INDIA Law and Practice Contributed by: Vishnu Sudarsan, Kartikeya Gajjala and Mehar Vasant, J Sagar Associates
97.5% of production was in eight states. Odisha led with a share of 46%, followed by Chhattis - garh with a share of 14%, Rajasthan with 13%, Karnataka with 12%, Maharashtra with 4.6% and Jharkhand with 4.7% in the total value of mineral production (excluding atomic, fuel and minor minerals). The industry is characterised by a number of small operational mines; approximately 1,426 mines reported mineral production in FY 2023– 24. Most mines are in Madhya Pradesh, followed by Gujarat, Karnataka, Odisha, Andhra Pradesh, Chhattisgarh, Rajasthan, Tamil Nadu, Maharash - tra and Jharkhand. During FY 2022–23, the pri - vate sector emerged to play a dominant role in mineral production, accounting for 60% of the total value (or INR74,725 crore). Auction of Mineral Blocks The law contemplates two types of mineral con - cessions that grant a person the right to under - take mining operations, as set out below. • Mining leases are granted for undertaking mining operations – ie, operations under - taken for the purpose of winning any min - eral. Mining leases are granted in respect of areas where there is evidence to show the existence of mineral contents in the manner prescribed. • Composite licences envisage a prospect - ing licence for undertaking prospecting operations (ie, operations undertaken for the purpose of exploring, locating or proving mineral deposit), upon successful and satis - factory completion of which the licensee is granted a mining lease for undertaking mining operations. Composite licences are granted in respect of areas where there is inadequate evidence to show the existence of mineral contents as prescribed.
Owing to rulings of the Supreme Court of India urging the distribution of state largesse in a fair and transparent manner, auctions conducted by the state governments have been the pre - dominant mode of awarding mining concessions since 2015. Since the commencement of the auction regime, 442 mineral blocks have been auctioned. The auctions have been dominated by: • limestone (152 blocks); • iron ore (114 blocks); • manganese (39 blocks); • bauxite (39 blocks); • graphite (21 blocks); and • gold (21 blocks). The majority of the blocks auctioned are in the states of: • Rajasthan (86); • Madhya Pradesh (82 blocks); • Odisha (48 blocks); • Karnataka (45 blocks); • Maharashtra (40 blocks); and • Chhattisgarh (35 blocks). 1.2 Legal System and Sources of Mining Law The Constitution of India stands at the apex of the Indian legal system, which has its basis in common law. The Constitution provides for a tripartite demarcation of legislative powers between the centre and states: • List I, the Union List, sets out the subjects over which the centre has exclusive powers of legislation; • List II, the State List, sets out the subjects over which states have powers of legislation; and
228 CHAMBERS.COM
Powered by FlippingBook