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REGISTERED No. D- 28

The Gazette of India

EXTRAORDINARY

PUBLISHED BY AUTHORITY

NEW DELHI, WEDNESDAY, OCTOBER 19, 1949

GOVERNMENT OF INDIA

MINISTRY OF WORKS MINES AND POWER

NOTIFICATIONS

New Delhi, the 18th October 1949

No, M.II-155(24)-1.—In exercise of the powers conferred by sub-section (8) of section 1 of the Mines, and Minerals (Regulation and Development) Act, 1948 (LIII of 1948), the Central (Government is pleased to appoint the twenty- fittli day of October, 1949, as the date on which the said Act shall come into force.

M MALHOTRA, Asstt. Secy.

New Delhi, the l8th October 1949

No. M-II-155(24)-2.—fn exercise of the powers conferred by Section 6 of the Mines and Minerals (Regulation and Development) Act, 1948, the Central Government is pleased to make the following rules for regulating the grant of prospecting licenses and mining leases for minerals other petroleum and natural gag, namely.—

THE MINERAL CONCESSION RULES, 1949

CHAPTER I

General

1 (i) These rules may be called the Mineral Concession Rules,

1949.

Short title

and

commence-

ment.

(ii) These rules shall come into force on the twenty-fifth day

October, 1949

2 Nothing in these rules shall affect the provisions of the Atomic

Saving of

Energy Act, VMS.

Act XXIX

8, In these rules, unless there is anything repugnant in the sub-

ject or context—

(i) "Indian citizen" means any individual who is either a British subject domiciled in India, or the Ruler or subject of an Acceding State;

[2075]

(ii) "mining lease" means a lease to mine, quarry, bore, dig and search for, win, work and carry away any mineral specified therein;

(iii) "minor mineral" means building stone, boulder, shingle, giavel, limestone and kankar used for lime burning, murrum, brick-earth, ordinary clay, ordinary 6and, and road metal,

(iv) "private person" means a person other than Government;

(v) "prospecting license" means a license to search for any mineral specified therein, by quarrying, boring and dig- ging or otherwise;

(*,i) "Provincial Government" includes the Government of an Acceding State to which these rules apply and all refer- ences to a Province shall be construed as references also to such Acceding State;

(vii) "railway" and "Railway Administration" have the mean- ings respectively assigned to them in the Indian Railways Act, 1890.

Exemption. 4. These rules shall not apply to minor minerals, the extraction of which shall be regulated by such rules as the Provincial Govern- ment mi.y prescribe.

CHAPTER II

Certificate of Approval

5. A certificate of approval shall be granted only by a Provincial Government,

Grant of cert'ficnte cf approval. Prrsorw to 0. A certificate of approval may be granted to any person who, in tli" c.-vrir,n of the Provincial Government, is in a position to. employ an c^u-iem pio^Kcang ajjeucy, or possesses special kaowledge of pvc!< <.• : or milling:

whom Certificate may he gr anted.

Provided *h^i, if such pprson. is a Company or firm, it; shall be registcj'f (I -)

7. An application for ihe, front or renewal cl u certificate of p.ppu'',al s¹ ill bpfeiibnsitledto *hc Provincial Government, find the former shall cor fain tho following particulars:—

Application for certifi- cate of appro- val.

(a) (i) If the applicant is an individual, his name, nationality, profession and residence, and

(ii) if tho applicant is a company, syndicate, partnership or priv.iio rim, iis name, nature and place of business, plyee of registration or incorporation; and

(t>j A statement showing the technical qualifications fivd mining experience of the applicant, a^d Irs Manager, if any, and such other particulars as may be necc-ssary to ,-atisfy the

Provincial Government of the competence of the appli- cant to hold the certificate.

Restricted certificate.

8. A certificate of approval shall be valid for the whole of the Province and shall cover all minerals except petroleum a^J natural gos unless the Provincial Government, with the prior app.oval jf the Central Government, lestucts it to any specified mineral or mnerals.

