ACT-RULES FOR REGULATING

(No. 67 of 1957)

(As ammended up to 20th December, 1999)

RULES FOR REGULATING THE GRANT OF RECONNAISSANCE PERMITS,
PROSPECTING LICENCES AND MINING LEASES

Power of Central Government to make rules in respect of minerals

13. (1)The Central Government may, by notification in the Official Gazette, make rules for regulating the grant of reconnaissance permits, prospecting licences and mining leases 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:-

  1. the person by whom, and the manner in which, applications for reconnaissance permits, prospecting licences or mining leases in respect of land in which the minerals vest in the Government may be made and the fees to be paid therefor;
  2. the time within which, and the form in which, acknowledgement of the receipt of any such application may be sent;
  3. the matters which may be considered where applications in respect of the same land are received on the same day;
  4. omitted;
  5. the authority by which reconnaissance permits, prospecting licences or mining leases in respect of land in which the minerals vest in the Government may be granted;
  6. the procedure for obtaining a reconnaissance permits, a prospecting licence or a mining lease in respect of any land in which the minerals vest in a person other than the Government and the terms on which, and the conditions subject to which, such a permit, licence or lease may be granted or renewed;
  7. the terms on which, and the conditions subject to which, any other reconnaissance permit, prospecting licence or mining lease may be granted or renewed;
  8. 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;
  9. the fixing and collection of fees for reconnaissance permits, prospecting licences or mining leases, 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;
  10. 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 reconnaissance, prospecting or mining operations;
  11. the grouping of associated minerals for the purposes of section 6;
  12. the manner in which, and the conditions subject to which, a reconnaissance permit, a prospecting licence or a mining lease may be transferred;
  13. 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;
  14. the form of registers to be maintained under this Act;
  15. omitted;
  16. the reports and statements to be submitted by holders of reconnaissance permits or prospecting licences or owners of mines and the authority to which such reports and statements shall be submitted;
  17. 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 the fees to be paid therefor and the documents which shall accompany such applications and the manner in which such applications shall be disposed of;
  18. (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; and

  19. any other matter which is to be, or may be, prescribed under this Act.

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.

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

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

  1. the conditions, limitations and restrictions subject to which such prospecting licences or mining leases may be granted;
  2. regulation of exploration and exploitation of minerals within the territorial waters or the continental shelf of India;
  3. ensuring that such exploration or exploitation does not interfere with navigation; and
  4. any other matter which is required to be, or may be, prescribed.

Sections 5 to 13 not to apply to minor minerals

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

Power of State Governments to make rules in respect of minor minerals

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

(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:-

  1. 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;
  2. the time within which, and the form in which, acknowledgement of the receipt of any such applications may be sent;
  3. the matters which may be considered where applications in respect of the same land are received within the same day;
  4. 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;
  5. the procedure for obtaining quarry leases, mining leases or other mineral concessions;
  6. 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;
  7. 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;
  8. the manner in which the rights or third parties may be protected (whether by way of payment or compensation or otherwise) in case where any such party is prejudicially affected by reason of any prospecting or mining operations;
  9. the manner in which the rehabilitation of flora and other vegetation, such as trees, shrubs and the like destroyed by reasons 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;
  10. the manner in which and the conditions subject to which, a quarry lease, mining lease or other mineral concessions may be transferred;
  11. the construction, maintenance and use of roads, power transmission lines, tramways, railways, aerial ropeways, pipelines and the making of passage for water for mining purposes or any land comprised in a quarry or mining lease or other mineral concessions;
  12. the form of registers to be maintained under this Act;
  13. 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;
  14. 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
  15. 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 quarry leases, mining leases or other mineral concessions in respect of minor minerals which are in force immediately before the commencement of this Act shall continue in force.

(3) The holder of a mining lease or any other mineral concession granted under any rule made under subsection (1) shall pay 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 royalty or dead rent in respect of any minor mineral for more than once during any period of three years.

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

16. (1) (a) All mining leases granted before the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 if in force at the date of commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1994 shall be brought in conformity with the provision of this Act, and the rules made thereunder within two years from the date of 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, 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 two years from the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1994 , or within such further time as the Central Government may, by general or special order, specify in this behalf.

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

(2) The Central Government may, by notification in the Official Gazette, make rules for the purpose of giving effect to the provisions of sub-section (1) and in particular such rules shall provide-

  1. 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;
  2. for the payment of compensation to the lessee in respect of the reduction of any area covered by the existing mining lease; and
  3. for the principles on which the manner in which, and the authority by which, the said compensation shall be determined.