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

CHAPTER I 
PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Declaration as to expediency of Union Control. 
3.  Definitions. 

CHAPTER II 

GENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING OPERATIONS 

4.  Prospecting or mining operations to be under licence or lease. 
4A.Termination of prospecting licences or mining leases. 
4B. Conditions for efficiency in production. 
5.  Restrictions on the grant of prospecting licences or mining leases. 
6.  Maximum area for which a prospecting licence or mining lease may be granted. 
7.  Periods for which prospecting licences may be granted or renewed. 
8.  Periods for which mining leases may be granted or renewed. 
8A. Period of grant of a mining lease for minerals other than coal, lignite and atomic minerals. 
8B. Provisions for period and transfer of statutory clearances. 
9.  Royalties in respect of mining leases. 
9A. Dead rent to be paid by the lessee. 
9B. District Mineral Foundation. 
9C. National Mineral Exploration Trust. 

CHAPTER III 
PROCEDURE FOR OBTAINING, PROSPECTING LICENCES OR MINING LEASES IN RESPECT  
OF LAND IN WHICH THE MINERALS VEST IN THE GOVERNMENT 

10.  Application for prospecting licences or mining leases. 
10A. Rights of existing concession holders and applicants. 
10B. Grant of mining lease in respect of notified minerals through auction. 
10C. [Omitted.] 
11.  Grant of composite licence through auction in respect of minerals other than notified minerals. 
11A. Granting of mineral concession or composite licence in respect of coal or lignite. 
11B. Power of Central Government to make rules for regulating atomic minerals specified under 

Part B of First Schedule. 

11C. Power of Central Government to amend First Schedule and Fourth Schedule. 
12.  Registers of prospecting licences and mining leases. 
12A. Transfer of mineral concessions. 

1 

 
 
 
 
CHAPTER IV 
RULES FOR REGULATING THE GRANT OF PROSPECTING LICENCES AND MINING LEASES 

SECTIONS 

13.  Power of Central Government to make rules in respect of minerals. 
13A. Power of Central Government to make rules for grant of prospecting licences or mining leases 

in respect of territorial waters or continental shelf of India. 

14.  [Sections 5 to 13] not to apply to minor minerals. 
15.  Power of State Governments to make rules in respect of minor minerals. 
15A. Power of State Government to collect funds for District Mineral Foundation in case of minor 

minerals. 

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

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. 

17A. Reservation of areas for purposes of conservation. 

CHAPTER VI 
DEVELOPMENT OF MINERALS 

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

CHAPTER VII 
MISCELLANEOUS 

19.  Prospecting licences and mining leases to be void if in contravention of Act. 
20.  Act and rules to apply to all renewals of prospecting licences and mining leases. 
20A. Power of Central Government to issue directions. 
21.  Penalties. 
22.  Cognizance of offences. 
23.  Offences by companies. 
23A. Compounding of offences. 
23B. Power to search. 
23C. Power of State Government to make rules for preventing illegal mining, transportation and 

storage of minerals. 

24.  Power of entry and inspection. 
24A. Rights and liabilities of a holder of prospecting licence or mining lease. 
25.  Recovery of certain sums as arrears of land revenue. 
26.  Delegation of powers. 
27.  Protection of action taken in good faith. 
28.  Rules and notifications to be laid before Parliament and certain rules to be approved by 

Parliament. 

29.  Existing rules to continue. 
30.  Power of revision by Central Government. 
30A. Special provisions relating to mining leases for coal granted before 25th October, 1949. 

2 

 
 
 
 
 
SECTIONS 

30B. Constitution of Special Courts. 
30C. Special Courts to have powers of Court of Session. 
31.  Relaxation of rules in special cases. 
32.  [Repealed]. 
33.  Validation of certain acts and indemnity. 

THE FIRST SCHEDULE. 
THE SECOND SCHEDULE. 
THE THIRD SCHEDULE. 
THE FOURTH SCHEDULE. 
THE FIFTH SCHEDULE. 
THE SIXTH SCHEDULE. 

3 

 
 
 
 
THE MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957 

ACT NO. 67 OF 1957 

[28th December, 1957.] 
An  Act  to  provide  for  the  1[development  and  regulation  of  mines  and  minerals]  under  the 

control of the Union. 

BE it enacted by Parliament in the Eighth Year of the Republic of India as follows:― 

CHAPTER I 

PRELIMINARY 

1.  Short  title,  extent  and  commencement.―(1)  This  Act  may  be  called  the  Mines  and  Minerals 

2[(Development and Regulation)] Act, 1957. 

(2) It extends to the whole of India. 

(3)  It  shall  come  into  force  on  such  date3as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint. 

2. Declaration as to expediency of Union Control.―It is hereby declared that it is expedient in the 
public interest that the Union should take under its control the regulation of mines and the development 
of minerals to the extent hereinafter provided. 

3. Definitions.―In this Act, unless the context otherwise requires,― 

4[(a) “composite licence” means the prospecting licence-cum-mining lease which is a two stage 
concession  granted  for  the  purpose  of  undertaking  prospecting  operations  followed  by  mining 
operations in a seamless manner; 

(aa)  “dispatch”  means  the  removal  of  minerals  or  mineral  products  from  the  leased  area  and 

includes the consumption of minerals and mineral products within such leased area; 

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

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

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

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

(ae)  “minerals  concession”  means  either  a  reconnaissance  permit,  prospecting  licence,  minig 
lease, composite licence or a combination of any of these and the expression “concession” shall be 
construed accordingly;] 

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

(c) “mining lease” means a lease granted for the purpose of undertaking mining operations, and 

includes a sub-lease granted for such purpose; 

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

mineral; 

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

1. Subs. by Act 38 of 1999, s. 2, for “regulation of mines and the development of minerals” (w.e.f. 18-12-1999). 
2. Subs. by s. 3, ibid., for “(Regulation and Development)” (w.e.f. 18-12-1999). 
3. 1st June, 1958, vide notification No. G.S.R. 432, dated 29th May, 1958, see Gazette of India, Extraordinary, Part II, sec. 3(i). 
4. Subs. by Act 16 of 2021, s. 3, for clause (a) and (aa) (w.e.f. 28-3-2021). 

4 

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

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

2[(fa) “production” or any derivative of the word “production” means the winning or raising of 

mineral within the leased area for the purpose of processing or dispatch;] 

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

operations; 

3* 

* 

* 

* 

* 

(h)  “prospecting  operations”  means  any  operations  undertaken  for  the  purpose  of  exploring, 

locating or proving mineral deposit ; 4*** 

5[(ha) “reconnaissance operations” means any operations undertaken for preliminary prospecting 
of a mineral through regional, aerial, geophysical or geochemical surveys and geological mapping, 
but does not include pitting, trenching, drilling (except drilling of boreholes on a grid specified from 
time to time by the Central Government) or sub-surface excavation; 

(hb)  “reconnaissance  permit”  means  a  permit  granted  for  the  purpose  of  undertaking 

reconnaissance operations; 6***] 

2[(hba) “Schedule” means the Schedules appended to the Act;] 

7[(hc)  “Special  Court”  means  a  Court  of  Session  designated  as  Special  Court  under  

sub-section (1) of section 30B; and] 

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

1952 (35 of 1952). 

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

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

(ii) the expression “mineral reserve” means the economically minearble part of a measured 

and indicated mineral resource.] 

CHAPTER II 

GENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING OPERATIONS 

4.  Prospecting  or  mining  operations  to  be  under  licence  or  lease.―(1)  8[No  person  shall 
undertake  any  reconnaissance,  prospecting  or  mining  operations  in  any  area,  except  under  and  in 
accordance with the terms and conditions of a reconnaissance permit or of a prospecting licence or, as 
the case may be, of a mining lease, granted under this Act and the rules made thereunder]: 

Provided  that  nothing  in  this  sub-section  shall  affect  any  prospecting  or  mining  operations 
undertaken in any area in accordance with terms and conditions of a prospecting licence or mining lease 
granted before the commencement of this Act which is in force at such commencement: 

9[Provided  further  that  nothing  in  this  sub-section  shall  apply  to  any  prospecting  operations 
undertaken  by  the  Geological  Survey  of  India,  the  Indian  Bureau  of  Mines,  10[the  Atomic  Minerals 

1. Ins. by Act 10 of 2015, s. 2 (w.e.f. 12-1-2015). 
2. Ins. by Act 16 of 2021, s. 3 (w.e.f. 28-3-2021). 
3. Clause (ga) omitted by Act 16 of 2021, s. 3 (w.e.f. 28-3-2021). 
4. The word “and” omitted by Act 10 of 2015, s. 2 (w.e.f. 12-1-2015) 
5. Ins. by Act 38 of 1999, s. 4 (w.e.f. 18-12-1999). 
6. The word “and” omitted by Act 10 of 2015, s. 2 (w.e.f. 12-1-2015). 
7. Ins. by s. 2, ibid.  (w.e.f. 12-1-2015). 
8. Subs. by Act 38 of 1999, s. 5, for certain words (w.e.f. 18-12-1999). 
9. Ins. by Act 37 of 1986, s. 2 (w.e.f. 10-2-1987). 
10. Subs. by Act 38 of 1999, s. 5, for “the Atomic Minerals Division” (w.e.f. 18-12-1999). 

5 

 
 
 
 
 
 
 
 
                                                           
Directorate  for  Exploration  and  Research]  of  the  Department  of  Atomic  Energy  of  the  Central 
Government,  the  Directorates  of  Mining  and  Geology  of  any  State  Government  (by  whatever  name 
called), and the Mineral Exploration Corporation Limited., a Government company within the meaning 
of 1[clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), and any 2[other entities including 
private entities that may be notified for this purpose, subject to such conditions as may be specified by 
the Central Government]]:] 

3[Provided  also  that  nothing  in  this  sub-section  shall  apply  to  any  mining  lease  (whether  called 
mining lease mining concession or by any other name) in force immediately before the commencement 
of this Act in the Union territory of Goa, Daman and Diu.] 

4[(1A) No person shall transport or store or cause to be transported or stored any mineral otherwise 

than in accordance with the provisions of this Act and the rules made thereunder.] 

(2) 5[No 6[mineral concession]] shall be granted otherwise than in accordance with the provisions of 

this Act and the rules made thereunder. 

5[(3)Any  State  Government  may,  after  prior  consultation  with  the  Central  Government  and  in 
accordance  with  the  rule  made  under  section  18,  7[undertake  reconnaissance,  prospecting  or  mining 
operations with respect to any mineral specified in the First Schedule in any area within that State which 
is not already held under any 11[mineral concession]].] 

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

(2) Where the State Government 9*** is of opinion that it is expedient in the interest of regulation of 
mines  and  mineral  development,  preservation  of  natural  environment,  control  of  floods,  prevention  of 
pollution  or  to  avoid  danger  to  public  health  or  communications  or  to  ensure  safety  of  buildings, 
monuments or other structures or for such other purposes, as the State Government may deem fit, it may, 
by  an  order,  in  respect  of  any  minor  mineral,  make  premature  termination  of  prospecting  licence  or 
mining lease with respect to the area or any part thereof covered by such licence or lease. 

10[*  
(3) No order making a premature termination of a prospecting licence or mining lease shall be, made 

*] 

* 

* 

* 

except after giving the holder of the licence or lease a reasonable opportunity of being heard. 

(4) Where the holder of a mining lease fails to undertake  11[production and dispatch] for a period of 
12[two years] after the date of execution of the lease or having commenced  11[production and dispatch], 
has discontinued the same for a period of 4[two years], the lease shall lapse on the expiry of the period of 
4[two  years]  from  the  date  of  execution  of  the  lease  or,  as  the  case  may  be,  discontinuance  of  the 
11[production and dispatch]: 

1. Subs. by Act 10 of 2015, s. 3, for “section 617 of the Companies Act, 1956 (1 of 1956)” (w.e.f. 12-1-2015). 
2. Subs. by Act 16 of 2021, s. 4, for  certain words (w.e.f. 28-3-2021). 
3. Ins. by Act 16 of 1987, s. 14 (w.e.f. 1-10-1963). 
4. Ins. by Act 38 of 1999, s. 5 (w.e.f. 18-12-1999). 
5. Subs. by s. 5, ibid., “No prospecting licence or mining lease” (w.e.f. 18-12-1999). 
6. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021). 
7. Subs. by Act 38 of 1999,  s. 5, for certain words (w.e.f. 18-12-1999). 
8. Subs. by Act 37 of 1986, s. 3, for section 4A (w.e.f. 10-2-1987). 
9. The words “, after consultation with the Central Government,” omitted by Act 25 of 1994, s. 2 (w.e.f. 25-1-1994). 
10. Proviso omitted by Act 38 of 1999, s. 6 (w.e.f. 18-12-1999). 
11. Subs. by Act 16 of 2021, s. 5, for “mining operations” (w.e.f. 28-3-2021). 
12. Subs. by Act 25 of 1994, s. 2, for “one year” (w.e.f. 25-1-1994). 

