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The Mineral Laws (Amendment) Bill, 2020

SECTION Section 1

Untitled Section

THE MINERAL LAWS (AMENDMENT) ACT, 2020
NO.2 OF 2020
[13th March, 2020.]
An Act further to amend the Mines and Minerals (Development and Regulation)
Act, 1957 and to amend the Coal Mines (Special Provisions) Act, 2015.
BE it enacted by Parliament in the Seventy-first Year of the Republic of India as
follows:—
SECTION Section 10

Untitled Section

6.In section 10C of the principal Act, in sub-section ( 2), the following shall be
inserted, namely:—
"Provided that the holder of non-exclusive reconnaissance permit who carries
out the prescribed level of exploration in respect of deep seated minerals or such
minerals as may be notified by the Central Government, may submit an application to
the State Government for the grant of any prospecting licence-cum-mining lease as
per the procedure laid down under section 11 or a mining lease as per the procedure
laid down under section 10B and with a view to increase the reconnaissance and
prospecting operations of such minerals, the Central Government shall prescribe
such procedure, including the bidding parameters for selection of such holders.
Explanation.—For the purposes of this sub-section, the expression "deep
seated minerals" means such minerals which occur at a depth of more than three
hundred meters from the surface of land with poor surface manifestations.".
SECTION Section 11

Untitled Section

7.In section 11A of the principal Act,—
(i)in the marginal heading, after the words "or mining lease", the words "or
prospecting licence-cum-mining lease in respect of coal or lignite" shall be inserted;
(ii) in sub-section (1)—
(a)in the opening portion, for the words "in respect of any area containing
coal or lignite", the words "or prospecting licence-cum-mining lease in respect
of coal or lignite" shall be substituted;
(b)for the long line, the following long line shall be substituted, namely:—
"to carry on coal or lignite reconnaissance or prospecting or mining
operations, for own consumption, sale or for any other purpose as may
be determined by the Central Government";
(c)the following proviso shall be inserted, namely:—
"Provided that the auction by competitive bidding under this
section shall not be applicable to coal or lignite—
(a)where such area is considered for allotment to a
Government company or corporation or a joint venture company
formed by such company or corporation or between the Central
Government or the State Government, as the case may be, for own
consumption, sale or for any other purpose as may be determined
by the Central Government;
(b)where such area is considered for allotment to a company
or corporation that has been awarded a power project on the basis
of competitive bid for tariff (including Ultra Mega Power Projects).";
(iii) in sub-section (3),—
(a)after the words "mining lease", the words "or prospecting
licence-cum-mining lease" shall be inserted;
(b)for the words "competitive bidding or otherwise", the words
"competitive bidding or through allotment" shall be substituted.
SECTION Section 12

Untitled Section

8.In section 13 of the principal Act, in sub-section (2),—
(i)after clause (a), the following clauses shall be inserted, namely:—
"(aa) the conditions as may be necessary for commencement and
continuation of production by the holders of mining leases, under section 4B;
(ab) the conditions to be fulfilled by the new lessee for obtaining all
necessary rights, approvals, clearances, licences and the like under the proviso
to sub-section (2) of section 8B;
Amendment
of
SECTION Section 13

Untitled Section

section 10C.
Amendment
of
SECTION Section 14

Untitled Section

section 11A.
Amendment
of
SECTION Section 15

Untitled Section

section 13.
4 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II—
(ac) the level of exploration in respect of deep seated minerals or such
minerals and the procedure, including the bidding parameters for selection of
the holders under the proviso to sub-section ( 2) of section 10C;";
(ii) for clause (d), the following clauses shall be substituted, namely:—
"(d) the terms, conditions and process of auction by competitive bidding
and allotment in respect of coal or lignite;
(da) the regulation of grant of reconnaissance permit, prospecting licence,
mining lease or prospecting licence-cum-mining lease in respect of coal or
lignite;
(db) the details of mines and their location, the minimum size of such
mines and such other conditions which may be necessary for the purpose of
coal or lignite reconnaissance, prospecting or mining operations;
(dc) utilisation of coal or lignite including mining for sale by a company;".
SECTION Section 16

Untitled Section

9.In section 17A of the principal Act, in sub-section (2A), in the proviso, the words
and letter "Part A and" shall be omitted.
SECTION Section 17

Untitled Section

CHAPTER III
A
MENDMENTS TO THE COAL MINES (SPECIAL PROVISIONS) ACT, 2015
SECTION Section 18

Untitled Section

10.In section 4 of the Coal Mines (Special Provisions) Act, 2015 (hereafter in this
SECTION Section 19

