Previous Year Question
Consider the following statements:
Statement I: In India, State Governments have no power for making rules for grant of concessions in respect of extraction of minor minerals even though such minerals are located in their territories.
Statement II: In India, the Central Government has the power to notify minor minerals under the relevant law.
Which one of the following is correct in respect of the above statements?
Both Statement I and Statement II are correct and Statement II explains Statement I.
Both Statement I and Statement II are correct, but Statement II does not explain Statement I.
Statement I is correct, but Statement II is not correct.
Statement I is not correct, but Statement II is correct.
Correct Answer: D
Detailed Solution
The powers concerning minor minerals are governed by the Mines and Minerals (Development and Regulation) Act, 1957—the MMDR Act.
Under the Act—
The Central Government has the power to declare or notify a mineral as a “minor mineral”.
State Governments have the power to make rules regulating mineral concessions concerning minor minerals.
Therefore, Statement I is incorrect, while Statement II is correct.
Statement I is not correct
Section 15(1) of the MMDR Act empowers State Governments to make rules concerning minor minerals.
A State Government may, by notification, make rules regulating—
Grant of quarry leases
Grant of mining leases
Other forms of mineral concessions
Procedure and conditions for applications
Royalty, dead rent and other charges
Area, duration and conditions of leases
Transportation and storage of minor minerals
Therefore, it is incorrect to state that State Governments have no power to make rules concerning concessions for extracting minor minerals situated within their territories.
Statement II is correct
Section 3(e) of the MMDR Act defines “minor minerals”. The definition includes building stones, gravel, ordinary clay, ordinary sand and other minerals specified in the Act.
The same provision empowers the Central Government to declare any other mineral to be a minor mineral through a notification in the Official Gazette.
Thus—
Notification of a mineral as a minor mineral—power of the Central Government.
Rules concerning concessions and leases for notified minor minerals—power of the State Governments.
Constitutional basis
Under the Seventh Schedule—
Entry 23 of the State List deals with mines and mineral development but is subject to Entry 54 of the Union List.
Entry 54 of the Union List permits parliamentary regulation of mines and mineral development to the extent that Parliament declares Union control to be expedient in the public interest.
The MMDR Act was enacted under this Union legislative power. It delegates the regulation of concessions concerning minor minerals to the States while retaining the Central Government’s authority to declare a mineral as a minor mineral.