6 

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

Provided further that such lease shall lapse on failure to undertake production and dispatch or having 
commenced  the  production  and  dispatch  fails  to  continue  the  same  before  the  end  of  such  extended 
period.] 

2[4B.  Conditions  for  efficiency 

in  production.  Notwithstanding  anything  contained 

in                

section 4A, the Central Government may, in the interest of maintaining sustained production of minerals 
in  the  country,  prescribe  such  conditions  as  may  be  necessary  for  commencement and  continuation  of 
production by the holders of mining leases who have acquired rights, approvals, clearances and the like 
under section 8B.] 

3[5.  Restrictions  on  the  grant  of  prospecting  licences  or  mining  leases.―4[(1)  A  State 

Government shall not grant a 5[mineral concession] to any person unless such person― 

(a)  is  an  Indian  national,  or  company  as  defined  in 6[clause  (20)  of  section  2  of  the  Companies 

Act, 2013 (18 of 2013)]; and 

(b) satisfies such conditions as may be prescribed: 

7[Provided that in respect of any mineral specified in Part A and Part B of the First Schedule, 
no  reconnaissance  permit,  prospecting  licence  or  mining  lease  shall  be  granted  except  with  the 
previous approval of the Central Government.] 

8[Provided further that the previous approval of the Central Government shall not be required 
for  grant  of  5[mineral  concession]  in  respect  of  the  minerals  specified  in  Part  A  of  the  First 
Schedule, where,—  

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

(ii) a notification of reservation of area has been issued by the Central Government or the 

State Government under sub-section (1A) or sub-section (2) of section 17A; or  

(iii) a vesting order or an allotment order has been issued by the Central Government under the 

provisions of the Coal Mines (Special Provisions) Act, 2015 (11 of 2015).] 

Explanation.―For  the  purposes  of  this  sub-section,  a  person  shall  be  deemed  to  be  an  Indian 

national,― 

(a) in the case of a firm or other association of individuals, only if all the members of the firm or 

members of the association are citizens of India; and 

(b) in the case of an individual, only if he is a citizen of India.] 
9[Provided also that the composite licence or mining lease shall not be granted  for an area to any 
person other than the Government, Government company or corporation, in respect of any minerals 
specified in Part B of the First Schedule where the grade of such mineral in such area is equal to or 
above such threshold value as may be notified by the Central Government.] 

1. The provisos first, second, third and fourth subs. by Act 16 of 2021, s. 5 (w.e.f. 28-3-2021). 
2. Ins. by Act 2 of 2020, s. 2 (w.e.f. 10-1-2020). 
3. Subs. by Act 37 of 1986, s. 4, for section 5 (w.e.f. 10-2-1987). 
4. Subs. by Act 25 of 1994, s. 3, for sub-section (1) (w.e.f. 25-1-1994). 
5. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021). 
6. Subs. by Act 10 of 2015, s. 5, for “sub-section (1) of section 3 of the Companies Act, 1956 (1 of 1956)” (w.e.f. 12-1-2015). 
7. Subs. by s. 5, ibid., for the proviso (w.e.f. 12-1-2015). 
8. Ins. by Act 2 of 2020, s. 3 (w.e.f. 10-1-2020). 
9. Ins. by Act 16 of 2021, s. 6 (w.e.f. 28-3-2021). 

7 

 
                                                           
(2) No mining lease shall be granted by the State Government unless it is satisfied that― 

1[(a)  there  is  evidence  to  show  the  existence  of  mineral  contents  in  the  area  for  which  the 
application  for  a  mining  lease  has  been  made  in  accordance  with  such  parameters  as  may  be 
prescribed for this purpose by the Central Government;] 

(b)  there  is  a  mining  plan  duly  approved  by  the  Central  Government,  or  by  the  State 
Government, in respect of such category of mines as may be specified by the Central Government, 
for the development of mineral deposits in the area concerned:] 

2[Provided that  a  mining  lease  may  be  granted  upon the  filing  of  a  mining  plan in accordance 
with a system established by the State Government for preparation, certification, and monitoring of 
such plan, with the approval of the Central Government.] 

6.  Maximum  area  for  which  a  prospecting  licence  or  mining  lease  may  be  granted.―3[(1)No 
person  shall  acquire  4***  in  respect  of  any  mineral  or  prescribed  group  of  associated  minerals  5[in  a 
State]― 

(a)  one  or  more  prospecting  licences  covering  a  total  area  of  more  than  twenty-five  square 

kilometres; or 

6[(aa) one or more reconnaissance permit covering a total area often thousand square kilometres: 

Provided  that  the  area  granted  under  a  single  reconnaissance  permit  shall  not  exceed  five 

thousand square kilometers; or] 

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

7[Provided  that  if  the  Central  Government  is  of  the  opinion  that  in  the  interest  of  the 
development of any mineral or industry, it is necessary so to do, it may, for reasons to be recorded in 
writing, increase the aforesaid area limits in respect of prospecting licence or mining lease, in so far 
as it pertains to any particular mineral, or to any specified category of deposits of such mineral, or to 
any particular mineral located in any particular area.]] 

8[(c) any reconnaissance permit, mining lease or prospecting licence in respect of any area which 

is not compact or contiguous: 

Provided that if the State Government is of opinion that in the interests of the development 
of any mineral, it is necessary so to do, it may, for reasons to be recorded in writing, permit any 
person  to  acquire  a  9[mineral  concession]  in  relation  to  any  area  which  is  not  compact  or 
contiguous.] 

(2)  For  the  purposes  of  this  section,  a  person  acquiring  by,  or  in  the  name  of,  another  person  a  

9[mineral concession] which is intended for himself shall be deemed to be acquiring it himself. 

10[(3) For the purposes of determining the total area referred to in sub-section (1), the area held under 
a 9[mineral concession] by a person as a member of a co-operative society, company or other corporation 
or a Hindu undivided family or a partner of a firm, shall be deducted from the area referred to in sub-
section (1) so that the sum total of the area held by such person, under a 9[mineral concession], whether 
as such member or partner, or individually, may not, in any case, exceed the total area specified in sub-
section (1).] 

1. Subs. by Act 10 of 2015, s. 5, for clause (a) (w.e.f. 12-1-2015). 
2. Ins. by s. 5, ibid. (w.e.f. 12-1-2015). 
3. Subs. by Act 56 of 1972, s. 3, for sub-section (1) (w.e.f. 12-9-1972). 
4. The words “in any one State” omitted by Act 37 of 1986, s. 5 (w.e.f. 10-2-1987). 
5. Ins. by Act 38 of 1999, s. 8 (w.e.f. 18-12-1999). 
6. Ins. by Act 38 of 1999, s. 8 (w.e.f. 18-12-1999). 
7. Subs. by Act 10 of 2015, s. 6, for the proviso (w.e.f. 12-1-2015). 
8. Subs. by Act 38 of 1999, s. 8, for clause (c) (w.e.f. 18-12-1999). 
9. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021). 
10. Ins. by Act 56 of 1972, s. 3 (w.e.f. 12-9-1972). 

8 

 
                                                           
1[7.  Periods  for  which  prospecting  licences  may  be  granted  or  renewed.―(1)  The  period  for 

which 2[a reconnaissance permit or prospecting licence] may be granted shall not exceed three years. 

(2) A prospecting licence shall, if the State Government is satisfied that a longer period is required to 
enable  the  licensee  to  complete  prospecting  operations  be  renewed  for  such  period  or  periods  as  that 
Government may specify: 

Provided that the total period for which a prospecting licence is granted does not exceed five years: 

Provided further that no prospecting licence granted in respect of 3[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.] 

4[8.  Periods  for  which  mining  leases  may  be  granted  or  renewed.―(1)  The  provisions  of  this 

section shall apply to minerals specified in Part A of the First Schedule. 

(2) The maximum period for which a mining lease may be granted shall not exceed thirty years: 

Provided that the minimum period for which any such mining lease may be granted shall not be less 

than twenty years. 

(3)  A  mining  lease  may  be  renewed  for  a  period  not  exceeding  twenty  years  with  the  previous 

approval of the Central Government.] 

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

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

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

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

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

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

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

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

6[8A.  Period  of  grant  of  a  mining  lease  for  minerals  other  than  coal,  lignite  and  atomic 
minerals.―(1) The provisions of this section shall apply to minerals other than those specified in Part A 
and Part B of the First Schedule. 

1. Subs. by Act 25 of 1994, s. 4, for section 7 (w.e.f. 25-1-1994). 
2. Subs. by Act 38 of 1999, s. 9, for “a prospecting licence” (w.e.f. 18-12-1999). 
3. Subs. by s. 9, ibid., for “a mineral included in” (w.e.f. 18-12-1999). 
4. Subs. by Act 10 of 2015, s. 7, for section 8 (w.e.f. 12-1-2015). 
5. Ins. by Act 16 of 2021, s. 7 (w.e.f. 28-3-2021). 
6. Ins. by Act 10 of 2015, s. 8 (w.e.f. 12-1-2015). 

9 

 
                                                           
(2)  On  and  from  the  date  of  the  commencement  of  the  Mines  and  Minerals  (Development  and 
Regulation) Amendment Act, 2015 (10 of 2015), all mining leases shall be granted for the period of fifty 
years. 

(3) All mining leases granted before the commencement of the Mines and Minerals (Development 
and Regulation) Amendment Act, 2015 (10 of 2015) shall be deemed to have been granted for a period 
of fifty years. 

(4)  On  the  expiry  of  the  lease  period,  the  lease  shall  be  put  up  for  auction  as  per  the  procedure 

specified in this Act. 

1[Provided that nothing contained in this section shall prevent the State Governments from taking an 

advance action for auction of the mining lease before the expiry of the lease period.] 

(5)  Notwithstanding  anything  contained  in  sub-sections  (2),  (3)  and  sub-section  (4),  the  period  of 
lease  granted  before  the  date  of  commencement  of  the  Mines  and  Minerals  (Development  and 
Regulation)  Amendment  Act,  2015  (10  of  2015),  where  mineral  is  used  for  captive  purpose,  shall  be 
extended  and  be  deemed  to  have  been  extended  up  to  a  period  ending  on  the  31st  March,  2030  with 
effect from the date of expiry of the period of renewal last made or till the completion of renewal period, 
if any, or a period of fifty years from the date of grant of such lease, whichever is later, subject to the 
condition that all the terms and conditions of the lease have been complied with. 

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

(7) Any holder of a lease granted, where mineral is used for captive purpose, shall have the right of 

first refusal at the time of auction held for such lease after the expiry of the lease period. 

2[(7A) Any lessee may, where mineral is used for captive purpose, sell mineral up to fifty per cent. of 
the total mineral produced in a year after meeting the requirement of the end use plant linked with the mine 
in such manner as may be  prescribed  by  the  Central  Government  and  on  payment  of  such  additional 
amount as specified in the Sixth Schedule: 

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

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

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

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

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

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

Explanation.—For the removal of doubts, it is hereby clarified that all such Government companies 
or corporations whose mining lease has been extended after the commencement of the Mines and Minerals 

1. Ins. by Act 2 of 2020, s. 4 (w.e.f. 10-1-2020).  
2. Ins. by Act 16 of 2021, s. 8 (w.e.f. 28-3-2021).  

10 

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

(9) The provisions of this section, notwithstanding anything contained therein, shall not apply to a 
mining  lease  granted  before  the  date  of  commencement  of the Mines  and  Minerals  (Development and 
Regulation) Amendment Act, 2015 (10 of 2015), for which renewal has been rejected, or which has been 
determined, or lapsed.]  

