The transfer of mineral concessions shall be allowed only for concessions which are granted through
auction.] 1 [Provided that where a mining lease has been granted otherwise than through auction and
where mineral from such mining lease is being used for captive purpose, such mining lease may be
permitted to be transferred subject to compliance of such terms and conditions and payment of such
amount or transfer charges as may be prescribed. Explanation.―For the purposes of this proviso, the
expression “used for captive purpose” shall mean the use of the entire quantity of mineral extracted
from the mining lease in a manufacturing unit owned by the lessee.]
The Mineral (Transfer of Mining Lease Granted Otherwise than through Auction for Captive
Use) Rules, 2016
A. The Ministry of Mines has prepared the draft rules named ―The Mineral (Transfer of Mining
Lease Granted Otherwise than through Auction for Captive Use) Rules, 2016” for prescribing the
terms and conditions and the amount or transfer charges for effecting the transfer as per the
provisions of the proviso to sub-section (6) of section 12A, introduced through the Mines and
Minerals (Development and Regulation) Amendment Act, 2016.
B. Applicability.- (1) These rules shall apply to transfer of a mining lease granted otherwise than
through auctions for captive use.
C. Conditions of transfer.–
(1) No transfer of mining lease granted otherwise than through auction for captive use shall be
permitted except in accordance with the conditions and procedure prescribed under these rules.
(2) Transfer of a mining lease granted otherwise than through auction shall be permitted only
where the use of the entire quantity of mineral extracted from such mining lease is being used
in a manufacturing unit owned by the lessee.
(3) Any approval for transfer of a mining lease granted otherwise than through auction for
captive use shall be subject to the conditions that,–
(a) all consents, approvals, permits, no-objections and the like as may be required under
applicable laws for conducting mining operations and which were obtained by the transferor
shall be mutatis mutandis valid to the transferor;
(b) the transferee has accepted all the conditions and liabilities under any law for the time being
in force which the transferor was subject to in respect of such mining lease;
(c) from the transfer date, the transferee shall be liable towards the State Government and
Central Government with respect to any and all liabilities relating to the mining lease; and
(d) the transferee shall ensure that the entire quantity of mineral extracted from the mining
lease shall be used exclusively for captive purpose and shall not be sold or exported.
Transfer of mining lease.– (1) The holder of a mining lease, granted otherwise than through
auction for captive use, may request for transferring the mining lease to any person satisfying
the conditions stipulated in sub-section (1) of section 5 of the Act, by submitting an application
to the State Government in the format specified in Schedule I. (2) The State Government shall
within a period of 90 days of receipt of the application made under sub-rule (1) convey its
decision to approve or reject such transfer for reasons to be recorded in writing to both the
transferor as well as the transferee: Provided that if the State Government does not convey its
decision for such a transfer within a period of ninety days from the date of receiving an
application under sub-rule (1), it shall be construed that the State Government has no objection
to such transfer: Provided further that no such transfer of a mining lease shall be made in
contravention of any condition subject to which the mining lease was granted. (3) The transferor
and the transferee shall jointly submit a duly registered deed in the format specified in Schedule
II, or a format as near thereto as possible, namely the ―transfer deed‖, within a period of thirty
days from the date of receipt of a letter of approval under sub-rule (2) to the State Government.
(4) If a duly registered transfer deed is not submitted to the State Government in pursuance to
sub-rule (3), then the transfer application made under sub-rule (1) shall become ineligible. (5)
The transferee shall sign the Mines Development and Production Agreement with the State
Government. (6) The date of commencement of the transfer deed shall be the date on which a
duly executed transfer deed is registered.
