Dr. Tabrez Ahmad
Professor of Law
Dr. Tabrez Ahmad http://energylex.blogspot.in 1
Agenda
Historical Development
Regional Exploration
Detailed Exploration
Actual Exploration
The Mines Act 1952
The Mines Ru...
History - Timeline
First Indian mining operations begun in 1774.
Development of steam engine in 1850’s spurred
coal demand...
History Cont’d
Demand from steel industry led to significant
private investment in mining, mostly for coking
coal.
Growth ...
The 15 Wedges (Scientific American, 9/06)
Dr. Tabrez Ahmad http://energylex.blogspot.in 5
Power allocation in India
68%
8%
15%
3%
6%
Coal Gas
Hydro Nuclear
Others
Dr. Tabrez Ahmad http://energylex.blogspot.in 6
Indian Scenario
• India is the 4th largest economy in the world.
• India has the 2nd largest GDP amongst developing countr...
Coal India Limited
Government–owned entity which owns and operates India’s mines.
Under Ministry of Coal.
8 mining subsidi...
Coal India Limited
World’s largest coal mining company.
Responsible for approximately 85% of
total Indian production.
324 ...
The major players in the Mining sector are classified on the
basis of the minerals produced by them namely,
Exploration an...
Iron Ore Sector:
National Mineral Development Corporation
Kudremukh Iron Ore Company,
Steel Authority of India Ltd,
Orissa...
Global Mining Companies in Indian Mining Sector
Transworld Garnet Co., Canada
Meridian Peak Resources Corpn,Canada
Pebble ...
DEVELOPMENT OF MINING
LAWS
Dr. Tabrez Ahmad http://energylex.blogspot.in 13
Towards end of 19th century people started feeling wretched conditions
of persons working in mines.
Serious disasters occu...
Mine Act was re-enacted on 1 July 1923 subsequently amended in 1928 &
1935.
In 1951, Mine Act was applicable throughout In...
The Act was amended in 1959 and enforced from 16th Jan 1960 to make it more
effective. The amended act:
Gives detailed def...
The industrial sector in India consists of three sub-sectors:
(i) Manufacturing,
(ii) Mining and quarrying and
(iii) Elect...
PUBLIC SECTOR
Coal mining companies are almost exclusively government-owned with
Coal India Ltd.
Neyvelli Lignite Corporat...
The PRIVATE SECTOR is also dominated by a few large companies
although in terms of sheer number small mines occupy a dispr...
PRIMARY LEGISLATION
REGULATING MINING IN INDIA
Dr. Tabrez Ahmad http://energylex.blogspot.in 20
1. Mines Act 1952 (MA)
2. Mines and Minerals (Development and Regulation) Act 1957 (MMDR Act)
Both the acts together with ...
Draft : Mines and Minerals
(Development and Regulation) Bill 2011.
However, the emphasis so far has been mostly on creatin...
The proposed legislation seeks to:
Create a National Mining Regulatory Authority with powers to
investigate and prosecute ...
Criticism
As has been mentioned earlier, these are all measures to create new
government institutions and do not address t...
OTHER LAWS AFFECTING MINING INDUSTRY
1. Enviornment protection statues:
Enviornment (Protection) Act 1986.
Forest (Convers...
INDIAN CONSTITUTION & MINING
Dr. Tabrez Ahmad http://energylex.blogspot.in 26
Under India’s federal structure, the proprietary title to onshore minerals
vests in the constituent States; (on land)
the ...
The conditionalities outlined in clauses (1)-(3) of Article 246 of the
Constitution, which deals with the law-making power...
Additionally, the Constitution confers legislative powers on the
CENTRAL GOVERNMENT for the regulation and development of ...
THE MINES ACT 1952
Different Authorities under the Act.
Committees under the Mining Act, powers and
functions.
Penalties u...
APPLICATION & DEFINITIONS
Dr. Tabrez Ahmad http://energylex.blogspot.in 31
Sec 1 (2)- The Act extends to whole of India.
Sec 2- Definitions:-
(d) "Chief Inspector" means the Chief Inspector of Mine...
(j) "MINE" means any excavation where any operation for the purpose
of searching for or obtaining minerals has been or is ...
(vii) all protective works being carried out in or adjacent to a mine;
(viii) all workshops and stores situated within the...
(jj) "MINERALS" means all substances which can be obtained from the
earth by mining, digging, drilling, dredging, hydrauli...
DIFFERENT AUTHORITIES UNDER
THE ACT
Inspectors and Certifying Surgeons
(Sec 5-11)
Dr. Tabrez Ahmad http://energylex.blogsp...
Sec 5: Chief Inspector & Inspector-
(1) Central govt. may by notification in Official gazette appoint a person
with prescr...
(2)Any of the above officials must not be directly/indirectly interested
in any mine/mining rights in India.
(3)District m...
Sec 7- Powers of Inspectors of Mines-
The C.I. & Inspectors of Mines is vested with the power to EXAMINE,
INQUIRE, SEARCH ...
Sec 8 – Powers of Special officers to enter, measure etc..-
Any person in govt. service can be duly authorized in this beh...
(2) every person chosen for survey shall furnish all information regarding his work &
health in connection with said surve...
Secrecy of Information obtained
Sec 10 states:
1) All copies, extracts, registers or records pertaining to any mine & all
...
Certifying surgeons/ Medical officer
(Sec 11 of Act 1952; Rule 23- 29 of Mines Rules 1955)
Sec 11:
1. Central govt. may ap...
Duties of Certifying Surgeons- Rule 24
1. On receipt of reference u/s 43 (1) of Act 1952 “if Inspector is of opinion
that ...
THE MINES ACT 1952
Committees under the Mining Act-
powers and functions
Chapter III Sec. 12- 15;
Rule 3-20 of Mines Rule ...
COMMITTEES – SEC. 12; Rule 3-7
The central govt. by notification in Official gazette constitute
committee consisting of:
a...
Rule 3- Term Of Office Of Members (c)-(e) shall be 3 yrs. But can continue
to hold office until appointment of successor.
...
POWERS OF COMMITTEE- SEC 14
It may exercise powers of Inspectors under the Act as it thinks
necessary or expedient to exer...
OTHER RULES (Committees)- 8-20
Rule 8 – Absence from India-
If any member is leaving India shall intimate to chairman & if...
Rule 12- Notice of Meetings-
The secretary shall give 14 days notice to every member of time & place
fixed along with agen...
Rule 18- Correspondence & Accounts-
The secretary shall conduct all correspondence of committee & keep its
account.
Rule 1...
PENALTIES AND PROCEDURE
Mines Act 1952
Chapter IX : Sec. 63-81
Dr. Tabrez Ahmad http://energylex.blogspot.in 52
OBSTRUCTION - SEC. 63
(1) Whoever obstructs the Chief Inspector and inspector or any person
authorised in the discharge of...
FALSIFICATION OF RECORDS –SEC 64
Whoever –
(a) counterfeits, or knowingly makes a false statement in any certificate, or a...
USE OF FALSE CERTIFICATES OF FITNESS –SEC 65
Whoever knowingly uses or attempts to use as a certificate of fitness
granted...
CONTRAVENTION OF PROVISIONS REGARDING EMPLOYMENT
OF LABOUR – SEC 67
Whoever, save as permitted by section 38 ( in emergenc...
FAILURE TO APPOINT MANAGER –SEC 69
Whoever, in contravention of the provisions of section 17, fails to
appoint a manager s...
OWNER ETC. TO REPORT TO CHIEF INSPECTOR IN CERTAIN
CASES- SEC 71
Where the owner, agent or manager of a mine, as the case ...
SPECIAL PROVISION FOR CONTRAVENTION OF CERTAIN
REGULATIONS – SEC 72 A
Whoever contravenes any provision of any regulations...
SPECIAL PROVISION OF CONTRAVENTION OF ORDER UNDER
SECTION 22- Sec 72- B
Whoever continues to work in a mine in contraventi...
SPECIAL PROVISION FOR CONTRAVENTION OF LAW WITH
DANGEROUS RESULTS- SEC 72
1) Whoever contravenes any provision of the Act ...
(2) Where a person having been convicted under this section is again
convicted thereunder, shall be punishable with double...
GENERAL PROVISION OF DISOBEDIENCE OF OTHERS- SEC 73
Whoever contravenes any provision of this Act or of any regulation,
ru...
Prosecution of owner, agent or manager – Sec 75
No prosecution shall be instituted against any owner, agent or manager for...
DETERMINATION OF OWNER IN CERTAIN CASES – SEC 76
Where the owner of a mine is firm or other association of individuals, al...
Who is resident in each case in any place to which this act extends and who is in
each case either in fact in charge of th...
Exemption of owner, agent or manager in certain cases – Sec 77
Where the owner, agent or manager of a mine, accused of an ...
Provided that –
a) the owner, agent or manager of the mine as the case may be,
may be examined on oath and his evidence an...
POWER OF COURT TO MAKE ORDERS –SEC 78
1. Where the owner, agent or manager of mine is convicted of an offence
punishable u...
LIMITATION OF PROSECUTIONS –SEC 79
No court shall take cognizance of any offence under this Act, unless complaint
thereof ...
COGNIZANCE OF OFFENCES – SEC 80
No court inferior to that of a Metropolitan Magistrate or Judicial Magistrate
of the first...
Big business: Big fights
Steel; Aluminium; cement expected to grow at 9-10 per cent annually
in next 10 years;
Power plant...
Mines Rules 1955
Rule 29 B - Occupational Health of Workmen.
Rule 29 P - Annual Report on Radiological Results of Medical
...
Mines Rules 1955
Rule 37 - Approval of chemical closets as underground
latrines
Rule 40 - Provision of Ambulance Van—The a...
Mines Rules 1955
Rule 42 – First Aid Services
Rule 45 A - Record of Blood Grouping
Identity Cards to Workmen
Rule 62 - Res...
THE MINES AND MINERALS (REGULATION AND DEVELOPMENT)
ACT 1957, ACT 67 OF 19571
[28TH December, 1957.]
Object: An Act to pro...
Definitions - In this Act unless the context otherwise requires,-
(a) “minerals” includes all minerals except mineral oils...
General Restrictions on Undertaking Prospecting
and Mining Operations
4. Prospecting or mining operations to be under lice...
5. Restrictions on the grant of prospecting or
licenses or mining leases
(1) No prospecting licence or mining lease shall ...
6. Maximum area for which a prospecting licnce
of mining may be granted
- 1[(1) No person shall acquire in any one State i...
8. Periods for which prospecting licences may be
granted or renewed
(1) - The period for which a prospecting licence may b...
9. Royalties in respect of mining leases
(1) The holder of a mining lease granted before the commencement of this Act shal...
2[9A. Dead-rent to be paid by the lessee-
(1) the holder of a mining lease whether granted before or after the
commencemen...
Procedure For Obtaining Prospecting Licences Or
Mining Leases In Respect Of Land In Which The
Minerals Vest In The Governm...
11. Preferential right of certain persons
(1) Where a prospecting licence has been granted in respect of any land the lice...
12. Registers of prospecting licences and mining leases
(1) The State Government shall cause to be maintained
in the presc...
Rules For Regulating The Grant Of Prospecting
Licences And Mining Leases
13. Power of Central Government to make rules in ...
(h) the facilities to be afforded by holders of mining leases to persons deputed by the Government for the
purpose of unde...
1[13A. Power of Central Government to make rules for the grant
of prospecting licensies or mining leases in respect of ter...
14. Sections 4 to 13 not to apply to minor minerals - The provisions of
sections 4 to 13 (inclusive) shall not apply to 2[...
