UNIVERSITY OF PETROLEUM & ENERGY STUDIES

SCHOOL OF LAW

BA.LL.B. (HONS.)
SEMESTER-VI

ACADEMIC YEAR: 2017-18 SESSION: JAN-MAY, 2018

Synopsis
For
MINING LAW
On
MINING LEASE,LICENCE,TAXATION.
Under the Supervision of Mr. Sam Babu K.C. Sir

Name: DHIRAJ SINGH

Roll no. : R450215037

SAP ID: 500047975

 SYNOPSIS

MINING LEASE,LICENCE,TAXATION

Introduction

A mining lease allows you to conduct larger scale mining operations. Mining leases can be
issued for any specified mineral. A mining lease allows you to machine-mine for specified
minerals and conduct other activities associated with mining or promoting the activity of
mining. A lease arrangement between an individual and a property owner that grants the
individual the rights to extract minerals, such as iron, copper, oil, or natural gas, from a piece
of property, or to explore to determine if these minerals are present, in exchange for
predetermined compensation.

The purpose of a mining licence is to undertake mining and activities leading to or ancillary
to mining. While exploration can be undertaken on a mining licence, “exploration only” will
only be permitted in very limited circumstances. These circumstances include a temporary
mine closure, during which further exploration is undertaken to identify mineral resources
required to recommence mining. “Exploration only” on a mining licence can only be
approved by the Minister for a period of up to two years . Where there is a genuine
commitment to mine within a reasonable time period, then it is expected that in most cases
the proponent would be allowed to remain on the licence.

The work undertaken on a mining licence must reflect the work program that was submitted
with the licence application, and may be subject to conditions relating to the type of work, its
timing and/or expenditure on the licence.

A mineral tax is any tax, excise or other government-imposed fee on mineral resources, such
as crude oil or ores. The taxation of minerals serves as a price to extract scarce resources,
such as petroleum and crude oil, which are owned by the government. By taxing minerals, the
government is able to secure a certain share of the minerals. Mineral taxes should possess
neutral characteristics, to maintain incentives for investors and maximize the tax revenue for
the government, while minimizing the variability and uncertainty of the amount of tax money
collected. Since the 1950s it is more common to use special taxes like royalty taxes with
ordinary taxes. Taxing minerals is the more economic approach to incentivise environmental
thinking and an alternative to intervene in the market directly.
Objective

The objective of this project work is to analyze the mining lease ,licence , taxation in the field
of mining and its types and importance. The project work will also analyze the various
policies, regulations and laws enforced in the sector.

Methodology

To complete this project the method deployed is “Doctrinal Approach” wherein primarily
secondary data such as opinion, editorial, internet articles, Journals, government reports and
circulars have been referred with blend of personal comment on the sector and policy
decision.

Chapterization

Chapter1- Overview of mining in india

This Chapter will deal about the brief Overview of the Mining Sector in India, historical
aspect of mining, what all minerals are found in India and what all are the desired places for
mining in India. This chapter will basically deal with the Introduction of the topic.

Chapter2- introduction to mining lease

This chapter will enhance our knowledge on What is mining lease and how it is useful in
mining sector .how mining lease helps in the development of mining business in india.

Chapter3- evolution of mining lease and its type.

This Chapter will deal about the evolution of mining lease ,what where the circumstances
before and why it is necessary in the field of mining . mining lease are of various types that
will be discussed in this chapter.

Chapter4- mining licence in Indian mining sector.

This Chapter will deal about the need of mining licence and how the circumstances arise for
need of licence in mining sector and what are the various types of mining lease and last how
it helps government to control mining sector.
 Chapter5- mines taxes in field of mining

In this chapter the author will define mining taxes in field of mining and how it affect the
mining company and what are the various taxes and what is the importance of these taxes for
the government.

Chapter 6 -Conclusion

In this chapter after analysing all the elements associated and incidental to it will try to
conclude lease, licence, taxation ,what are the necessary step to be taken and certain
recommendation. The author’s personal views and understanding shall also be reflected in the
conclusion.

Literature Review

 George E. Reeves ,Rocky Mountain Mineral Law Foundation, year of publication:

1992

 E-Book on Mineral Sector ,Ministry of Mines, Government of India, February 08,

2016
 Gupta, M.L., 1996, ‘India’s Mining Industry – Scope for Growth and Investment’.
 Analysis of IIP And The Indian Mining Industry: Policies And Approaches by
Mahima Mishra. Year of Publication 2012.
 National Mineral Policy and Its Impact on Indian Mineral Sector by Kirtikumar R.
Randive, Sanjeevani Jawadand and Tejashree Raut. Year of Publication 2007.
 The development of India's mining industry by Dorian James P. Year of Publication
2004

Government Sites

 IBM- http://ibm.nic.in/index.php?c=pages&m=index&id=77&mid=18519
  CIL- https://www.coalindia.in/
 Press Information Bureau of India. http://www.pib.nic.in/index.aspx.

Other Sources

 https://ccep.crawford.anu.edu.au/acde/asarc/pdf/papers/conference/CONF2001_08.pd
f.
 https://www.sciencedirect.com/science/article/pii/S0301420704000406.
 https://www.sibm.edu/assets/pdf/analysisofIIP.pdf.
 http://www.igidr.ac.in/faculty/nag/What%20has%20Happened%20Since%201991%2
0-%20An%20Assessment%20of%20Economic%20Reforms.pdf.