Section 17A in The Mines And Minerals (Development And Regulation) Act, 1957
17A. Reservation of area for purposes of conservation.
(1)The Central Government, with a view to conserving any mineral and after consultation with the State Government, may reserve any area not already held under any prospecting license or mining lease and, where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such area will be reserved.](1A)The Central Government may, in consultation with the State Government, reserve any area not already held under any prospecting license or exploration licence or mining lease, for undertaking prospecting or mining operations through a Government company or corporation owned or controlled by it, and where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such area will be reserved.] [ Inserted by Act 25 of 1994, Section 7 (w.r.e.f. 25.1.1994).](2)[ The State Government may, with the approval of the Central Government, reserve any area not already held under any prospecting license or exploration licence or mining lease, for undertaking prospecting or mining operations through a Government company or corporation owned or controlled by it ] [Inserted by Act 37 of 1986, Section 14 (w.e.f. 10.2.1987). ][* * *] [ The words " or by the Central Government" omitted by Act 25 of 1994, Section 7 (w.r.e.f. 25.1.1994).][and where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such areas will be reserved.] [Inserted by Act 37 of 1986, Section 14 (w.e.f. 10.2.1987). ](2A)Where in exercise of the powers conferred by sub-section ( 1A) or sub-section (2), the Central Government or the State Government, as the case may be, reserves any area for undertaking prospecting or mining operations or prospecting operations followed by mining operations, the State Government shall grant prospecting licence, mining lease or composite licence, as the case may be, in respect of such area to such Government company or corporation within the period specified in this section:Provided that in respect of any mineral specified in Part B of the First Schedule, the State Government shall grant the prospecting licence, mining lease or composite licence, as the case may be, only after obtaining the previous, approval of the Central Government.”(2B)Where the Government company or corporation is desirous of carrying out the prospecting operations or mining operations in a joint venture with other persons, the joint venture partner shall be selected through a competitive process, and such Government company or corporation shall hold more than seventy-four per cent. of the paid up share capital in such joint venture.(2C)A mining lease granted to a Government company or corporation, or a joint venture, referred to in sub-sections (2A) and (2B), shall be granted on payment of such amount as may be prescribed by the Central Government.] [Inserted by Act No. 10 of 2015.](i)for the words, “may be prescribed by the Central Government.”, the words “specified in the Fifth Schedule” shall be substituted;(ii)the following shall be inserted, namely:— “Provided that the Central Government may, by notification in the Official Gazette and for reasons to be recorded in writing, amend the Fifth Schedule so as to modify the entries mentioned therein in the said Schedule with effect from such date as may be specified in the said notification.Explanation.—For the removal of doubts, it is hereby clarified that all such Government companies or corporations whose mining lease has been granted after the commencement of the Mines and Minerals (Development and Regulation)Amendment Act, 2015, shall also pay such additional amount as specified in the Fifth Schedule for the mineral produced after the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021.”(3)[Where, in exercise of the powers conferred by sub-section (1-A) or sub-section (2), the Central Government or the State Government, as the case may be,] [ Substituted by Act 25 of 1994, Section 7, for " Where, in exercise of the powers conferred by sub-Section (2), the State Government" (w.r.e.f. 25.1.1994).][undertakes prospecting or mining operations in any area in which the minerals vest in a private person, it shall be liable to pay prospecting fee, royalty, surface rent or dead rent, as the case may be, from time to time at the same rate at which it would have been payable under this Act if such prospecting or mining operations had been undertaken by a private person under prospecting license or mining lease.] [Inserted by Act 37 of 1986, Section 14 (w.e.f. 10.2.1987). ](4)The reservation made under this section shall lapse in case no mining lease is granted within a period of five years from the date of such reservation:Provided that where the period of five years from the date of reservation has expired before the date of commencement of the Mines and Minerals (Development and Regulation)Amendment Act, 2021 or expires within a period of one year from the date of commencement of the saidAct, the reservation shall lapse in case no mining lease is granted within a period of one year from the date of commencement of the said Act:Provided further that the State Government may, on an application made by such Government company or corporation or on its own motion, and on being satisfied that it shall not be possible to grant the mining lease within the said period, make an order with reasons in writing, within a period of three months from the date of receipt of such application, to relax such period by a further period not exceeding one year:Provided also that where the Government company or corporation in whose favour an area has been reserved under this section before the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, has commenced production from the reserved area without execution of mining lease, such Government company or corporation shall be deemed to have become lessee of the State Government from the date of commencement of mining operations and such deemed lease shall lapse upon execution of the mining lease in accordance with this sub-section or expiry of period of one year from the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2021, whichever is earlier.(5)The termination or lapse of mining lease shall result in the lapse of the reservation under this section.”.