Untitled Section

Chapter referred to as the principal Act),—
(i)in sub-section (2),—
(a)in the opening portion, for the words "in respect of any area containing
coal", the words "or prospecting licence-cum-mining lease in respect of coal"
shall be substituted;
(b)for the long line, the following long line shall be substituted, namely:—
"to carry on coal reconnaissance or prospecting or mining
operations, for own consumption, sale or for any other purpose as
may be determined by the Central Government, and the State
Government shall grant such reconnaissance permit, prospecting
licence, mining lease or prospecting licence-cum-mining lease in
respect of Schedule I coal mine to such company as selected through
auction by competitive bidding under this section.";
(ii) sub-section (3) shall be omitted.
SECTION Section 2

Untitled Section

CHAPTER I
PRELIMINARY
SECTION Section 20

Untitled Section

11.In section 5 of the principal Act, in sub-section (1),—
(i)for the words, brackets and figures "sub-sections ( 1) and ( 3)", the words,
brackets and figures "sub-sections ( 1) and ( 2)" shall be substituted;
(ii) for the words "or mining lease in respect of any area containing coal", the
words ", mining lease or prospecting licence-cum-mining lease in respect of such
Schedule I coal mine" shall be substituted;
(iii) in the first proviso, for the words "in accordance with the permit, prospecting
licence or mining lease, as the case may be", the words "as may be determined by the
Central Government" shall be substituted.
SECTION Section 21

Untitled Section

12.In section 8 of the principal Act,—
(i)in sub-section (4), in clause (b), for the words "a mining lease", the words
"prospecting licence, mining lease or prospecting licence-cum-mining lease, as the
case may be" shall be substituted;
Amendment of
SECTION Section 22

Untitled Section

section 17A.
Amendment of
SECTION Section 23

Untitled Section

section 4.
Amendment
of section 5.
Amendment
of section 8.
11 of 2015.
SEC.1] THE GAZETTE OF INDIA EXTRAORDINARY 5
(ii) in sub-section (8), for the words "a prospecting licence or a mining lease",
the words "prospecting licence, mining lease or prospecting licence-cum-mining lease"
shall be substituted;
(iii) in sub-section (9), for the words "a prospecting licence or a mining lease",
the words "prospecting licence, mining lease or prospecting licence-cum-mining lease"
shall be substituted;
(iv) after sub-section ( 12), the following sub-sections shall be inserted,
namely:—
"(13) The vesting order or allotment order may be terminated by the
nominated authority in such manner as may be prescribed.
(14)Upon termination of vesting order or allotment order, the nominated
authority may auction the coal mine under section 4 or allot the coal mine under
SECTION Section 24

Untitled Section

section 5 as may be determined by the Central Government.
(15)The successful bidder or allottee of the coal mine whose vesting
order or allotment order has been terminated shall be deemed to be the prior
allottee for the purposes of immediate next auction or allotment of the said coal
mine.".
SECTION Section 25

Untitled Section

13.In section 9 of the principal Act,—
(i)in the opening portion, for the portion beginning with the words "The proceeds
arising out of land" and ending with the words "as may be prescribed.", the following
shall be substituted, namely:—
"The compensation for land and mine infrastructure in relation to a
Schedule I coal mine as valued in accordance with section 16 shall be deposited
by the successful bidder or allottee with the nominated authority and shall be
disbursed maintaining, inter alia, the following priority of payments and in
accordance with the relevant laws and such rules as may be prescribed.";
(ii) in clause ( b), for the words "compensation payable", the words "amount
payable" shall be substituted.".
SECTION Section 26

Untitled Section

14.In section 18 of the principal Act, in sub-section ( 1), for the words and figure
"allotment of Schedule I coal mines is not complete", the words and figures "allotment of
Schedule II coal mines is not complete, or vesting order or allotment order issued under this
Act has been terminated in case of a coal mine under production," shall be substituted.
SECTION Section 27

Untitled Section

15.In section 20 of the principal Act,—
(i)in sub-section ( 1), for the words "A successful bidder or allottee or coal
linkage holder shall", the words "A successful bidder or allottee shall" shall be
substituted;
(ii) for sub-section (2), the following sub-section shall be substituted, namely:—
"(2) A successful bidder or allottee may also use the coal mine from a
particular Schedule I coal mine, in any of its plants or plant of its subsidiary or
holding company engaged in same specified end-uses in such manner as may
be prescribed.".
SECTION Section 28

Untitled Section

16.In section 31 of the principal Act, in sub-section (2),—
(i)in clause (b), for the words "prospecting licence or mining lease", the words
"prospecting licence, mining lease or prospecting licence-cum-mining lease" shall be
substituted;
Amendment
of section 18.
Amendment
of section 20.
Amendment
of section 9.
Amendment
of section 31.
(ii) after clause (l), the following clause shall be inserted, namely:—
"(la) the manner of termination of vesting order or allotment order under
sub-section (13) of section 8;".
SECTION Section 29

