The Ministry of Coal notified the Mineral Concession (Amendment) Rules, 2022 to amend the Mineral Concession Rules, 1960.26,27,28,29 The 1960 Rules provide for the grant of mineral concessions.
Key changes under 2022 Rules are:
▪ Interest on late payment: Earlier state governments could charge 24% interest per annum on delayed payment of rent, royalty, fee, or other sums due to the government from 60th day of expiry of the date of payment. The amendments reduce the interest rate to 12% and allow the charging of interest rate from the date of expiry of payment.
▪ Penalties: Any contravention of the 1960 Rules was punishable with imprisonment up to two years or a fine up to five lakh rupees, or both. In case of continued contravention, a fine of Rs 50,000 was levied for each day. The amendments remove imprisonment upon contravention of certain rules concerning: (i) preparation of a mining plan by recognised persons, (ii) deposit of security fees before executing a mining lease, and (iii) payment of interest on delayed payment of rent, royalty, fee, or other sums due to the government. Contravention of these activities will continue to attract a fine of up to five lakh rupees and an additional fine up to Rs 50,000 (for each day) for continuing contravention.
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