1[11. Grant of 2[composite licence] through auction in respect of minerals other than notified minerals.-- 3[(1) The provisions of this section shall not apply to the,--
(a) cases falling under section 17A;
(b) minerals specified in Part A of the First Schedule;
(c) minerals specified in Part B of the First Schedule where the grade of atomic mineral is equal to or greater than such threshold value as maybe notified by the Central Government from time to time; or
(d) land in respect of which the minerals do not vest in the Government.]
(2) In areas where there is evidence to show the existence of mineral contents as required by clause (a) of sub-section (2) of section 5, the State Government shall grant a mining lease for minerals other than notified minerals following the procedure laid down in section 10B.
(3) In areas where there is inadequate evidence to show the existence of mineral contents as required under clause (a) of sub-section (2) of section 5, the State Government shall grant a 2[composite licence] for minerals other than notified minerals in accordance with the procedure laid down in this section.
(4) The State Government shall notify the areas in which 2[composite licence] shall be granted for any minerals other than notified minerals, the terms and conditions subject to which such 2[composite licence] shall be granted, and any other relevant conditions, in such manner as may be prescribed by the Central Government.
4[Provided that where the State Government has not notified such area for grant of Composite licence of any mineral (whether notified mineral or otherwise), the Central Government may require the State Government to notify such area within a period to be fixed inconsultation with the State Government and in cases where the notification is not issued within such period, the Central Government may notify such area for grant of Composite licence after the expiry of the period so specified.]
(5) For the purpose of granting 2[composite licence], the State Government shall select, through auction by method of competitive bidding, including e-auction, an applicant who fulfils the eligibility conditions as specified in this Act.
4[Provided that--
(a) where the State Government has not successfully completed auction for the purpose of granting a composite licence in respect of any mineral (whether notified mineral or otherwise) in such notified area; or
(b) upon completion of such auction, the composite licence or letter of intent for grant of composite licence has been terminated or lapsed for any reason whatsoever,
the Central Government may require the State Government to conduct and complete the auction or reauction process, as the case may be, within a period to be fixed in consultation with the State Government and in cases where such auction or re-auction process is not completed within such period, the Central Government may conduct auction for grant of composite licence for such area after the expiry of the period so specified:
Provided further that upon successful completion of the auction, the Central Government shall intimate the details of the preferred bidder in the auction to the State Government and the State Government shall grant composite licence for such area to such preferred bidder in such manner as may be prescribed by the Central Government.]
(6) The Central Government shall prescribe the terms and conditions, and procedure, subject to which the auction shall be conducted, including the bidding parameters for the selection, which may include a share in the production of the mineral, or any payment linked to the royalty payable, or any other relevant parameter, or any combination or modification of them.
(7) Without prejudice to the generality of sub-section (6), the Central Government shall, if it is of the opinion that it is necessary and expedient to do so, prescribe terms and conditions, procedure and bidding parameters in respect of categories of minerals, size and area of mineral deposits and a State or States, subject to which the auction shall be conducted.
(8) The State Government shall grant a 2[composite licence] to an applicant selected in accordance with the procedure laid down in this section.
(9) The holder of a 2[composite licence] shall be required to complete, within the period laid down in section 7, the prospecting operations satisfactorily as specified in the notice inviting applications.
5[(10) On completion of the prospecting operations, the holder of the composite licence shall submit the result of the prospecting operations in the form of a geological report to the State Government specifying the area required for mining lease and the State Government shall grant mining lease for such area, to the holder of the composite licence in such manner as may be prescribed by the Central Government.]]
(a) cases falling under section 17A;
(b) minerals specified in Part A of the First Schedule;
(c) minerals specified in Part B of the First Schedule where the grade of atomic mineral is equal to or greater than such threshold value as maybe notified by the Central Government from time to time; or
(d) land in respect of which the minerals do not vest in the Government.]
(2) In areas where there is evidence to show the existence of mineral contents as required by clause (a) of sub-section (2) of section 5, the State Government shall grant a mining lease for minerals other than notified minerals following the procedure laid down in section 10B.