(2) Until rules are made under sub-section (1) any rules made by
a State Government regulating the grant of 1[quarry lease...
16. Power to modify mining leases granted before 25th
October, 1949.
(a) All mining leases granted before the commencement...
(2) The Central Government may by notification in the Official
gazette make rules for the purposes of giving effect to the...
Special Powers Of Central Government To
Undertake Prospecting Or Mining Operations
In Certain Cases
17. Special powers of ...
(3) Where in exercise of the powers conferred by sub-section (2)
the Central Government undertakes prospecting or mining
o...
18. Mineral Development
(1) It shall be the duty of the Central Government to take all such steps as may be necessary for
...
Mines and water
Dr. Tabrez Ahmad http://energylex.blogspot.in 97
Mines and forests
Dr. Tabrez Ahmad http://energylex.blogspot.in 98
Understanding regulations
Environmental clearances: on what basis?
Public hearing: are people heard?
Forest clearance or f...
MMR 1961
Regulation 6- Notice of abandoned or discontinuance – not less than
30 days before such abandonment or discontinu...
MMR 1961
Regulation 10 - Notice of Notified disease within three days of his
being informed of the disease, in Form V of F...
MMR 1961
Regulation Nil Appointment of Safety officer
Regulation 35. Appointment of assistant managers or underground
mana...
MMR 1961
Regulation 62. Copies of plans and sections to be submitted on or
before the 30th April of every year, submit to ...
MMR 1961
Regulation 121. Equipment for fire-fighting – (1) a sufficient supply of
sand or in combustible dust or sufficien...
MMR 1961
Regulation 124. Precautions against dust – minimising of emissions of
dust and suppression of dust which enters t...
MMR 1961
Regulation 127. Danger from surface water –
No workings shall be made in any mine vertically below (a) any part
o...
MMR 1961
Regulation 129. Intentional flooding . (1) When the owner, agent or
manager intends or proposed, by introducing w...
MMR 1961
Regulation 145. Appointment of Ventilation Officer.- In the case of any
mine having extensive workings below grou...
MMR 1961
Regulation 171. Use of certain machinery belowground. – (1) No internal
combustion engine or steam boiler shall b...
MMR 1961
182B. Supply of other protective equipment. – (1) Where is appears to
the Regional Inspector or the Chief Inspect...
MMR 1961
Regulation 184. Man power Distribution Plan. – During the first week
of every month a sketch plan showing the man...
MMR 1961
Regulation 190A. Emergency plan. – (1) The manger shall prepare a
general plan of action for use in time of emerg...
Health & Safety Issues
Key risks faced by miners:
Gas and coal dust exposure.
Mine roof and wall collapses.
Mine fires.
Fa...
The Mines Act and Development of Mine Safety
Legislation in India.
Development of Mines Safety Legislation
Back ground
Min...
Background
At present India produces 87 minerals
Mineral sector is growing at a rate of about 7.5%
The contribution of min...
Mineral Industry In India
569Coal Mines
67 Oil & Gas Projects
Over 8000 Non-Coal Mines
Employing over one (1) million pers...
India has completed 109 years of State intervention for
protecting persons at work in mines
Required safeguards for the pe...
Constitutional obligation
Article 246 (entry 55 of the seventh schedule)
“regulation of labour and safety in mines and
oil...
Article 39
“the state shall, in particular, direct its policy towards
securing -
(e) that the health and strength of worke...
History of Development of OSH legislation in India
1890- The ILO, at its meeting in Berlin considered the
issues related t...
o 1901 This efforts led to the enactment of the First Indian Mines Act which
came into force on 22nd March, 1901 Some of t...
o The 1928 amendments made the following additional provisions:
o – Overlapping of shifts was prohibited
o – same set of w...
The amendment Act of 1936 provided the following provision:-
• Establishment of Rescue Stations and formation, training an...
Daily maximum work -8 hrs in underground & 9 hrs on surface
Restriction on employment of women below ground
Provision of f...
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Mining law

  1. 1. Dr. Tabrez Ahmad Professor of Law Dr. Tabrez Ahmad http://energylex.blogspot.in 1
  2. 2. Agenda Historical Development Regional Exploration Detailed Exploration Actual Exploration The Mines Act 1952 The Mines Rules 1955 Mining Lease ( Modification of Terms ) Rules 1956 The Mines and Minerals( Development and Regulation ) Act 1957 The Minerals Concession Rules 1960 Mineral Conservation an Development Rules 1988 National Mineral Policy 1993 FDI in Mining Industry National Mineral Policy 2008 Anwarul Hoda Committee Report MB Shah Committee Report Mines & Minerals (Development & Regulation) Bill, 2011 Environment & Mining Regulation Mining Management in India Analysis of Indian Mining Sector Dr. Tabrez Ahmad http://energylex.blogspot.in 2
  3. 3. History - Timeline First Indian mining operations begun in 1774. Development of steam engine in 1850’s spurred coal demand. World War I created another surge in demand. National Coal Development Corporation (NCDC) – 1956 formed. Steel industry growth in 1950’s and 1960’s sent coal demand to all time highs. Dr. Tabrez Ahmad http://energylex.blogspot.in 3
  4. 4. History Cont’d Demand from steel industry led to significant private investment in mining, mostly for coking coal. Growth in private mining led to following comment by then Minister of Steel and Mines: “Rampant corruption, forced labour, dubious and duplicate records, under reporting of production, non-payment of full wages, extended hours of shift without payment of lead or lift, lack of safety and welfare measures…seemed to be the guiding principles of a large number of private collieries…” Nationalization of the industry. Coking Coal Mines Nationalization Act of 1972 Coal Mines Nationalization Act of 1973 Coal India Ltd Dr. Tabrez Ahmad http://energylex.blogspot.in 4
  5. 5. The 15 Wedges (Scientific American, 9/06) Dr. Tabrez Ahmad http://energylex.blogspot.in 5
  6. 6. Power allocation in India 68% 8% 15% 3% 6% Coal Gas Hydro Nuclear Others Dr. Tabrez Ahmad http://energylex.blogspot.in 6
  7. 7. Indian Scenario • India is the 4th largest economy in the world. • India has the 2nd largest GDP amongst developing countries based on purchasing power parity. • Buoyant economy – growth still expected to be in the region of 6-8%. • Availability of electricity a key factor in sustaining growth. • 5th largest electricity generation capacity in the world – over 1,90,592 MW. • Worlds 3rd largest transmission and distribution network. • Country continues to suffer from massive demand-supply gap particularly during peak hours. • 8-10 hours of “load shedding” even in industrialised states. • July ‘12 power grid failure – affected over 600 million people. • Great scope for nuclear power – potential value of sector in India at USD 150 Billion. Dr. Tabrez Ahmad http://energylex.blogspot.in 7
  8. 8. Coal India Limited Government–owned entity which owns and operates India’s mines. Under Ministry of Coal. 8 mining subsidiaries, 1 mine siting and planning subsidiary. Source: Coal India LTD. Dr. Tabrez Ahmad http://energylex.blogspot.in
  9. 9. Coal India Limited World’s largest coal mining company. Responsible for approximately 85% of total Indian production. 324 million tons in 2005. 1) Eastern Coalfields LTD 2) Bharat Coking Coal LTD 3) Central Coalfields LTD 4) Central Mine Planning 5) Northern Coalfields LTD 6) South Eastern Coalfields LTD 7) Western Coalfields LTD 8) Mahanadi Coalfields LTD 9) North Eastern Coalfields Source: Coal India LTD. Dr. Tabrez Ahmad http://energylex.blogspot.in 9
  10. 10. The major players in the Mining sector are classified on the basis of the minerals produced by them namely, Exploration and Production of Coal / Lignite: Coal India Ltd, Neyveli Lignite Corporation, IISCO(Indian Iron and Steel Company) etc. Exploration of Metals (Copper, Bauxite, Iron Ore, Chromite, Lead- Zinc): NALCO, BALCO, Mineral Exploration Corporation Ltd, Bharat Gold Mines Ltd, ONGC, Ircon, Hindustan Zinc Ltd, Hindustan Copper Ltd, Sikkim Mining Corporation Dr. Tabrez Ahmad http://energylex.blogspot.in 10
  11. 11. Iron Ore Sector: National Mineral Development Corporation Kudremukh Iron Ore Company, Steel Authority of India Ltd, Orissa Mining Corporation. Bauxite Mining and Aluminum Production: National Aluminum Company. Copper - Ore Mining: Hindustan Copper Ltd. Rock - Phoshate and Barytes Mining: Rajasthan State Mines and Minerals Ltd, Andhra Pradesh Mining Development Corporation. Dr. Tabrez Ahmad http://energylex.blogspot.in 11
  12. 12. Global Mining Companies in Indian Mining Sector Transworld Garnet Co., Canada Meridian Peak Resources Corpn,Canada Pebble Creek Resources Ltd., Canada BHP Billiton,Australia Rio-Tinto Minerals Development Ltd., UK Metdist Group, UK Phelps Dodge Exploration Corpn, USA De-Beers Consolidated Mines ltd., South Africa Anglo American Exploration (India) BV, Netherland Dr. Tabrez Ahmad http://energylex.blogspot.in 12
  13. 13. DEVELOPMENT OF MINING LAWS Dr. Tabrez Ahmad http://energylex.blogspot.in 13
  14. 14. Towards end of 19th century people started feeling wretched conditions of persons working in mines. Serious disasters occurred from time to time. This alarmed the public opinion to such extend that legislatures decided to enact provision to prevent mining accidents. The first concrete proposal for inspection & regulation of mining operations in India came in 1890 from Lord Cross, Secretary of State for India. In 1894 James Grundy was appointed as first Inspector of Mines in India who recommended provisions to be made for min. age of employment, first-aid, management & supervision etc.. Two major disasters at Kolar Gold Field In 1897 & Khost Coal Mine Baluchistan 1898 expedited the finalization of first Mines Act enacted on March 22, 1901, which was applicable only in mines situated in British India. A BUREAU OF MINES INSPECTION (later termed ‘Department Of Mines’) was started in Calcutta with one chief inspector & two Inspectors of Mines, who were entrusted with enforcement of Mines Safety Legislation. Dr. Tabrez Ahmad http://energylex.blogspot.in 14
  15. 15. Mine Act was re-enacted on 1 July 1923 subsequently amended in 1928 & 1935. In 1951, Mine Act was applicable throughout India. Although Mines Act had been amended from time to time the general framework had remained same until 1952 . The new Mines Act came into force from 1st July 1952 New provision under the Act were: New definition of ‘ mine’ was given Provision of ambulance, first aid, drinking water & other medical facilities Payment of overtime wages Grant of leaves with wages etc… Dr. Tabrez Ahmad http://energylex.blogspot.in 15
  16. 16. The Act was amended in 1959 and enforced from 16th Jan 1960 to make it more effective. The amended act: Gives detailed definition of mine. Liberalizes provisions relating to leave with wages. Enhances penalties against contravention etc.. A new set of Coal Mines Pithead Bath Rules, Mines Crèche Rules & Coal Mines Rescue Rules were framed to provide additional facilities. Later Mines & Minerals (Regulation and Development) Act 1957 & Mineral Conservation and Development Rules 1958 . They are enforced by the Office of the Indian Bureau of Mines. The Act lists number of ‘specified minerals’ for grant / renewal of whose prospecting license or mining lease approval of Central govt. is essential etc…. Mineral Concession Rules 1960framed under Mines & Minerals (Regulation and Development) Act 1957 came into force in 1960 to regulate the grant of mineral concessions etc… Dr. Tabrez Ahmad http://energylex.blogspot.in 16
  17. 17. The industrial sector in India consists of three sub-sectors: (i) Manufacturing, (ii) Mining and quarrying and (iii) Electricity, gas and water supply. Though minerals account for a small share of the country’s production, their supply is essential for the development of India’s modern economy. They are basic and strategic raw materials for the production of a wide range of industrial and consumer products, military and transport equipment, infrastructure, energy, communications and many other essential services. Economic minerals, i.e. the minerals that can be marketed for productive purposes can be classified into three categories:- (i) Energy or fuel minerals (coal, gas, oil, uranium); (ii) Metallic minerals: Ferrous (iron ore, chrome ore, titanium); basic metals (bauxite and copper) and precious (gold, silver, platinum); and (iii) Non-metallic minerals (diamond, gems , salt, bricks and stones) Both public and private sector enterprises are involved in mineral development in India. Dr. Tabrez Ahmad http://energylex.blogspot.in 17
  18. 18. PUBLIC SECTOR Coal mining companies are almost exclusively government-owned with Coal India Ltd. Neyvelli Lignite Corporation is involved in lignite mining along with production of power. Steel Authority of India (SAIL), National Mineral Development Corporation Ltd. (NMDC), National Aluminum Company Ltd. (NALCO), Manganese Ores India Ltd. (MOIL), and Hindustan Copper Ltd. (HCL) are the other major (central) public sector companies engaged in mining operations. There are state government-owned public sector companies like the Orissa Mining Corporation (OMC) and the Andhra Pradesh Mining Development Corporation which play a significant role in mineral development Dr. Tabrez Ahmad http://energylex.blogspot.in 18
