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FAQ's for Lease Holders

1. Whom should I contact in Telangana for any issue of Mining?

Department of Mines and Geology
8th floor,B.R.K.R Complex,
Secretariat Road,Hyderabad,
Telangana-500063.
Phone:-+91-40-23221750/65
or
from the office of the Assistant Director of Mines and Geology in the concerned district.

2. Who is the owner of minerals in India / Telangana ?

The Government of Telangana is the owner of minerals located within the boundary of the State. The Central Government is the owner of the minerals underlying the ocean within the territorial waters or the Exclusive Economic Zone of India.

3. Who grants mineral concessions?

The Government of Telangana grants the mineral concessions for all the minerals located within the boundary of the State, under provisions of the Mines and Minerals (Development and Regulation) Act, 1957, Mineral Concession Rules, 1960, and Mineral conservation and Development Rules, 1988. For minerals specified in the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957, before granting the mineral concession, approval of the Central Government is required.
For the Minor mineral powers for making Rules for granting mineral concessions, fixing rates of royalty and dead rent rest with the Government of Andhra Pradesh under provisions of Mines and Minerals (Development and Regulation) Act, 1957. Accordingly, Andhra Pradesh Minor Mineral Concessions Rules, 1966 was framed and Quarry leases for minor minerals and granite are being granted by the Department of Mines and Geology as under the provisions of APMMC Rules 1966. In respect of Granites Government of India has framed Granite conservation and Development Rules,1999.

4. What are the different mineral concessions in Telangana ?

As per section 5(1) of Mines and Minerals (Development and Regulation) Act,1957, any ‘person’ who is either an Indian national or a company registered in India under section 3(1) of Companies Act, 1956 is eligible to obtain mineral concessions. While in case of an individual, the ‘person’ should be a citizen of India, in case of a firm or other association of individuals, all members of the firm or members of the association should be citizens of India for such a ‘person’ to be considered as ‘Indian national’.

5. Who is eligible to obtain mineral concessions in Telangana ?

Three kinds of mineral concessions are recognized in Indian law, viz Reconnaissance Permit (RP), Prospecting License (PL) and Mining Lease (ML) RP is granted for preliminary prospecting of a mineral through regional, aerial, geophysical or geochemical surveys and geological mapping.PL is granted for undertaking operations for purpose of exploring, locating or proving mineral deposit.ML is granted for undertaking operations for winning any mineral.

6. What is the period and tenure for which a ‘reconnaissance permit’ is granted?

RP for any mineral or prescribed group of associated minerals is granted for a maximum period of three years and for a maximum area of 5,000 square kilometer, to be relinquished progressively. After two years, the area should be reduced to 1,000 square kilometer or 50% of the area granted, whichever is less. At the end of three years, area held under a RP should be reduced to 25 square kilometer.RP cannot be renewed. A person can be granted a maximum area of 10,000 square kilometer in two or more RPs.The person who undertakes reconnaissance operations under RP enjoys preferential right for grant of prospecting license.

7. What is the period and tenure for which a ‘prospecting license’ is granted?

PL for any mineral or prescribed group of associated minerals is granted for a maximum period of three years and for a maximum area of twenty five square kilometer.PL can be renewed in such a manner that the total period for which a PL is granted does not exceed five years.A person can be granted a maximum area of twenty five square kilometer in one or more PLs, but if the Central Government is of the opinion that in the interest of development of any mineral it is necessary to do so, the maximum area limit can be relaxed. The person who undertakes prospecting under PL enjoys preferential right for grant of mining lease.

8. What is the period and tenure for which a ‘mining lease’ is granted ?

ML for any mineral or prescribed group of associated minerals is granted for a minimum period of twenty years and a maximum period of thirty years and for a maximum area of ten square kilometer.
ML can be renewed for periods not exceeding twenty years.
A person can be granted a maximum area of 10 square kilometer in one or more MLs, but if the Central Government is of the opinion that in the interest of development of any mineral it is necessary to do so, the maximum area limit can be relaxed.

9. What are the provisions of royalty and dead rent, and who collects them ?

The Central Government notifies the rates of royalties and dead rent payable for various minerals from time to time through amendment in the Second and Third Schedules of the Mines and Minerals (Development and Regulation) Act, 1957. Once fixed, the law provides that these rates cannot be enhanced before three years.
The Government of Telangana collects royalties and dead rent, through the Department of Mines and Geology.
Contact Us
Department of Mines & Geology, 8th Floor, B.R.K.R Bhavan, Secreteriat Road, Hyd - 500 063
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