Q. Consider the following statements: - 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.
- 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? (UPSC Prelims 2025)
Answer:
Statement 1 is not correct but Statement 2 is correct
Notes: The correct answer is
[D] Statement 1 is not correct but Statement 2 is correct. The legal framework for minerals in India is governed by the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).
- Statement 1 (Incorrect): Under Section 15 of the MMDR Act, 1957, State Governments are fully empowered to make rules for regulating the grant of quarry leases, mining leases, or other mineral concessions in respect of minor minerals. This includes the power to fix royalty, dead rent, and other charges. Unlike major minerals, the administrative and legislative control over minor minerals is decentralized to the States.
- Statement 2 (Correct): According to Section 3(e) of the MMDR Act, the Central Government has the exclusive power to notify any mineral as a "minor mineral." Over the years, the Center has notified several minerals—such as building stones, gravel, ordinary clay, and ordinary sand—as minor minerals. In 2015, the Ministry of Mines notified 31 additional minerals (like quartz, feldspar, and barytes) as minor minerals to delegate more power to the States.
In the Indian federal structure, while the Central Government defines what constitutes a minor mineral, the actual management, rule-making, and revenue collection for these minerals rest entirely with the respective State Governments.