  19. 19. The PRIVATE SECTOR is also dominated by a few large companies although in terms of sheer number small mines occupy a disproportionately a large space in India’s mineral sector. Tata Steel, the Vedanta group of companies comprising Vedanta Resources, Sesa Goa Ltd., Sterlite Industries (India) Ltd., BALCO and Hindustan Zinc Ltd., and Hindalco Industries Ltd. are the major companies in the private sector. Some of these companies are also producers of metal products and carry on mining operations as adjunct or captive to their metallurgical industries. Many moderately large companies such as Ambuja Cement, Century Cement, the Associated Cement Company Ltd., Larsen and Toubro Ltd.; Orissa Cement Ltd. and J.K. Cement are prominent in cement industry and associated limestone mining. GOVERNMENT BODIES ADMINISTERING MINING INDUSTRY Ministry of Mines of Government of India – responsible for administration of mining laws in India. Indian Bureau of Mines (IBM) – Monitors & regulates mining activity through processing & approving of mining plans & also advises Government on matters with regard to mineral industry, export & import policies, trade, mineral legislation & related matters. Dr. Tabrez Ahmad http://energylex.blogspot.in 19
  20. 20. PRIMARY LEGISLATION REGULATING MINING IN INDIA Dr. Tabrez Ahmad http://energylex.blogspot.in 20
  21. 21. 1. Mines Act 1952 (MA) 2. Mines and Minerals (Development and Regulation) Act 1957 (MMDR Act) Both the acts together with rules and regulations framed there under constitute the basic laws governing the mining sector in India. The Mines Act 1952 seeks to regulate the working conditions of labour in mines by providing for the measures to be taken for their safety. To implement the provisions of the Act, a number of rules and regulations have been framed by the Central Government. These are the Mines Rules (MR) 1955, The Coal Mines Regulations (CMR) 1957, The Metalliferous Mines Regulations (MMR) 1961 and The Maternity Benefits (Mines) Rules (MBR) 1963. The health and safety of the workers is governed by the Mines Rules 1955. The Director General of Mines Safety (DGMS) is responsible for enforcing the provisions of the Mines Act. Similarly under MMDR Act rules framed are : Mineral Concession Rules 1960 (MC Rules), Mineral Conservation and Development Rules 1988 (MCD Rules), Granite Conservation & Development Rules 1999, Marble Development & Conservation Rules 2002 Colliery Control Rules 2004 Dr. Tabrez Ahmad http://energylex.blogspot.in 21
  22. 22. Draft : Mines and Minerals (Development and Regulation) Bill 2011. However, the emphasis so far has been mostly on creating new institutional structures and providing additional regulatory powers to bureaucrats who come to man these structures. For example, the Draft Mines and Minerals (Development and Regulation) (MMDR) Bill 2011 which, if approved by Parliament, will replace MMDR Act 1957 as the country’s main mining law contains a number of provisions seeking to create new institutional mechanisms for addressing the problem of illegal mining. Dr. Tabrez Ahmad http://energylex.blogspot.in 22
  23. 23. The proposed legislation seeks to: Create a National Mining Regulatory Authority with powers to investigate and prosecute large scale, organized and inter-state illegal mining (Section 69). Similarly, a new State Mining Regulatory Authority in a mining State will have powers to authorize investigation and prosecution in cases of illegal mining of both major and minor minerals (Section 70), Also, Statutory Coordination- cum- Empowered Committees are proposed both at the Central and State levels to perform various coordinating functions including prevention of illegal mining (Sections 102 and 103). Finally, State Governments have been authorized to set up Special Courts to expedite prosecution of illegal mining (Section 107). Dr. Tabrez Ahmad http://energylex.blogspot.in 23
  24. 24. Criticism As has been mentioned earlier, these are all measures to create new government institutions and do not address the substantive economic, social and procedural considerations that motivate people to indulge in illegalities. In fact, multiplicity of institutions will further add to the confusion through dilution of responsibilities and accountability. The Draft Mines and Minerals (Development and Regulation) Bill 2011 is designed to address the sector’s problems including that of sustainable mineral development. There are doubts if the proposed legislation will be able to address the twin problems of increasing investment and bringing about sustainable development in mining effectively. Dr. Tabrez Ahmad http://energylex.blogspot.in 24
  25. 25. OTHER LAWS AFFECTING MINING INDUSTRY 1. Enviornment protection statues: Enviornment (Protection) Act 1986. Forest (Conversation) Act 1980 Water (Prevention and Control of Pollution) Act 1974. Air (Prevention & Control of Pollution) Act 1981 2. Labour related legislations: Factories Act 1948 Industrial Disputes Act 1947 Workman’s Compensation Act 1923 3. Health and safety laws: Mines Act 1952 Mines Rules 1955 Metalliferous Mines Regulations 1961 Maternity Benefit (Mines) Rules 1963 Mines (Rescue) Rules 1985 Dr. Tabrez Ahmad http://energylex.blogspot.in 25
  26. 26. INDIAN CONSTITUTION & MINING Dr. Tabrez Ahmad http://energylex.blogspot.in 26
  27. 27. Under India’s federal structure, the proprietary title to onshore minerals vests in the constituent States; (on land) the minerals situated in the offshore areas, on the other hand, are under the exclusive control of the Central Government. (territorial waters, continental shelves, exclusive eco. Zone & other maritime zones of India, 14 nautical miles) The Constitution of India, through various entries in the Union List (List 1), State List (List II), and the Concurrent List (List III) included in its Schedule VII assigns functions and legislative powers to both the Centre and the states. Predominance of the central government’s powers in the area of regulation of mines and mineral. State List- Entry 23 empowers the state governments to make laws relating to “regulation of mines and mineral development subject to the provisions of List with respect to regulation and development under the control of the Union”. Union List- Entry 54 dealing with the same subject empowers the central government to make laws relating to the “regulation of mines and mineral development to the extent to which such regulation and development under the control of the Union is declared by Parliament by law to be expedient in the public interest”. Dr. Tabrez Ahmad http://energylex.blogspot.in 27
  28. 28. The conditionalities outlined in clauses (1)-(3) of Article 246 of the Constitution, which deals with the law-making powers of the Parliament and the State legislatures and the formulation of the two entries of Schedule VII, referred to earlier, leave no doubt about the predominance of the central government’s powers in the area of regulation of mines and mineral development. The Mines and Minerals Development and Regulation (MMDR) Act 1957, enacted by the Parliament in pursuance of this power, confers the right to allow exploitation of minerals by way of granting licenses and leases on the state governments, but in accordance with the provisions of the (MMDR) Act and its Rules which require mandatory prior approval of the central government for the grant of such licenses and leases. In fact, with respect to major minerals (known as Schedule 1 minerals), the states have little powers except possession, receiving royalty and a few other payments. Even in respect of royalty and associated rent, the rates are prescribed by the Central Government under the relevant legal provisions of the MMDR Act 1957. Only with respect to minor minerals, the states can make their own rules and regulations. Dr. Tabrez Ahmad http://energylex.blogspot.in 28
  29. 29. Additionally, the Constitution confers legislative powers on the CENTRAL GOVERNMENT for the regulation and development of oil fields, mineral oil reserves, petroleum and petroleum products and safety of mines and oil fields as also for the Geological Survey of India which is the premier public sector agency for undertaking geological surveys in the country -Entries 53, 55, and 68 of the Union List – List . Dr. Tabrez Ahmad http://energylex.blogspot.in 29
  30. 30. THE MINES ACT 1952 Different Authorities under the Act. Committees under the Mining Act, powers and functions. Penalties under the Act. Dr. Tabrez Ahmad http://energylex.blogspot.in 30
  31. 31. APPLICATION & DEFINITIONS Dr. Tabrez Ahmad http://energylex.blogspot.in 31
  32. 32. Sec 1 (2)- The Act extends to whole of India. Sec 2- Definitions:- (d) "Chief Inspector" means the Chief Inspector of Mines appointed under this Act; (e) "Committee" means a committee constituted under section 12; (f) "day" means a period of twenty-four hours beginning at midnight; (g) "District Magistrate" means, in a presidency-town, the person appointed by the Central Government to perform the duties of a district magistrate under this Act in that town; (i) "Inspector" means an Inspector of Mines appointed under this Act, and includes a district magistrate when exercising any power or performing any duty of an Inspector which he is empowered by this Act to exercise or perform; Dr. Tabrez Ahmad http://energylex.blogspot.in 32
  33. 33. (j) "MINE" means any excavation where any operation for the purpose of searching for or obtaining minerals has been or is being carried on and includes- i. all borings, bore holes, oil wells and accessory crude conditioning plants including the pipe conveying mineral oil within the oilfields ; ii. all shafts, in or adjacent to and belonging to a mine, whether in the course of being sunk or not; iii. all levels and inclined planes in the course of being driven; iv. all open cast workings; v. all conveyors or aerial ropeways provided for the bringing into or removal from a mine of minerals or other articles or for the removal of refuse therefrom; vi. all adits, levels, planes, machinery, works, railways, tramways and sidings in or adjacent to and belonging to a mine; Dr. Tabrez Ahmad http://energylex.blogspot.in 33
  34. 34. (vii) all protective works being carried out in or adjacent to a mine; (viii) all workshops and stores situated within the precincts of a mine and under the same management and used primarily for the purposes connected with the mine or a number of mines under the same management; (ix) all power stations, transformer sub-stations, convertor stations, rectifier stations and accumulator, storage stations for supplying electricity solely or mainly for the purpose of working the mine or a number of mines under the same management; (x) any premises for the time being used for depositing sand or other material for use in a mine or for depositing refuse from a mine or in which any operations in connection with such sand, refuse or other material is being carried on, being premises exclusively occupied by the owner of the mine; (xi) any premises in or adjacent to and belonging to a mine on which any process ancillary to the getting dressing or preparation for sale of minerals or of coke is being carried on; Dr. Tabrez Ahmad http://energylex.blogspot.in 34
  35. 35. (jj) "MINERALS" means all substances which can be obtained from the earth by mining, digging, drilling, dredging, hydraulicing quarrying or by any other operation. (kk) "OPEN CAST WORKING" means a quarry, that is to say, on excavation where any operation for the purpose of searching for or obtaining minerals has been or is being carried on, not being a shaft or an excavation which extends below super adjacent ground; Dr. Tabrez Ahmad http://energylex.blogspot.in 35
  36. 36. DIFFERENT AUTHORITIES UNDER THE ACT Inspectors and Certifying Surgeons (Sec 5-11) Dr. Tabrez Ahmad http://energylex.blogspot.in 36
  37. 37. Sec 5: Chief Inspector & Inspector- (1) Central govt. may by notification in Official gazette appoint a person with prescribed qualification to be C.I of Mines for all territories to which this Act extends & subordinate to C.I. Inspectors of Mines. C.I. must be holder of degree or an equivalent qualification in Mining Engineeering & first class manager certificate. The Inspectorate consists of following:- a. Mining Inspectors. b. Mechanical inspectors c. Electricity inspectors- to enforce application of electricity act & Indian electricity rules. d. Medical inspectors e. Statistical wing- to compile various mining safety statistics. f. Survey section g. Law section h. Examination section Dr. Tabrez Ahmad http://energylex.blogspot.in 37
  38. 38. (2)Any of the above officials must not be directly/indirectly interested in any mine/mining rights in India. (3)District magistrate may exercise powers & perform duties of Inspector subject to general /special orders of central govt but in any case shall not exercise powers of Sec. 22/22A(power to prohibit employment in certain cases)/61(bye laws) (4) Both C.I. & Inspectors shall be Public servants within meaning of I.P.C. Sec 6- Functions Of Inspectors- C.I. may with approval of central govt. subject to restrictions as think fit in written order authorize any inspector to exercise his i.e C.I. powers. C.I. may prohibit or restrict power of any Inspector conferred under this act. C.I. shall declare local areas within which/groups of mines with respect to which Inspectors shall exercise their powers. Dr. Tabrez Ahmad http://energylex.blogspot.in 38
