Publication of Notification (MCR Amendment)

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-27022026-270565 EXTRAORDINARY PART II-Section 3-Sub-section (i) PUBLISHED BY AUTHORITY No. 144] NEW DELHI, FRIDAY, FEBRUARY 27, 2026/PHALGUNA 8, 1947 MINISTRY OF COAL NOTIFICATION New Delhi, the 27th February, 2026 G.S.R. 150(E). — In exercise of the powers conferred by section 13 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), the Central Government hereby makes the following rules further to amend the Mineral Concession Rules, 1960, namely:— 1. Short title and commencement. — (1) These rules may be called the Mineral Concession (Amendment) Rules, 2026. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Mineral Concession Rules, 1960, (hereinafter referred to as the principal rules), in rule 27, in sub-rule (1), after clause (b), the following clause shall be inserted, namely:— '(ba) A holder of a mining lease may apply to the State Government for inclusion of any other mineral, including a minor mineral and the State Government upon receipt of a duly completed application in accordance with the provisions of section 15B of the Act shall, permit such inclusion within sixty days from the date of such receipt, by issuing an order to that effect, whereupon the new mineral shall be deemed to be included in the mining lease: Provided that where a mining lease for any mineral includes the minerals specified under Part A of the First Schedule of the Act or any mineral is included in the mining lease of a minerals specified under Part A of the First Schedule of the Act, the holder of the mining lease shall report such inclusion to the Central Government within thirty days from the date of such inclusion: Provided further that where a mining lease for any mineral includes the minerals specified under Part A of the First Schedule of the Act, the State Government shall ensure that,- (A) the prospecting operations in respect of the minerals specified under Part A of the First Schedule of the Act have been carried out over the entire area under the mining lease in the manner specified in the Act and these rules; (B) a geological report has been prepared and approved for the minerals specified under Part A of the First Schedule of the Act in the manner specified in the Act and these rules; (C) a mining plan has been prepared and approved for the minerals specified under Part A of the First Schedule of the Act in the manner specified in the Act and these rules: Provided also that for inclusion of minerals not specified under Part A of the First Schedule of the Act in a mining lease granted in respect of minerals so specified, the rules applicable to the minerals to be included shall apply, unless otherwise expressly provided. Explanation.-For the removal of doubts, it is hereby clarified that in respect of land in which the minerals vest in a person other than the Government, the expression "State Government" shall be construed as "lessor".". 3. In the principal rule, after rule 66-A, the following rule shall be inserted, namely:- "66-B. Inclusion of mineral specified under Part A of the First Schedule of Act in mining lease granted in respect of a minor mineral.- (1) Where the holder of a mining lease granted in respect of a minor mineral discovers the minerals specified under Part A of the First Schedule to the Act in the leased area, shall report the discovery to the State Government within sixty days from the date of such discovery. (2) Where a mining lease has been granted in respect of a minor mineral, the holder of such lease may submit an application to the State Government seeking inclusion of the minerals specified in Part A of the First Schedule to Act in the lease and the State Government shall, upon being satisfied that the conditions specified in sub-rule (3) have been fulfilled, permit such inclusion within sixty days from the date of receipt of the duly completed application. (3) No such inclusion in the lease shall be granted by the State Government, unless it is satisfied that- (a) the prospecting operations in respect of the minerals specified under Part A of the First Schedule of the Act have been carried out over the entire area under the mining lease in the manner specified in the Act and these rules; (b) a geological report in respect of such mineral has been prepared and approved in the manner specified in the Act and these rules; and (c) a mining plan in respect of such mineral has been prepared and approved in the manner specified in the Act and these rules. (4) The State Government may, for the purpose of considering any application under sub-rule (2), require the applicant to furnish such information, documents or clarifications as it may deem necessary. (5) The State Government shall, upon receipt of the application under sub-rule (2), together with the geological report and the mining plan referred to in sub-rule (3), consult the Central Government, in respect of- (a) the extent of area in which the presence of mineral other than minor mineral has been established; (b) the type of mineral established in such area; (c) the quantity and grade of the mineral specified under Part A of the First Schedule of the Act; (d) the quantity and quality of minor mineral specified