National Mineral Policy 2006 - Department of Mines

elinquishment of areas by the lessees, whichever is earlier, subject, however, tothe fulfilment of the conditions of the lease.Criteria for Grant of Mineral Concessions1.61 The criteria for grant of mineral concessions are laid down in Section 11 of theMMDR Act. Section 11(1) deals with preferential rights of RP and PL holders to PLs andMLs respectively. Section 11(2) gives preferential right to the first-in-time applicant for RPs,PLs, and MLs. Section 11(3) states that in areas notified by state governments invitingapplications for concessions and where multiple applications are received the followingcriteria be considered:a. any special knowledge of, or experience in, reconnaissance operations, prospecting operations ormining operations, as the case may be, possessed by the applicant;b. the financial resources of the applicant;c. the nature and quality of the technical staff employed or to be employed by the applicant;d. the investment which the applicant proposes to make in the mines and in the industry based on theminerals;e. such other matters as may be prescribed.Section 11(4) gives discretion to the state government to award a mineral concession afterconsidering the above criteria. Section 11(5) gives discretion to the state government not tofollow the first-in-time principle.1.62 The mining industry has raised its concern on the above criteria primarily on thefollowing counts:(i)The first-come-first-considered principle is being violated by using thediscretionary powers given under Section 11(5) of the MMDR Act. As the specialreasons to be recorded are not specified or prescribed under the Act or in theRules, it is easy for a state authority to discriminate in favour of a company that isnot a prior applicant. In fact, there are instances of early applications being keptpending for a decision till a favoured applicant applies for and is granted a mineralconcession using this discretionary provision;42