  39. 39. Sec 7- Powers of Inspectors of Mines- The C.I. & Inspectors of Mines is vested with the power to EXAMINE, INQUIRE, SEARCH & SEIZE as well as to file a complaint for any offence committed under the provisions of the Act- H.S Sachdeo v. State of M.P.,1974. The Provisions of Cr. P.C.,1973 shall as far as may be applicable, apply to any search or seizure under this act as they apply u/s 94 of Code (Search of place suspected to contain stolen property, forged documents etc..) THE ROLE & FUNCTIONS MAY BE SUMMARIZED AS: Regulatory- Inspection of mines to check compliance with safety laws, enquires into accidents and complaints; Developmental- Granting of statutory permissions for mining operations & approval of the mining equipment's. Advisory- Expert advice tendered to govt. on safety legislation & mining matters and to mine managements on improvements of safety standards. Examinations- Conduct of statutory examinations for grants of competency certificates to the managerial & supervisory personnel, and medical fitness certificate. Dr. Tabrez Ahmad http://energylex.blogspot.in 39
  40. 40. Sec 8 – Powers of Special officers to enter, measure etc..- Any person in govt. service can be duly authorized in this behalf by special order in writing by C.I/any Inspector for purpose of surveying/ leveling/measuring any mine after giving at least 3 days notice to manager can exercise same powers at any time of day/night. Sec 9- Facilities to be afforded to Inspectors- Every owner, agent & manager of mine shall afford above mentioned officials all reasonable facilities for making entry, inspection, survey, measurement, examination or inquiry under this act. Safety and Occupational Health Survey in Mines Under Sec 9 –A, C.I. /Inspector or other officer authorized by him in writing, may at any time during normal working hrs. of the mine/ any time of day or night, undertake safety & occupational health survey in a mine after giving notice in writing to manager of mine who shall facilitate for Examination & testing of plant & machinery. Collection of samples & other data pertaining to the survey. Transport & examination of any person employed in mine chosen for survey. Dr. Tabrez Ahmad http://energylex.blogspot.in 40
  41. 41. (2) every person chosen for survey shall furnish all information regarding his work & health in connection with said survey. (3) The time spended for survey shall be counted towards his working time, if required overtime shall be also paid. (4) If any person found medically unfit to discharge his duty shall immediately will undergo the treatment at cost of management with full wages. (5) If after treatment if person declared unfit for work he was discharging earlier, the mine management shall provide such person alternative employment for which medically fit. In failure to provide alternative work shall be paid disability allowance. If person desires to leave mine employment shall be paid lump- sum amount by way of disability compensation. (6) The rates for above shall having regard to monthly wages of the employees, nature of disability & other related factors. The above provisions shall not operate to the prejudice to any law or any terms of any award, agreement or contract of service which provides for more favorable benefits than disability allowances/disability compensation, such person shall be entitled to such benefits. Conclusion: Inspectorate should not only point out practice & methods which they are following is dangerous but should also indicate possible alternative methods can be eliminated / reduced. Dr. Tabrez Ahmad http://energylex.blogspot.in 41
  42. 42. Secrecy of Information obtained Sec 10 states: 1) All copies, extracts, registers or records pertaining to any mine & all other information acquired by C.I / Inspector/ person authorized in exercise of duties, shall not be disclosed to any person or authority unless they consider necessary to disclose to ensure health, safety or welfare of any person employed in mine. If any information disclosed without consent of central govt. be punishable with imprisonment which may extend to one yr, fine or both. No court shall proceed to trial of any offence under this section except with previous sanction of central govt. (2) But they can disclose of any such information if so required to: Any court Committee / Court of Inquiry constituted or appointed u/s 12 or s. 24. An official superior, owner, agent or manager of mine concerned Commissioner for Workmen’s compensation appointed under Workmen’s compensation Act 1923 Controller , Indian Bureau of mines; Any registered or recognised trade union Any such officer, authority or organisation as may be specified in this behalf by central government. Dr. Tabrez Ahmad http://energylex.blogspot.in 42
  43. 43. Certifying surgeons/ Medical officer (Sec 11 of Act 1952; Rule 23- 29 of Mines Rules 1955) Sec 11: 1. Central govt. may appoint qualified medical practitioners to be certifying surgeons for purposes of this Act within such local limits / for such class or description of mines; 2. Such medical practitioner can authorize any medical practitioner to exercise all/any his powers with approval of central govt for specific period. 3. But if any such surgeon becomes owner, agent, manager of mine or in/ directly interested therein cannot be appointed. 4. Rule 25,-27 & 29 OMITTED in 1986 now only Rule 23, 24,28 . 1. Powers of Certifying Surgeons- Rule 23 2. He may within local limits of his jurisdiction make such inspection examination or inquiry as he thinks fit for the purpose of the Act & its duties of authorities of such mine to provide all facilities to surgeon. Dr. Tabrez Ahmad http://energylex.blogspot.in 43
  44. 44. Duties of Certifying Surgeons- Rule 24 1. On receipt of reference u/s 43 (1) of Act 1952 “if Inspector is of opinion that any person employed is not apprentice or trainee and below 16 yrs, Inspector may serve notice to manager requiring such person to be examined by certifying surgeon”. The surgeon shall give prior notice regarding date, time, place for medical examination & upon examining the person sent for such examination, prepare the age & fitness certificate & deliver same to the manager of mine retain copy of same. 2. Upon request of C.I. / Inspector carry out such examination & furnish him with such report as case may indicate in respect of any mine in which operations involve any risk of injury to health of employees. 3. Fresh Examination- Rule 28 4. If any person certified unfit by C. Surgeons, shall not without permission by Inspector in writing, be send to other surgeon for another medical examination unless period of 6 mths. elapsed from time when he was sent up for medical examination. 5. Any certificate obtained in contravention shall be VOID. Dr. Tabrez Ahmad http://energylex.blogspot.in 44
  45. 45. THE MINES ACT 1952 Committees under the Mining Act- powers and functions Chapter III Sec. 12- 15; Rule 3-20 of Mines Rule 1955 Dr. Tabrez Ahmad http://energylex.blogspot.in 45
  46. 46. COMMITTEES – SEC. 12; Rule 3-7 The central govt. by notification in Official gazette constitute committee consisting of: a. Person in service of government not being C.I or Inspector- Chairman b. Chief inspector of Mines- one of which at-least shall be representing interests of owners of coal mine. c. 2 person to represent interest of miners- one of which must represent interest of coal mine workers. d. 2 person to represent interest of owners of mines e. 2 qualified mining engineers not directly employed in mining industry. Central govt. may constitute one or more committees to deal with specific matters relating to any pat of territory. No act or proceeding of Committee shall be invalid by reason of existence of vacancy or any defect in constitution thereof. Dr. Tabrez Ahmad http://energylex.blogspot.in 46
  47. 47. Rule 3- Term Of Office Of Members (c)-(e) shall be 3 yrs. But can continue to hold office until appointment of successor. Rule 4- Chief inspector may nominate an Inspector of Mines who shall act as Secretary of Committee. Rule 5- Members receive such honorarium as central govt. may fix. Rule 7- Resignation- A member may resign by writing under his hand addressed to chairman. Chairman can resign addressing to Central govt. It takes effects from day of acceptance or on expiry of 30 days of receipt whichever is earlier. FUNCTION OF COMMITTEE- SEC 13 1. Committee shall consider proposals for making rules & regulations under the Act & make appropriate recommendations to central govt. 2. Enquire into such accidents /other matters as referred by central govt. from time to time & make reports. 3. Hear & decide such appeals or objections against notices or orders under Act OR regulation, rule, bye-laws thereunder 4. Chief inspector shall not take part in any proceedings of committee with respect to appeal/objection against order/notice issued by him. Dr. Tabrez Ahmad http://energylex.blogspot.in 47
  48. 48. POWERS OF COMMITTEE- SEC 14 It may exercise powers of Inspectors under the Act as it thinks necessary or expedient to exercise for the purposes of discharging its functions It has same powers as vested in court under C.P.C when trying suit in respect of following matters: 1. Discovery & inspection 2. Enforcing attendance of any person & examining him on oath 3. Compelling production of documents 4. Such other matters as may be prescribed. RECOVERY OF EXPENSES- Sec 15 Central govt may direct that Expenses of any inquiry conducted by a committee shall be borne in whole/ part by owner or agent of mine. In failure by sale of any movable property within limits of magistrate’s jurisdiction may be directed to be paid Dr. Tabrez Ahmad http://energylex.blogspot.in 48
  49. 49. OTHER RULES (Committees)- 8-20 Rule 8 – Absence from India- If any member is leaving India shall intimate to chairman & if leaving more than 6 mths has to tender his resignation. If leaves without intimation shall deemed to have resign. Rule 9- Notification of vacancies- Chairman shall inform Central govt as soon as vacancy occurs by resignation /death. In case of vacancy occurring because of death of chairman the C.I or Inspector appointed to Board by central govt. shall inform central govt. Rule 10- Disposal of Business: All questions which Committee required to consider shall be considered either at its MEETING or by CIRCULATION OF PAPERS- in such case if more than 3 members wants such matter can be discussed in meeting. RULE 11- Time & Place of Meetings- As appointed by CHAIRMAN. Dr. Tabrez Ahmad http://energylex.blogspot.in 49
  50. 50. Rule 12- Notice of Meetings- The secretary shall give 14 days notice to every member of time & place fixed along with agenda seen days in advance. In case of urgent meeting 2 days notice required. Rule 13- Presiding of meetings- Chairman shall preside over the meeting. In his absence members present shall elect one of them to preside over meeting who will exercise chairman powers. Rule 14 –Quorum: No business shall be transected at meeting unless atleast 4 members are present Rule 15- Decision of Majority: All decisions in meeting shall be taken with majority. In case of equal votes Chairman exercise additional vote.. Any member disagreeing with decision of committee may enter note of dissent which shall become part of record of proceedings. Rule 16- Minutes of Meetings: Secretary shall circulate to all members after getting signature by chairman. Rule 17- Allowances to non- official members. Travelling & daily allowances of all non- official members shall be regulated in acc. with central govt. Dr. Tabrez Ahmad http://energylex.blogspot.in 50
  51. 51. Rule 18- Correspondence & Accounts- The secretary shall conduct all correspondence of committee & keep its account. Rule 19- Appearance at hearings Any appearance to be made before committee may be either in person or by agent or by legal practitioners on his behalf except for witness. Rule 20- Proceedings to be in camera: Unless chairman otherwise directs, proceedings of committee shall be regarded as confidential Dr. Tabrez Ahmad http://energylex.blogspot.in 51
  52. 52. PENALTIES AND PROCEDURE Mines Act 1952 Chapter IX : Sec. 63-81 Dr. Tabrez Ahmad http://energylex.blogspot.in 52
  53. 53. OBSTRUCTION - SEC. 63 (1) Whoever obstructs the Chief Inspector and inspector or any person authorised in the discharge of his duties or refuses or willfully neglects to afford any reasonable facility for making any entry, inspection, examination or inquiry in relation to any mine shall be punishable with imprisonment of a term which may extend to three months, or with fine which may extend to five hundred rupees, or both. (2) Whoever refuses to produce on the demand of the Chief Inspector or any registers or other documents kept in pursuance of this Act or prevents or attempts to prevent or does any thing which he has reason to believe to be likely to prevent any person from appearing before or being examined by an inspecting officer acting in pursuance of his duties under this Act, shall be punishable with fine which may extend to three hundred rupees. Dr. Tabrez Ahmad http://energylex.blogspot.in 53
