Lok Sabha Question No. 2359 (UNSTARRED), answered on 2016-05-09
Subject: Mineral Concession Rules
Ministry: MINES
Asked by: DARSHANA VIKRAM JARDOSH

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 2359 TO BE ANSWERED ON 9 TH  MAY, 2016

## MINERAL CONCESSION RULES

## 2359.  SHRIMATI DARSHANA VIKRAM JARDOSH:

Will the Minister of MINES be pleased to state:

- (a)  the provisions of "The minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016";
- (b)  whether the said rules prohibit the extension of mining without the renewal of license;
- (c)  if so, the details thereof and the number of mines operating under admissible extension, State/UT-wise;
- (d)  whether the Government permits mining in the mines which are more than 25 years old; and
- (e)  if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR MINES AND STEEL (SHRI VISHNU DEO SAI)

(a):  The  Minerals  (Other  than  Atomic  and  Hydro  Carbons  Energy  Minerals) Concession Rules, 2016 prescribe the procedures for regulating the grant of mineral concessions  and  for  purposes  connected  therewith.  The  provisions  of  these  rules cover (i) Rights of existing holders of mineral concessions, (ii) Mineral concessions granted  through  auction,  (iii)  Terms  and  conditions  of  mineral  concessions,  (iv) Preparation  of  the  mining  plan  and  system  of  certification,  (v)  Expiry  of  a  mining lease,  (vi)  Lapse,  surrender  or  termination,  (vii)  Transfers,  (viii)  Procedure  for obtaining  a  prospecting  licence  or  mining  lease  in  respect  of  land  in  which  the minerals vest in a person other than the government, (ix) Revision, (x) Associated minerals, (xi)  Minerals valuation, (xii)  Payments, (xiii) Compensation, (xiv) Penalty, (xv) Repeal and saving, etc.

(b): As per sub-section (1) of section 4 of the Mines and Minerals (Development and Regulation) Act, 1957, 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  license  or,  as  the  case may be, a mining lease, granted under the Act and the rules made thereunder.  In view of this,  mining  without  a mining  lease  is  illegal.  The  MMDR  Amendment  Act, 2015 has done away with the concept of renewal of a mining lease. Therefore, there is no renewal of mining leases after 12.01.2015. (c):  Extensions  of  tenure  of  mining  leases  are  done  by  the  state  governments  in accordance  with  the  provisions  of  section  8A  introduced  through  the  MMDR Amendment Act, 2015. Details in this regard, as also the number of mines operating under admissible extension, are not maintained centrally. (d)  &  (e):  sub-sections  (5)  and  (6)  of  section  8A  introduced  through  the  MMDR Amendment  Act,  2015,  provide  for  extension  of  tenure  of  mining  leases  upto  50 years from the date of grant of the lease, or the period of renewal already approved, or till 31.3.2020/31.3.2030 as the case may be (depending on whether it is a captive lease or otherwise), whichever of the three is later, subject to the condition that all the terms and conditions of the lease have been complied with.

In  view  of  the  above,  the  MMDR  Act,  1957  provides  for  the  tenure  of  the mining leases to extend beyond 25 years.

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