Lok Sabha Question No. 218 (STARRED), answered on 2015-12-14
Subject: Mineral Concession Rules
Ministry: MINES
Asked by: HARI MANJHI

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA STARRED QUESTION NO. 218 TO BE ANSWERED ON 14 th DECEMBER, 2015

## MINERAL CONCESSION RULES

## *218.  SHRI HARI MANJHI:

Will the Minister of MINES be pleased to state:

- (a) the salient features of the Mineral Concession Rules;
- (b) whether the amendment to the Mineral Concession Rules restricts the mining expansion without licence renewal;
- (c) if so, the details thereof including the number of mines operating under the deemed expansion;
- (d) whether  the  said  notification  has  affected  the  production  of  iron  ore  and  steel  in  the  country particularly in Odisha and Jharkhand and if so, the details thereof, State/UT-wise; and
- (e) whether the Government grants permission for mining in more than 40 years old mines and if so, the details thereof?

## ANSWER

THE MINISTER FOR MINES AND STEEL (SHRI NARENDRA SINGH TOMAR)

- (a) to (e): A Statement is laid on the Table of the House

## STATEMENT REFERRED IN REPLY TO LOK SABHA STARRED QUESTION NO.218 FOR REPLY ON 14.12.2015 REGARDING 'MINERAL CONCESSION RULES' ASKED BY SHRI HARI MANJHI

(a): The Mineral Concession Rules ( MCR ), 1960 have been framed under section 13 of the Mines and Minerals (Development and Regulation) Act, 1957 for regulating the grant of reconnaissance permits, prospecting licences and mining leases in respect of minerals and for purposes connected therewith. The MCR, 1960, inter-alia, provides for the following matters, namely:-

- i. the procedure for obtaining a reconnaissance permit, a prospecting licence or a mining lease and the terms on which, and the conditions subject to which, such a permit, licence or lease may be granted or renewed;
- ii. the manner of computation of royalty separately in respect of land in which the minerals vest with  the  Government  and  land  in  which  the  minerals  vest  in  a  person  other  than  the Government;
- iii. 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;
- iv. 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; and
- v. 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.

(b) to (d): Prior to 12th January 2015, State Governments were empowered to grant renewals for mining  leases  except  coal,  lignite  and  atomic  minerals.  In  compliance  to  the  judgment  of  the Supreme Court delivered on 21.04.2014 in WP (Civil) 435/2012 [in the matter of Goa Foundation Vs UOI & Ors], the MCR, 1960 was amended on 18.07.2014 to prohibit deemed extensions for second and subsequent renewals. However, this provision is no longer in force since 12.01.2015 the date on which the MMDR Amendment Act, 2015 amending the provision of the MMDR Act, 1957 came into force. Through the MMDR Amendment Act, 2015 the provisions for renewal of mining lease have been done away with for minerals except coal and lignite.

To obviate disruption in supply of ore and to ensure regular supply of raw material to the industry, transitory provisions  for extension of existing  mining  leases have been provided  in section 8A of the MMDR Amendment Act, 2015. Sub-sections (5) and (6) of section 8A has provisions which provide  that  period  of  mining  leases  granted  before  12th  January,  2015  will  be  deemed  to  be extended till the following period, whichever is later:

- (i) 31st March, 2030 in case mineral is used for captive purpose, or 31st March, 2020 in case mineral is used for other than captive purpose;
- (ii) completion of renewal period;
- (iii) fifty years from date of grant of mining lease.

(e):  Yes Madam. As per sub-section (2) of section 8A introduced through the MMDR Amendment Act, 2015, on and from the date of the commencement of the MMDR Amendment Act, 2015 all mining leases shall be granted for the period of fifty years. Further, as per sub-section (3) of section 8A all mining leases granted before the commencement of the MMDR Amendment Act, 2015 shall be deemed to have been granted for a period of fifty years.

In  addition  to this,  sub-section  (5)  and  (6)  of  section  8A    provide  for  extension  of  the  tenure  of mining leases beyond a period of 40 years, details of which have been given above.