  54. 54. FALSIFICATION OF RECORDS –SEC 64 Whoever – (a) counterfeits, or knowingly makes a false statement in any certificate, or any official copy of a certificate, granted under this Act, or (b) knowingly uses as true any such counterfeit or false certificate, (c) makes or produces or uses any false declaration, statement or evidence knowing the same to be false for the purpose of obtaining for himself or for any other person a certificate or the renewal of a certificate under this Act, or any employment in a mine, or (d) falsifies any plan, section, register or record, the maintenance of which is required by or under this Act or produces before any authority such false plan, section, register or record, knowing the same to be false or; (e) makes, gives or delivers any plan, return, notice, record or report containing a statement, entry or detail which is not to the best of his knowledge or belief true, shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to one thousand rupees or with both. Dr. Tabrez Ahmad http://energylex.blogspot.in 54
  55. 55. USE OF FALSE CERTIFICATES OF FITNESS –SEC 65 Whoever knowingly uses or attempts to use as a certificate of fitness granted to himself under section 43 a certificate granted to another person under that section, or having been granted a certificate of fitness to himself under that section, knowingly allows it to be used, or allows an attempt to use it to be made by another person shall be punishable with imprisonment for a term which may extend to one month, or with fine which may extend to two hundred rupees, or with both. OMISSION TO FURNISH PLANS ETC.- SEC 66 Any person who, without reasonable excuse the burden of providing which shall lie upon him, omits to make or furnish in the prescribed form or manner or at or within the prescribed time any plan, section return, notice, register; record or report required by or under this Act to be made or furnished shall be punishable with fine which may extend to one thousand rupees. Dr. Tabrez Ahmad http://energylex.blogspot.in 55
  56. 56. CONTRAVENTION OF PROVISIONS REGARDING EMPLOYMENT OF LABOUR – SEC 67 Whoever, save as permitted by section 38 ( in emergency/ accident can employ), Contravenes any provision of this Act or Of any regulation rule, bye-law or of any order made thereunder prohibiting restricting or regulating the employment or presence of persons in or about a mine shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one thousand rupees, or with both. PENALTY FOR EMPLOYMENT OF PERSONS BELOW EIGHTEEN YEARS OF AGE-SEC 68 If a person below eighteen years of age is employed in a mine in contravention of section 40, the owner, agent or manager of such mine shall be punishable with fine which may extend to five hundred rupees. Dr. Tabrez Ahmad http://energylex.blogspot.in 56
  57. 57. FAILURE TO APPOINT MANAGER –SEC 69 Whoever, in contravention of the provisions of section 17, fails to appoint a manager shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to two thousand and five hundred rupees, or both. NOTICE OF ACCIDENTS :SEC 70 Whoever in contravention of section 23 (1) fails to give notice of any accidental occurrence or to post a copy of the notice on the special notice board referred to in that sub-section and to keep in there for the period of 14 days shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to five hundred rupee or with both. Whoever in contravention of a direction made by the Central Government under section 23(3) fails to record in the prescribed register to give notice of any accidental occurrence shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to five hundred rupees, or with both. Dr. Tabrez Ahmad http://energylex.blogspot.in 57
  58. 58. OWNER ETC. TO REPORT TO CHIEF INSPECTOR IN CERTAIN CASES- SEC 71 Where the owner, agent or manager of a mine, as the case may be, has taken proceeding under this Act against any person employed in or about a mine in respect of an offence under this Act, he shall within twenty-one days from the date of the judgement or order of the court report the result thereof to the Chief Inspector. OBLIGATIONS OF PERSONS EMPLOYED IN A MINE – SEC. 72 No person employed in a mine shall -- a) willfully interfere with or misuse any appliance convenience of other thing provided in a mine for the purpose of securing the health, safety or welfare of the person employed therein. b) willfully and without reasonable cause do any thing likely to endanger himself of others; c) willfully neglect to make use of any appliance or other thing provided in the mine for the purpose of securing the health or safety of the persons employed therein. Dr. Tabrez Ahmad http://energylex.blogspot.in 58
  59. 59. SPECIAL PROVISION FOR CONTRAVENTION OF CERTAIN REGULATIONS – SEC 72 A Whoever contravenes any provision of any regulations or of any bye- law or any order made thereunder, relating to matters specified in Sec.57 (Power of central govt. to make regulations) (d),(I),(m),(n),(o),(p),(r),(s)&(u) of shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to two thousand rupees or with both. Dr. Tabrez Ahmad http://energylex.blogspot.in 59
  60. 60. SPECIAL PROVISION OF CONTRAVENTION OF ORDER UNDER SECTION 22- Sec 72- B Whoever continues to work in a mine in contravention of any order issued under section 22 (1A), (2) (3)OR section 22 A (2)shall be punishable with imprisonment for a term which may extend to two years and shall also be liable to fine which may extend to five thousand rupees.  Both the above sections deals with prohibition of employment in certain cases i.e danger of life, accident, explosion breakage, leakage etc…. Dr. Tabrez Ahmad http://energylex.blogspot.in 60
  61. 61. SPECIAL PROVISION FOR CONTRAVENTION OF LAW WITH DANGEROUS RESULTS- SEC 72 1) Whoever contravenes any provision of the Act or of regulation, rule or bye- law or of any order made under section 22 (1A),(2)(3) OR section 22A (2)shall be punishable: a) If such contravention results in loss of life, with imprisonment which may extend to two years, or with fine which may extend to five thousand rupees, or with both, or b) If such contravention results in serious bodily injury with imprisonment which may extend to one years, or with fine which may extend to three thousand rupees, or with both; c) If such contravention otherwise causes injury or danger to persons employed in the mine or other persons in or about the mine, with imprisonment which may extend to three months or with fine which may extend to one thousand rupees, or with both. Dr. Tabrez Ahmad http://energylex.blogspot.in 61
  62. 62. (2) Where a person having been convicted under this section is again convicted thereunder, shall be punishable with double the punishment provided by sub-section (1). (3) Any court imposing or confirming in appeal, revision or otherwise a sentence of fine passed under this section may, when passing judgement, order the whole or any part of the fine recovered to be paid as compensation to the person injured or, in the case of his death, to his legal representative; Provided that if the fine is imposed in a case which is subject to appeal no such payment shall be made before the period allowed for presenting the appeal has elapsed of, if an appeal has been presented, before the decision of the appeal. Dr. Tabrez Ahmad http://energylex.blogspot.in 62
  63. 63. GENERAL PROVISION OF DISOBEDIENCE OF OTHERS- SEC 73 Whoever contravenes any provision of this Act or of any regulation, rule or bye-laws or of any order made thereunder for the contravention of which no penalty is herein before provided shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one thousand rupees, or with both. ENHANCED PENALTY AFTER PREVIOUS CONVICTION – SEC 74 If any person who has been convicted for an offence punishable under any of the foregoing provisions (other than section 72B and 72C) is again convicted for an offence committed within two years of the previous conviction and involving a contravention of the same provision, he shall be punishable for each subsequent conviction with double the punishment to which he would have been liable for the first contravention of such provision. Dr. Tabrez Ahmad http://energylex.blogspot.in 63
  64. 64. Prosecution of owner, agent or manager – Sec 75 No prosecution shall be instituted against any owner, agent or manager for any offence under this Act except at the instance of the Chief Inspector or of the District Magistrate or of an Inspector authorised in this behalf by general or special order in writing by the Chief Inspector. Provided that the Chief Inspector or the District Magistrate or the Inspector as so authorised shall, before instituting such prosecution, satisfy himself that the owner, agent or manager had failed to exercise all due diligence to prevent the commission of such offence. Provided further that in respect of an offence committed in the course of the technical direction and management of a mine, the District Magistrate shall not institute any prosecution against an owner, agent or manager without the approval of the Chief Inspector. Dr. Tabrez Ahmad http://energylex.blogspot.in 64
  65. 65. DETERMINATION OF OWNER IN CERTAIN CASES – SEC 76 Where the owner of a mine is firm or other association of individuals, all, or any of the partners or members thereof or where the owner of a mine is a company; all or any of the directors thereof where the owner of a mine is a Government or any local authority, as the case may be, to manage the affair of the mine, may be prosecuted and punished under this Act for any offence for which the owner of a mine is punishable: Provided that where a firm, association or company has given notice in writing to the Chief Inspector that it has nominated - a) in the case of a firm, any of its partners or managers: b) in the case of an association, any of its members or managers; c) in the case of a company any of its directors or managers. Dr. Tabrez Ahmad http://energylex.blogspot.in 65
  66. 66. Who is resident in each case in any place to which this act extends and who is in each case either in fact in charge of the management or holds the largest number of shares in such firm, association or company, to assume the responsibility of the owner or the mine for the purposes of this Act, such partner, member, director or manager, as the case may be, shall, so long as he continues to so reside and be in charge or hold the largest number of shares as aforesaid, be deemed to be the owner of the purposes of this Act unless a notice in writing canceling his nomination or stating that he has ceased to be a partner, member, director or manager as the case may be, is received by the Chief Inspector. Explanation :- Where firm, association or company has different establishment or branches or different units in any establishment or branch, different persons may be nominated under this proviso in relation to different establishment or branches or units and the person so nominated shall, with respect only to the establishment, branch or unit in relation to which he has been nominated, deemed to be the owner of the mine. Dr. Tabrez Ahmad http://energylex.blogspot.in 66
  67. 67. Exemption of owner, agent or manager in certain cases – Sec 77 Where the owner, agent or manager of a mine, accused of an offence under this Act, alleges that another person is the actual offender, he shall be entitled, upon complaint made by him in this behalf and on his furnishing the known address of the actual offender and on giving to the prosecutor not less than three clear days notice in writing of his intention to do so, to have that other persons brought before the court on the date appointed for the hearing of the case; and if after the commission of the offence has been proved, the owner, agent or manager of the mine, as the case may be proves to the satisfaction of the court - a) that he has used due diligence to enforce the execution of the relevant provisions of this act, and b) that the owner person committed the offence in question without his knowledge, consent or connivance, the said other person shall be convicted of the offence and shall be liable to the like punishment as if he were the owner, agent or manager of the mine and the owner, agent or manager, as the case may be, shall be acquitted, Dr. Tabrez Ahmad http://energylex.blogspot.in 67
  68. 68. Provided that – a) the owner, agent or manager of the mine as the case may be, may be examined on oath and his evidence and that of any witness who he calls in support shall be subject to cross examination by or on behalf of the person he alleges as the actual offender and by the prosecutor. b) If inspite of due diligence the person alleged as the, actual offender cannot be brought before the court on the date appointed for the hearing of the case, the court shall adjourn from the hearing thereof from time to time so however that the total period of such adjournments does not exceed three months, and if by the end of the said period the person alleged as the actual offender cannot be brought before the court, the court shall proceed to hear the case against the owner, agent or manager as the case may be. Dr. Tabrez Ahmad http://energylex.blogspot.in 68
  69. 69. POWER OF COURT TO MAKE ORDERS –SEC 78 1. Where the owner, agent or manager of mine is convicted of an offence punishable under this act, the court may in addition to awarding him any punishment by order in writing require him within a period specified in the order which may be extended by the court from time to time on application made in this behalf to take such measures as may be so specified for remedying the matters in respect of which the offence was committed. 2. Where an order is made under sub-section(1), the owner, agent or manager of the mine, as the case may be, shall not be the liable under this Act in respect of the continuance of the offence during the period or extended period, if any but if on the expiry of such period or extended period the order of the court has not been fully complied with the owner, agent or manager, as the case may be, shall be deemed to have committed a further offence and shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one hundred rupees for every day after such expiry on which the order has not been complied with, or with both. Dr. Tabrez Ahmad http://energylex.blogspot.in 69