1[8B. Provisions for period and transfer of statutory clearances.―(1) Notwithstanding anything 
contained in this Act or any other law for the  time being in force, all valid rights, approvals, clearances, 
licences and the like granted to a lessee in respect of a mine (other than those granted under the provisions 
of the Atomic Energy Act, 1962 (33 of 1962) and the rules made thereunder) shall continue to be valid 
even  after  expiry  or  termination  of  lease  and  such  rights,  approvals,  clearances,  licences  and  the  like 
shall be transferred to, and vested; subject to the conditions provided under such laws; in the successful 
bidder of the mining lease selected through auction under this Act:  

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

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

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

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

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

9.  Royalties  in  respect  of  mining  leases.―(1)  The  holder  of  a  mining  lease  granted  before  the 
commencement of this Act shall, notwithstanding anything contained in the instrument of lease or in any 
law in force at such commencement, pay royalty in respect of any  2[mineral removed or consumed by 
him  or  by  his  agent,  manager,  employee,  contractor  or  sub-lessee]  from  the  leased  area  after  such 
commencement, at the rate for the time being specified in the Second Schedule in respect of that mineral. 

(2) The holder of a mining lease granted on or after the commencement of this Act shall pay royalty 
in respect of any 2[mineral removed or consumed by him or by his agent, manager, employee, contractor 
or  sub-lessee]  from  the  leased  area  at  the  rate  for  the  time  being  specified  in  the  Second  Schedule  in 
respect of that mineral. 

3[(2A) The holder of a mining lease, whether granted before or after the commencement of the Mines 
and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972) shall not be liable to 
pay any royalty in respect of any coal consumed by a workman engaged in a colliery provided that such 
consumption by the workman does not exceed one-third of a tonne per month.] 

1. Ins. by Act 16 of 2021, s. 9 (w.e.f. 28-3-2021). 
2. Subs. by Act 56 of 1972, s. 4, for “mineral removed by him” (w.e.f. 12-9-1972). 
3. Ins. by s. 4, ibid. (w.e.f. 12-9-1972). 

11 

 
                                                           
(3)  The  Central  Government  may,  by  notification  in  the  Official  Gazette,  amend  the  Second 
Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral 
with effect from such date as may be specified in the notification: 

1[Provided  that  the  Central  Government  shall  not  enhance  the  rate  of  royalty  in  respect  of  any 

mineral more than once during any period of 2[three years].] 

3[9A.  Dead  rent  to  be  paid  by  the  lessee.―(1)  The  holder  of  a  mining  lease,  whether  granted 
before  or  after  the  commencement  of  the  Mines  and  Minerals  (Regulation  and  Development) 
Amendment  Act,  1972,  shall  notwithstanding  anything  contained  in  the  instrument  of  lease  or  in  any 
other law for the lime being in force, pay to the State Government, every year, dead rent at such rate, as 
may be specified, for the time being, in the Third Schedule, for all the areas included in the instrument of 
lease: 

Provided that where the holder of such mining lease becomes liable, under section 9, to pay royalty 

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

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

Provided that the Central Government shall not enhance the rate of the dead rent in respect of any 

such area more than once during any period of 4[three years].] 

5[9B. District Mineral Foundation.―(1) In any district affected by mining related operations, the 
State Government shall, by notification, establish a trust, as a non-profit body, to be called the District 
Mineral Foundation. 

(2)  The  object  of  the  District  Mineral  Foundation  shall  be  to  work  for  the  interest  and  benefit  of 
persons,  and  areas  affected  by  mining  related  operations  in  such  manner  as  may  be  prescribed  by  the 
State Government. 

(3)  The  composition  and  functions  of  the  District  Mineral  Foundation  shall  be  such  as  may  be 

prescribed by the State Government. 

6[Provided  that  the  Central  Government  may  give  directions  regarding composition and utilisation 

of fund by the District Mineral Foundation.] 

(4) The State Government while making rules under sub-sections (2) and (3) shall be guided by the 
provisions  contained  in  article  244  read  with  Fifth  and  Sixth  Schedules  to  the  Constitution  relating  to 
administration of the Scheduled Areas and Tribal Areas and the Provisions of the Panchayats (Extension 
to the Scheduled Areas) Act, 1996 (40 of 1996) and the Scheduled Tribes and Other Traditional Forest 
Dwellers (Recognition of Forest Rights) Act, 2006 (2 of 2007). 

(5)  The  holder  of  a  mining  lease  or  a  7[composite  licence]  granted  on  or  after  the  date  of 
commencement  of  the  Mines  and  Minerals  (Development  and  Regulation)  Amendment  Act,  2015  8[, 
other than those covered under the provisions of sub-section (2) of section 10A], shall, in addition to the 

1. Subs. by Act 56 of 1972, s. 4,  for the proviso (w.e.f. 12-9-1972). 
2. Subs. by Act 37 of 1986, s. 8, for “four years” (w.e.f. 10-2-1987). 
3. Ins. by Act 56 of 1972, s. 5 (w.e.f. 12-9-1972). 
4. Subs. by Act 37 of 1986, s. 9, for “four years” (w.e.f. 10-2-1987). 
5. Ins. by Act 10 of 2015, s. 9 (w.e.f. 12-1-2015). 
6. Ins. by Act 16 of 2021, s. 10 (w.e.f. 28-3-2021). 
7. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021). 
8. Ins. by s. 10, ibid. (w.e.f. 28-3-2021). 

12 

 
                                                           
royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried 
on,  an  amount  which  is  equivalent  to  such  percentage  of  the  royalty  paid  in  terms  of  the  Second 
Schedule, not exceeding one-third of such royalty, as may be prescribed by the Central Government. 

(6)  The  holder  of  a  mining  lease  granted  before  the  date  of  commencement  of  the  Mines  and 
Minerals  (Development  and  Regulation)  Amendment  Act,  2015  1[other  than  those  covered  under  the 
provisions of sub-section (2) of section 10A], shall, in addition to the royalty, pay to the District Mineral 
Foundation of the district in which the mining operations are carried on, an amount not exceeding the 
royalty  paid  in  terms  of  the  Second  Schedule  in  such  manner  and  subject  to  the  categorisation  of  the 
mining leases and the amounts payable by the various categories of lease holders, as may be prescribed 
by the Central Government. 

9C.  National  Mineral  Exploration  Trust.―(1)  The  Central  Government  shall,  by  notification, 
establish  a  Trust,  as  a  2[non-profit  autonomous  body],  to  be  called  the  National  Mineral  Exploration 
Trust. 

(2) The object of the Trust shall be to use the funds accrued to the Trust for the purposes of regional 

and detailed exploration in such manner as may be prescribed by the Central Government. 

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

Government. 

(4) The holder of a mining lease or a  3[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.] 

4[(5) The entities specified and notified under sub-section (1) of section 4 shall be eligible for funding 

under the National Mineral Exploration Trust.] 

CHAPTER III 

PROCEDURE FOR OBTAINING, PROSPECTING LICENCES OR MINING LEASES, IN RESPECT OF LAND IN WHICH 
THE MINERALS VEST IN THE GOVERNMENT 

10.  Application for  prospecting licences or mining  leases.―(1)  An  application  for  5[a  3[mineral 
concession]] in respect of any land in which the minerals vest in the Government shall be made to the 
State Government concerned in the prescribed form and shall be accompanied by the prescribed fee. 

(2)  Where  an  application  is  received  under  sub-section  (1),  there  shall  be  sent  to  the  applicant  an 

acknowledgment of its receipt within the prescribed time and in the prescribed form. 

(3) On receipt of an application under this section, the State Government may, having regard to the 
provisions  of this  Act  and any  rules  made  thereunder,  grant  or  refuse  to  grant  the  6[permit,  licence  or 
lease]. 

7[(4)  Notwithstanding  anything  contained  in  this  section,  no  person  shall  be eligible to make an 

application under this section unless— 

(a) he has been selected in accordance with the procedure specified under    sections 10B, 11, 11A or 

the rules made under section 11B; 

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

or 

(c) an area has been reserved in his favour under section 17A.] 

1. Ins. by Act 16 of 2021, s. 10 (w.e.f. 28-3-2021). 
2. Subs. by s. 11, ibid., for “non-profit body” (w.e.f. 28-3-2021). 
3. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021). 
4. Ins. by Act 16 of 2021, s. 11 (w.e.f. 28-3-2021). 
5. Subs. by Act 38 of 1999, s. 11, for “a prospecting licence or a mining lease” (w.e.f. 18-12-1999). 
6. Subs. by s. 11, ibid., for “licence or lease” (w.e.f. 18-12-1999). 
7. Ins. by Act 16 of 2021, s. 12 (w.e.f. 28-3-2021). 

13 

 
                                                           
1[10A. Rights of existing concession holders and applicants.―(1) All applications received prior 
to  the  date  of  commencement  of  the  Mines  and  Minerals  (Development  and  Regulation)  Amendment 
Act, 2015, shall become ineligible. 

(2) Without prejudice to sub-section (1), the following shall remain eligible on and from the date of 

commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015:― 

(a) applications received under section 11A of this Act; 

(b) where before the commencement of the Mines and Minerals (Development and Regulation) 
Amendment Act, 2015 a reconnaissance permit or prospecting licence has been granted in respect of 
any  land  for  any  mineral,  the  permit  holder  or  the  licensee  shall  have  a  right  for  obtaining  a 
prospecting licence followed by a mining lease, or a mining lease, as the case may be, in respect of 
that mineral in that land, if the State Government is satisfied that the permit holder or the licensee, as 
the case may be,― 

(i) has undertaken reconnaissance operations or prospecting operations, as the case may be, 
to establish the existence of mineral contents in such land in accordance with such parameters as 
may be prescribed by the Central Government; 

(ii) has not committed any breach of the terms and conditions of the reconnaissance permit 

or the prospecting licence; 

(iii) has not become ineligible under the provisions of this Act; and 

(iv) has not failed to apply for grant of prospecting licence or mining lease, as the case may 
be,  within  a  period  of  three  months  after  the  expiry  of  reconnaissance  permit  or  prospecting 
licence, as the case may be, or within such further period not exceeding six months as may be 
extended by the State Government; 

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

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

(c)  where  the  Central  Government  has  communicated  previous  approval  as  required  under  
sub-section  (1)  of section 5  for  grant  of  a  mining  lease,  or  if  a letter  of  intent  (by  whatever  name 
called) has been issued by the State Government to grant a mining lease, before the commencement 
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: 

Provided that in respect of any mineral specified in the First Schedule, no prospecting licence 
or  mining  lease  shall  be  granted  under  clause  (b)  of  this  subsection  except  with  the  previous 
approval of the Central Government. 

2[(d) in cases where right to obtain licence or lease has lapsed under, clauses (b) and (c), such 

areas shall be put up for auction as per the provisions  of this Act. 

1. Ins. by Act 10 of 2015, s. 10 (w.e.f. 12-1-2015). 
2. Ins. by Act 16 of 2021, s. 13 (w.e.f. 28-3-2021). 

14 

 
 
 
                                                           
Provided that in respect of the minerals specified in Part B of the First Schedule where the grade 
of atomic mineral is equal to or greater than the threshold value, the mineral concession for such areas 
shall be granted in accordance with the rules made under section 11B.] 

10B.  Grant  of  mining  lease  in  respect  of  notified  minerals  through  auction.―1[(1)  The 

provisions of this section shall not apply to the,— 

(a) cases falling under section 17A; 

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

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

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

(2)  Where  there  is  inadequate  evidence  to  show  the  existence  of  mineral  contents  of  any  notified 
mineral  in  respect  of  any  area,  a  State  Government  may,  after  obtaining  the  previous  approval  of  the 
Central Government, grant a 2[composite licence] for the said notified mineral in such area in accordance 
with the procedure laid down in section 11. 

(3)  In  areas  where  the  existence  of  mineral  contents  of  any  notified  mineral  is  established  in  the 
manner prescribed by the Central Government, the State Government shall notify such areas for grant of 
mining  leases for  such  notified  mineral,  the terms  and  conditions  subject  to  which such  mining  leases 
shall be granted, and any other relevant conditions, in such manner as may be prescribed by the Central 
Government. 

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

(4)  For  the  purpose  of  granting  a  mining  lease  in  respect  of  any  notified  mineral  in  such  notified 
area, the State Government shall select, through auction by a method of competitive bidding, including 
e-auction, an applicant who fulfils the eligibility conditions as specified in this Act. 

3[Provided that— 

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

(b) upon completion of such auction, the mining lease or letter of intent for grant of mining lease 

has been terminated or lapsed for any reason whatsoever, 

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: 

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

1. Subs. by Act 16 of 2021, s. 14, for sub-section (1) (w.e.f. 28-3-2021). 
2. Subs. by s. 2, ibid., for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021). 
3. Ins. by s. 14, ibid. (w.e.f. 28-3-2021). 

