineral concession. Central Government may after consultation with the State Government declare that no mineral concession shall be granted in respect of any land specified in the notification

Answer 34

Reservation of areas for purposes of conservation Central Government: = with a view to conserving any mineral and after consultation with the State Government, may reserve any area not already held under any prospecting licence or mining lease and, where it proposes to do so, it shall specify the boundaries of such area and the mineral or minerals in respect of which such area will be reserved. = may in consultation with the State Government, reserve any area not already held under any prospecting licence or mining lease, for undertaking prospecting or mining operations through a Government company or corporation owned or controlled by it, and where it proposes to do so, it shall specify the boundaries of such area and the mineral or minerals in respect of which such area will be reserved. State Government may, with the approval of the Central Government, reserve any area not already held under any prospecting licence or mining lease, for undertaking prospecting or mining operations through a Government company or corporation owned or controlled by it and where it proposes to do so, it specify the boundaries of such area and the mineral or minerals in respect of which such areas will be reserved. Central Government or the State Government, as the case may be, reserves any area for undertaking prospecting or mining operations or prospecting operations followed by mining operations, the State Government shall grant prospecting licence, mining lease or composite licence, as the casemay be, in respect of such area to such Government company or corporation within the period specified in this section: any mineral specified in Part B of the First Schedule, the State Government shall grant the prospecting licence, mining lease or composite licence, as the case may be, only after obtaining the previous approval of the Central Government. 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.

Answer 35

A mining lease granted to a Government company or corporation, or a joint venture shall be granted on payment of such amount as specified in the Fifth Schedule. Central Government may amend the Fifth Schedule so as to modify the entries mentioned therein in the said Schedule with effect from such date as may be specified in the said notification. All such Government companies or corporations whose mining lease has been granted after the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, shall also pay such additional amount as specified in the Fifth Schedule for the mineral produced after the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021. Central Government or the State Government, as the case may be, undertakes prospecting or mining operations in any area in which the minerals vest in a private person, it shall be liable to pay prospecting fee, royalty, surface rent or dead rent, as the case may be, from time to time at the same rate at which it would have been payable under this Act if such prospecting or mining operations had been undertaken by a private person under prospecting licence or mining lease. Reservation made under this section shall lapse in case no mining lease is granted within a period of five years from the date of such reservation. = where the period of five years from the date of reservation has expired before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021 or expires within a period of one year from the date of commencement of the said Act, the reservation shall lapse in case no mining lease is granted within a period of one year from the date of commencement of the said Act. = State Government may, on an application made by such Government company or corporation or on its own motion, and on being satisfied that it shall not be possible to grant the mining lease within the said period, make an order with reasons in writing, within a period of three months from the date of receipt of such application, to relax such period by a further period not exceeding one year. = where the Government company or corporation in whose favour an area has been reserved under this section before the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, has commenced production from the reserved area without execution of mining lease, such Government company or corporation shall be deemed to have become lessee of the State Government from the date of commencement of mining operations and such deemed lease shall lapse upon execution of the mining lease in accordance with this sub-section or expiry of period of one year from the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021, whichever is earlier. Termination or lapse of mining lease shall result in the lapse of the reservation under this section.

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

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