MINES AND MINERALS

(DEVELOPMENT AND REGULATION) ACT, 1957

(No. 67 of 1957)

(As ammended up to 20th December, 1999)

Special powers of Central Government to undertake reconnaissance, prospecting or mining operations in certain lands

17 (1) The provisions of this section shall apply in respect of land in which the minerals vest in the Government of a State or any other person.

(2) Notwithstanding anything contained in this Act, the Central Government, after consultation with the State Government, may undertake [reconnaissance, prospecting or mining operations] in any area not already held under any [reconnaissance permit, prospecting licence or mining lease], and where it proposes to do so, it shall, by notification in the Official Gazette-

1. specify the boundaries of such area;
2. state whether [reconnaissance, prospecting or mining operations] will be carried out in the area; and
3. specify the mineral or minerals in respect of which such operations will be carried out.

(3) Where, in exercise of the powers conferred by sub-section (2), the Central Government undertakes ²[reconnaissance, prospecting or mining operations] in any area, the Central Government shall be liable to pay [reconnaissance permit fee or prospecting fee], royalty, surface rent or dead rent, as the case may be, at the same rate at which it would have been payable under this Act, if such [reconnaissance, prospecting or mining operations] had been undertaken by a private person under a [reconnaissance permit, prospecting licence or mining lease].

(4) The Central Government, with a view to enabling it to exercise the powers conferred on it by sub-section (2) may, after consultation with the State Government, by notification in the Official Gazette, declare that no [reconnaissance permit, prospecting licence or mining lease] shall be granted in respect of any land specified in the notification.

Reservation of areas for purposes of conservation

17A (1)The Central Government, with a view to conserving any mineral and after consultation with the State Government, may reserve any area not already held under any prospecting licence or mining lease and where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such area will be reserved.

[(1A) The Central Government may in consultation with State Government, reserve any area not already held under any prospecting licence or mining lease, for undertaking prospecting or mining operations through a Government company or corporation owned or controlled by it, and where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such area will be reserved.]

(2) The State Government may, with approval of Central Government, reserve any area not already held under any prospecting licence or mining lease, for undertaking prospecting or mining operations through a Government company or corporation owned or controlled by it [ ] and where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such areas will be reserved.

(3) [Where in exercise of the powers conferred by sub-section(1A) or sub-section(2) the Central Government or the State Government as the case may be] undertakes prospecting or mining operations in any area in which the minerals vest in a private person, it shall be liable, to pay prospecting fee, royalty, surface rent or dead rent, as the case may be, from time to time at the same rate at which it would have been payable under this Act if such prospecting or mining operations had been undertaken by a private person under prospecting licence or mining lease.