15 

 
                                                           
(5)  The  Central  Government  shall  prescribe  the  terms  and  conditions,  and  procedure,  subject  to 
which  the  auction  shall  be  conducted,  including  the  bidding  parameters  for  the  selection,  which  may 
include a share in the production of the mineral, or any payment linked to the royalty payable, or any 
other relevant parameter, or any combination or modification of them. 

(6) Without prejudice to the generality of sub-section (5), the Central Government shall, if it is of the 
opinion  that  it  is  necessary  and  expedient  to  do  so,  prescribe  terms  and  conditions,  procedure  and 
bidding parameters in respect of categories of minerals, size and area of mineral deposits and a State or 
States, subject to which the auction shall be conducted: 

1[Provided that no mine shall be reserved for captive purpose in the auction.] 

(7) The State Government shall grant a mining lease to an applicant selected in accordance with the 

procedure laid down in this section in respect of such notified mineral in any notified area. 

10C.  [Grant  of  non-exclusive  reconnaissance  permits.]  Omitted  by  the  Mines  and  Minerals 

(Development and Regulation) Amendment Act, 2021, s. 16 (w.e.f. 28-3-2021). 

2[11. Grant of  3[composite licence] through auction in respect of minerals other than notified 

minerals.―4[(1) The provisions of this section shall not apply to the,— 

(a) cases falling under section 17A; 

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

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

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

(2)  In  areas  where  there  is  evidence  to  show  the  existence  of  mineral  contents  as  required  by  
clause (a) of sub-section (2) of section 5, the State Government shall grant a mining lease for minerals 
other than notified minerals following the procedure laid down in section 10B. 

(3) In areas where there is inadequate evidence to show the existence of mineral contents as required 
under clause (a) of sub-section (2) of section 5, the State Government shall grant a  3[composite licence] 
for minerals other than notified minerals in accordance with the procedure laid down in this section. 

(4) The State Government shall notify the areas in which  3[composite licence] shall be granted for 
any  minerals  other than  notified  minerals,  the terms  and  conditions subject to  which  such  3[composite 
licence] shall be granted, and any other relevant conditions, in such manner as may be prescribed by the 
Central Government. 

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

(5)  For  the  purpose  of  granting  3[composite  licence],  the  State  Government  shall  select,  through 
auction  by  method  of  competitive  bidding,  including  e-auction,  an  applicant  who  fulfils  the  eligibility 
conditions as specified in this Act. 

5[Provided that— 

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

1. Subs. by Act 16 of 2021, s. 14, for the proviso (w.e.f. 28-3-2021). 
2. Subs. by Act 10 of 2015, s. 11, for section 11 (w.e.f. 12-1-2015). 
3. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021). 
4. Subs. by s. 16, ibid., for sub-section (1) (w.e.f. 28-3-2021). 
5. Ins. by s. 16, ibid. (w.e.f. 28-3-2021). 

16 

 
                                                           
notified area; or 

(b) upon completion of such auction, the composite licence or letter of intent for grant of composite 

licence has been terminated or lapsed for  any reason whatsoever, 

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

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

(6)  The  Central  Government  shall  prescribe  the  terms  and  conditions,  and  procedure,  subject  to 
which  the  auction  shall  be  conducted,  including  the  bidding  parameters  for  the  selection,  which  may 
include a share in the production of the mineral, or any payment linked to the royalty payable, or any 
other relevant parameter, or any combination or modification of them. 

(7) Without prejudice to the generality of sub-section (6), the Central Government shall, if it is of the 
opinion  that  it  is  necessary  and  expedient  to  do  so,  prescribe  terms  and  conditions,  procedure  and 
bidding parameters in respect of categories of minerals, size and area of mineral deposits and a State or 
States, subject to which the auction shall be conducted. 

(8) The State Government shall grant a  1[composite licence] to an applicant selected in accordance 

with the procedure laid down in this section. 

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

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

2[(10) On completion of the prospecting operations, the holder of the composite licence shall submit 
the  result  of  the  prospecting  operations  in  the  form  of  a  geological  report  to  the  State  Government 
specifying the area required  for mining lease and the State Government shall grant mining lease for such 
area, to  the  holder  of  the  composite  licence  in  such  manner  as  may  be  prescribed  by the  Central 
Government.]] 

3[11A.  Granting  of  1[mineral  concession]  4[or  5[composite  licence]  in  respect  of  coal  or 
lignite].—(1)  Notwithstanding  anything  contained  in  this  Act,  the  Central  Government  may,  for  the 
purpose of  granting  1[mineral concession]  6[or  5[composite licence] in respect of coal or lignite]  select 
any of the following companies through auction by competitive bidding, on such terms and conditions as 
may be prescribed, namely: — 

(a) a Government company or corporation or a joint venture company formed by such company 
or corporation or between the Central Government or the State Government, as the case may be, or 
any other company incorporated in India; or 

(b) a company or a joint venture company formed by two or more companies,  

1. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021). 
2. Subs. by Act 16 of 2021, s. 16, for sub-section (10) (w.e.f. 28-3-2021). 
3. Subs. by Act 11 of 2015, s. 28 and the Fourth Schedule, for section 11A (w.e.f. 21-10-2014). 
4. Ins. by Act 2 of 2020, s. 7 (w.e.f. 10-1-2020).  
5. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021). 
6. Subs. by Act 2 of  2020, s. 7, for “in respect of any area containing coal or lignite” (w.e.f. 10-1-2020). 

17 

 
 
 
                                                           
1[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;]  

2[Provided that the auction by competitive bidding under this section shall not be applicable to coal 

or lignite— 

(a) where such area is considered for allotment to a Government company or corporation or a joint 
venture company formed by such company or corporation or between the Central Government or the 
State Government, as the case may be, for own consumption, sale or for any other purpose as may be 
determined by the Central Government;  

(b) where such area is considered for allotment to a company or corporation that has been awarded 

a power project on the basis of competitive bid for tariff (including Ultra Mega Power Projects);] 

(2)  The  Central  Government  may,  with  a  view  to  rationalise  coal  and  lignite  mines  referred  to  in                            

sub-section  (1),  so  as  to  ensure  the  coordinated and scientific  development  and utilisation of resources 
consistent with the growing requirements of the country, from time to time, prescribe— 

(i) the details of mines and their location; 

(ii) the minimum size of such mines; 

(iii) such other conditions,  

which in the opinion of that Government may be necessary for the purpose of mining operations or 
mining for sale by a company. 

(3) The State Government shall grant such 3[mineral concession] 4[or 5[composite licence]] in respect 
of  any  area  containing  coal  or  lignite  to  such  company  as  selected  through  auction  by  6[competitive 
bidding or through allotment] under this section: 

Provided that the auction by competitive bidding under this section shall not be applicable to an area 

containing coal or lignite— 

(a) where  such  area  is  considered  for  allocation  to  a  Government  company  or  corporation  or  a 
joint venture company formed by such company or corporation or between the Central Government 
or the State Government, as the case may be; 

(b)  where  such  area  is  considered  for  allocation  to  a  company  or  corporation  or  that  has  been 
awarded  a  power  project  on  the  basis  of  competitive  bids  for  tariff  (including  Ultra  Mega  Power 
Projects). 

Explanation.—For  the  purposes  of  this  section,  “company”  means  a  company  as  defined  in                  

clause (20) of section 2 of the Companies Act, 2013 (18 of 2013).] 

7[11B.  Power  of  Central  Government  to  make  rules  for  regulating  atomic  minerals  specified 
under Part B of First Schedule.―The Central Government may, by notification in the Official Gazette, 

1. Subs. by Act 2 of  2020,  s. 7, for the long line (w.e.f. 10-1-2020). 
2. Ins. by s. 7, ibid. (w.e.f. 10-1-2020). 
3. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021). 
4. Ins. by Act 2 of  2020,  s. 7 (w.e.f. 10-1-2020). 
5.Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021). 
4. Subs. by s. 7, ibid., for “competitive bidding or otherwise” (w.e.f. 10-1-2020). 
5. Ins. by Act 10 of 2015, s. 12 (w.e.f. 12-1-2015). 

18 

 
                                                           
make rules for regulating the grant of mining leases or other mineral concessions in respect of minerals 
specified in Part B of the First Schedule and for purposes connected therewith, and the State Government 
shall grant a 1[mineral concession] in respect of any such mineral in accordance with such rules. 

11C.  Power  of  Central  Government  to  amend  First  Schedule  and  Fourth  Schedule.―The 
Central  Government  may,  by  notification  in  the  Official  Gazette,  amend  the  First  Schedule  and  the 
Fourth Schedule so as to add or delete any mineral as may be specified in the notification.] 

12. Registers of prospecting licences and mining leases.―(1) The State Government shall cause to 

be maintained in the prescribed form― 

(a) a register of applications for prospecting licences; 

(b) a register of prospecting licensees; 

2[(c) a register of applications for mining leases; 

(d) a register of mining lessees; 

(e) a register of applications for reconnaissance permits; and 

(f) a register of reconnaissance permits,] 

in each of which shall be entered such particulars as may be prescribed. 

(2) Every such register shall be open to inspection by any person on payment of such fee as the State 

Government may fix. 

3[12A.  Transfer  of  mineral  concessions.―(1)  The  provisions  of  this  section  shall  not  apply  to 

minerals specified in Part A or Part B of the First Schedule. 

(2) A holder of a mining lease or a  4[composite licence] granted in accordance with the procedure 
laid down in  5[this Act] may, with the previous approval of the State Government, transfer his mining 
lease or  4[composite licence], as the case may be, in such manner as may be prescribed by the Central 
Government, to any person eligible to hold such mining lease or 4[composite licence] in accordance with 
the provisions of this Act and the rules made thereunder. 

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

(3) If the State Government does not convey its previous approval for transfer of such mining lease 
or  4[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: 

Provided  that  the  holder  of  the  original  mining  lease  or  4[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. 

(4)  No  such 

in  
sub-section (2), shall take place if the State Government, within the notice period and for reasons to be 

transfer  of  a  mining 

lease  or 

licence], 

referred 

4[composite 

to 

1. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021). 
2. Subs. by Act 38 of 1999, s. 13, for clauses (c) and (d) (w.e.f. 18-12-1999). 
3. Ins. by Act 10 of 2015, s. 13 (w.e.f. 12-1-2015). 
4. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021). 
5. Subs. by s. 17, ibid., for “section 10B or section 11” (w.e.f. 28-3-2021). 
6. Ins. by s. 17, ibid. (w.e.f. 28-3-2021). 

19 

 
                                                           
communicated in writing, disapproves the transfer on the ground that the transferee is not eligible as per 
the provisions of this Act: 

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

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

2* 

* 

* 

* 

* 

3[Provided  that  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. 

Explanation.―For  the  purposes  of  this  proviso,  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.] 

CHAPTER IV 

RULES FOR REGULATING THE (GRANT OF PROSPECTING LICENCES AND MINING LEASES 

13.  Power  of  Central  Government  to  make  rules  in  respect  of  minerals.―(1)  The  Central 
Government may, by notification in the Official Gazette, make rules for regulating the grant of 4[mineral 
concession] in respect of minerals and for purposes connected therewith. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:― 

(a)  the  person  by  whom,  and  the  manner  in  which,  applications  for 5[mineral  concession]  in 
respect of land in which the minerals vest in the Government may be made and the fees to be paid 
therefor; 

6[(aa) the conditions as may be necessary for commencement and continuation of production by 

the holders of mining leases, under section 4B; 

(ab) the conditions to be fulfilled by the new lessee for obtaining all necessary rights, approvals, 

clearances, licences and the like under the proviso to sub-section (2) of section 8B; 

(ac)  the  level  of  exploration  in  respect  of  deep  seated  minerals  or  such  minerals  and  the 

procedure,  including  the  bidding  parameters  for  selection  of  the  holders  under  the  proviso  to                  
sub-section (2) of section 10C;] 

(b) the time within which, and the form in which, acknowledgement of the receipt of any such 

application may be sent; 

(c)  the  matters  which  may  be  considered  where  applications  in  respect  of  the  same  land  are 

received on the same day; 

7[(d)  the  terms,  conditions  and  process  of  auction  by  competitive  bidding  and  allotment  in 

respect of coal or lignite; 

1. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021). 
2. Sub-section (6) omitted by s. 17, ibid. (w.e.f. 28-3-2021). 
3. Ins. by Act 25 of 2016, s. 3 (w.e.f. 6-5-2016). 
4. Subs. by Act 16 of 2021, s. 18, for “prospecting licences and mining leases” (w.e.f. 28-3-2021). 
5. Subs. by Act 16 of 2021,  s. 18, for “reconnaissance permits, prospecting licences and mining leases” (w.e.f. 28-3-2021). 
6. Ins. by Act 2 of 2020, s. 8 (w.e.f. 10-1-2020).  
7. Subs. by Act 2 of 2020, s. 8, for clause (d) (w.e.f. 10-1-2020). 