in the lease; (e) the value of estimated resources for the minerals specified under Part A of the First Schedule of the Act; (f) the estimated value of resources of the minor mineral, as determined in accordance with the rules made by the State Government under section 15 of the Act. (6) Notwithstanding anything contained in sub-rule (8), where the extent, quantity or estimated value of the minerals specified under Part A of the First Schedule of the Act exceeds twenty-five per cent. of the minor minerals present in the leased area, the State Government shall, on the basis of consultation with the Central Government, after providing the holder of the lease an opportunity of being heard, terminate such lease within thirty days from the date of issue of the allocation letter to the successful allocatee under sub-rule (7) : Provided that where the lease has been terminated under this sub-rule, the holder of such lease shall be entitled to receive such amount of compensation and within such timelines as decided by the State Government, from the successful allocatee of the allocation carried out under sub-rule (7) in accordance with the following conditions, namely- (a) the amount of compensation for the land shall be determined on the basis of the registered deeds of sale or acquisition submitted to the State Government, together with simple interest at the rate of twelve per cent. from the date of such purchase or acquisition until the date of the execution of the allocation order or on the basis of the market value of the land, whichever is higher; (b) the amount of compensation for the mine infrastructure, including tangible assets used for mining operations, such as civil works, workshops, immovable mineral winning equipment, foundations, embankments, pavements, electrical systems, communication systems, relief centres, site administrative offices, fixed installations, mineral handling arrangements, crushing and conveying systems, railway sidings, pits, shafts, inclines, underground transport systems, hauling systems (except movable equipment unless the same is embedded in land for permanent beneficial enjoyment thereof), land demarcated for afforestation and land for rehabilitation and resettlement of persons affected by mining operations under any law for the time being in force, shall be determined on the basis of written down value as reflected in the audited balance sheet of the previous financial year. (7) The Central Government shall reallocate the area covered under a lease terminated under sub-rule (6), for the grant of a mineral concession in respect of the minerals specified in Part A of the First Schedule to the Act and may, for the purposes of such allocation, include any additional area or reduce the area so allocated. (8) Where the extent, quantity or estimated value of resources of the minerals specified in Part A of the First Schedule to the Act is twenty-five per cent. or less in comparison to the minor minerals present in the leased area, the State Government shall, subject to compliance with sub-rules (3) and (5), communicate its decision through an order for inclusion of such minerals within sixty days from the date of receipt of duly completed application. (9) Where the applicant fails to comply with the conditions specified in sub-rule (3), the State Government shall, after providing the applicant an opportunity of being heard and upon recording its reasons in writing, communicate to the applicant by order, its refusal to include any other mineral in the lease. (10) The holder of a mining lease in which any mineral has been included under this rule shall, - (a) maintain accounts separately, showing the quantity and other particulars for mining lease area including— (i) all minerals obtained and dispatched therefrom including the minerals included; (ii) waste material excavated from such area; (iii) the number of persons employed and their nationality; and (iv) complete plans of the mine; (b) comply with the provisions of the Colliery Control Rules, 2004; and (c) comply with the terms and conditions specified in these rules, in addition to such terms and conditions as specified or may be specified by the State Government in respect of the minor mineral. (11) Where any mineral specified in Part A of the First Schedule to the Act is included in a mining lease originally granted in respect of a minor mineral, the lessee shall upon dispatch of the included mineral, pay such additional amount as specified in the Eighth Schedule to the Act. Provided that where the lease in respect of the minor mineral was granted through an auction conducted by the State Government and the auction premium quoted was not based on the value of mineral dispatched, the lessee shall, in lieu of such additional amount, pay an amount equivalent to the royalty payable on the mineral so included under this rule. (12) The provisions of this rule shall apply only to land in which the minerals vest in the Government." [F. No. PS1/1/2026-PS1] RUPINDER BRAR, Addl. Secy. Note:- The principal rules were published in the Gazette of India, Part-II, Section 3, Sub-section (i), vide number G.S.R. 1398, dated the 26th November, 1960 and lastly amended vide number G.S.R. 323(E), dated the 20th May, 2025.