MINERAL CONCESSION RULES, 1960
Procedure for obtaining a Prosecuting Licence or Mining
Lease in respect of Land in which the Minerals vest in a person other than the Government
41. Applicability of this chapter. The provisions of this
chapter shall apply only to the grant of prospecting licences and mining leases in respect
of land in which the minerals vest exclusively in a person other than the Government .
42. Restrictions on the grant of prospecting licence and mining
lease. (1) No prospecting licence or mining lease shall be granted to any
person unless he has filed an affidavit stating that he has
(i) filed up-to-date income tax returns ;
(ii) paid the income tax assessed on him , and
(iii) paid the income tax on the basis of self-assessment as provided
in the Income Tax Act, 1961 (43 of 1961).
(2) Except with the previous approval of the Central Government, no
prospecting licence or mining lease shall be granted in respect of any mineral specified
in the First Schedule to the Act.
43. Renewal of prospecting licence. Omitted .
44. Conditions of prospecting licence. Every prospecting
licence shall be subject to the following conditions :
(i) the licensee shall pay the grantor such prospecting fee as may be
agreed upon, being not less than fifty paise and not more than five rupees per hectare of
the land covered by the licence for each year or a part of the year of the period for
which a licence is granted or renewed ;
(ii) in the case of minerals other than gold, silver, precious stones
or mica, the licensee shall not win or carry away the minerals for commercial purposes ;
Provided that the licensee may win or carry away for purposes other
than the commercial purposes
(a) any quantity of such minerals within the limits specified in
Schedule III without any payment ;
(b) any quantity of such minerals exceeding such limits but not
exceeding twice such limits, which is won during prospecting operations, on payment of
royalty for the time being specified in the Second Schedule to the Act in respect of those
(c) any quantity of limestone not exceeding 500 tonnes for testing its
use in any industry specified by the Central Government in this behalf, on payment of
royalty for the time being specified in the Second Schedule to the Act in respect of
(iii) in the case of gold, silver, precious stones or mica the licensee
may carry away any quantity won during the course of prospecting operations on payment of
royalty for the time being specified in the Second Schedule to the Act in respect of such
(iv) such other conditions as may be agreed upon between the parties
not being inconsistent with the provisions of the Act or these rules.
45. Conditions of mining lease. Every mining lease
will be subjected to the following conditions :
(i) the provisions of clauses (b) to (l) and (p) to (u) of sub-rule (1)
of rule 27 shall apply to such leases with modification that in clauses (c) and (d) for
the words "State Government" the word "lessor" shall be substituted ;
(ia) mining operations shall be undertaken in accordance with the duly
approved mining plan ;
(ii) the provisions of rule 35 shall also apply to such leases ;
(iii) the lease may contain such other conditions, not being
inconsistent with the provisions of the Act and these rules, as may be agreed upon between
the parties ;
(iv) if the lessee makes any default in payment of royalty as required
by section 9 or commits a breach of any of the conditions of the lease, the lessor shall
give notice to the lessee requiring him to pay the royalty or remedy the breach, as the
case may be, within sixty days from the date of the receipt of the notice and if the
royalty is not paid or the breach is not remedied within such period, the lessor without
prejudice to any proceedings that may be taken against the lessee determine the lease ;
(v) the lessee may determine the lease at any time by giving not less
than one year's notice in writing to the lessor ;
46. Transfer or assignment. (1) No prospecting licence or
mining lease or any right, title or interest in such licence or lease shall be transferred
to a person unless he has filed an affidavit stating that he has filed an up to date
income tax return, paid the income tax assessed on him and paid the income tax on the
basis of self-assessment as provided in the Income Tax Act, 1961( 43 of 1961).
(2) No prospecting licence or mining lease or any right, title or
interest in such licence or lease in respect of any mineral specified in the First
Schedule to the Act shall be transferred except with the previous approval of the Central
47. Submission of copy of licence or lease. Every person
obtaining a prospecting licence or a mining lease shall, within three months of the grant
of such lease or licence, submit to the State Government concerned a certified copy of the
licence or lease in duplicate.
48. Communication of transfer or assignment. Every
transferee or assignee of a prospecting licence or a mining lease or of any right, title
or interest therein, shall, within one month of such transfer or assignment, inform the
State Government of the transfer or assignment and of the terms and conditions of such
transfer and assignment .
49. Prohibition of premium. No person granting or
transferring a prospecting licence or any right, title or interest in any such licence or
lease shall charge or pay any premium in addition to, or in lieu of the prospecting fee
,surface rent ,dead rent , royalty payable, under the Act or such proportionate part of
such fee, rent or royalty as is payable in respect of such right, title, or interest .
50. Prohibition of working of mines. If the State
Government has reason to believe that the grant or transfer of a prospecting licence or a
mining lease or any right, title or interest in such licence or lease is in contravention
of any of the provisions of this chapter, the State Government may, after giving the
parties an opportunity to represent their views and with the approval of the Central
Government, direct the parties concerned not to undertake any prospecting or mining
operations in the area to which the licence or lease relates.
51. Returns and Statements. The holder of a prospecting
licence or a mining lease shall furnish to the State Government such returns and
statements and within such period as may be specified by it.
52. Penalty. (1) If the holder of a prospecting licence
or a mining lease or his transferee or assignee fails, without sufficient cause, to
furnish the documents or information, or returns referred to in rule 46, rule 47, rule 48,
or rule 51, or acts in any manner in contravention of rule 49 or rule 50, he shall be
punishable with imprisonment for a term which may extend to one year or fine which may
extend to five thousand rupees or with both.
(2) If any person grants or transfers or obtains a prospecting licence
or mining lease or any right, title or interest therein, in contravention of any of the
provisions of this chapter, he shall be punishable with imprisonment which may extend to
one year or a fine which may extend to five thousand rupees or both.