Chapter II GENER&L RESTRICTIONS ON UNDERTAKING, PROSPECTING

(1) No person shall undertake any prospecting or mining operations in any area in the State except under, and in accordance with, the terms and conditions of a prospecting licence or, as the case may be, a mining lease granted under this Act and the rules made thereunder Provided that nothing in this Subsection shah apply to any prospecting operations undertaken by the Geological Survey of India, Bureau of Mines, Atomic Minerals Division of the Department of Atomic Energy of the Central Government, directorate of Mining and Geology of the State Government by whatever name called or a Government company or any other authority specified under this Act; (2) No Prospecting licence or mining lease shall be granted otherwise than in accordance with the provisions of this Act and the rules made thereunder; (3) The holder of a prospecting licence or a mining lease, whether granted under sub-section (i) of this section or continued under Sub-section 4, shall have, while carrying on such prospecting or mining operations, the same powers, and shall be subject to the same obligations, conditions and restrictions as the authority specified under Section 21 may exercise and be subject to the provisions of the said Section 21, and the provisions of the said Section except Sub-section (6) thereof shall apply to such holder of prospecting licence or mining lease to the same extent as they apply to the specified authority and for this purpose, reference in the said Section 21 to the “specified authority” shall be construed as references to such holder of prospecting licence or mining lease;

(1) Every prospecting licence or mining lease granted before the appointed day under any Act of Parliament and the rules made thereunder, and in force immediately before the appointed day, shall continue to be in force until the expiry of the period of validity or termination thereof, whichever is earlier, as if such licence or mining lease were granted under the corresponding provisions of this Act and the rules made thereunder. (2) Every prospecting licence or mining lease which continues to be in force by virtue of the provisions of Sub-section (1), shall be held under the same terms, conditions and restrictions on which they were held immediately before the

(1) Where the State Government is of opinion that it is expedient in the interest of regulation of mines and mineral development, preservation of natural environment, control of floods, prevention of pollution or to avoid danger to public health or communication or to ensure safety of buildings, monuments or other structures or for the conservation of mineral resources or for safety in mines, or for such other purposes as the State Government may think fit, it is necessary in the public interest so to do in respect of any area within the State, it may make an order making a premature termination of such prospecting licence or mining lease with respect to such area or part thereof, and granting a fresh prospecting license or mining lease in respect of such area in favour of such Government company or corporation owned or controlled by Government as it may think fit : Provided that no such termination shall be made after giving to the holder of such prospecting licence or the lease of such mining lease a reasonable opportunity of being heard. (2) Where the holder of a prospecting licence or mining lease fails to undertake prospecting or mining operations for a period of one year from the date of the issue of the licence or, as the case may be, lease, or having commenced prospecting or mining operations, has discontinued the same for a period of one year, the prospecting licence or the mining lease, as the case may be, shall lapse on the expiry of the period of one year from the date for issue or as the case may be, the discontinuance of the prospecting or mining operations : Provided that the State Government may, on an application made by the holder of such licence or lease before the expiry of the said period of one year, and on being satisfied that it will not be possible for the holder of such licence or lease to undertake prospecting or mining operations or to continue such operations for reasons beyond his control, make an order, subject to such conditions as may be prescribed, to the effect that the said licence or lease shall not lapse. (3) Where a prospecting licence or mining lease has lapsed under Sub-section (2) the State Government may, on an application made to it by the, holder of such licence or lease, submitted within a period of six months from the date of its lapse and on being satisfied that such non-commencement or discontinuance was due to reasons beyond the control of the holder of such licence or lease, revive the licence or lease, as the case may be, from such prospective or retrospective date as it thinks fit but not earlier than the date of lapse of the licence or lease : Provided that no licence or lease shall be revived under this Sub-section for more than twice during the entire period of the licence or lease, as the case may be.