20 

 
 
 
 
 
 
 
 
 
 
 
                                                           
(da) the regulation of grant of 1[mineral concession] or 2[composite licence] in respect of coal or 

lignite;  

(db)  the  details  of  mines  and  their  location,  the  minimum  size  of  such  mines  and  such  other 
conditions which may be necessary for the purpose of coal or lignite reconnaissance, prospecting or 
mining operations;  

(dc) utilisation of coal or lignite including mining for sale by a company] 

(e) the authority by which 1[mineral concession] in respect of land in which the minerals vest in 

the Government may be granted; 

(f)  the  procedure  for  obtaining 3[a  1[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 4[a permit, licence or lease] may be granted or renewed; 

(g)  the  terms  on  which,  and  the  conditions  subject  to  which,  may  other 1[mineral  concession] 

may be granted or renewed; 

(h)  the  facilities  to  be  afforded  by  holders  of  mining  leases  to  persons  deputed  by  the 
Government  for  the purpose  of  undertaking  research  or  training  in  matters  relating  to  mining 
operations; 

5[(i)  the  fixing  and  collection  of  fees  for 1[mineral  concession] surface  rent,  security  deposit, 
fines,  other  fees  or  charges  and  the  time  within  which  and  the  manner  in which  the  dead  rent  or 
royalty shall be payable;] 

(j)  the  manner  in  which  rights  of  third  parties  may  be  protected  (whether  by  payment  of 
compensation or otherwise) in cases where any such party may be prejudicially affected by reason of 
any 1[mineral concession]; 

6[(jj)  parameters  of  existence  of  mineral  contents  under  clause  (a)  of  sub-section  (2)  of                     

section 5;] 

(k) the grouping of associated minerals for the purposes of section 6; 

(l) the manner in which, and the conditions subject to which, 7[a 1[mineral concession]] may be 

transferred; 

(m)  the  construction,  maintenance  and  use  of  roads,  power  transmission  lines,  tramways, 
railways,  aerial ropeways,  pipelines and the  making  of  passages for  water for mining  purposes  on 
any land comprised in a mining lease; 

(n) the form of registers to be maintained under this Act; 

8* 

* 

* 

* 

* 

(p) the reports and statements to be submitted by holders of 1[mineral concession] or owners of 

mines and the authority to which such reports and statements shall be submitted; 

(q) the period within which applications for revision of any order passed by a State Government 
or other authority in exercise of any power conferred by or under this Act, may be made 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 

1. Subs. by Act 16 of 2021, s. 2, for “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021). 
2. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021). 
3. Subs. by Act 38 of 1999, s. 14, for “a prospecting licence or a mining lease” (w.e.f. 18-12-1999). 
4. Subs. by s. 14, ibid., for “a licence or lease” (w.e.f. 18-12-1999). 
5. Subs. by Act 37 of 1986, s. 11, for clause (i) (w.e.f. 10-2-1987). 
6. Ins. by Act 10 of 2015, s. 14 (w.e.f. 12-1-2015). 
7. Subs. by Act 38 of 1999, s.14, for “a prospecting licence or a mining lease” (w.e.f. 18-12-1999). 
8. Omitted by Act 37 of 1986, s. 11 (w.e.f. 10-2-1987). 
9. Ins. by Act 37 of 1986, s. 11 (w.e.f. 10-2-1987). 

21 

 
 
 
 
 
 
 
 
                                                           
1[(qq) the manner in which rehabilitation of flora and other vegetation, such as trees, shrubs and 
the like destroyed by reason of any prospecting or mining operations shall be made in the same area 
or in any other area selected by the Central Government (whether by way of reimbursement of the 
cost of rehabilitation or otherwise) by the person holding the prospecting licence or mining lease;] 
2*** 

3[(qqa)  the  amount  of  payment  to  be  made  to  the  District  Mineral  Foundation  under  

sub-sections (5) and (6) of section 9B; 

(qqb)  the  manner  of  usage  of  funds  accrued  to  the  National  Mineral  Exploration  Trust  under  

sub-section (2) of section 9C; 

(qqc)  the  composition  and  functions  of  the  National  Mineral  Exploration  Trust  under  

sub-section (3) of section 9C; 

(qqd)  the  manner  of  payment  of  amount  to  the  National  Mineral  Exploration  Trust  under  

sub-section (4) of section 9C; 

(qqe)  the  terms  and  conditions  subject  to  which  mining  leases  shall  be  granted  under  

sub-section (3) of section 10B; 

(qqf) the terms and conditions, and procedure, subject to which the auction shall be conducted 

including the bidding parameters for the selection under sub-section (5) of section 10B; 

(qqg) the time limits for various stages in processing applications for grant of mining lease or           

4[composite licence] under sections 10B, 11, 11A, 11B, and section 17A, and their renewals; 

5* 

* 

* 

* 

* 

(qqi) 

the 
sub-section (4) of section 11; 

terms 

and 

conditions 

for 

grant 

of 

4[composite 

licence] 

under  

(qqj) the terms and conditions, and procedure, including the bidding parameters for the selection 

under sub-section (6) of section 11; 

6[(qqja)  the  terms  and  conditions  and  amount  or  transfer  charges  under  the  proviso  to  

sub-section (6) of section 12A;] 

7* 
8[(r) the period of mining lease under sub-section (4) of section 8; 

* 

* 

* 

* 

(s)  the  manner  of  sale  of  mineral  by  the  holder  of  a  mining  lease under  sub-section  (5)  of 

section 8; 

(t) the manner of sale of mineral under sub-section (7A) of section 8A; 

(u) the manner for reimbursement of expenditure towards  reconnaissance permits or prospecting 

operations under the second proviso to clause (b) of sub-section (2) of section 10A; 

(v)  the manner of granting mining lease to the preferred bidder under the  second  proviso  to  sub-

section (4) of section 10B; 

(w) the manner of granting composite licence to the preferred bidder under the second proviso to 

sub-section (5) of section 11; 

(x) the manner of granting mining lease by the State Government to the holder of the composite 

licence under sub-section (10) of section 11; 

1. Ins. by Act 37 of 1986, s. 11 (w.e.f. 10-2-1987). 
2. The word “and” omitted by Act 10 of 2015, s. 14 (w.e.f. 12-1-2015). 
3. Ins. by s. 14, ibid. (w.e.f. 12-1-2015). 
4. Subs. by Act 16 of 2021, s. 2, for “prospecting licence-cum-mining lease” (w.e.f. 28-3-2021). 
5. Clause (qqh) omitted by s. 18, ibid. (w.e.f. 28-3-2021). 
6. Ins. by Act 25 of 2016, s. 4 (w.e.f. 6-5-2016). 
7. Clause (qqk) omitted by Act 16 of 2021, s. 18 (w.e.f. 28-3-2021). 
8. Subs. by Act 16 of 2021, s. 18, for clause (r) (w.e.f. 28-3-2021). 

22 

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

1[13A.  Power  of  Central  Government  to  make  rules  for  the  grant  of  prospecting  licences  or 
mining  leases  in  respect  of  territorial  waters  or  continental  shelf  of  India.―(1)  The  Central 
Government may, by notification in the Official Gazette, make rules for the grant of prospecting licences 
or  mining  leases  in  respect  of  any  minerals  underlying  the  ocean  within  the  territorial  waters  or  the 
continental shelf of India. 

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any 

of the following matters, namely:― 

(a)  the  conditions,  limitations  and  restrictions  subject  to  which  such  prospecting  licences  or 

mining leases may be granted; 

(b)  regulation  of  exploration  and  exploitation  of  minerals  within  the  territorial  waters  or  the 

continental shelf of India; 

(c) ensuring that such exploration or exploitation does not interfere with navigation and 

(d) any other matter which is required to be, or may be, prescribed.] 

14.  2[Sections  5  to  13]  not  to  apply  to  minor  minerals.―The  provisions  of  2[sections  5  to  13] 
(inclusive) shall not apply to  3[quarry leases, mining leases or other mineral concessions] in respect of 
minor minerals. 

15.  Power  of  State  Governments  to  make  rules  in  respect  of  minor  minerals.―(1)The  State 
Government may, by notification in the Official Gazette, make rules for, regulating the grant of 4[quarry 
leases,  mining  leases  or  other  mineral  concessions]  in  respect  of  minor  minerals  and  for  purposes 
connected therewith. 

5[(1A) In particular and without prejudice to the generality of the foregoing power, such rules may 

provide for all or any of the following matters, namely:― 

(a) the person by whom and the manner in which, applications for quarry leases, mining leases 

or other mineral concessions may be made and the fees to be paid therefor; 

(b) the time within which, and the form in which, acknowledgement of the receipt of any such 

applications may be sent; 

(c)  the  matters  which  may  be  considered  where  applications  in  respect  of  the  same  land  are 

received within the same day; 

(d) the terms on which, and the conditions subject to which and the authority by which quarry 

leases, mining leases or other mineral concessions may be granted or renewed; 

(e) the procedure for obtaining quarry leases, mining leases or other mineral concessions; 

(f)  the  facilities  to  be  afforded  by  holders  of  quarry  leases,  mining  leases  or  other  mineral 
concessions  to  persons  deputed  by  the  Government  for  the  purpose  of  undertaking  research  or 
training in matters relating to mining operations; 

(g) the fixing and collection of rent, royalty, fees, dead rent, fines or other charges and the time 

within which and the manner in which these shall be payable; 

1. Ins. by Act 56 of 1972, s. 6 (w.e.f. 12-9-1972). 
2. Subs. by Act 37 of 1986, s. 12, for “sections 4 to 13” (w.e.f. 10-2-1987). 
3. Subs. by Act 56 of 1972, s. 7, for “prospecting licences and mining leases” (w.e.f. 12-9-1972). 
4. Subs. by s. 8, ibid., for “prospecting licence and mining leases” (w.e.f. 12-9-1972). 
5. Ins. by Act 37 of 1986, s. 13 (w.e.f. 10-2-1987). 

23 

 
                                                           
(h) the manner in which rights of third parties may be protected (whether by way of payment of 
compensation or otherwise) in cases where any such party is prejudicially affected by reason of any 
prospecting or mining operations; 

(i) the manner in which rehabilitation of flora and other vegetation such as trees, shrubs and the 
like destroyed by reason of any quarrying or mining operations shall be made in the same area or in 
any other area selected by the State Government (whether by way of reimbursement of the cost of 
rehabilitation or otherwise) by the person holding the quarrying or mining lease; 

(j) the manner in which and the conditions subject to which, a quarry lease, mining lease or other 

mineral concession may be transferred; 

(k) the construction, maintenance and use of roads power transmission lines, tramways, railways, 
serial  rope  ways,  pipelines  and  the  making  of  passage  for  water  for  mining  purposes  on  any  land 
comprised in a quarry or mining lease or other mineral concession; 

(l) the form of registers to be maintained under this Act; 

(m)  the reports  and  statements to  be  submitted  by  holders  of  quarry  or  mining  leases  or  other 

mineral concessions and the authority to which such reports and statements shall be submitted; 

(n) the period within which and the manner in which and the authority to which applications for 
revision  of  any  order  passed  by  any  authority  under these  rules  may  be  made,  the  fees  to  be  paid 
therefore, and the powers of the revisional authority; and 

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

(2) Until rules are made under sub-section (1), any rules made by a state Government regulating the 
grant of 1[quarry leases, mining leases or other mineral concessions] in respect of minor minerals which 
are in force immediately before the commencement of these Act shall continue in force. 

2[(3)  The  holder  of  a  mining  lease  or  any  other  mineral  concession  granted  under  any  rule  made 
under sub-section (1) shall pay  3[royalty or dead rent, whichever is more] in respect of minor minerals 
removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee at the rate 
prescribed for the time being in the rules framed by the State Government in respect of minor minerals: 

Provided that the State Government shall not enhance the rate of 4[royalty or dead rent] in respect of 

any minor mineral for more than once during any period of 5[three] years.] 