E'eriod of certificate of approval.

9. (1) A certificate of approval shall have effect from the Uate on which it is granted and shall expire at midmgnt n the 31st; uecem- bci next following

Provided that a ceitificate issued in the last quarter of the yp ir

shall be valid until the 31st December of the year n ° \t +oUcnnig.

(2) Only oi.e peison sha 1 be named in the certificate an 1 the 1 o

payable for the grant thereof shall be Es. 100.

Renewal of certificate of approval 10. A certificate of approval may be renewed on payment of a fee of Rs 50 if the application for renewal is received within 3 monlln from the date of expiry of the certificate \iter th- expiry of th'cc mon+hb no renewal shall be granted but an application for a frt-ih ceiuficate may be made

Li Thp name and address of the person to whom a certificate of

npuxval h\s been gionted rr lenewed shall be published by the Pro- vince i Government m the Official Gazette.

fivi iica- tion of ur-ir.fc o i cer- tificate of approval

Ho'der of

need not re- ft bis cor- tiucate.

V2 Tlit, exmi-*. of a ceitificai¹ of ap,)ro\ il slnli not- iffect the valid tv ->'' a I cev-e or leise alroiJy giant d lo tho hoi ^ oi biich certificate or tho ri^ht of the holder of a projecting Lcen"b to R^ply for or ob+in i i j n i ri jo ^- nnVr +1 •-" lu'es

CHAPTEU I II

Giant of Prospecting License in respect of land in which the minerals belong to G-overnment

I') (1) X) p ' o ^ pp t tig l e f ii e s l n 'l b" f; i-iled tn n ^' x >i=rP T " •Ro'-trictions on j_T 2078 THE GAZETTE OF INDTA EXTRAORDINARY, OCT. 10, 1949

Application

ioi 1 lOfpl C" ting iiceni*.

14. An application for a piospeefcing license ehalr, in case of land in which the minerals belong to Go\eminent, be made to tho Provin- cial Government concerned and bhall contain the following parti- culars:—

(a) (i) If the applicant is an individual, his name, nationality,

profesbion and residence, and

(ii) if Ihe applicant is n company, syndicate, partncribip or private tiim, its name, nature a.id place of business and place of registration or incorporation,

(b) The number nnd date of the notification of the j^rant or

renewal of the certificate of approval of the applicant;

(c) A description, illustrated by a map or plan showing ag accurately as possible the situation, boundaries and area of the land in lespect of which the lieenbe is required;

(d) The period for which the prospecting license is required; and

(e) The mineral or minerals for which tho applicant intends to

prospect.

13. The application shall be accompanied bv a fee of Us. CO for AppUin- lion Tet

the first square mile and Rs. 10 for each additional square luile or part thereof.

10. On receipt of the application the receiving officer shall note thereon the date arid time of it^ receipt, nnd shall give to the appli- cant an acknowledgment stating the date and time of receipt.

Acknow-

ledgment of

application.

17. (1) Subject to the provisions of Rulo 1'?, the Provincial Gov- prnment may grant or refuse the 1 cense.

C'2) Tn case of refusal, infimnlio'i of the snrne shall be ptven to the Provincial Govomment may Roml or rpfutio ft lioenae.

applicant in writing and the fee paid under rule lj shall be refunded.

Priority. 38 If more than one application reparding the same land is received, preference shall bo given to the application received firet, unless the Provme id Goven ment. for any special reason, and with the pr'or approval of the Central Government decides to the contrary.

19 Tin? npphcmt shall, befrre the license is issued to him, Security depoftiti.

deposit afi seenii'-v a sum of Rs. 100 for ench square mile or p^rt thcvf'r.f covered by (be license, for due observance of the terms and conditions of the license.

20 A resrisier of prospecting licenses shall be maintained by the Provincial Government, specifying.—•

Re"fator of

prOHpoeling

licenser.

