Government
of India Ministry
of Mines
No.16/46/2000-MVI
New Delhi, the 4th January,2001
To
1. The Secretary
Department of Mines,
Geology and Industries of all
State Governments.
2. The Controller
General
Indian Bureau of
Mines
Nagpur
3. The Director
General
Geological Survey of
India
27, J.L.Nehru Road
Calcutta-700016 Subject:Restriction
under Section 6(1) (aa) of MMDR Act, 1957 applicable to the Reconnaaissance Permit(s)
obtained of different wholly owned subsidiaries of a company - clarification regarding.
Sir, I am directed to invite your attention to the provisions of Section 6(1) (aa) of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act, 1957) which inter-alia provide that no person shall acquire one or more reconnaissance permit covering the total area of 10,000 sq.kms. in respect of any mineral or prescribed group of associated mineral in a State.Doubts have been raised from various quarters as to whether the restriction under Section 6(1)(aa) of Mines and Minerals(Development and Regulation) Act, 1957 is applicable to the reconnaissance permit(s) obtained by different wholly own subsidiaries of a company 2. The matter has been examined in the Ministry. Section 5(1) of the MMDR Act. 1957 prohibits the State Governments to grant reconnaissance permits, prospecting licences or mining leases to any person unless such a person is an Indian National or a Company as defined in the Companies Act,1956. Further, under Section 6(1) (aa) of the Act, the limit for maximum are for which one and more reconnaissance permit(s) are granted shall not be more than 10,000 sq.kms. in a State. 3. However, it is important to note that under Section 6(2) of the Act, any person acquiring by, or in the name of another person, a reconnaissance permit which is intended for himself shall be deemed to be acquiring it himself. 4. It is clarified that in case of a holding Company which
has floated
wholly owned subsidiaries for the sole purpose of undertaking
reconnaissance operations, it should be deemed to be
acquiring the reconnaissance
permit(s) for itself and the provisions
of Section 6(2) would become applicable for deciding the
maximum area that can be held under mineral concessions as
provided in Section 6(1) of the MMDR Act, 1957. 5. The State
Governments, therefore, while considering cases of wholly owned subsidiaries of a
company shall be guided by Section 6(2) of the Mines and Minerals (Development and Regulation) Act, 1957.
Yours faithfully,
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