6[(4) Without prejudice to sub-sections (1), (2) and sub-section (3), the State Government may, by 

notification, make rules for regulating the provisions of this Act for the following, namely:― 

(a) the manner in which the District Mineral Foundation shall work for the interest and benefit 

of persons and areas affected by mining under sub-section (2) of section 9B; 

(b)  the  composition  and  functions  of  the  District  Mineral  Foundation  under  sub-section  (3)  of 

section 9B; and 

(c) the amount of payment to be made to the District Mineral Foundation by concession holders 

of minor minerals under section 15A.] 

1. Subs. by Act 56 of 1972, s. 8, for “prospecting licence and mining leases” (w.e.f. 12-9-1972). 
2. Ins. by s. 8, ibid. (w.e.f. 12-9-1972). 
3. Subs. by Act 37 of 1986, s. 13, for “royalty” (w.e.f. 10-2-1987). 
4. Subs. by Act 37 of 1986, s. 13, for “royalty” (w.e.f. 10-2-1987). 
5. Subs. by s. 13, ibid., for “four” (w.e.f. 10-2-1987). 
6. Ins. by Act 10 of 2015, s. 15 (w.e.f. 12-1-2015). 

24 

 
  
                                                           
1[15A. Power of State Government to collect funds for District Mineral Foundation in case of 
minor  minerals.―The  State  Government  may  prescribe  the  payment  by  all  holders  of  concessions 
related  to  minor  minerals  of  amounts  to  the  District  Mineral  Foundation  of  the  district  in  which  the 
mining operations are carried on.] 

16.  Power  to  modify  mining  leases  granted  before  25th  October,  1949.―2[(1)  (a)  All  mining 
leases  granted  before  the  commencement  of  the  Mines  and  Minerals  (Regulation  and  Development) 
Amendment Act, 1972 (56 of 1972) 3[if in force at the date of commencement of the Mines and Minerals 
(Regulation and Development) Amendment Act, 1994 (25 of 1994), shall be brought in conformity with 
the  provisions  of  this  Act  and  the  rules  made  thereunder  within  two  years  from  the  date  of  the 
commencement  of  the Mines  and Minerals  (Regulation  and  Development)  Amendment  Act,  1994],  or 
such further time as the Central Government may, by general or special order, specify in this behalf. 

(b) Where the rights under any mining lease, granted by the proprietor of an estate or tenure before 
the  commencement  of  the  Mines  and  Minerals  (Regulation  and  Development)  Amendment  Act,  1972 
(56  of  1972),  have  vested,  on  or  after  the  25th  day  of  October,  1949,  in  the  State  Government  in 
pursuance  of  the  provisions  of  any  Act  of  any  Provincial  or  State  Legislature  which  provides  for  the 
acquisition of estates or tenures or provides for agrarian reform, such mining lease shall be brought into 
conformity  with  the  provisions  of  this  Act  and the rules  made  thereunder  within  4[two  years  from  the 
commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1994 (25 of 
1994)], or within such further time as the Central Government may, by general or special order, specify 
in this behalf.] 

5[(1A) Where any action is taken under clause (a) or clause (b) of sub-section (1) to bring the period 
of  any  lease  in  conformity  with  the  provisions  of  this  Act  and  the  rules  made  thereunder,  then 
notwithstanding anything contained in section 8, the period of such lease shall continue to operate for a 
period of two years from the date of bringing such lease in conformity with the provisions of this Act.] 

(2) The Central Government may, by notification in the Official Gazette, make rules for the purpose 

of giving effect to the provisions of sub-section (1) and in particular such rules shall provide— 

(a)  for  giving  previous  notice  of  the  modification  or  alteration  proposed  to  be  made  in  any 
existing mining lease to the lessee and where the lessor is not the Central Government, also to the 
lessor and for affording him an opportunity of showing cause against the proposal; 

(b) for the payment of compensation to the lessee in respect of the reduction of any area covered 

by the existing mining lease; and 

(c)  for  the  principles  on  which,  the  manner  in  which,  and  the  authority  by  which,  the  said 

compensation shall be determined. 

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)  The  provisions  of  this  section  shall  apply  6***  in  respect  of  land  in  which  the 
minerals vest in the Government of a State 7[or any other person]. 

(2) Notwithstanding anything contained in this Act, the Central Government, after consultation with 

the  State  Government,  may  undertakes    8[mineral  concession]  in  any  area  not  already  held  under  any             
8[mineral concession] and where it proposes to do so, it shall, by notification in the Official Gazette― 

1. Ins. by Act 10 of 2015, s. 16, (w.e.f. 12-1-2015). 
2 Subs. by Act 56 of 1972, s. 9, for sub-section (1) (w.e.f. 12-9-1972). 
3. Subs. by Act 25 of 1994, s. 6, for certain words (w.e.f. 25-1-1994). 
4.  Subs.  by  s.  6,  ibid.,  for  “six  months  from  the  commencement  of  the  Mines  and  Minerals  (Regulation  and  Development) 

Amendment Act, 1972” (w.e.f. 25-1-1994). 

5. Ins. by s. 6, ibid. (w.e.f. 25-1-1994). 
6. The word “only” omitted by Act 56 of 1972, s. 10 (w.e.f. 12-9-1972). 
7. Ins. by s. 10, ibid. (w.e.f. 12-9-1972). 
8. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021). 

25 

 
                                                           
(a) specify the boundaries of such area; 

(b) state whether  1[reconnaissance, prospecting or mining operations] will be carried out in the 

area; and 

(c) specify the mineral or minerals in respect of which such operations will be carried out. 

(3)  Where,  in  exercise  of  the  powers  conferred  by  sub-section  (2),  the  Central  Government 
undertakes  1[reconnaissance,  prospecting  or  mining  operations]  in  any  area,  the  Central  Government 
shall be liable to pay 2[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 
1[reconnaissance,  prospecting  or  mining  operations]  had  been  undertaken  by  a  private  person  under  a 
3[mineral concession]. 

(4) The  Central  Government,  with  a  view to enabling  it  to exercise the  powers  conferred  on  it  by 
sub-section  (2)  may,  after  consultation  with  the  State  Government,  by  notification  in  the  Official 
Gazette,  declare  that  no  3[mineral  concession]  shall  be  granted  in  respect  of  any  land  specified  in  the 
notification. 

4[17A. Reservation of areas for purposes of conservation.―(1) The Central Government, with a 
view to conserving any mineral and after consultation with the State Government, may reserve any area 
not already held under any prospecting licence or mining lease and, where it proposes to do so, it shall, 
by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in 
respect of which such area will be reserved. 

5[(1A) The Central Government 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, by notification in the Official Gazette, specify the boundaries of such area and 
the mineral or minerals in respect of which such area will be reserved.] 

(2) The State Government may, with the approval of the Central Government, reserve any area not 
already  held  under  any  prospecting  licence  or  mining  lease,  for  undertaking  prospecting  or  mining 
operations through a Government company or corporation owned or controlled by it  6*** and where it 
proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and 
the mineral or minerals in respect of which such areas will be reserved. 

7[(2A) Where in exercise of the powers conferred by sub-section (1A) or  sub-section (2), the Central 
Government or the State Government, as the case may be, reserves any area for undertaking prospecting 
or  mining  operations  or prospecting  operations  followed  by  mining  operations,  the  State  Government 
shall grant prospecting licence, mining lease or composite licence, as the case may be, in respect of such 
area to such Government company or corporation within the period specified in this section: 

Provided  that  in  respect  of  any  mineral  specified  in  Part  B  of  the  First  Schedule,  the  State 
Government  shall  grant  the  prospecting  licence,  mining  lease or composite licence, as the case may be, 
only after obtaining the previous approval of the Central Government.] 

(2B)  Where  the  Government  company  or  corporation  is  desirous  of  carrying  out  the  prospecting 
operations or mining operations in a joint venture with other persons, the joint venture partner shall be 
selected through a competitive process, and such Government company or corporation shall hold more 
than seventy-four per cent. of the paid up share capital in such joint venture. 

1. Subs. by Act 38 of 1999, s. 15, for “prospecting or mining operations” (w.e.f. 18-12-1999). 
2. Subs. by s. 15, ibid., for “prospecting fee” (w.e.f. 18-12-1999). 
3. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021). 
4. Ins. by Act 37 of 1986, s. 14 (w.e.f. 10-2-1987). 
5. Ins. by Act 25 of 1994, s. 7 (w.e.f. 25-1-1994). 
6. The words “or by the Central Government” omitted by s. 7, ibid. (w.e.f. 25-1-1994). 
7. Subs. by Act 16 of 2021, s. 19, for sub-section (2A) (w.e.f. 28-3-2021). 

26 

 
                                                           
(2C) A mining lease granted to a Government company or corporation, or a joint venture, referred to 
in  sub-sections  (2A)  and  (2B),  shall  be  granted  on  payment  of  such  amount  as  1[specified  in  the  Fifth 
Schedule].] 

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

Explanation.—For the removal of doubts, it is hereby clarified that    all such Government companies or 
corporations whose mining lease has been granted after the commencement of the Mines and Minerals 
(Development and Regulation) Amendment Act, 2015, 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(10 of 2015). 

(3)  3[Where in exercise of the powers conferred by sub-section (1A) or sub-section (2) the Central 
Government or the State Government, as the case may be,] undertakes prospecting or mining operations 
in  any  area  in  which  the  minerals  vest  in  a  private  person,  it  shall  be  liable  to  pay  prospecting  fee, 
royalty,  surface  rent  or  dead  rent,  as  the  case  may  be,  from  time  to  time  at  the  same  rate  at  which  it 
would have been payable under this Act if such prospecting or mining operations had been undertaken 
by a private person under prospecting licence or mining lease.] 

4[(4) The reservation made under this section shall lapse in case no mining  lease is granted within a 

period of five years from the date of such reservation: 

Provided that where the period of five years from the date of reservation  has expired before the date 
of  commencement  of  the  Mines  and  Minerals  (Development and Regulation) Amendment Act, 2021 or 
expires within a period of one year from the date of commencement of the said Act, the reservation shall 
lapse in case no mining lease is granted within a period of one year from the date of commencement of the 
said Act: 

Provided  further  that  the  State  Government  may,  on  an  application  made by  such  Government 
company or corporation or on its own motion, and on being satisfied that it shall not be possible to grant 
the mining lease within the  said period, make an order with reasons in writing, within a period of three 
months  from  the  date  of  receipt  of  such  application,  to  relax  such  period  by  a  further  period  not 
exceeding one year: 

Provided also that where the Government company or corporation in whose favour  an  area  has  been 
reserved  under  this  section  before  the  commencement of  the  Mines  and  Minerals  (Development  and 
Regulation)  Amendment  Act,  2015  (10  of  2015),  has  commenced  production  from  the  reserved  area 
without execution of  mining  lease,  such  Government  company  or  corporation  shall  be  deemed  to have 
become lessee of the State Government from the date of commencement of mining  operations  and  such 
deemed lease shall lapse upon execution of the mining lease in accordance with this sub-section or expiry 
of  period  of  one  year from  the  date  of  commencement  of  the  Mines  and  Minerals  (Development  and 
Regulation) Amendment Act, 2021, 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) It shall be the duty of the Central Government to take all such steps 
as may be necessary 5[for the conservation and systematic development of minerals in India and for the 

1. Subs. by Act 16 of 2021, s. 19, for “may be prescribed by the Central Government” (w.e.f. 28-3-2021). 
2. Ins. by s. 19, ibid. (w.e.f. 28-3-2021). 
3.  Subs.  by  Act  25  of  1994,  s.  7,  for  “Where  in  exercise  of  the  powers  conferred  by  sub-section  (2)  the  State  Government” 

(w.e.f. 25-1-1994). 

4. Ins. by Act 16 of 2021, s. 19 (w.e.f. 28-3-2021). 
2. Subs. by Act 37 of 1986, s. 15, for “for the conservation and development of minerals in India” (w.e.f. 10-2-1987). 