(1) Serial Number;

(2) Name of the applicant;

(o) .Residence of the applicant; (4) Date nod number ot certificate of approval granted to the

applicant; (5) Dutc of application;

(6) Situation and boundaries of the land;

(7) Estimated total area;

(8) The mineral or minerals which the applicant desires to

prospect for;

(9) Date of grant of the license;

(10) Period for which granted, renewed "r extended;

(31) Application fee paid;

(12) Prospecting fee and royd'iy if payable,

(].'!) Amount of security deposit;

(14) Particulars of disposal or refund of security deposit;

(16) Date of assignment or transfer of the license if any, and fc.ee paid tlicicfor and the names of the parties thereto;

(161 Date of application for minhiK leiise (if anvi.

Inspection ol register.

21. The register shall be open to inspection by nnv holder of a Viilid cc. tificnle of approval cr bis dulv authorised agent on payment o£ fcuc-h feu as the Provincial Government may fix.

Period of (frttrU nr p-cnewal of " proipeot- mj lioena* 2"2. (1) Except for mica, the period for which a prospecting license may be Mai led shall j'nf or.fi.cd Uvo j e a r s. If at rhe und of this peiiotl 'Jie L'rovinoial Government is satisfied that a lrwiror period is requnifl to oriaVe Die licensee to complete the prospecting, it m ay reuow the license for one or more further pei lods not ^ c e d i ng one your t.ich, but biibjeet io a tc-tal period of four venis fioni tlie date ot commencement of Ihe oiiginal lieense. in the H UP of mica, the term toi n h i 'h a pi'O'-pectin^ licence may be ^l'a iled &ba!l not t.\ered ore } ;r, but tli Pio\iiK'inl G< v mriient may renew it, for a further period not eioeedmg one scar.

(-) 11 thp Jictnr-e[>, before the terrnhvition of the period of his license, 'ipplif'Ei tov 'ho fM'ant of n mining lease the period shall 1)0 Iiirthc."- e\tA ided (ill the mining lease in granted.

2" (I) livery prospecting liccnso shall include the following

conditions • —

ContWoni

ot B pro*-

iwrting

Uremia.

(i) The licensee =hall pny such prospecting fee ns may he fixed by the. I'lovincial Government, not less than two annaR and not more than cue rupee per acre of the laud covered by the license, fur each yeai or portion of n year of the period for which the license is grunt- ed ou renewed.

(a) Tn the case of minerals other than go¹d, silver, precious stoni s or mica, the license shall not confer upon the licensee a right to win oi- cany away the minerals fov commercial purposes:

Provided that he moy curry away—

(a) any quantity within the limits specified in the Second

Schedule without any payment, and

(!">) any quantity exceeding such limits, which is incidental to prospecting, on payment, of royalty at the rates specified in the First; Schedule.

(iii) In case of gold, silver, precious stones or mica the licensee 'nay carry away any quantity won during t he course of prospecting on payment of royalty specified in t he First Schedule.

(iv) The licensee mity, with the piovious bunclion of the Provincial Government, transfer IIN license or any right or interest therein to a parson holding a certificate of appioval on payment to tho Piovineial Government of a fee oi B s. 100.

(v) Savo in the cas" of land over which t he licerbee is Granted a mining lease, he sli^ll, W thin m\ months next nl't'r the determi- nation ol tho HeoiiM' or J nj duto of abandnnn'-i 1, of the undertaking whiehevc-i ifi e m l ' i i, -,'j( au'U plug nil 1 >'is .nA fill up m IVnce *'ll excavations in tho hn\ ro\eiod }>y tho luvuso.