  70. 70. LIMITATION OF PROSECUTIONS –SEC 79 No court shall take cognizance of any offence under this Act, unless complaint thereof has been made – i. within six months of the date on which the offence is alleged to have been committed, or ii. within six months of the date on which the alleged commission of the offence came to the knowledge of the Inspector, or iia) In any case in which the accused is or was a public servant and previous sanction of the Central Government or of the State Government or of any other authority is necessary for taking cognizance of the offence under any law for the time being in force, within three months of the date on which such sanction is received by the Chief Inspector; or iii. in any case where a Court of inquiry has been appointed by the Central Government under section 24, within one year after the date of the publication of the report referred to in sub-section(4) of that section, whichever is later. Explanation - For the purposes of this section – a. In the case of continuing offence, the period of limitation shall be computed with reference to every point of time during which the offence continues, b. Where for the performance of any act time has been extended under this Act, the period of limitation shall be computed from the expiry of the extended period. Dr. Tabrez Ahmad http://energylex.blogspot.in 70
  71. 71. COGNIZANCE OF OFFENCES – SEC 80 No court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the first class shall try any offence under this Act which is alleged to have been committed by any owner, agent or manager of a mine or any offence which is by this Act made punishable with imprisonment. REFERENCE TO COMMITTEE IN LIEU OF PROSECUTION IN CERTAIN CASES –SEC 81 1. If the court trying any case instituted at the instance of the Chief Inspector or the District Magistrate or of an Inspector under this Act is of opinion that the case is one which should, in lieu of a prosecution, be referred to a Committee it may stay the criminal proceedings and report the matter to the Central Government with a view to such reference being made. 2. On receipt of a report under sub-section(1) the Central Government may refer the case to a Committee or may direct the court to proceed with the trial. Dr. Tabrez Ahmad http://energylex.blogspot.in 71
  72. 72. Big business: Big fights Steel; Aluminium; cement expected to grow at 9-10 per cent annually in next 10 years; Power plants – on coal – on high trajectory Fights: a. Between big players – Indian and multinational only in the mining area and between Indian players in integrated sectors – steel makers want integrated iron ore fields etc; between export and domestic value addition; b. Between public sector – which has existing concessions – and new players who want the mining areas; c. Between small, unorganised miners and big multinational miners; Left out: a. People who will be displaced b. Environment and forest Dr. Tabrez Ahmad http://energylex.blogspot.in 72
  73. 73. Mines Rules 1955 Rule 29 B - Occupational Health of Workmen. Rule 29 P - Annual Report on Radiological Results of Medical Examinations Rule 29 Q- Appointment of Workmen Inspectors. Rule 30 Drinking water bottles for underground workers - 5-6 Ibs. water bottles to each worker employed underground. 3 litres per person employed in a mine where ever the wet bulb temperature exceeds 30°C. Dr. Tabrez Ahmad http://energylex.blogspot.in 73
  74. 74. Mines Rules 1955 Rule 37 - Approval of chemical closets as underground latrines Rule 40 - Provision of Ambulance Van—The arrangements for Ambulance Van may be made providing an Ambulance Van at the mine itself, or for a group of mines either collectively or through a Central Agency like Coal/Mica Mines Welfare Fund Organisation, State Govt. Agency, St. John Ambulance Association etc. Dr. Tabrez Ahmad http://energylex.blogspot.in 74
  75. 75. Mines Rules 1955 Rule 42 – First Aid Services Rule 45 A - Record of Blood Grouping Identity Cards to Workmen Rule 62 - Rest shelters Rule 72 - Appointment of Welfare Officers Rule 75 - Proper maintenance of Attendance Register at mines Rule 78 - Attendance of Labour Employed by Contractor Rule 81 - Kit for determination of blood alcohol concentration Dr. Tabrez Ahmad http://energylex.blogspot.in 75
  76. 76. THE MINES AND MINERALS (REGULATION AND DEVELOPMENT) ACT 1957, ACT 67 OF 19571 [28TH December, 1957.] Object: An Act to provide for the regulation of mines and the development of minerals under the control of the Union. Declaration as to expediency of Union control - It is hereby declared that it is expedient in the public interest that the Union should take under its control the regulation of mines and development of minerals to the extent hereinafter provided. Dr. Tabrez Ahmad http://energylex.blogspot.in 76
  77. 77. Definitions - In this Act unless the context otherwise requires,- (a) “minerals” includes all minerals except mineral oils ; (b) (b) “mineral oils” includes natural gas and petroleum ; (c) “mining lease” means a lease granted for the purpose of undertaking mining operation and includes a sub-lease granted for such purpose ; (d) “mining operations” means any operations undertaken for the purpose of winning any mineral; 1The Act has been extended to Goa, Daman and Diu by Regulation 12 of 1962 section3 and schedule to Dadra and Nagar Haveli by Regulation 6 of 1963, section 2 and Schedule I and to Pondichery by Regulation 7 of section 3 and Schedule I. 21st June 1958 vide Notification No. G. S. R. 432 dated the 29th May 1958, see Gazette of India 1953 Extraordinary, Part II, section 3(I), page 225. (e) “minor minerals” means building stones gravel ordinary clay ordinary sand other than sand used for prescribed purposes and any other mineral which the Central Government may by notification in the Official Gazette declare to be a minor mineral; (f) “prescribed” means prescribed by rules made under this Act; (g) ‘prospecting licence” means a licence granted for the purpose of undertaking prospecting operations; (h) “prospecting operations” means any operations undertaken for the purpose of exploring locating or proving mineral deposits ;and (i) the expressions “mine” and ‘owner”, have the meanings asigned to them in the Mines Act, 1952. Dr. Tabrez Ahmad http://energylex.blogspot.in 77
  78. 78. General Restrictions on Undertaking Prospecting and Mining Operations 4. Prospecting or mining operations to be under licence or lease (1) No person shall undertake any prospecting or mining operations in any area except under and in accordance with the terms and conditions of a prospecting licence or as the case may be a mining lease granted under this Act and the rules made thereunder : Provided that nothing in this Sub-section shall affect any prospecting or mining operations undertaken in any area in accordance with the terms and conditions of a prospecting license or mining lease granted before the commencement of this Act which is in force at such commencement. (2) No prospecting license or mining lease or mining lease shall be granted otherwise than in accordance with the provisions of this Act and the rules made thereunder. 1[4A. Termination of mining leases (1) Where the Central Government after consultation with the State Government is of opinion that it is expedient in the interest of regulation of mines and mineral development so to do it may request the State Government to make a premature termination of a mining lease in respect of any mineral lease in respect of any mineral other than a minor mineral and on receipt of such request the State Government shall make an order making a premature termination of such and granting a fresh mining lease in favour of such Government company or corporation owned or controlled by Government as it may think fit. (2). Where the State Government after consultation with the Central Government is of opinion that it is expedient in the interest of regulation of mines and mineral development so to do it may by an order make premature termination of a mining lease in respect of any minor mineral and grant a fresh lease in respect of such mineral in favour of such Government company or corporation owned or controlled by Government as it may think fit.] Dr. Tabrez Ahmad http://energylex.blogspot.in 78
  79. 79. 5. Restrictions on the grant of prospecting or licenses or mining leases (1) No prospecting licence or mining lease shall be granted by a State Government to any person unless he- (a) holds a certificate of approval in the prescribed form from the State Government; (b) produces from the Income-tax Officer concerned an income-tax clearance certificate in the prescribed form; (c) satisfies such other conditions as may be prescribed. Explanation.- For the purposes of this sub-section, a person shall be deemed to hold a certificate of approval notwithstanding that at the time his certificate of approval has expired if an application for its renewal is pending at that time. 1Section 4-A inserted by Act 56 of 1972, section 2. (2) Except with the previous approval of the Central Government no prospecting licence or mining lease shall be granted- (a) as respects any mineral specified in the First Schedule; or (b) to any person who is not an Indian national . Explanation.- For the purposes of this sub-section, a person shall be deemed to be an Indian national- (a) in the case of a public company as defined in the Companies Act, 1956, only if a majority of the directors of the company are citizens of Indian and not less than fifty-one per cent of the share capital thereof is held by persons who are either citizens of India or companies as defined in the said Act; (b) in the case of a private company as defined in the said Act only if all the members of the company are citizens of India; (c) in the case of a firm or other association of individuals only if all the partners of the firm or members of the association are citizens of India; and (d) in the case of an individual only if he is a citizen of India. Dr. Tabrez Ahmad http://energylex.blogspot.in 79
  80. 80. 6. Maximum area for which a prospecting licnce of mining may be granted - 1[(1) No person shall acquire in any one State in respect of any mineral or prescribed group of associated minerals- (a) one or more prospecting licences covering a total area of more than twenty-five square kilometers; or 1Substituted by Act 56 of 1972, section 3 (b) one or more mining leases covering a total area of more than tem square kilometers Provided that if the Central Government is of opinion that in the interests of the development of any mineral it is necessary so to do it may for reasons to be recorded by it in writing permit any person to acquire one or more prospecting licences or mining leases covering an area in excess of the aforesaid total area ; (c) any mining lease or prospecting licence in respect of an area which is not compact or contiguous ; Provided that if the Central Government is of opinion that in the interests of the development of any mineral it is necessary so to do it may for reasons to be recorded in writing permit any person to acquire a prospecting licence or mining lease in relation to any area which is not compact or contiguous] (2) For the purposes of this section a person acquiring by or in the name of another person a prospecting licence or mining lease which is intended for himself shall be deemed to be acquiring it himself. 1[(3) For the purposes of determining the total area referred to in sub-section (1) the area held under a prospecting licence or mining lease by a person as a member of a co-operative society company or other corporation or a Hindu undivided family or a partner of a firm shall be deducted from the area referred to in sub-section (1) so that the sum total of the area held by such person under a prospecting licence or mining lease whethe as such member or partner or individually may not in any case exceed the total area specified in sub-section (1) ]. 1Sub –section (3) inserted by Act 56 of 1972 section 3. 7. ******** Dr. Tabrez Ahmad http://energylex.blogspot.in 80
  81. 81. 8. Periods for which prospecting licences may be granted or renewed (1) - The period for which a prospecting licence may be granted shall not- (a) in the case of mica, exceed one year ; and (b) in the case of any other mineral exceed two years. (2) A prospecting licence may be renewed for one or more periods each not exceeding the period for which the prospecting licence was originally granted if the State Government is satisfied that a longer period is requied to enable the licencee to complete prospecting operations : Provided that no prospecting licence granted in respect of a mineral specified in the First Schedule shall be renewed except with the previous approval of the Central Government. (3) Notwithstanding anything contained in sub-section (2), if the Central Government is of opinion that in the interests of mineral development it is necessary so to do it may for reasons to be recorded authorise the renewals of a mining lease for a further period or periods not exceeding in each case the period for which the mining lease was originally granted. Dr. Tabrez Ahmad http://energylex.blogspot.in 81
