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Guidelines For The Investors

About Foreign Investments 

 Regulation of Minerals                  

 The Parliament has enacted Mines & Minerals (Development and Regulation) Act, 1957 for the development and regulation of mines and minerals Section 13 (1) of the act empowers the Central Government to make rules for regulating the grant of reconnaissance permits, prospecting licenses and mining leases in respect of minerals (major minerals) and for purposes connected therewith Section 15 (1) of the act empowers the State Government to make rules for regulating the grant of quarry leases, mining leases and other mineral concessions in respect of minor minerals and for purposes connected there with.

 Accordingly the Central Government has framed“ Mineral Concession Rule, 1960” and the State Government has framed “ M.P. Minor Mineral Rule, 1996”

Major Minerals

The State Government will grant a reconnaissance permit, prospecting licence or mining lease to such person who is an Indian national or a company as defined in sub-section (i) of section 3 of the Companies Act 1956.

In respect of minerals specified in First Schedule, the State Government shall obtain previous approval of the Central Government before granting reconnaissance permit, prospecting licence or mining lease.

2.  Maximum area for which a reconnaissance permit, prospecting licence or mining lease may be granted: -

    No person shall acquire in respect of any minerals or prescribed group of associated minerals in a state: -

a.  One or more reconnaissance permits covering a total area of ten thousand square kilometers, provided that the area granted under a single reconnaissance permit shall not exceed five thousand square kilometers.

b.  One or more prospecting licenses covering a total area of more than twenty-five square kilometers.

c.  One or more mining leases covering a total area of more than ten square kilometers.

3. Period for which reconnaissance permits, prospecting licenses and mining leases may be granted or renewed 

  4.   Application for reconnaissance permit, prospecting licenses and mining lease.

    Application for these shall be made to the State Government through the Collector of the district in which the area falls in following forms annexed

      a.  Application for the reconnaissance permit     

       Form ‘ A '

    b.  Application for prospecting licenses  

        Form ‘ B '

    c.  Application for renewal of prospecting licenses      

           Form ‘ E '

    d.  Application for mining lease   

           Form  ‘ I '

    e.  Application for renewal of mining lease                        

            Form ‘J '

         Minor Minerals

Quarry leases of minor minerals are sanctioned by the State Government, Director, Geology  & Mining, M.P. and Collectors depending upon the mineral and area applied as detailed in Rule 6 for Schedule Iminerals.  Quarries of Schedule II minerals are auctioned by the Sub –Divisional officers of the concerned sub divisions.

 Applications for quarry leases and renewal shall be made to the collector of the district in which the area falls in form I annexed.

Rates of Royalty                                                                     Rates of Dead Rent

  Schedule of Charges      

Prospecting Report: - 

     Prospecting report, those are completed by the department under the regular field programme, of the mineral deposit, is provided on the payment of Rs. 10,000/- per hectare.  

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