Untitled Section

17.(1) The Mineral Laws (Amendment) Ordinance, 2020 is hereby repealed.
(2)Notwithstanding such repeal, anything done or any action taken under the principal
Act, as amended by the said Ordinance, shall be deemed to have been done or taken under
the corresponding provisions of the principal Act as amended by this Act.
————
DR.G . NARAYANA RAJU,
Secretary to the Govt. of India.
Ord.1 of
SECTION Section 3

Untitled Section

1.(1) This Act may be called the Mineral Laws (Amendment) Act, 2020.
(2)It shall be deemed to have come into force on the 10th day of January, 2020.
(3)Without prejudice to the effect of the amendments made by this Act, it shall remain
in force for a period of sixty days from the date of assent by the President and shall be
deemed to have been repealed after the expiry of the said period.
Short title,
commencement
and operation.
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EXTRAORDINARY
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PART II — Section 1
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PUBLISHED BY AUTHORITY
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No.9] NEW DELHI, FRIDAY, MARCH 13, 2020/PHALGUNA 23, 1941 (SAKA)
bl Hkkx esa fHkUu i`"B la[;k nh tkrh gS ftlls fd ;g vyx ladyu ds :i esa j[kk tk ldsA
Separate paging is given to this Part in order that it may be filed as a separate compilation.
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 13th March, 2020/Phalguna 23, 1941 ( Saka)
The following Act of Parliament received the assent of the President on the
13th March, 2020, and is hereby published for general information:—
jftLVªh lañ Mhñ ,yñ—(,u)04@0007@2003—20 REGISTERED NO. DL—(N)04/0007/2003—20
xxxGIDHxxx
xxxGIDExxx
सी.जी.-डी.एल.-अ.-14032020-218655
CG-DL-E-14032020-218655
2 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II—
SECTION Section 30

Untitled Section

2020.
Repeal and
savings.
MGIPMRND—5890GI—13-03-2020.
UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.
6 THE GAZETTE OF INDIA EXTRAORDINARY [P ART II— SEC. 1]
SECTION Section 4

Untitled Section

CHAPTER II
AMENDMENTS TO THE MINES AND MINERALS
(DEVELOPMENT AND REGULATION) ACT, 1957
SECTION Section 5

Untitled Section

2.In the Mines and Minerals (Development and Regulation) Act, 1957 (hereafter in
this Chapter referred to as the principal Act), after section 4A, the following section shall be
inserted, namely:—
"4B. Notwithstanding anything contained in section 4A, the Central Government
may, in the interest of maintaining sustained production of minerals in the country,
prescribe such conditions as may be necessary for commencement and continuation
of production by the holders of mining leases who have acquired rights, approvals,
clearances and the like under section 8B.".
SECTION Section 6

Untitled Section

3.In section 5 of the principal Act, in sub-section (1), after the proviso, the following
proviso shall be inserted, namely:—
"Provided further that the previous approval of the Central Government shall
not be required for grant of reconnaissance permit, prospecting licence or mining
lease in respect of the minerals specified in Part A of the First Schedule, where,—
(i)an allocation order has been issued by the Central Government under
SECTION Section 7

Untitled Section

section 11A; or
(ii) a notification of reservation of area has been issued by the Central
Government or the State Government under sub-section (1A) or sub-section (2)
of section 17A; or
(iii) a vesting order or an allotment order has been issued by the Central
Government under the provisions of the Coal Mines (Special Provisions)
Act, 2015.".
SECTION Section 8

Untitled Section

4.In section 8A of the principal Act, in sub-section (4), the following proviso shall be
inserted, namely:—
"Provided that nothing contained in this section shall prevent the State
Governments from taking an advance action for auction of the mining lease before the
expiry of the lease period.".
SECTION Section 9

Untitled Section

5.After section 8A of the principal Act, the following section shall be inserted,
namely:—
"8B. (1) The provisions of this section shall apply to minerals, other than the
minerals specified in Part A and Part B of the First Schedule.
(2)Notwithstanding anything contained in this Act or any other law for the
time being in force, the successful bidder of mining leases expiring under the provisions
of sub-sections ( 5) and ( 6) of section 8A and selected through auction as per the
procedure provided under this Act and the rules made thereunder, shall be deemed to
have acquired all valid rights, approvals, clearances, licences and the like vested with
the previous lessee for a period of two years:
Provided that subject to such conditions as may be prescribed, such new
lessee shall apply and obtain all necessary rights, approvals, clearances, licences and
the like within a period of two years from the date of grant of new lease.
(3)Notwithstanding anything contained in any other law for the time being in
force, it shall be lawful for the new lessee to continue mining operations on the land,
in which mining operations were being carried out by the previous lessee, for a period
of two years from the date of commencement of the new lease.".
Insertion of
new section
4B.
Conditions
for efficiency
in production.
Amendment
of section 5.
67 of 1957.
11 of 2015.
Amendment
of section 8A.
Insertion of
new section 8B.
Provisions for
transfer of
statutory
clearances.
SEC.1] THE GAZETTE OF INDIA EXTRAORDINARY 3