  82. 82. 9. Royalties in respect of mining leases (1) The holder of a mining lease granted before the commencement of this Act shall notwithstanding anything contained in the instrument lease or in any law in force at such commencement pay royalty in respect of any 1[mineral removed or consumed by him or by his agent manager employee contractor or sub-lessee] from the leased area after such commencement at the rate for the time being specified in the Second Schedule in respect of that mineral. (2) The holder of a mining ease granted on or after the commencement of this Act shall pay royalty in respect of any 1[mineral removed or consumed by him or by his agent manager employee contractor or sub-lessee] form the leased area at the rate for the time being specified in the Second Schedule in respect of that mineral. 2[(2A) The holder of a mining lease whether granted before or after the commencement of the Mines and Mineral (Regulation and Development) Amendment Act, 1972, shall not be liable to pay any royalty in respect of any coal consumed by a workman engaged in a colliery provided that such consumption by the workman does not exceed one-third of a tone per month]. (3) The Central Government may by notification in the Official Gazette amend the Second Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral with effect from such date as may be specified in the notification : 1Substituted for the words “mineral removed by him” by Act 56 of 1972 section 4. 2Sub-section 2-AS inserted by ibid. 1[Provided that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of four years.] Dr. Tabrez Ahmad http://energylex.blogspot.in 82
  83. 83. 2[9A. Dead-rent to be paid by the lessee- (1) the holder of a mining lease whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act 1972 shall notwithstanding any thing contained in the instrument of lease or in any other law for the time being in force pay to the State Government every year dead rent at such rate as may be specified for the time being in the Third Schedule for all the areas included in the instrument of lease : Provided that where the holder of such mining lease becomes liable under section 9 to pay royalty for any mineral removed or consumed by him or by his agent manager employee contractor or sub-lessee from the leased area he shall be liable to pay either such royalty or the dead rent in respect of that area whichever is greater. (2) The Central government may by notification in the Official Gazette amend the Third Schedule so as to enhance or reduce the rate at which the dead rent shall be payable in respect of any area covered shall take effect from such date as may be specified in the notification : Provided that the Central Government shall not enhanced the rate of the dead rent in respect of any such area more than once during any period of four years.] Dr. Tabrez Ahmad http://energylex.blogspot.in 83
  84. 84. Procedure For Obtaining Prospecting Licences Or Mining Leases In Respect Of Land In Which The Minerals Vest In The Government 10. Application for prospecting licences or mining lease – (1) An application for a prospecting licence or a mining lease in respect of any land in which the minerals vest in the Government shall be made to the State Government concerned in the prescribed form and shall be accompanied the prescribed fee. 1Proviso substituted by Act 56 of 1972. 2Section 9-A inserted by ibid. (2) Where an application is received under sub-section (1) there shall be sent to the applicant an acknowledgement of its receipt within the prescribed time and in the prescribed form. (3) On receipt of an application under this section the State Government may having regard to the provisions of this Act and any rules made thereunder grant or refuse to grant the licence or lease. Dr. Tabrez Ahmad http://energylex.blogspot.in 84
  85. 85. 11. Preferential right of certain persons (1) Where a prospecting licence has been granted in respect of any land the licence shall have a preferential right for obtaining a mining lease in respect of that land over any other person: Provided that the State Government is satisfied that the licensee has not committed any breach of the terms and conditions of the prospecting licence and is otherwise a fit person for being granted the mining lease. (2) Subject to the provisions of sub-section (1) where two or more persons have applied for a prospecting licence or a mining lease in respect of the same land the applicant whose application was received earlier shall have a preferential right for the grant of the licence or lease as the case may be over an applicant whose application was received later : Provided that where any such applications are received on the same day the State Government after taking into consideration the matters specified in sub-section (3) may grant the prospecting licence or mining lease as the case may be to such one of the applicants as it may deem fit. (3) The matters referred to in sub-section (2) are the following :- (a) any special knowledge of or experience in prospecting operations or mining operations as the case may be possesed by the applicant; (b) the financial resources of the applicant; (c) the nature and quality of the technical staff employed by the applicant; (d) such other matters as may be prescribed. (4) Notwithstanding anything contained in sub-section (2) but subject to the provisions of sub-section (1) the State Government may for any special reasons to be recorded and with the previous approval of the Central Government grant a prospecting licence or a mining lease to an applicant whose application was received later in preference to an applicant whose application was received earlier. Dr. Tabrez Ahmad http://energylex.blogspot.in 85
  86. 86. 12. Registers of prospecting licences and mining leases (1) The State Government shall cause to be maintained in the prescribed form- (a) a register of applications for prospecting licences; (b) a register of prospecting licensees ; (c) a register of applications for mining leases ; and (d) a register of mining lessees; in each of which shall be entered such particulars as may be prescribed. (2) Every such register shall be open to inspection by any person on payment of such fee as the State Government may fix. Dr. Tabrez Ahmad http://energylex.blogspot.in 86
  87. 87. Rules For Regulating The Grant Of Prospecting Licences And Mining Leases 13. Power of Central Government to make rules in respect of minerals (1) The Central Government may by notification in the Official Gazette make rules for regulating the grant of prospecting licences and mining leases in respect of minerals and for purposes connected therewith. (2) In particular and without prejudice to the generality of the foregoing power such rules may provide for all or any of the following matters, namely :- (a) the person by whom and the manner in which applications for prospecting licences or mining leases in respect of land in which the minerals vest in the Government may be made and the fee to be paid therefor ; (b) the time within which and the form in which acknowledgment of the receipt of any such application may be sent; (c) the matters which may be considered where applications in respect of the same land are received on the same day; (d) the persons to whom certificates of approval may be granted the form of such certificates and the fees payable for the grant or renewal thereof; (e) the authority by which prospecting licences or mining leases in respect of land in which the minerals vest in the Government may be granted; (f) the procedure for obtaining a prospecting licence or a mining lease in respect of any land in which the minerals vest in a person other than the Government and the terms on which and the conditions subject to which such a licence or lease may be granted or renewed; (g) the terms on which and the conditions subject to which any other prospecting licence or mining lease may be granted or renewed;. Dr. Tabrez Ahmad http://energylex.blogspot.in 87
  88. 88. (h) the facilities to be afforded by holders of mining leases to persons deputed by the Government for the purpose of undertaking research or training in matters relating to mining operations; (i) the fixing and collection of dead rent fines fees or other charges and the collection of royalties in respect of- (i) prospecting licence. (ii) mining leases. (iii) Minerals mined, quarried, excavated or collected; (j) the manner in which rights of third parties may be protected (whether by payment of compensation or otherwise) in cases where any such party any be prejudicially affected reason of any prospecting or mining operations ; (k) the grouping of associate minerals for the purposes of section 6; (l) the manner in which and the conditions subject to which a prospecting licence or a mining lease may be transferred; (m) the construction maintenance and use of roads power transmission liens tramways railways aerial ropeways pipelines and the making of passages for water for mining purposes on any land comprised in a mining lease; (n) the form of registers to be maintained under this Act; (o) the disposal or discharge of any tailings slime or other waste products arising from any mining or metallurgical operations carried out in a mine; (p) the reports and statements to be submitted by holders of prospecting licences or owners of mines and the authority to which such reports and statements shall be submitted; (q) the period within which applications for revisions of any order passed by a Stated Government or other authority in exercise of any power conferred by or under this Act, may be made and the manner in which such applications shall be disposed of; and (r) any other matter which is to be or may be prescribed under this Act Dr. Tabrez Ahmad http://energylex.blogspot.in 88
  89. 89. 1[13A. Power of Central Government to make rules for the grant of prospecting licensies or mining leases in respect of territorial waters or continental shelf of India (1) The Central Government may by notification in the Official Gazette make rules for the grant of prospecting licenses or mining leases in respect of any minerals underlying the ocean within the territorial water or the continental shelf of India. (2) Without prejudice to the generality of the foregoing power such rules may provide for all or any of the following matters namely- (a) the conditions limitations and restrictions subject to which such prospecting licenses or mining leases may be granted; (b) regulation of exploration and exploitation of minerals within the territorial waters of the continental shelf of India; (c) ensuring that such exploration or exploitation does not interfere with navigation ; and (d) any other matter which is required to be or may be prescribed.] Dr. Tabrez Ahmad http://energylex.blogspot.in 89
  90. 90. 14. Sections 4 to 13 not to apply to minor minerals - The provisions of sections 4 to 13 (inclusive) shall not apply to 2[quarry lease mining leases or other mineral concessions] in respect of minor minerals. 15. Power of State Governments to make rules in respect of minor minerals- (1) The State Government may by notification in the Official Gazette make rules for regulating the grant of 3[quarry leases mining leases or other mineral on cessions] in respect of minor minerals and for purposes connected therewith. 1Section 13-A inserted by Act 56 of 172 section 5. 2Substituted for the words “prospecting licenses and Measuring leases” by ibid section 7. 3Substituted for the words “prospecting licenses and mining leases” by ibid section 8. Dr. Tabrez Ahmad http://energylex.blogspot.in 90
  91. 91. (2) Until rules are made under sub-section (1) any rules made by a State Government regulating the grant of 1[quarry leases mining leases or other minerals concessions] in respect of minor minerals which are in force immediately before the commencement of this Act shall continue in force. (3) 2[(3) The holder of a mining lease or any other mineral concession granted under any rule made under sub-section (1) shall pay royalty in respect of minor minerals removed of consumed by him or by his agent manager employee contractor or sub-lessee at the rate prescribed for the time being in the rules framed by the State Government in respect of minor minerals; Provided that the State Government shall not enhance the rate of royalty in respect of any minor mineral for more than once during any period of four years.] Dr. Tabrez Ahmad http://energylex.blogspot.in 91
  92. 92. 16. Power to modify mining leases granted before 25th October, 1949. (a) All mining leases granted before the commencement of the Mines and Minerals (Regulation and Development) Amendment Act 1972 if in force at such commencement shall be brought into conformity with the provisions of this Act and the rules made thereunder within six months from such commencement or such further time as the Central Government may by general or special order specify in this behalf . (b) Where the rights under any mining lease granted by the proprietor of an estate or tenure before the commencement of the Mines and Minerals (Regulation and Development) Amendment Act 1972 have vested on or after then25th day of October 1949 in the State Government in pursuance of the provisions of any Act of any Provincial or State Legislature which provides for the acquisition of estates or tenures or provides for agrarian reform such mining lease shall be brought into conformity with the provisions of this Act and the rules made thereunder within six months from the commencement of the Mines and Minerals (Regulation and Development) Amendment Act 1972 or within such further time as the Central Government may buy general or special order specify in this behalf.] 1Substituted for the word “Prospecting licenses and mining lease” by Act 56 of 1972 section 8. 2Sub-section (3) inserted and shall be deemed always to have been inserted by ibid section 3 3Sub-section (1)substituted by ibid section 9. Dr. Tabrez Ahmad http://energylex.blogspot.in 92