27 

 
                                                           
protection  of  environment  by  preventing  or  controlling  any  pollution  which  may  be  caused  by 
prospecting or mining operations] and 1[for such purposes] the Central Government may, by notification 
in the Official Gazette, make such rules as it thinks fit. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:― 

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

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

(c)  the  measures  to  be  taken  by  owners  of  mines  for  the  purpose  of  beneficiation  of  ores, 

including the provision of suitable contrivances for such purpose; 

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

(e)  the  notification  of  all  new  borings  and  shaft  sinkings  and  the  preservation  of  bore-hole 

records, and specimens of cores of 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 of samples of minerals from any mine by the owner thereof and the manner in 
which and the authority to which such samples shall be submitted; and the taking of samples of any 
minerals from any mine by the State Government or any other authority specified by it in that behalf; 

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

2[(i) the regulation of prospecting operations; 

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

mining operations; 

(k) the disposal or discharge of waste slime or tailings arising from any mining or metallurgical 

operations carried out in a mine; 

(l) the manner in which and the authority by which directions may be issued to the owners of 
any  mine  to  do  or  refrain  from  doing  certain  things  in  the  interest  of  conservation  or  systematic 
development of minerals or for the protection of environment by preventing or controlling pollution 
which may be caused by prospecting or mining operations; 

(m) the maintenance and submission of such plans, registers 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; 

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

(p) the procedure for and the manner of imposition of fines for the contravention of any of the 

rules framed under this section and the authority who may impose such fines; and 

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

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

1. Subs. by Act 37 of 1986, s. 15, for “for that purpose” (w.e.f. 10-2-1987). 
2. Ins. by s. 15, ibid. (w.e.f. 10-2-1987). 

28 

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

Provided that in the cases of prospecting licences or mining leases granted by a State Government, 

no such authorisation shall be made except after consultation with the State Government. 

(2)  On  the  issue  of  any  authorisation  under  sub-section  (1),  it  shall  be  lawful  for  the  Geological 

Survey of India or the specified authority or agency, and its servants and workmen— 

(a) to enter upon such land, 

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

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

such land, 

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

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

(f) where otherwise the survey cannot be completed on the boundaries and line marked, to cut 

down and clear away any part of any standing crop, fence or jungle: 

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

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

(4) The fact that there exists any such dispute as is referred to in sub-section (3) shall not be a bar to 

the taking of any action under sub-section (2). 

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

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

Provided that where the State Government or other person in whom the minerals are vested or the 
holder of any prospecting licence or mining lease applies to the Central Government to furnish to it or 
him a copy of the report submitted under sub-section (5), that State Government or other person or the 
holder of a prospecting licence or mining lease, as the case may be, shall bear such reasonable part of the 
costs  of  investigation  as  the  Central  Government  may  specify  in  this  behalf  and  shall,  on  payment  of 
such part of the costs of investigation, be entitled to receive from the Central Government a true copy of 
the report submitted to it under sub-section (5).] 

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

29 

 
 
 
                                                           
CHAPTER VII 

MISCELLANEOUS 

19.  Prospecting  licences  and  mining  leases  to  be  void  if  in  contravention  of  Act.―Any               

1[mineral concession] granted, renewed or acquired in contravention of the provisions of this Act or any 
rules or orders made thereunder shall be void and of no effect. 

Explanation.―Where  a  person  has  acquired  more  than  one  1[mineral  concession]  2***  and  the 
aggregate area covered by such 3[permits, licences or leases], as the case may be, exceeds the maximum 
area permissible under section 6, only that 1[mineral concession] the acquisition of which has resulted in 
such maximum area being exceeded shall be deemed to be void. 

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

4[20A.  Power  of  Central  Government  to  issue  directions.―(1)  Notwithstanding  anything 
contained in this Act, the Central Government may issue such directions to the State Governments, as 
may  be  required  for  the  conservation  of  mineral  resources,  or  on  any  policy  matter  in  the  national 
interest, and for the scientific and sustainable development and exploitation of mineral resources. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  powers,  the  Central 

Government may also issue directions in respect of the following matters, namely:― 

(i)  improvement  in  procedure  for  grant  of  mineral  concessions  and  to  ensure  co-ordination 

among agencies entrusted with according statutory clearances; 

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

tenement system; 

(iii) implementation and evaluation of sustainable development frameworks; 

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

recycling of materials; 

(v) minimising and mitigating adverse environmental impacts particularly in respect of ground 

water, air, ambient noise and land; 

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

(vii)  promoting  restoration  and  reclamation  activities  so  as  to  make  optimal  use  of  mined  out 

land for the benefit of the local communities; and 

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

21. Penalties.―5[(1) Whoever contravenes the provisions of sub-section (1) or sub-section (1A) of 
section 4 shall be punishable with imprisonment for a term which may extend to five years and with fine 
which may extend to five lakh rupees per hectare of the area. 

(2) Any rule made under any provision of this Act may provide that any contravention thereof shall 
be  punishable  with  imprisonment  for  a  term  which  may  extend  to  two  years  or  with  fine  which  may 
extend to five lakh rupees, or with both, and in the case of a continuing contravention, with additional 
fine which may extend to fifty thousand rupees for every day during which such contravention continues 
after conviction for the first such contravention.] 

1. Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021). 
2. The words “in any State” omitted by Act 25 of 1994, s. 8 (w.e.f. 25-1-1994). 
3. Subs. by Act 38 of 1999, s. 16, for “licences or leases” (w.e.f. 18-12-1999). 
4. Ins. by Act 10 of 2015, s. 18 (w.e.f. 12-1-2015). 
5. Subs. by Act 10 of 2015, s. 19, for sub-sections (1) and (2) (w.e.f. 12-1-2015). 

30 

 
                                                           
(3) Where any person trespasses into any land in contravention of the provisions of sub-section (1) 
of section 4, such trespasser may be served with an order of eviction by the State Government or any 
authority  authorised  in  this  behalf  by  that  Government  and  the  State  Government  or  such  authorised 
authority may, if necessary, obtain the help of the police to evict the trespasser from the land. 

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

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

(5) Whenever any person raises, without any lawful authority, any mineral from any land, the State 
Government  may  recover  from  such  person  the  mineral  so  raised,  or,  where  such  mineral  has  already 
been disposed of, the price thereof, and may also recover from such person, rent, royalty or tax, as the 
case  may  be,  for  the  period  during  which  the  land  was  occupied  by  such  person  without  any  lawful 
authority. 

2[(6) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an 

offence under sub-section (1) shall be cognizable.] 

3[Explanation.—On and from the date of commencement of the Mines and Minerals (Development 
and Regulation) Amendment Act, 2021, the expression “raising, transporting or causing to raise or transport 
any  mineral  without  any  lawful  authority”  occurring  in  this  section,  shall  mean  raising,  transporting  or 
causing to raise or transport any mineral by a person without prospecting licence, mining lease or composite 
licence  or in contravention of the rules made under section 23C.] 

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

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

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

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

Explanation.―For the purposes of this section,― 

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

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

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

1. Subs. by Act 38 of 1999, s. 17, for sub-section (4) (w.e.f. 18-12-1999). 
2. Ins. by Act 37 of 1986, s. 16 (w.e.f. 10-2-1987). 
3. Ins. by Act 16 of 2021, s. 20 (w.e.f. 28-3-2021). 
4. Ins. by Act 56 of 1972, s. 13 (w.e.f. 12-9-1972). 

31 

 
                                                           
Provided  that  in  the  case  of  an  offence  punishable  with  fine  only,  no  such  sum  shall  exceed  the 

maximum amount of fine which may be imposed for that offence. 

(2) Where an offence is compounded under sub-section (1), no proceeding or further proceeding, as 
the case may be, shall be taken against the offender in respect of the offence so compounded, and the 
offender, if in custody, shall be released forthwith.] 

1[23B. Power to search.―If any gazetted officer of the Central or a State Government authorised by 
the  Central  Government  2[or  a  State  Government,  as  the  case  may  be,]  in  this  behalf  by  genera!  or 
special order has reason to believe that any mineral has been raised in contravention of the provisions of 
this Act or rules made thereunder or any document or thing in relation to such mineral is secreted in any 
place 3[or vehicle], he may search for such mineral, document or thing and the provisions of section 100 
of the Code of Criminal Procedure, 1973 (2 of 1974), shall apply to every such search.] 

3[23C. Power of State Government to make rules for preventing illegal mining, transportation 
and storage of minerals.―(1) The State Government may, by notification in the Official Gazette, make 
rules for preventing illegal mining, transportation and storage of minerals and for the purposes connected 
therewith. 

(2)  In  particular  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:― 

(a) establishment of check-posts for checking of minerals under transit; 

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

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

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

transit; 

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

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

(g) any other matter which is required to be, or may be, prescribed for the purpose of prevention 

of illegal mining, transportation and storage of minerals. 

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

24.  Power  of  entry  and  inspection.―(1)  For  the  purpose  of  ascertaining  the  position  of  the 
working, actual or prospective, of any mine or abandoned mine or for any other purpose connected with 
this  Act  or  the  rules  made  thereunder,  any  person  authorised  by  the  4[Central  Government  or  a  State 
Government] in this behalf, by general 5*** order, may― 

(a) enter and inspect any mine; 

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

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

1. Ins. by Act 25 of 1994, s. 9 (w.e.f. 25-1-1994). 
2. Ins. by Act 38 of 1999, s. 18 (w.e.f. 18-12-1999). 
3. Ins. by s. 19, ibid. (w.e.f. 18-12-1999). 
4. Subs. by s. 20, ibid., for “Central Government” (w.e.f. 18-12-1999). 
5. The words “or special” omitted by s. 20, ibid. (w.e.f. 18-12-1999). 

32 

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

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

clause (d); and 

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

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

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

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

(2) 

The 

holder 

in  
sub-section (1) shall be liable to pay compensation in such manner as may be prescribed to the occupier 
of the surface of the land granted under 6[such permit, licence or lease] for any loss or damage which is 
likely  to  arise  or  has  arisen  from  or  in  consequence  of  the  7[reconnaissance,  mining  or  prospecting 
operations]. 

concession] 

referred 

2[mineral 

of 

to 

a 

(3)  The  amount  of  compensation  payable  under  sub-section  (2)  shall  be  determined  by  the  State 

Government in the manner prescribed.] 

25.  Recovery  of  certain  sums  as  arrears  of  land  revenue.―8[(1)]  Any  rent,  royally,  tax,  fee  or 
other sum  due to the  Government  under  this  Act  or the  rules  made thereunder or  under the  terms  and 
conditions of any 2[mineral concession] may, on a certificate of such officer as may be specified by the 
State  Government  in  this  behalf  by  general  or  special  order,  be  recovered  in  the  same  manner  as  an 
arrear of land revenue. 

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

1. Ins. by Act 37 of 1986, s. 17 (w.e.f. 10-2-1987). 
2. Subs. by Act 16 of 2021, s. 2, for “ reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-3021). 
3. Subs. by Act 38 of 1999,  s. 21, for “holder of such licence or lease” (w.e.f. 18-12-1999). 
4. Subs. by s. 21, ibid., for “such lease or licence had been granted” (w.e.f. 18-12-1999). 
5. Subs. by s. 21, ibid., for “prospecting or mining operations” (w.e.f. 18-12-1999). 
8. Subs. by s. 21, ibid., for “such licence or lease” (w.e.f. 18-12-1999). 
9. Subs. by s. 21, ibid., for “mining or prospecting operations” (w.e.f. 18-12-1999). 
10. Section 25 re-numbered as sub-section (1) thereof by Act 56 of 1972, s. 14 (w.e.f. 12-9-1972). 
11. Ins. by Act 56 of 1972, s. 14 (w.e.f. 12-9-1972). 

33 

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

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

(b)  such  State  Government  or  such  officer  or  authority  subordinate  to  a  State  Government,  as 

may be specified in the notification. 

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

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

27. Protection of action taken in good faith.―No suit, prosecution or other legal proceedings shall 

lie against any person for anything which is in good faith done or intended to be done under this Act. 

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

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

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

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

3[30.  Power  of  revision  by  Central  Government.―The  Central  Government  may,  of  its  own 

motion or on an application made within the prescribed time by an aggrieved party,― 

(a) revise any order made by a State Government or other authority in exercise of the powers 

conferred on it by or under this Act with respect to any mineral other than a minor mineral; or 

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

1. Subs. by Act 56 of 1972, s. 15, for sub-section (1) (w.e.f. 12-9-1972). 
2. Ins. by Act 25 of 1994, s. 10 (w.e.f. 25-1-1994). 
3. Subs. by s. 20, for section 30 (w.e.f. 12-1-2015). 

34 

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

order under this clause, give an opportunity of being heard or to represent in the matter.] 

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

2[30B.  Constitution  of  Special  Courts.―(1)  The  State  Government  may,  for  the  purposes  of 
providing  speedy  trial  of  offences  for  contravention  of  the  provisions  of  sub-section  (1)  or  
sub-section (1A) of section 4, constitute, by notification, as many Special Courts as may be necessary for 
such area or areas, as may be specified in the notification. 

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

the concurrence of the High Court. 

