Press Information Bureau
Government of India
Ministry of Mines
11-March-2011 19:19 IST
Land for Mining to Private Companies
The State Governments are competent to grant mineral concessions viz. Reconnaissance Permit (RP), Prospecting Licence (PL) and Mining Lease (ML) under the provisions of the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957. However, prior approval of the Central Government is required under relevant Section of the Act. Subsequent to the prior approval of the Central Government, mining leases etc. are executed by the State Governments with the mining agencies after following the due procedures i.e. obtaining forest and environment clearances and approval of mining plan from the Indian Bureau of Mines.

Whilst processing the proposals recommended by the State Governments for prior approval of the Central Government, the Ministry of Mines examines the same in the light of the provisions of the MMDR Act, 1957, the Mineral Concession Rules, 1960 and the guidelines framed in this regard and where necessary, in consultation with the State Governments and specialized agencies like the Indian Bureau of Mines, the Geological Survey of India and the Department of Atomic Energy. The Ministry of Mines is conscious of its responsibility to ensure that the mineral concession regime functions in a transparent and efficient manner. In this regard, the Ministry has, in consultation with the State Governments, issued the following guidelines:-

(i) Comprehensive guidelines dated 24th June, 2009, in order to bring more clarity in processing the mineral concession proposals. The guidelines also seek to ensure application of uniform criteria by the State Governments while examining and recommending proposals to the Central Government.

(ii) Guidelines dated 9.2.2010 on ‘special reasons’ to be adopted by all State Governments while recommending a mineral concession proposal in favour of a later applicant in a non-notified area.

(iii) Guidelines dated 13.10.2010 regards maps in order to ensure that the areas recommended by the State Governments for mineral concessions are clearly demarcated.

This information was given by the Minister of State (Independent Charge) for Mines, Shri Dinsha Patel in a written reply in the Lok Sabha today.