Q. Consider the following statements:

Statement 1: 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 2: 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 1 and Statement 2 are correct and Statement 2 explains Statement 1
  • Both Statement 1 and Statement 2 are correct but Statement 2 does not explain Statement 1
  • Statement 1 is correct but Statement 2 is not correct
  • Statement 1 is not correct but Statement 2 is correct

Answer: (d) Statement 1 is not correct but Statement 2 is correct

Major and Minor Minerals
  • A mineral is a natural substance of organic or inorganic origin with definite chemical and physical properties, forming the building blocks of rocks and ores.
  • Under the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957, minerals are broadly classified in two categories, i.e. major minerals and minor minerals.
  • Minor minerals means building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes and any other mineral which the Central Government may declare to be a minor mineral.
    • Examples include mica, quartz, agate, barytes, dolomite, sand, corundum, fireclay, gypsum, laterite, and pyrophyllite.
    • Minor minerals are generally under the jurisdiction of state governments for mining concessions and regulation.
  • Major minerals include all minerals other than minor minerals. E.g. Coal, Iron, Zinc, Limestone etc.
  • Framework for Governance:
    • Legal Framework for Mineral Regulation: The MMDR Act, 1957 is the primary law governing the mining sector, except for petroleum and natural gas.
    • The power to frame policy and legislation relating to minor minerals is entirely delegated to the State Governments while policy and legislation relating to the major minerals are dealt by the Ministry of Mines under Union /Central Government.
      • Thus, as opposed to major minerals, the regulatory and administrative jurisdiction of minor minerals falls under the purview of State governments. These include the powers to frame rules, prescribe rates of royalty, contribution to District Mineral Foundation, the procedure for grant of mineral concessions, regulation of their mining, control of illegal mining etc.
      • In the case of major minerals, States substantially regulate and develop minerals subject to provisions of the MMDR Act, and after prior permissions from the central government.
    • The GoI has framed additional rules for mineral management:
      • Mineral Concession (MC) Rules, 1960: Regulates permits, licenses, and leases for all minerals except Atomic and Minor Minerals.
      • Mineral Conservation and Development (MCD) Rules, 1988: Ensures conservation and systematic development of minerals.
    • Role of State Governments in Mineral Regulation:
      • Section 15 of MMDR Act, 1957: Gives State Governments the power to make rules for minor minerals. 
      • Section 23C of MMDR Act, 1957: Empowers State Governments to prevent illegal mining, transportation, and storage of minerals.
      • Section 9 (b) of the MMDR Act as amended in 2015: Mandates the State Government to establish District Mineral Foundation Trust in every district affected by the mining operation.