(3) In areas where there is inadequate evidence to show the existence of mineral contents as required under clause (a) of sub-section (2) of section 5, the State Government shall grant a 2[composite licence] for minerals other than notified minerals in accordance with the procedure laid down in this section.
(4) The State Government shall notify the areas in which 2[composite licence] shall be granted for any minerals other than notified minerals, the terms and conditions subject to which such 2[composite licence] shall be granted, and any other relevant conditions, in such manner as may be prescribed by the Central Government.
4[Provided that where the State Government has not notified such area for grant of Composite licence of any mineral (whether notified mineral or otherwise), the Central Government may require the State Government to notify such area within a period to be fixed inconsultation with the State Government and in cases where the notification is not issued within such period, the Central Government may notify such area for grant of Composite licence after the expiry of the period so specified.]
(5) For the purpose of granting 2[composite licence], the State Government shall select, through auction by method of competitive bidding, including e-auction, an applicant who fulfils the eligibility conditions as specified in this Act.
4[Provided that--
(a) where the State Government has not successfully completed auction for the purpose of granting a composite licence in respect of any mineral (whether notified mineral or otherwise) in such notified area; or
(b) upon completion of such auction, the composite licence or letter of intent for grant of composite licence has been terminated or lapsed for any reason whatsoever,
the Central Government may require the State Government to conduct and complete the auction or reauction process, as the case may be, within a period to be fixed in consultation with the State Government and in cases where such auction or re-auction process is not completed within such period, the Central Government may conduct auction for grant of composite licence for such area after the expiry of the period so specified:
Provided further that upon successful completion of the auction, the Central Government shall intimate the details of the preferred bidder in the auction to the State Government and the State Government shall grant composite licence for such area to such preferred bidder in such manner as may be prescribed by the Central Government.]
(6) The Central Government shall prescribe the terms and conditions, and procedure, subject to which the auction shall be conducted, including the bidding parameters for the selection, which may include a share in the production of the mineral, or any payment linked to the royalty payable, or any other relevant parameter, or any combination or modification of them.
(7) Without prejudice to the generality of sub-section (6), the Central Government shall, if it is of the opinion that it is necessary and expedient to do so, prescribe terms and conditions, procedure and bidding parameters in respect of categories of minerals, size and area of mineral deposits and a State or States, subject to which the auction shall be conducted.
(8) The State Government shall grant a 2[composite licence] to an applicant selected in accordance with the procedure laid down in this section.
(9) The holder of a 2[composite licence] shall be required to complete, within the period laid down in section 7, the prospecting operations satisfactorily as specified in the notice inviting applications.
5[(10) On completion of the prospecting operations, the holder of the composite licence shall submit the result of the prospecting operations in the form of a geological report to the State Government specifying the area required for mining lease and the State Government shall grant mining lease for such area, to the holder of the composite licence in such manner as may be prescribed by the Central Government.]]
Source footnotes
1. Subs. by Act 10 of 2015, s. 11, for section 11 (w.e.f. 12-1-2015).2. Subs. by Act 16 of 2021, s. 2, for "prospecting licence-cum-mining lease" (w.e.f. 28-3-2021).
3. Subs. by s. 16, ibid., for sub-section (1) (w.e.f. 28-3-2021).
4. Ins. by s. 16, ibid. (w.e.f. 28-3-2021).
5. Subs. by Act 16 of 2021, s. 16, for sub-section (10) (w.e.f. 28-3-2021).
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More sections of this act
Section 1 · Short title, extent and commencement.Section 2 · Declaration as to expediency of Union Control.Section 3 · Definitions.Section 4 · Prospecting or mining operations to be under licence or lease.Section 4A · Termination of prospecting licences, exploration licences or mining leases.Section 4B · Conditions for efficiency in production.Section 5 · Restrictions on the grant of mineral concession.Section 6 · Maximum area for which mineral concession may be granted.India Code, Government of India. Text fetched 25 Oct 2026. Source metadata reports last modification: 2025-09-26. Check the linked official text and subsequent notifications when applying a provision.