(1) No prospecting licence or mining lease shall be granted to any person unless he- (a) holds a certificate of approval in the prescribed form from the State Government, (b) satisfies such other conditions as may be prescribed. Explanation : For the purpose of this Sub-section, a person shall be deemed to hold a certificate of approval notwithstanding that at the relevant time his certificate of approval has expired, if an application for its renewal is pending at that time. (2) No prospecting licence or mining lease shall be granted to any person who is not an Indian national. Explanation : For the purpose of this Sub-section, a person shall he deemed to be an Indian national, (a) in the case of a public company as defined in the Companies Act, 1956, only if a majority of the directors of the company are citizens of India and not less than fifty-one percent of the share capital thereof is held by persons who are either citizens of India or companies as defined in the said Act: (b) in the case of a private company as defined in said Act, only if all the members of the company are citizens of India; (c) in the case of a firm or other association of individuals, only if the partners or members of the firm or association are citizens of India; and (d) in the case of an individual, if he is a citizen of India, (3) No prospecting licence or mining lease shall be granted unless the State Government is satisfied that —. (a) there is evidence to show that the area for which prospecting licence or lease has been applied for has been prospected earlier and the existence of mineral prospects therein has been established : Provided that nothing in this Clause shall apply to any area if such area has already been prospected by a Department or an agency of the Government and the existence of mineral contents there has been established; (b) there is a mining plan duly approved by the State Government for the development of mineral deposits in the area concerned.

(1) No person shall acquire in the State in respect of any mineral or prescribed group of associated minerals (a) One or more prospecting licences covering a total area of more than twenty-five square kilometers in the case of minerals (other than mineral oils) and two hundred and twenty-five square kilometers in the case of mineral oils; (b) One more mining lease covering a total area of not more than ten square kilometers, in case of all minerals (except mineral oil) and seventy five square kilometers in case of mineral oils: Provided that if the State Government is of opinion that in the interest of the development of any mineral, it is necessary so to do, it may, for reasons to be recorded by it in writing, permit any person to acquire one or more prospecting licences or mining leases covering an area in excess of the aforesaid total area; (c) Any prospecting licence or mining lease in respect of an area which is not compact or contiguous; Provided that if the State Government is of opinion that in the interest, of the development of any mineral, it is necessary so to do, it may, for reasons to be recorded by it in writing, permit any person to acquire a prospecting licence or mining lease in relation to any area which is not compact or contiguous. (2) For the purpose of this Section, a person acquiring by, or in the name of another person, a prospecting licence or mining lease which is intended of for himself shall be deemed to be acquiring it himself. (3) For the purpose of determining the total area referred to in Sub-section (1), the area held under a prospecting licence or mining lease by a person as a member of a co-operative society, company or other corporation, or a partner of a firm, shall be deducted from the area refereed to in Subsection (1) so that the sum total of area held by such person, under a prospecting licence or a mining lease, whether as such member or partner, or individually, may not in any case, exceed the total area specified in Sub-section (1).

(1) The period for which a prospecting licence may he grants shall not - (i) in the case of mica, exceed two years; and (ii) in the case of any other mineral, exceed four years. (2) If the State Government is satisfied that longer period is required, in the public interest, to enable the licencees to complete prospecting operations it may renew a prospecting licence for a further period of one year at a time, but such further period shall not exceed four years in the aggregate.

(1) The period for which a mining lease may be granted shall not exceed twenty years. (2) A mining lease may be renewed for two periods but each of such period shall not exceed ten years (3) Notwithstanding anything contained in Sub-section (2), if the State Government is of opinion that in the interest of mineral development, it is necessary so to do in the public interest, it may, for reasons to be recorded by it in writing, authorize renewal of a mining lease for a further period or periods not exceeding in the each case the period or periods not exceeding in each case the period for which the mining lease was originally granted.

(1) The holder of a mining lease granted, or continue under Section 4, on or after the appointed day shall, notwithstanding anything contained in the instrument of lease, pay to the State Government royalty in respect of any mineral removed or consumed by him or by his agent, manager, employee, contractor or sub lease from the leased area at the rate for the time specified in the First Schedule in respect of that mineral. (2) Notwithstanding anything contained in Sub-section (1) the holder of a mining

(1) The holder of a mining lease granted or continued under Section 4, on or after the appointed day shall, notwithstanding anything contained in the instrument of lease, pay to the State Government dead rent at such rates as may be specified for the time being in the Second Schedule, for all the areas of the State included in the instrument of lease. (2) The State Government may, by notification, amend the Second Schedule so as to enhance or reduce the rate at which dead rent shall be payable, in respect of any area covered by a mining lease and such enhancement or reduction shall take effect from such date as may be specified in the notification. Provided that the State Government shall not enhance the rate of dead rent in respect of any such area more than once during any period to two years.