Amendment status not verified — confirm the current text below against the official source.
(1) An application for 1[a reconnaissance permit, prospecting licence or mining lease] in respect of any land in which the minerals vest in the Government shall be made to the State Government concerned in the prescribed form and shall be accompanied by the prescribed fee. (2) Where an application is received under sub-section (1), there shall be sent to the applicant an acknowledgement of its receipt within the prescribed time and in the prescribed form. (3) On receipt of an application under this section, the State Government may, having regard to the provisions of this Act and any rules made thereunder, grant or refuse to grant the 2[ permit, licence or lease]. Preferential right of certain persons 3[11. (1) Where a reconnaissance permit or prospecting licence has been granted in respect of any land, the permit holder or the licensee shall have a preferential right for obtaining a prospecting licence or mining lease, as the case may be, in respect of that land over any other person: ------------------------------------------------------------------------------------------------------------ 1 Substituted by M M (R D) Amendment Act, 1999, vide G.O.I. Ext. Part II, Section 1, No. 51, dated 20.12.99 (No. 38 of 1999). 2 Ibid. 3 Ibid. 10 Provided that the State Government is satisfied that the permit holder or the licensee, as the case may be, - (a) has undertaken reconnaissance operations or prospecting operations, as the case may be, to establish mineral resources in such land; (b) has not committed any breach of the terms and conditions of the reconnaissance permit or the prospecting licence; (c) has not become ineligible under the provision of this Act; and (d) has not failed to apply for grant of prospecting licence or mining lease, as the case may be , within three months after the expiry of reconnaissance permit or prospecting licence, as the case may be, or within such further period as may be extended by the said Government. (2) Subject to the provisions of sub-section (1),where the State Government has not notified in the Official Gazette the area for grant of reconnaissance permit or prospecting licence or mining lease, as the case may be, and two or more persons have applied for a reconnaissance permit, prospecting licence or a mining lease in respect of any land in such area, the applicant whose application was received earlier, shall have a preferential right to be considered for grant of reconnaissance permit, prospecting licence or mining lease, as the case may be, over the applicant whose application was received later: Provided that where an area is available for grant of reconnaissance permit, prospecting licence or mining lease, as the case may be, and the State Government has invited applications by notification in the Official Gazette for grant of such permit, licence or lease, all the applications received during the period specified in such notification and the applications which had been received prior to the publication of such notification in respect of the lands within such area and had not been disposed of , shall be deemed to have been received on the same day for the purposes of assigning priority under this sub- section. Provided further that where any such applications are received on the same day, the State Government, after taking into consideration the matters specified in sub-section (3), may grant the reconnaissance permit, prospecting licence or mining lease, as the case may be, to such one of the applicants as it may deem fit. 11 (3) The matters referred to in sub-section (2) are the following:- (a) any special knowledge of, or experience in, reconnaissance operations, prospecting operations or mining operations, as the case may be, possessed by the applicant; (b) the financial resources of the applicant; (c) the nature and quality of the technical staff employed or to be employed by the applicant; (d) the investment which the applicant proposes to make in the mines and in the industry based on the minerals; (e) such other matters as may be prescribed. (4) Subject to the provisions of sub-section(1), where the State Government notifies in the Official Gazette an area for grant of reconnaissance permit, prospecting licence or mining lease, as the case may be, all the applications received during the period as specified in such notification, which shall not be less than thirty days, shall be considered simultaneously as if all such applications have been received on the same day and the State Government, after taking into consideration the matters specified in sub-section(3), may grant the reconnaissance permit, prospecting licence or mining lease, as the case may be, to such one of the applicants as it may deem fit. (5) Notwithstanding anything contained in sub-section (2), but subject to the provisions of sub-section (1), the State Government may, for any special reasons to be recorded, grant a reconnaissance permit, prospecting licence or a mining lease, as the case may be, to an applicant whose application was received later in preference to an applicant whose application was received earlier: Provided that in respect of minerals specified in the First Schedule, prior approval of the Central Government shall be obtained before passing any order under this sub-section.] Granting of reconnaissance permit, prospecting licence or mining lease in respect of coal or lignite. 1[11A. The Central Government may, for the purpose of granting reconnaissance permit, prospecting licence or mining lease in respect of an area containing coal or lignite, select through auction by competitive bidding on such terms and conditions as may be prescribed, a company engaged in - (i) production of iron and steel; (ii) generation of power; ------------------------------------------------------------------------------------------------------------ 1 Inserted by M M (R D) Amendment Act, 2010, vide G.O.I. Ext. Part II, Section 1, No. 43, dated 9.9.2010 (No. 34 of 2010). S.O. 263(E) Ext. Part II Section 3 Sub Section (ii) Govt. dt.13 Feb. 2012 appoints 13th Feb 2012 as the date of which the provisions of Section 11A shall come into force. 12 (iii) washing of coal obtained from a mine; or (iv) such other end-use as the Central Government may, by notification in the Official Gazette, specify, and the State Government shall grant such reconnaissance permit, prospecting licence or mining lease in respect of coal or lignite to such company as selected through auction by competitive bidding under this section: Provided that the auction by competitive bidding shall not be applicable to an area containing coal or lignite – (a) where such area is considered for allocation to a Government company or corporation for mining or such other specified end-use; (b) where such area is considered for allocation to a company or corporation that has been awarded a power project on the basis of competitive bids for tariff (including Ultra Mega Power Projects). Explanation- For the purposes of this section, “company” means a company as defined in Section 3 of the Companies Act, 1956 and includes a foreign company within the meaning of Section 591 of that Act] Registers of reconnaissance permits, prospecting licences and mining leases