Consider the following statements:
- 1. According to the Mines and Minerals (Development and Regulation) Amendment Act, 2015, the State Governments are not empowered to grant mining leases of major minerals.
- 2. The Mines and Minerals (Development and Regulation) Act, 1957 specifies the scope, period, and other conditions of mining leases of minor minerals.
Which of the statements given above is/are correct?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CAPF – 2010
1. According to the Mines and Minerals (Development and Regulation) Amendment Act, 2015, the State Governments are not empowered to grant mining leases of major minerals. This statement is incorrect. The 2015 amendment mandated auction for the grant of mining leases and prospecting licenses for major minerals. While the process changed to auction (conducted by the state or central government depending on the mineral), the power to *grant* the lease based on the auction results still largely rests with the State Government (as per Section 11 of the MMDR Act, 1957, which requires the grant to be made to the successful bidder). State Governments are indeed empowered to grant these leases following the prescribed auction procedure.
2. The Mines and Minerals (Development and Regulation) Act, 1957 specifies the scope, period, and other conditions of mining leases of minor minerals. This statement is incorrect. Section 15 of the MMDR Act, 1957 empowers the *State Governments* to make rules for regulating the grant of mining leases and other concessions in respect of *minor minerals* and for purposes connected therewith. The Act itself lays down the framework, but the detailed specification of scope, period, conditions, etc., for minor minerals is done by the respective State Governments through rules made under Section 15.
– The 2015 amendment primarily reformed the grant process for major minerals, making auction mandatory.
– Regulation of minor minerals is largely delegated to the State Governments under Section 15 of the Act, allowing them to frame rules regarding their grant, scope, period, and conditions.