Section 5:
Restrictions on the grant of mineral concession.
1[
2[ 5. Restrictions on the grant of mineral concession.] -- 3[(1) A State Government shall not grant
a 4[mineral concession] to any person unless such person--
(a) is an Indian national, or company as defined in 5[clause (20) of section 2 of the Companies
Act, 2013 (18 of 2013)]; and
(b) satisfies such conditions as may be prescribed:
6[Provided that in respect of any mineral specified in Part A and Part B of the First Schedule,
no reconnaissance permit, prospecting licence or mining lease shall be granted except with the
previous approval of the Central Government.]
7[Provided further that the previous approval of the Central Government shall not be required
for grant of 2[mineral concession] in respect of the minerals specified in Part A of the First
Schedule, where,--
(i) an allocation order has been issued by the Central Government under section 11A; or
(ii) a notification of reservation of area has been issued by the Central Government or the
State Government under sub-section (1A) or sub-section (2) of section 17A; or
(iii) a vesting order or an allotment order has been issued by the Central Government under the
provisions of the Coal Mines (Special Provisions) Act, 2015 (11 of 2015).]
Explanation.--For the purposes of this sub-section, a person shall be deemed to be an Indian
national,--
(a) in the case of a firm or other association of individuals, only if all the members of the firm or
members of the association are citizens of India; and
(b) in the case of an individual, only if he is a citizen of India.]
8[Provided also that the composite licence or mining lease shall not be granted for an area to any
person other than the Government, Government company or corporation, in respect of any minerals
specified in Part B of the First Schedule where the grade of such mineral in such area is equal to or
above such threshold value as may be notified by the Central Government.]
(2) No mining lease shall be granted by the State Government unless it is satisfied that--
9[(a) there is evidence to show the existence of mineral contents in the area for which the
application for a mining lease has been made in accordance with such parameters as may be
prescribed for this purpose by the Central Government;]
(b) there is a mining plan duly approved by the Central Government, or by the State
Government, in respect of such category of mines as may be specified by the Central Government,
for the development of mineral deposits in the area concerned:]
10[Provided that a mining lease may be granted upon the filing of a mining plan in accordance
with a system established by the State Government for preparation, certification, and monitoring of
such plan, with the approval of the Central Government.]
Notes:
1. Subs. by Act 37 of 1986, s. 4, for section 5 (w.e.f. 10-2-1987).
2. Subs. by Act 16 of 2023, s. 5, for the marginal heading (w.e.f. 17-8-2023).
3. Subs. by Act 25 of 1994, s. 3, for sub-section (1) (w.e.f. 25-1-1994).
4. Subs. by Act 16 of 2021, s. 2, "reconnaissance permit, prospecting licence or mining lease" (w.e.f. 28-3-2021).
5. Subs. by Act 10 of 2015, s. 5, for "sub-section (1) of section 3 of the Companies Act, 1956 (1 of 1956)" (w.e.f. 12-1-2015).
6. Subs. by s. 5, ibid., for the proviso (w.e.f. 12-1-2015).
7. Ins. by Act 2 of 2020, s. 3 (w.e.f. 10-1-2020).8. Ins. by Act 16 of 2021, s. 6 (w.e.f. 28-3-2021).
9. Subs. by Act 10 of 2015, s. 5, for clause (a) (w.e.f. 12-1-2015).
10. Ins. by s. 5, ibid. (w.e.f. 12-1-2015).