💎 MMDR Amendment Act, 2015: 

1. Commencement and Objective (Core Facts)

• Date of Effect: The Act is deemed to have come into force retrospectively on January 12, 2015 (the date the Ordinance was promulgated).
• Fundamental Change: Auction is the sole method for granting mineral concessions (Mining Lease and Prospecting Licence-cum-Mining Lease).
• Applicability: Applies to major minerals other than Coal, Lignite, and Atomic Minerals.

2. Mineral Concessions and Tenure (Sec. 8A, 10B, 11)

Aspect	Provision (Section)	Key Detail for Exam
Fixed Tenure	Sec. 8A(2)	50 years (fixed period for all mining leases granted after 12.01.2015). No renewal provision for these minerals.
Old Lease Extension (Non-Captive)	Sec. 8A(6)	Extended up to March 31, 2020. (These are also known as Merchant Mines).
Old Lease Extension (Captive)	Sec. 8A(5)	Extended up to March 31, 2030.
Captive Lease Right	Sec. 8A(7)	The captive lease holder has the Right of First Refusal at the time of the subsequent auction.
New Concession	Sec. 3(ga)	Introduction of Prospecting Licence-cum-Mining Lease (PL-cum-ML), a two-stage composite concession.
Non-Exclusive Permit	Sec. 10C	Non-exclusive Reconnaissance Permits may be granted, but the holder is not entitled to claim a subsequent PL-cum-ML or ML.
Ineligibility	Sec. 10A(1)	All applications for concessions received prior to January 12, 2015, became ineligible.

3. Notified Minerals (The Fourth Schedule) This is a specific, high-yield area for questions.

• Definition: "Notified Minerals" are those specified in the Fourth Schedule.
• Initial List (4 Minerals):
1. Bauxite
2. Iron ore
3. Limestone
4. Manganese ore
• Grant Rule: Where the existence of Notified Mineral is established, only a Mining Lease is auctioned (Sec. 10B(3)). Where there is inadequate evidence, a PL-cum-ML can be granted (Sec. 10B(2)).
• Amendment Power: The Central Government can amend the First and Fourth Schedule by notification (Sec. 11C).

4. Institutional Mechanisms (DMF & NMET)

Institution	Establishment Authority	Funding Contribution (from Royalty in Second Schedule)	Primary Objective
District Mineral Foundation (DMF)	State Government by Notification	New Leases: Not exceeding 1/3rd of the royalty. Old Leases: Not exceeding the royalty paid (up to 100%).	Welfare of persons and areas affected by mining operations.
National Mineral Exploration Trust (NMET)	Central Government by Notification	Sum equivalent to 2% of the royalty paid.	Regional and Detailed Exploration.

5. Transferability and Penal Provisions

• Transfer of Concessions (Sec. 12A):
• Allowed only for concessions granted through auction.
• Requires prior approval of the State Government.
• Deemed Approval: If the State Government does not convey its approval within 90 days, it is deemed that there is no objection to the transfer.
• Penalties for Illegal Mining (Sec. 21)
• Fine: Increased from ₹25,000 to a maximum of ₹5 lakh per hectare.
• Imprisonment: Increased from 2 years to a maximum of 5 years.
• Special Courts (Sec. 30B/30C): Mandatory constitution of Special Courts by the State Government for speedy trials of illegal mining cases. The Special Court is deemed to be a Court of Session.
• Central Government Power (Sec. 20A): The Central Government is empowered to issue binding directions to State Governments on policy matters for conservation, scientific, and sustainable development of mineral resources

· Q1. The MMDR Amendment Act, 2015 is deemed to have come into force on which date? · (A) March 26, 2015 · (B) April 1, 2015 · (C) January 12, 2015 · (D) March 31, 2020 · (E) January 26, 2015

Answer	Solution
(C)	The Act was passed on March 26, 2015, but it was deemed to have come into force retrospectively from the date of the Ordinance's promulgation, which was January 12, 2015 (Sec. 1(2)).

· Q2. What is the standard fixed tenure for a Mining Lease (ML) granted after the commencement of the MMDR Amendment Act, 2015, for minerals other than those specified in Part A and Part B of the First Schedule? · (A) 20 years · (B) 30 years · (C) 50 years · (D) 75 years · (E) 99 years

Answer	Solution
(C)	The Act introduced a fixed, non-renewable lease period of 50 years for major minerals other than coal, lignite, and atomic minerals (Sec. 8A(2)).

