Chapter III PROCEDURE FOR OBTAINING PROSPECTING LICENCES OR

(1) An application for a prospecting licence or mining lease in respect of any land within the State in which minerals vest in the State Government shall be made to the State Government in the prescribed from and shall be accompanied by the prescribed fee. (2) Where an application received under Sub-section (1) there shall be sent to the applicant an acknowledgement of its receipt within the prescribed time 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 the rules made thereunder, grant or refuse to grant the licence or lease. Provided that no such refusal shall be made except after giving to the applicant a reasonable opportunity of being heard.

(1) Where prospecting licence has been granted in respect of any land within the State, the holder of the licence shall have a preferential right for obtaining a mining lease in respect of that land over any other person: Provided that the State Government is satisfied that the licencee had not committed any breach of the terms and conditions of the prospecting licence and is otherwise a fit person for being granted the mining lease. (2) Subject to the provisions of Sub-section (1), where two or more persons have applied for prospecting licence or a mining lease in respect of the same land, the applicant whose application was received earlier shall have a preferential right for the grant of the licence or lease, as the case may be, over the applicant whose application was received later: Provided that where any such application is received on the same day, the State Government may, after taking into consideration the matters specified in Sub-section(3), grant the prospecting licence or mining lease, as the case may be, to such one of the applicants as it may deem fit. (3) The matters referred to in Sub-section (2) are the following: (a) any special knowledge of, or experience in, prospecting operations or mining operations, as the case may be, possessed by the applicant; (b) The financial resources of the applicant; (c) The nature and quality of the technical staff employed or to be employed, by the applicant; (d) Such other matters as may be prescribed. (4) Notwithstanding anything contained in Sub-section (2) but subject to the provisions of Sub-section (1), the State Government may, for any specified reasons to be recorded by it in writing, grant a prospecting licence or a mining, grant a prospecting licence or a mining lease to an applicant whose application was received later in preference to an applicant whose application was received earlier.

(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 applications for mining leases; (c) a register of applications for prosecuting leases; (d) a register of mining leases. (2) Every such register shall be open to inspection by any person on payment of such fee as may be prescribed.

(1) The State Government may by notification, make rules regulating the grant of 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 au or any of the following matters namely: (a) the persons by whom and the manner in which applications for prospecting licence, quarry lease, mining lease or other concessions may be made and the fees to be paid therefore; (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 within the same day; (d) the persons to whom certificates of approval may be granted, the form of such certificate and the fee payable for the grant or renewal of such certificate; (e) the terms on which, and tile conditions subject to which and the authority by which prospecting licences, quarry leases, mining leases or other mineral concessions may he granted or renewed in respect of land of which minerals vest in the State Government; (f) the procedure for obtaining prospecting licences, quarry leases, mining leases or other mineral concessions; (g) 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 operation; (h) the fixing and collection of rent, royalty, cess, dead rent, fines or other charges and the time within which and the manner in which these shall be payable; (i) the manner in which right of any owner of land may he protected (whether by way of payment of compensation or otherwise) in cases where any owner is prejudicially affected by reason or any prospecting or mining operations; and the person by whom and the manner in which such protections shall, be made, or, as the case may be, the compensation shall be paid, and in the event of any dispute as to such protective work or as to the amount or such compensation, the authority by whom such disputes shall he settled; (j) the manner, in which rehabilitation of flora and other vegetation, such as trees, shrubs and the like, destroyed by reasons of any prospecting, quarrying or mining operations shall he made in the same area or any other area selected by the State Government (whether by way of reimbursement of the cost to rehabilitation or otherwise) by the person holding the prospecting licence, quarrying or mining lease; (k) the construction, maintenances and use of road, transmission lines, tramways, railways, aerial, ropeways, 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 prospecting licences, 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 appeal or 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 appellate and revisional authority; and (o) any other matter which is to be, or may be, prescribed.

The provisions of Sections 3 to 15 (both inclusive) shall not apply to quarry leases, mining leases or other mining concessions in respect of minor minerals.

(1) The State Government may, by notification, make rules for regulating the grant of quarry leases or other mining concessions in respect of minor minerals and for purposes connected therewith. (2) Until rules are made under Sub-section (1), the State Government may, declare by notification, that the rules made by such State Government as is specified in the notification, regulating the grant of quarry leases, mining leases or other minerals concessions in respect of minor minerals which were in force immediately before the appointed day, shall continue to be in force.

(1) The provisions of this section shall apply to land within the State. (2) Notwithstanding anything contained in this Act, the State Government may undertake prospecting or mining operations in any area not already held under any prospecting licence or mining lease, and where it proposes to do so, it shall, by notification, (a) specify the boundaries of such areas; (b) State whether prospecting or mining operations will be carried out in the areas; and (c) specify the mineral or minerals in respect of which such operations will be carried out. (3) The State Government may, with a view to enabling it to exercise the powers conferred on it by Subsection (2), by notification, declare that no prospecting licence or mining lease shall be granted in respect of any land specified in the notification.