In the federal structure of India, the state governments are the owners of minerals located within their respective boundaries. The central Government is the owner of the minerals underlying the ocean within the territorial waters or the Exclusive Economic Zone of India.

The state governments grant the mineral concessions for all the minerals located within the boundary of the State, under the provisions of the Mines and Minerals Act 1957. Prior approval of the central government is required under Section 5 of the Act for grant of RP, PL and ML in respect of atomic and metallic minerals specified in Parts ‘B’ and ‘C’ of the first Schedule to the Act.

The India’s ministry of mines has, in consultation with the state governments, issued detailed guidelines on 24th June, 2009, in order to bring about more clarity and transparency in processing the mineral concession proposals under the MMDR Act, 1957 and MCR, 1960.

The ministry has also, in consultation with the state governments framed a policy on ‘special reasons’ to be adopted by all state governments while recommending a mineral concession proposal in favour of a later applicant under Section 11 of the Act.

Guidelines in this regard have been issued to the state governments on 9th February 2010. Besides, the ministry has issued guidelines on 13th October, 2010 regarding submission of maps by the state governments along with the proposals.