· Q3. For existing mining leases used for captive purpose (pre-2015 leases), the period of extension was mandated up to which date? · (A) March 31, 2020 · (B) March 31, 2025 · (C) March 31, 2030 · (D) December 31, 2020 · (E) December 31, 2030

Answer	Solution
(C)	Captive mining leases were extended up to March 31, 2030 (Sec. 8A(5)).

· Q4. For existing mining leases used for non-captive purpose (merchant mines), the period of extension was mandated up to which date? · (A) March 31, 2030 · (B) March 31, 2025 · (C) December 31, 2020 · (D) March 31, 2020 · (E) December 31, 2025

Answer	Solution
(D)	Non-captive (merchant) mining leases were extended up to March 31, 2020 (Sec. 8A(6)).

· Q5. The "Prospecting Licence-cum-Mining Lease" (PL-cum-ML) is defined in the MMDR Act, 1957, by which new clause? · (A) Section 3(e) · (B) Section 3(ea) · (C) Section 3(ga) · (D) Section 3(hb) · (E) Section 3(c)

Answer	Solution
(C)	The PL-cum-ML (Composite Licence) is defined as a two-stage concession in the newly inserted Section 3(ga).

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· Section B: Auction, Transfer, and Ineligibility · Q6. What is the sole method prescribed for the grant of mineral concessions (ML and PL-cum-ML) under the MMDR Amendment Act, 2015? · (A) First-come, first-served basis · (B) Appointment by the Central Government · (C) Nomination of public sector undertakings (PSUs) · (D) Auction through a method of competitive bidding (e-auction) · (E) Grant through a High-Level Committee recommendation

Answer	Solution
(D)	The Act mandates competitive bidding (auction) as the sole method to ensure transparency and non-discretionary allocation (Sec. 10B(4), 11(5)).

· Q7. What was the fate of all applications for mineral concessions received prior to the date of commencement of the MMDR Amendment Act, 2015? · (A) They were processed on a priority basis. · (B) They were transferred to the newly constituted DMF. · (C) They remained eligible for consideration if already approved by the State Government. · (D) They became ineligible. · (E) They were converted into PL-cum-ML applications.

Answer	Solution
(D)	As per Sec. 10A(1), all such applications received prior to the commencement date of the 2015 Act became ineligible, subject to certain exceptions listed in Sec. 10A(2).

· Q8. For the transfer of a Mining Lease or PL-cum-ML granted through auction, the State Government's approval is deemed to be granted if no response is conveyed within a period of: · (A) 30 days · (B) 60 days · (C) 90 days · (D) 120 days · (E) 180 days

Answer	Solution
(C)	Sec. 12A(3) provides for deemed approval if the State Government does not convey its previous approval for transfer within a period of ninety days.

· Q9. Which one of the following minerals is NOT included in the initial list of Notified Minerals in the Fourth Schedule of the MMDR Act, 1957, as inserted by the 2015 Amendment? · (A) Bauxite · (B) Iron ore · (C) Copper ore · (D) Limestone · (E) Manganese ore

Answer	Solution
(C)	The Fourth Schedule initially listed Bauxite, Iron ore, Limestone, and Manganese ore (Sec. 3(ea) and Fourth Schedule). Copper ore was not initially included.

· Q10. The requirement of prior approval of the Central Government for the grant of a mineral concession was removed for which category of minerals? · (A) Coal and Lignite · (B) Atomic Minerals (Part B of First Schedule) · (C) Minerals in Part A of the First Schedule · (D) Minerals in Part C of the First Schedule (e.g., Iron Ore, Bauxite) · (E) Minor Minerals

Answer	Solution
(D)	The Act removed the requirement for prior Central Government approval for the grant of concessions for non-coal/non-atomic major minerals (Part C of First Schedule), thereby empowering State Governments (Sec. 5(1) proviso substituted, and Sec. 10B/11).

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· Section C: Funds and Institutions · Q11. The District Mineral Foundation (DMF) is established as a non-profit body by: · (A) The Central Government · (B) The Parliament · (C) The State Government · (D) The Ministry of Mines · (E) The respective District Collector

Answer	Solution
(C)	The State Government is mandated to establish the DMF in any district affected by mining operations (Sec. 9B(1)).

· Q12. What is the maximum percentage of the royalty paid (under the Second Schedule) that a new mining lessee (post-2015) must contribute to the District Mineral Foundation (DMF)? · (A) 2% · (B) 10% · (C) One-third (approximately 33.33%) · (D) 50% · (E) Not exceeding 100%

Answer	Solution
(C)	For a new lease granted post-2015, the contribution is an amount equivalent to such percentage of the royalty paid, not exceeding one-third of such royalty (Sec. 9B(5)).

