(1) The holder of a mining lease granted before the commencement of this Act shall, notwithstanding anything contained in the instrument of lease or in any law in force at such commencement, pay royalty in respect of any 1[mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee] from the leased area after such commencement, at the rate for the time being specified in the Second Schedule in respect of that mineral.
(2)The holder of a mining lease granted on or after the commencement of this Act shall pay royalty in respect of any 1[mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee] from the leased area at the rate for the time being specified in the Second Schedule in respect of that mineral.
2[(2A) The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972) shall not be liable to pay any royalty in respect of any coal consumed by a workman engaged in a colliery provided that such consumption by the workman does not exceed one-third of a tonne per month.]
(3)The Central Government may, by notification in the Official Gazette, amend the Second Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral with effect from such date as may be specified in the notification:
3[Provided that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of 4[three years].]
(2)The holder of a mining lease granted on or after the commencement of this Act shall pay royalty in respect of any 1[mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee] from the leased area at the rate for the time being specified in the Second Schedule in respect of that mineral.
2[(2A) The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972) shall not be liable to pay any royalty in respect of any coal consumed by a workman engaged in a colliery provided that such consumption by the workman does not exceed one-third of a tonne per month.]
(3)The Central Government may, by notification in the Official Gazette, amend the Second Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral with effect from such date as may be specified in the notification:
3[Provided that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of 4[three years].]
Source footnotes
1. Subs. by Act 56 of 1972, s. 4, for "mineral removed by him" (w.e.f. 12-9-1972).2. Ins. by s. 4, ibid. (w.e.f. 12-9-1972).
3. Subs. by s. 4, ibid., for the proviso (w.e.f. 12-9-1972).
4. Subs. by Act 37 of 1986, s. 8, for "four years" (w.e.f. 10-2-1987).
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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.