(3) A person shall not be qualified for appointment as a judge of a Special Court unless he is or has 

been a District and Sessions Judge. 

(4) Any person aggrieved by the order of the Special Court may prefer an appeal to the High Court 

within a period of sixty days from the date of such order. 

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

31. Relaxation of rules in special cases.―The Central Government may, if it is of opinion that in 
the interests of mineral development it is necessary so to do, by order in writing and for reasons to be 
recorded,  authorise  in  any  case  the  grant,  renewal  or  transfer  of  any  3[mineral  concession],  or  the 
working of any mine for the purpose of searching for or winning any mineral, on terms and conditions 
different from those laid down in the rules made under section 13. 

32. [Amendments to Act 53 of 1948].―Rep. by the Repealing and Amending Act, 1960 (58 of 1960), 

s. 2 and the First Schedule (w.e.f. 26-12-1960). 

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

1. Ins. by Act 15 of 1958, s. 2 (w.e.f. 15-5-1958). 
2. Ins. by Act 10 of 2015, s. 21 (w.e.f. 12-1-2015). 
3 Subs. by Act 16 of 2021, s. 2, “reconnaissance permit, prospecting licence or mining lease” (w.e.f. 28-3-2021). 

35 

 
 
 
                                                           
 
[See sections 4(3), 5(1), 7(2) and 2[8(1), 8A(1), 10A, 10B(1), 10C(1), 11(1), 11B, 11C, 12A(1), and 
17A(2A)]] 

1[THE FIRST SCHEDULE 

1. Coal and lignite. 

SPECIFIED MINERALS 

PART A 

Hydro carbons/energy minerals 

PART B 

Atomic minerals 

1. Beryl and other beryllium-bearing minerals. 

2. Lithium-bearing minerals. 

3. Minerals of the “rare earths” group containing Uranium and Thorium. 

4. Niobium-bearing minerals. 

5. Phosphorites and other phosphatic ores containing Uranium. 

6. Pitchblende and other Uranium ores. 

3[7. Titanium bearing minerals and ores (ilmenite, rutile and leucoxene).] 

8. Tantallium-bearing minerals. 

9. Uraniferousallanite, monazite and other thorium minerals. 

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

4[11. Zirconium-bearing minerals and ores including Zircon.] 

PART C 

Metallic and non-metallic minerals 

1. Asbestos. 

2. Bauxite. 

3. Chrome ore. 

4. Copper ore. 

5. Gold. 

6. Iron ore. 

7. Lead. 

5*** 

9. Manganese ore. 

10. Precious stones. 

11. Zinc.] 

1. Subs. by Act 25 of 1994, s. 12, for the First Schedule (w.e.f. 25-1-1994). 
2. Subs. by Act 10 of 2015, s. 22, for “8(2)” (w.e.f. 12-1-2015). 
3. Subs. by Act 38 of 1999, s. 24, for item 7 (w.e.f. 18-12-1999). 
4. Subs. by s. 24, ibid., for item 11 (w.e.f. 18-12-1999). 
5. Omitted by s. 24, ibid. (w.e.f. 18-12-1999). 

36 

 
                                                           
1[SECOND SCHEDULE 

(See section 9) 

RATES OF ROYALTY IN RESPECT OF MINERALS AT ITEMS 1 TO 9, 11 TO 40 AND 42 TO 55 

1. Apatite and Rock Phosphate: 

(i) Apatite 

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

(ii) Rock Phosphate 

(a) Above 25% P2O5 

(b) Upto 25% P2O5 

2. Asbestos: 

(i) Chrysotile 

(ii) Amphibole 

3. Barytes: 

Twelve  and  half  per  cent.  of  average  sale  price  on  ad 
valorem basis. 

Six per cent. of average sale price on ad valorem basis. 

Eight Hundred and Eighty rupees per tonne. 

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

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

4. Bauxite and Laterite: 

(a) Metallurgical Grade: 

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

(b) Non Metallurgical Grade: 

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

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

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

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

Eight per cent. of average sale price on ad valorem basis. 

5. Brown Ilmenite 
(Leucoxene), Ilmenite, Rutile 
and Zircon: 
6. Cadmium: 

7. Calcite: 

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

(ii) Processed(including 
washed) 

Twelve  per  cent.  of  average  sale  price  on  ad  valorem 
basis. 

9. Clay others: 

Twenty rupees per tonne. 

10. Coal (including Lignite): 

* 

11. Chromite: 

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

12. Columbite-tantalite: 

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

1. Subs. by notification No. G.S.R. 630(E), for the Second Schedule (w.e.f. 1-9-2014). 

37 

 
 
 
  
 
 
 
                                                           
13. Copper: 

14. Diamond: 

15. Dolomite: 

16. Dunite: 

17. Felspar: 

18. Fire Clay: 
(including plastic, pipe, 
lithomargic and natural 
pozzolanic clay) 

19. Fluorspar: 
(also called fluorite) 

20. Garnet: 

(i) Abrasive 

(ii) Gem 

21. Gold: 
(i) Primary 

(ii) By-product gold 

22. Graphite: 

(i)  With  80  per  cent.  or  more 
fixed carbon 

(ii)  With  40  per  cent.  or  more 
fixed  carbon  but  less  than  80 
per cent. fixed carbon 

(iii)  With  20  per  cent.  or  more 
fixed  carbon  but  less  than  40 
per cent. fixed carbon 

(iv) With less than 20 per cent. 
fixed carbon 

23. Gypsum: 

24. Iron Ore: 

(CLO, Lumps, fines and 
concentrates all grades) 

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

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

Seventy-five rupees per tonne. 

Thirty rupees per tonne. 

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

Twelve  per  cent.  of  average  sale  price  on  ad  valorem 
basis. 

Eight per cent. of average sale price on ad valorem basis. 

Four per cent. of average sale price on ad valorem basis. 

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

Four  per  cent.  of  London  Bullion  Market  Association 
Price (commonly referred to as London Price) chargeable 
on the gold metal in ore produced. 

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

Two hundred and twenty-five rupees per tonne. 

One hundred and fifty rupees per tonne. 

Sixty-five rupees per tonne. 

Twenty-five rupees per tonne. 

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

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

38 

 
 
 
 
 
 
25. Lead: 

26. Limestone: 

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

(ii) Others 

27. Lime kankar: 

28. Limeshell: 

29. Magnesite: 

30. Manganese Ore: 
(i) Ore of all grade 

(ii) Concentrates 

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

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

Ninety rupees per tonne. 

Eighty rupees per tonne. 

Eighty rupees per tonne. 

Eighty rupees per tonne. 

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

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

One  point  seven  per  cent.  of  average  sale  price  on  
ad valorem basis. 

31. Marl: 

Sixty rupees per tonne. 

32. Crude Mica, waste mica 
and scrap mica: 

33. Monazite: 

34. Nickel: 

35. Ochre: 

36. Pyrites: 

37. Pyrophyllite: 

38. Quartz: 

39. Ruby: 

Four per cent. of average sale price on ad valorem basis. 

One hundred and twenty-five rupees per tonne. 

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

Twenty-four rupees per tonne. 

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

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

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

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

40. Sand (others): 

Twenty rupees per tonne. 

41. Sand for stowing: 

** 

42. Shale: 

Sixty rupees per tonne. 

43. Silica sand and moulding 
sand andQuartzite: 

44. Sillimanite: 

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

Two  point  five  per  cent.  of  average  sale  price  on  
ad valorem basis. 

39 

 
  
 
 
 
 
45. Silver: 
(i) By-product 

(ii) Primary Silver 

Seven  per  cent.  of  London  Metal  Exchange  Price 
chargeable on by-product silver metal actually produced. 

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

46. Slate: 

Forty-five rupees per tonne. 

Eighteen  per  cent.  of  average  sale  price  on  ad  valorem 
basis. 

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

Twenty  rupees  per  unit  per  cent.  of  contained  WO3  per 
tonne of ore and on pro rata basis. 

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

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

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

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

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

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

Twelve  per  cent.  of  average  sale  price  on  ad  valorem 
basis. 

47. Talc, Steatite and 
Soapstone: 

48. Tin: 

49. Tungsten: 

50. Uranium: 

51. Vanadium: 

52. Vermiculite: 

53. Wollastonite: 

54. Zinc: 

55. All other minerals not 
herein before specified (Agate, 
Corundum, Diaspore, Felsite, 
Fuschite-Quartzite, Jasper, 
Kyanite, Perlite, Pyroxenite, 
Rock Salt, Selenite, etc.) 

Notes:― 

1.  *  Rates  of  royalty  in  respect  of  item  No.  10  relating  to  Coal  (including  Lignite)  as  revised  vide 
notification  number  G.S.R.  349(E),  dated  the  10th  May,  2012  read  with  corrigendum  G.S.R.  525(E), 
dated the 14th June, 2012 of the Government of India in the Ministry of Coal shall remain in force until 
revised through a separate notification by the Ministry of Coal. 

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

40 

 
 
  
 
 
 
1[THIRD SCHEDULE 

(See section 9A) 

Rates of Dead Rent 

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

RATES OF DEAD RENT IN RUPEES PER HECTARE PER ANNUM 

From 2nd Year of Lease 

  3rd and 4th Year of Lease    

  5th Year onwards 

400 

1000 

2000 

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

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

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

Note: 

1. For the purpose of this notification:― 

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

(b) “high value minerals” means semi-precious stones (agate, gem garnet), corundum, copper, lead, 

zinc, and asbestos (chrysotile variety); 

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

(d)  “low  value  minerals”  means  the  minerals  other  than  precious  metals  and  stones,  high  value 

minerals and medium value minerals.] 

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

41 

 
 
 
                                                           
1[THE FOURTH SCHEDULE 

[See clause (ea) of section 3] 

Notified Minerals 

1. Bauxite. 

2. Iron ore. 

3. Limestone. 

4. Manganese ore.] 

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

42 

 
 
 
                                                           
1[THE  FIFTH  SCHEDULE 

[See sections 8(4), 8A(8) and 17A(2C)] 

S. No.  Mineral 

Iron ore and chromite 

Copper 

Coal and lignite 

1.  

2.  

3.  

4.  

Additional amount on grant or extension of 
mining lease 
Equivalent  to  one  hundred  and  fifty  per 
cent. of the  royalty payable 
Equivalent  to  fifty  per  cent.  of  the  royalty 
payable 
Equivalent to the royalty payable 

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

Equivalent to the royalty payable 

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

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

43 

 
 
 
 
                                                           
THE SIXTH SCHEDULE 

[See sections 8(5) and 8A(7A)] 

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

S. No.  Mineral 

1.  

Bauxite 

(i) Metallurgical Grade 

Non-Metallurgical Grade 

2. 

Chromite 

Additional  Amount 

Equivalent to one hundred and fifty per 
cent. of the royalty payable 

Equivalent to the royalty payable 

(i) Up to forty per cent. of Cr2O3 

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

Equivalent to the royalty payable 

Equivalent to two hundred per cent. of 
the royalty payable 

3.  

Iron ore 

Lumps, ROM and concentrates 

Fines 

4.  

Limestone 

Equivalent to two hundred and fifty per 
cent. of the royalty payable 

Equivalent  to  one  hundred  and  fifty  per 
cent. of the royalty payable 

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

the  

(ii) Other grades 

5.  

Manganese 

Equivalent to the royalty payable 

(i)  Less than thirty-five per cent.  of  manganese 
content 

Equivalent to the royalty payable 

(ii)  Thirty-five  per  cent.  and  above  of 
manganese content 

Equivalent to five hundred per cent. of 
the royalty payable 

6.  

Other minerals 

Equivalent to the royalty payable 

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

S. No.  Quantity of sale 

Additional  Amount 

1.  

2.  

Sale of mineral up to twenty-five per cent. of 
annual production 

Nil 

Sale of mineral more than  twenty-five  per  cent. 
and up to fifty per cent. of annual production 

Equivalent to fifty per cent. of the royalty 
payable 

(iii) For coal and lignite: 

S. No  Type of  mine 

1.  

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

44 

Additional  Amount 

Equivalent to two hundred per cent. of 
the royalty payable 

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

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

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

(a) for sale of coal up to twenty-five per 

cent. of annual production 

Equivalent to the royalty payable 

Equivalent to the royalty payable 

Additional  amount  payable  as  per  the 
condition  mentioned 
tender 
the 
document or allotment document 

in 

(b) for sale of coal more than twenty-five 

Fifty per cent. of the royalty payable 

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

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

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

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

45 

 
 
 
 
 
 
 
 