· Q13. What is the maximum percentage of the royalty paid that an existing mining lessee (pre-2015) must contribute to the District Mineral Foundation (DMF)? · (A) Not exceeding 2% · (B) Not exceeding one-third of the royalty · (C) Not exceeding 50% · (D) Not exceeding 100% (the royalty paid) · (E) Only 10%

Answer	Solution
(D)	For an existing lease granted pre-2015, the contribution is an amount not exceeding the royalty paid (Sec. 9B(6)).

· Q14. The National Mineral Exploration Trust (NMET) is established by the Central Government with the objective of promoting: · (A) The welfare of local people affected by mining. · (B) Regional and detailed exploration. · (C) Regulation of minor minerals. · (D) Foreign Direct Investment (FDI) in mining. · (E) Rehabilitation and resettlement of displaced persons.

Answer	Solution
(B)	The NMET is established to use accrued funds for the purposes of regional and detailed exploration (Sec. 9C(2)).

· Q15. The holder of a mining lease must pay a sum equivalent to what percentage of the royalty paid to the National Mineral Exploration Trust (NMET)? · (A) 1% · (B) 2% · (C) 3% · (D) 5% · (E) 10%

Answer	Solution
(B)	The contribution to the NMET is a fixed 2% of the royalty paid (Sec. 9C(4)).

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· Section D: Penalties, Courts, and Other Details · Q16. The maximum term of imprisonment for illegal mining (contravention of Sec. 4(1) or (1A)) was increased to: · (A) Two years · (B) Three years · (C) Five years · (D) Seven years · (E) Ten years

Answer	Solution
(C)	Sec. 21(1) of the amended Act increased the maximum imprisonment term for illegal mining to five years.

· Q17. The maximum fine for illegal mining (contravention of Sec. 4(1) or (1A)) was increased to: · (A) ₹50,000 per hectare · (B) ₹1 Lakh per hectare · (C) ₹5 Lakh per hectare · (D) ₹10 Lakh per hectare · (E) ₹1 Crore per hectare

Answer	Solution
(C)	The fine was significantly increased to a maximum of five lakh rupees per hectare of the area (Sec. 21(1)).

· Q18. The State Government may constitute Special Courts under the MMDR Act, 1957 (as amended) for the speedy trial of which offence? · (A) All offences under the Act · (B) Offences related to illegal mining (Sec. 4(1) or (1A)) · (C) Offences related to non-payment of royalty · (D) Offences related to non-establishment of DMF · (E) Offences related to environmental violations only

Answer	Solution
(B)	Special Courts (Sec. 30B) are constituted specifically for providing speedy trial of offences related to illegal mining, i.e., contravention of Sec. 4(1) or Sec. 4(1A).

· Q19. For a person to be qualified for appointment as a judge of a Special Court under the MMDR Act, 2015, they must be or have been a: · (A) High Court Judge · (B) Civil Judge (Senior Division) · (C) District and Sessions Judge · (D) Judicial Magistrate First Class · (E) Supreme Court Judge

Answer	Solution
(C)	Sec. 30B(3) states that a person shall not be qualified unless he is or has been a District and Sessions Judge.

· Q20. Which of the following constitutional provisions guides the State Government while making rules for the composition and functions of the District Mineral Foundation (DMF)? · (A) Article 32 of the Constitution · (B) Article 162 of the Constitution · (C) Article 244 (Fifth and Sixth Schedules) of the Constitution · (D) Article 280 of the Constitution · (E) Article 368 of the Constitution

Answer	Solution
(C)	Sec. 9B(4) specifies that the State Government shall be guided by the provisions of Article 244 (Fifth and Sixth Schedules) relating to administration of Scheduled Areas and Tribal Areas.

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· Section E: Miscellaneous and Advanced MCQs · Q21. The holder of a captive mining lease, upon expiry of the extended period, has which specific right at the time of the subsequent auction for that lease? · (A) The right to renewal. · (B) The right to match the highest bid. · (C) The right of first refusal. · (D) The right to a reduced royalty. · (E) The right to transfer the expired lease.

Answer	Solution
(C)	Sec. 8A(7) grants the holder of a captive lease the right of first refusal at the auction held after the expiry of the lease period.

