The exploration and mining industry is governed
by the Mines and Minerals (Development and
Regulation) Act, 1957 and this Act is administered
by the various State Governments or Union Territories.
This Act has been subject to a number of reforms
since its promulgation and this has created
an environment which is much more acceptable
to both Indian and foreign investors.
The above mining legislation provides for:
- The granting of a Reconnaissance Permit (RP),
Prospecting Licence or a Mining Lease.
- Reconnaissance
Permits can cover areas up to 5,000 square
kilometres.
- No single applicant can own Reconnaissance
Permits covering more than 10,000 square
kilometres in any one state.
- The holders of
Reconnaissance Permits and Prospecting Licences
have a right to convert their permits into
Mining Leases.
- Prospecting Licences and Mining
Leases can be assigned to another company
with the approval of the ministry.
The other important Act with which the mining
industry has to comply is The Forest (Conservation)
Act, 1980, together with its associated rules
and amendments. These are also administered by
the State Governments and Union Territories,
but ultimate power to grant access to forest
reserved areas resides with the Central Government.
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