(vi) Jn can > ol K^vdi I;- the hcvi^ej oi his li,m-.£*'ice ot aw^jgnee of any oi tho (-(jiuliiions <>i Ins h e e i i ^, the PmvJiiL'ml Government may cancel the IICOIHC or i i r l e t. m \\h<>lo or part, lii^ deposit made by (he l i o n s ei nuclei rn'e 19

(2) A prospering JILUISO rnay pout.Pii r,u< h oilier coudiLions, as

flip I-j'ovincin] (jovernnionb m ay deem fit, including t he following:—

(i; Time and place of p a y m e nt of t he fee;

l\') Coripensfit.nm "Toi dnmayo to land in respect of which license hns been granted;

(i.i) lii'lcnmity to (lowriimmit ngnii^t Iho ohvw of a third pnrt5' for nny damage, injiu'y or (Ijstiii'bmioe caused tr> Inm by the Jicenoee;

(iv) Ilestiict on-i ii ^urdmg ftl'iiig of tn uh on unoccupied und un- resei'ved Government land;

^] Bcstricti'^ns on pi<-specting operations in an area prohibitrid ny any oompi tent authoiniy;

(vi) C)pcrat]ons in si u s f i v ed or protected lore^D, (vn) Conditiotift rei idiuc entry on occupied land; (viu) lori'eiture of property loft after determination of license; (i\) Power to tiJ\f> r 'wession of plant, jnachinery and premises in the event of war or emergency.

24. On or before tho determination of his lioenso, the licensee filial!

Bight to mining lease.

ha\e a right to a mining lense or leases over tho whole, or part of the area covered by tho license, in accordance with the rules in force Governing such leases at the time of rhe grant of the license.

Report of Information obtainod by Uoeneee.

25. The licensee shall, before the deposit made under rule 19 IB rctumud to him, submit confidentially to the Provincial Government a full report of the work done by him, and disclose all information acquired in the course of the operations carried on under the license, regarding the geology and mineral resources of the area covered by thfi license.

CHAPTER IV

Grant of Mining Lease In reflpeot ol land In wWch the mineral*

belona to Government

BeariotlonB on grant of mining leases

20 (1) No mining lea*. • shall he granted to any peiwon unions he holds n certificate of approval from tho Provincial (lovaniment con- cerned or is covered by Wuli 12, and if he IH an individual other than an Indian citizen, unless the prior approval of the Central Govern- ment has also been obtained. ,

(2) No mining lease shall bo granted in respect of any such mineral or cla^s of minerals fw tho O r l r al Government may, by order com- municated to the Provincial Government eoi cerned, spt cify, either throughout, or in MJCII part of the Province HM in"\ be specified in the order.

(3) No mining lease for run mineiul specified in ^rufdulo IV shall be granted except with the prior approval of thi- k>Dtral (lovi'inmeut.

27. An application for tx mining lea^e, shall, in case of- land in Application for mining loase.

whiok tlio minerals belong to Government, be made to the Provincial .Government concerned, and shull contain the following particulars¹— (a) (i) If the applicant is an individual, his name, nationality,

profession and residence, and

(ii) if the applicant is a company, syndicate, partnership or private firm, its name, nature, and place of business and place of registration or incorporation;

•(b) The number nn I tinie, of the notification of the grant or

renewal of certificate of approval of the applicant;

(c) A d^scriplio'.i, illustrated by a mop or plan, showing as accurately us possible the situation, bou.idarit-s nncl area of the lar.d in -aspect of which the ]b&se is required;

(d) Tho mineral or minerals which the applicant intends to mine;

(e) Tho ureas arid minerals within the jurisdiction of the Provin-

cial Government for which the applicant or any person joint in interest with him nheady holds a raining lease;

(f) If tho applicant holds a prospecting license for the area applied for, the number and date at such license;

(g) The period for which the lease is required;

develop, and the location of 8uch industry.

28. The upphemion shall be Tcvomiumu d by a few of Us. 200. If

AppljGntion

the Provincial Government refuses to grant the lease npplied for or if the applicant refuses to aecept the lease on account of any special condition imposed therein under sub-rule (3) of rule 41, the fee shall be refunded.

