go to MRD                                       Mineral Policy Of The State           

Preamble Regulation Of  Minerals Objectives



Mineral Wealth has a significant contribution in development of the nation as well as the State. The Government of India declared a National Mineral Policy in respect of Non-fuel and Non-atomic minerals in the year 1993.


The Government of Madhya Pradesh for the first time declared a Madhya Pradesh Mineral Policy in the year 1995.


In undivided Madhya Pradesh there were large mineral deposits and there existed vast scope for mineral development. However due to bifurcation of State  on 1st of November, 2000, deposits of many important minerals such as Iron ore, Tin ore, Corundum etc. and significant deposits of Coal, Limestone, Dolomite and Bauxite etc., now vest with the Chhattisgarh State. Therefore, it has become necessary for the successor State of Madhya Pradesh to frame such a policy so that not only new mineral deposits are identified and and demarcated but are also mined in a scientific manner keeping in view the environmental balance in such away so that the value addition takes place in the State itself.

Regulation of Minerals


Entry 54 of the Union List I and Entry 23 of State List  II of the Seventh Schedule of the Constitution of India empowers the Union and the State Governments respectively for management of minerals. 


Government of India has formulated Mines and Minerals (Development and Regulation) Act, 1957.


Under section 13 of the the said Act, the Government of India has framed the Mineral Concession Rules, 1960 for regulation of major minerals.


Under section 15 of the the said Act, the Government of Madhya Pradesh framed the Madhya Pradesh Minor Mineral Rules, 1961 for regulation of minor minerals which has been repeated and  Madhya Pradesh Minor Mineral Rules, 1996 have been framed and introduced with effect from 1st April, 1996.

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Objectives :


to discover new mineral deposits by modern techniques.


to amend the rules so that minor mineral quarries are allotted without auction to co-operative societies of members of Scheduled Cast, Scheduled Tribes and traditional miners.


to undertake systematic and scientific exploitation of minerals.


to exploit the minerals with minimum adverse impact on the environment and forest wealth.


to promote research and development of minerals.


to encourage mineral based industries.


to encourage export of minerals.


to create greater employment opportunity in the mineral sector.


to constitute a mineral advisory board.


(1)    Survey of Minerals

  The mineral survey both in the country as well as in the State is mainly carried out by the Geological Survey of India. The detailed survey of minerals in the State is taken by the State Directorate of Geology and Mining. The survey of minerals having demand in the market as well as export potential shall be carried out on   priority basis. Survey of minerals which can be carried out with low cost and in short time shall be taken up on priority.

Private individual/ organisations having sound financial base and technical expertise shall be encouraged in prospecting and searching for Diamond, Gold and other precious minerals.

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(2)    Amendment in the Rules/Policy 


In undivided Madhya Pradesh Eleven Diamond bearing bearing blocks were identified and in the year 1998, a policy was framed for searching, prospecting, mining and sale of diamond by a joint venture company with Madhya Pradesh Mineral Corporation. Out of  eleven identified blocks, only three blocks remain in the successor State of Madhya Pradesh. The Govt. of India has amended the Mines and Minerals (Development and Regulation) Act, 1957 in December 1999 to introduce a new Mineral Concession for survey of such precious minerals over extensive areas by granting reconnaissance permits and applications for grant of reconnaissance permit are being received in the State. The above Diamond Policy of 1998 shall be repealed and applications for grant of reconnaissance permits shall be disposed off as per the provisions contained in the said Act and the rules framed there under.


The minor minerals have been divided in to two categories under the M.P. Minor Mineral  Rules, 1996. Schedule I minor minerals are used in construction activity after processing while Schedule II minor minerals are directly in construction activity. The State Government under the "Panchayat Raj" has delegated the powers of regulation of the Schedule II minor minerals to the Panchayats and the quarries of such minerals are now allotted by auction. Since the revenue received from schedule I minor minerals are also distributed to Panchayats, therefore, in order to enhance the revenue of Panchayats, the stone quarries for installation of crusher and the flagstone quarries shall be allotted by way of auction instead of lease. For this purpose the rules shall be amended. However, quarries of minor minerals shall be allotted to the Co-operative Societies of Scheduled Castes, Scheduled Tribes and traditional miners without auction.

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For checking the illegal mining co-operation of "Van Surksha Samiti" shall also be taken. 


The prevalent rules provide for granting quarry leases of Granite only to the M.P. State Mining Corporation Limited or to a joint venture company with the M.P. State Mining Corporation Limited. For proper development and exploitation of the Granite deposits of the State, the present policy should be repealed and the quarry leases for Granite shall now be granted to the private entrepreneurs also keeping in view the   provisions contained in the Granite Conservation and Development Rules, 1999 framed by the Government of India. Priority shall be given to the applicants establishing 100 percent export oriented cutting and polishing unit in the State. 


For proper development and exploitation of Marble deposits of Katni, Jabalpur, Sidhi and Narsinghpur districts of the State, private entrepreneurs willing to set up cutting and polishing units in the State shall be given priority in grant of quarry leases for Marble for longer periods.

(3)    Exploitation of Minerals


The available mineral wealth in the reorganised Madhya Pradesh shall be exploited scientifically keeping in view the environmental balance. An assessment shall be made of the areas reserved for Public Sector Undertakings of the Central and State Governments.



All those areas reserved for Public Sector Undertakings shall be deserved for private entrepreneurs if mining has not commenced in such areas so far or if they have not secured Mineral Concessions and started mining. Bauxite bearing areas reserved earlier shall be dereserved and leased out to private investors and leased out to private investors as per rule. 



The minerals shall be mined in a planned and scientific manner with minimum environmental and forest wealth loss.

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(4)    Research

1. In the successor State of Madhya Pradesh for research and development of minerals a well equipped laboratory shall be established in the new headquarter of the Directorate of Geology & Mining at Bhopal.


For the minerals available in the State work relating to the preparation of  district wise mineral inventory and maps shall be speeded up.

h and Development of Minerals

 (5)    Incentive to Mineral Based Industries   


Considerable deposits of Limestone, Fireclay, Granite, Marble and Flagstone are available in the State for setting up Cement plats, Refractory Industry and Cutting & Polishing Industry.



To promote mineral based industries in the state, applicants willing to establish mineral based industry in the State shall be granted Mineral Concessions on priority.

(6)    Assessment of Commercial Tax and Other Duties etc.


In cases where the rates of commercial Tax, Royalty, Expectation value imposed by Forest Department and other duties higher in the State as compared to other States, they shall be examined with a view to making them competitive. 

(7)    Export of Minerals 


Export quality deposits of Granite, Marble etc are available in the State. Hence Mineral Concession of these minerals shall be granted on priority to such entrepreneurs who are willing to establish hundred percent Export oriented units in the State.  



To promote the export of minerals, the minerals available in the State shall be displayed in the state, national and international level exhibition/fairs.

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(8)    Providing Opportunities for Employment            


The areas reserved for Public Sector Undertaking where mining has not   commenced so far shall be dereserved and thrown open for granting Mineral Concessions for generating employment opportunities.

(9)    Constitution of Mineral Advisory Board


In order to promptly resolve the problems being faced by the lease holders/ mineral based industries and to have a better interface between them and the Government, a Mineral Advisory Board shall be constituted. 

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