· Q22. In the case of minerals where there is inadequate evidence of mineral contents, the State Government, after obtaining previous approval of the Central Government, may grant which type of concession for a Notified Mineral? · (A) Only a Mining Lease (ML). · (B) Only a Prospecting Licence (PL). · (C) A Prospecting Licence-cum-Mining Lease (PL-cum-ML). · (D) A Non-exclusive Reconnaissance Permit (RP). · (E) A Captive Mining Lease only.

Answer	Solution
(C)	If evidence is inadequate, a PL-cum-ML is granted. If evidence is established, only an ML is granted (Sec. 10B(2) and (3)).

· Q23. Which new section empowers the Central Government to issue binding directions to the State Governments regarding the conservation, scientific, and sustainable development of mineral resources? · (A) Section 10A · (B) Section 9B · (C) Section 20A · (D) Section 12A · (E) Section 30B

Answer	Solution
(C)	Section 20A, titled "Power of Central Government to issue directions," was inserted to allow the Centre to issue binding directions to States on policy matters in the national interest.

· Q24. For a mining lease granted to a Government company or corporation in a joint venture (JV) with other persons, what is the minimum percentage of the paid-up share capital the Government company or corporation must hold? · (A) More than 50% · (B) More than 51% · (C) More than 66% · (D) More than 74% · (E) 100%

Answer	Solution
(D)	Sec. 17A(2B) states that the Government company or corporation shall hold more than seventy-four per cent of the paid-up share capital in such joint venture.

· Q25. The provisions regarding the fixed 50-year lease period and auctioning upon expiry do not apply to minerals specified in: · (A) The Fourth Schedule (Notified Minerals). · (B) Part C of the First Schedule. · (C) Part A and Part B of the First Schedule (Coal, Lignite, Atomic Minerals). · (D) Minor Minerals. · (E) The Second Schedule (Royalty Rates).

Answer	Solution
(C)	The fixed 50-year tenure (Sec. 8A) specifically applies to minerals other than those specified in Part A and Part B (Coal, Lignite, Atomic Minerals) of the First Schedule.

· Q26. Which section was inserted to empower the State Government to collect funds from concession holders of minor minerals for the District Mineral Foundation (DMF)? · (A) Section 15(4) · (B) Section 9B(6) · (C) Section 15A · (D) Section 13(2)(c) · (E) Section 10C(2)

Answer	Solution
(C)	Section 15A was inserted, enabling the State Government to prescribe the payment by all holders of concessions related to minor minerals to the DMF.

· Q27. The Central Government is empowered to amend which of the following Schedules of the MMDR Act, 1957, by notification in the Official Gazette? · (A) Only the First Schedule · (B) Only the Fourth Schedule · (C) Both the First Schedule and the Fourth Schedule · (D) The Second Schedule (Royalty Rates) only · (E) The Third Schedule (Dead Rent) only

Answer	Solution
(C)	Section 11C grants the Central Government power to amend both the First Schedule and the Fourth Schedule to add or delete any mineral.

· Q28. The introduction of the competitive bidding process for mining leases under MMDR 2015 was primarily aimed at: · (A) Abolishing the 'end-use' clause for all minerals. · (B) Increasing the lease period for all minerals to 50 years. · (C) Removing discretion and bringing transparency in resource allocation. · (D) Centralizing the grant of all mineral concessions with the Union Government. · (E) Granting blanket right of first refusal to all existing lease holders.

Answer	Solution
(C)	The primary objective of the auction process (Sec. 10B & 11) was the removal of discretion ("first-come, first-served") and the introduction of transparency.

· Q29. Under the MMDR Amendment Act, 2015, the holder of a non-exclusive reconnaissance permit is entitled to make a claim for which of the following? · (A) A Prospecting Licence (PL). · (B) A Mining Lease (ML). · (C) A Prospecting Licence-cum-Mining Lease (PL-cum-ML). · (D) All of the above. · (E) None of the above.

Answer	Solution
(E)	Section 10C(2) clearly states that the holder of such non-exclusive reconnaissance permit shall not be entitled to make any claim for the grant of any subsequent concession (PL-cum-ML or ML).

· Q30. The power to revise any order made by a State Government in exercise of powers conferred under the Act rests with the Central Government, but this power does not apply to orders concerning: · (A) Minerals specified in Part A of the First Schedule. · (B) Minerals specified in the Fourth Schedule (Notified Minerals). · (C) Minor minerals. · (D) Atomic minerals. · (E) Exploration activities.

Answer	Solution
(C)	Section 30, dealing with the Central Government's power of revision, explicitly limits its scope to "any mineral other than a minor mineral," leaving regulation of minor minerals largely to the State Governments.