29 With ilic application, the applicant shall deposit for meeting the pre'iniintn-v expenses fluch sum, not exceeding Rs. 500, "K the

Deposit for

preliminary

expouae*.

Provincial Government may determine.

SO. When ti mining len^o is ijruiited by the Provincial Govern- Survey of the ar eoned.

ment, arrangements shall be made at the expense of the lessee for the survey and demarcation of the area granted undo" '' ^e.

81. On receipt of the application, the receiving officer shall note therfcn the date and time of its receipt, and shall give to the appli- cant ai* acknowledgment stating the date and time of receipt.

Acknow-

ledgment

of "ppJi"k-

Uoa.

Priority

32. If more than ono application regarding the smrrn laud is received, preference shall be given to the application received first, unless the Provincial Government, for arty special reason, and with the prior approval of the Central Government decides to the contrary.

Reglflter of

mining 1st*.

9M.

88. A register of mining leases shall be maintained by the Provincial Government e-pecifying, as far as may be, the particulars specified in rule 20.

of xeg liter.

34. The register shall be open to inspection by any holder of a certificate of approval o. a prospecting license or a mining lease or his duly authorised ngent, ou payment of such fee as the Provincial Government may fix.

Are*

IttiM.

85. Where the applicant applies direct for a mining lease under rule 56, it may be grunted for such area as tJio Provincial Govern- ment deems fit. Where the applicant has a right to a mining lease under aile 24, the lease shall cover the whole or such port of the land covered by the prospecting license us the applicant may desire but the Provincial Government may, for any Ppecitvl reason, and with tha prior approval of the Central Government, reduce the area, or exclude a portion therefrom:

Provided that no lessee, by Irmself or with tiny parson ]oint in interest with him, shall hold, in the aggregate, more than 10 square miles under lenso in respect of one mineral or related group of minerals within the Province:

Provided further thut at the time of renewal of the lease, th" lessee shall be entitled to surrender any pa t of the leased area.

Beonrlty

(fapwiU

86. The applicant shall, before the lease is issued, deposit as Becurity a sum of Rs. 1,000 in case of metalliferous minerals and Rs. 500 in case of other minerals, for due observance of the terras and eondit.ons of the lea so.

Tr"ttferof 717. The lessee may, with the previous sanction of tho Provincial Government and subject to the conditions specified in the firijt proviso to rule S5 inu in rule 98, t ansfer his lea^e ur any right or interest therein, 1o n poison holding a ct'Mincate of approval on pay- ment of a fee o£ Rs. 100 to the Provincial Government.

38. The length of an nrca held under a mining .lease shall not exceed four times its breadth:

J>ngth mid

breadth of

" e" leased.

Provided that, in the case of coal, the length shall not eroded twice the breadth and the area leased or sub-leased bhali not be less th,m 100 acres:

P nvided further that the Provincial Government may in "ny particular case relax the piovisions of this rule.

Bcnmdnrios

below the

•Br&on.

89. Thu boundaries of the area covered by a mining lease ishiill run vertically downwards below tho surface towards the centre of the earth.

Period of IMM.

40. (1) Tho period for which a mining lease may be granted shall be .'30 years in the case of i on-oro and bauxite for mam.fao- ture ot aluminium, and 20 joars in the case of any other minrrnls, unless the applicant himself asks for a shorter period. The lease shall bo renewable at tho option of tho lessee, for one or two periods, each not exceeding the duration of the original Uase, m the ease of iron-ore and bauxite for manufacture of aluminium, and one pt- iod not exceeding the duration of the original lease in the cane of other minerals.

(2) When renewal is granted—

(i) royalty and surface rent Bhall be charged at the rates in force at tho time of the renewal; and

(ii) dend rent shall be charged at such rate ae the Provincial Government may fix within the limits specified in the Third Schedule in force at the time of the renewals.