  93. 93. (2) The Central Government may by notification in the Official gazette make rules for the purposes of giving effect to the to the provisions of sub-section (1) and in particular such rules shall provide- (a) for giving previous notice of the mo9dification or alteration proposed to be made in any existing mining lease to the lessee and where the lessor and for affording him an opportunity of showing cause against the proposal; (b) for the payment of compensation to the lessee in respect of the reduction of any area covered by the existing mining lease; (c) for the principles on which the manner in which and the authority by which the said compensation shall be determined. Dr. Tabrez Ahmad http://energylex.blogspot.in 93
  94. 94. Special Powers Of Central Government To Undertake Prospecting Or Mining Operations In Certain Cases 17. Special powers of Central Government to undertake prospecting or mining operations in certain lands – (1) The provisions of this section shall apply 1[* *] in respect of land in which the minerals vest in the Government of a State 2[or any other person]. (2) Notwithstanding anything contained in this Act the Central Government after consultation with the State Government may undertake prospecting or mining operations in any area not already held under any prospecting licence or mining lease and where it proposes to do so it shall by notification in the Official Gazette,- (a) specify the boundaries of such area, (b) state whether prospecting or mining operations will be carried out in the area ; and (c) specify the mineral or minerals in respect of which such operations will be carried out. 1The word “only omitted by Act 56 of 1972 section 10. 2the words “or any other person” inserted by ibid. Dr. Tabrez Ahmad http://energylex.blogspot.in 94
  95. 95. (3) Where in exercise of the powers conferred by sub-section (2) the Central Government undertakes prospecting or mining operation in any area the Central Government shall be liable to pay prospecting fee royalty surface rent or dead rent as the case may be at the same rate at which it would have been payable under this Act if such prospecting or mining operations had been undertaken by a private person under a prospecting licence or mining lease. (4) The Central government with a view to enabling it to exercise the powers conferred on it by sub-section (2) may after consultation with the State Government by notification in the Official Gazette declare that no prospecting licence or mining lease shall be granted in respect of any land specified in the notification. Dr. Tabrez Ahmad http://energylex.blogspot.in 95
  96. 96. 18. Mineral Development (1) It shall be the duty of the Central Government to take all such steps as may be necessary for the conservation and development of minerals in India and for that purpose the Central Government may by notification in the Official Gazette make such rules as it thinks fit. (2) In particular an without prejudice to the generality of the foregoing power such rules may provide for all or any of the following matters namely- (a) the opening of the new mines an the regulation of mining operations in any area; (b) the regulation of the excavation or collection of minerals form any mine; (c) the measures to be taken by owners of mines for the purpose of beneficiation of ores including the provision of suitable contrivances for such purpose; (d) the development of mineral resources in any area; (e) the notification of all new borings an shaft sinkings and the preservation of bore-hole records an specimens of all new bore-holes; (f) the regulation of the arrangements for the storage of minerals and the sticks thereof that may be kept by any person; (g) the submission of samples of minerals from any mine by the owner thereof and the manner in which and the authority to which such samples shall be submitted; and the taking of any mineral from any mine by the State Government or any other authority specified by it in that behalf ; and (h) the submission by owners of mines of such special or periodical returns and reports as may be specified and the form in which and the authority to which such returns and reports shall be submitted. (3) All rules made under this section shall be binding on the Government. Dr. Tabrez Ahmad http://energylex.blogspot.in 96
  97. 97. Mines and water Dr. Tabrez Ahmad http://energylex.blogspot.in 97
  98. 98. Mines and forests Dr. Tabrez Ahmad http://energylex.blogspot.in 98
  99. 99. Understanding regulations Environmental clearances: on what basis? Public hearing: are people heard? Forest clearance or forest compensation? Environment management plan: who oversees? Who plans? What are the institutions for this? Mine restoration? Watersheds? Is this anyone’s concern Dr. Tabrez Ahmad http://energylex.blogspot.in 99
  100. 100. MMR 1961 Regulation 6- Notice of abandoned or discontinuance – not less than 30 days before such abandonment or discontinuance. Regulation 7- Notice of reopening – not less than 30 days before resumption of mining operations. Regulation 9- Notice of Accident Dr. Tabrez Ahmad http://energylex.blogspot.in 100
  101. 101. MMR 1961 Regulation 10 - Notice of Notified disease within three days of his being informed of the disease, in Form V of First Schedule to the District Magistrate, the Chief Inspector, the Regional Inspector and the Inspector of Mines (Medical). Regulation 30 - Validity of Foreman’s, Mate’s, Engine -driver’s, Blaster’s and Gas testing Certificates within five years. Regulation 34 - Qualifications and appointment of managers Dr. Tabrez Ahmad http://energylex.blogspot.in 101
  102. 102. MMR 1961 Regulation Nil Appointment of Safety officer Regulation 35. Appointment of assistant managers or underground managers Regulation 36. Appointment of engineers Regulation 37. Appointment and qualifications of senior officials Regulation 38. Appointment of surveyors Dr. Tabrez Ahmad http://energylex.blogspot.in 102
  103. 103. MMR 1961 Regulation 62. Copies of plans and sections to be submitted on or before the 30th April of every year, submit to the Chief Inspector. Regulation 63. Plans and sections to be submitted after abandonment or discontinuance. Regulation 119. Precautions against Fire Dr. Tabrez Ahmad http://energylex.blogspot.in 103
  104. 104. MMR 1961 Regulation 121. Equipment for fire-fighting – (1) a sufficient supply of sand or in combustible dust or sufficient portable fire extinguishers shall be provided at every entrance to a mine, at every landing and the bottom of every shaft or winze in use, at every engine room and at every other place where timber, canvas, grease, oil or other inflammable material is stored. Regulation 122. Apparatus for testing for Carbon Monoxide – In every mine to which regulation 123 (1) and 142 apply there shall be kept at the mine, constantly available for use, two or more suitable birds or other means of detecting carbon monoxide gas approved by the Chief Inspector. Dr. Tabrez Ahmad http://energylex.blogspot.in 104
  105. 105. MMR 1961 Regulation 124. Precautions against dust – minimising of emissions of dust and suppression of dust which enters the air at any work place below ground or on surface. Regulation 125. Precautions against irruption of gas – Where any working is extended to within 30 metres of any stoped -out area or disused workings containing or likely to contain an accumulation of inflammable or noxious gases, there shall be maintained at least one bore-hole not less than 1.5 metres in advance of the working. Dr. Tabrez Ahmad http://energylex.blogspot.in 105
  106. 106. MMR 1961 Regulation 127. Danger from surface water – No workings shall be made in any mine vertically below (a) any part of any river, canal, lake, tank or other surface reservoir; or (b) any spot lying within a horizontal distance of 15 metres from either bank of a river or canal or from the boundary of a lake, tank or other surface reservoir; Regulation 128. Danger from underground inundation. No working which has approached within a distance of 60 metres of any disused or abandoned workings (not being workings which have been examined and found to be free from accumulation of water or other liquid matter), whether in the same mine or in an adjoining mine, shall be extended further except with the prior permission in writing of the Chief Inspector. Dr. Tabrez Ahmad http://energylex.blogspot.in 106
  107. 107. MMR 1961 Regulation 129. Intentional flooding . (1) When the owner, agent or manager intends or proposed, by introducing water from the surface or from any other part of the mine or from an adjacent mine, to flood any part of the workings of his mine, he shall give in writing not less than 14 days’ notice of such intention or proposal to the Chief Inspector Regulation 131. Standard of ventilation. – (1) It shall be the duty of the owner, agent or manager of every mine to take such steps as are necessary for securing that there is constantly produced ion all parts of the mine belowground, ventilation adequate to clear away smoke, steam and dust; to dilute gases that are inflammable or noxious so as to render them harmless; to provide air containing a sufficiency of oxygen; and to prevent such excessive rise of temperature or humidity as may be harmful to the health of persons. Dr. Tabrez Ahmad http://energylex.blogspot.in 107
  108. 108. MMR 1961 Regulation 145. Appointment of Ventilation Officer.- In the case of any mine having extensive workings below ground, if the Chief Inspector by an order in writing so requires, the manager shall be assisted by a Ventilation Officer, holding such qualification as the Chief Inspector may specify in the order, who shall be responsible for supervising the maintenance of the ventilation system of the mine in accordance with the provisions of these regulations. Regulation 146. General lighting .- (1) Adequate general lighting arrangements shall be provided during working hours. Dr. Tabrez Ahmad http://energylex.blogspot.in 108
  109. 109. MMR 1961 Regulation 171. Use of certain machinery belowground. – (1) No internal combustion engine or steam boiler shall be used belowground in a mine expect with the permission in writing of the Chief Inspector and subject to such conditions as he may specify therein. Regulation 182. Use, Supply maintenance of protective Footwear. – (1) No person shall go into a mine, unless he wears a protective footwear of such type approved by the Chief Inspector. Regulation 182A. Use and supply of helmet. (1) No person shall go into, or work, in or be allowed to go into or work in, a mine, other than the precincts of a mine occupied by an office building, canteen, creche, rest shelter, first aid room or any other building of a similar type, unless he wears a helmet of such type as may be approved by the Chief Inspector. Dr. Tabrez Ahmad http://energylex.blogspot.in 109
  110. 110. MMR 1961 182B. Supply of other protective equipment. – (1) Where is appears to the Regional Inspector or the Chief Inspector that any person or class of persons employed in a mine is exposed to undue hazard by reason of the nature of his employment, he may, by a general or special order in writing, require the owner, agent or manager of the mine to supply to such person or class of persons, free of charge, gloves, goggles, shinguards, or such other protective equipment as may be specified in the order. Dr. Tabrez Ahmad http://energylex.blogspot.in 110
  111. 111. MMR 1961 Regulation 184. Man power Distribution Plan. – During the first week of every month a sketch plan showing the manpower distribution plan. Regulation 190. Place of accident. – the place of accident shall not be disturbed or altered. Dr. Tabrez Ahmad http://energylex.blogspot.in 111
  112. 112. MMR 1961 Regulation 190A. Emergency plan. – (1) The manger shall prepare a general plan of action for use in time of emergency. The plan shall outline the duties and responsibilities of each mine official and men including the telephone operators, so that each person shall know his duties in case fire, explosion or other emergency occurs. The emergency plan shall also provide for mock rehearsals at regular intervals. Dr. Tabrez Ahmad http://energylex.blogspot.in 112
  113. 113. Health & Safety Issues Key risks faced by miners: Gas and coal dust exposure. Mine roof and wall collapses. Mine fires. Fatal and serious accidents have steadily deceased since 1972 (see table). Between 1950-1961 the 10-yearly avg. death rate per 1,000 people employed was 0.91. Between 1991-2000, figure dropped to 0.32. Nationalization in 1970’s. Technological advancements, specifically the mechanization of many tasks in the mining process (i.e. mechanized roof bolting system, long wall miners, etc…). Year Fatal Accidents Serious Accidents Accidents Fatalities Accidents Injuries 1972 200 217 1534 1616 1975 222 664 2135 2211 1985 176 204 1007 1060 1993 156 176 854 903 1994 156 241 717 775 1995 137 219 757 813 1996 131 146 677 723 1997 143 165 677 725 1998 128 146 523 560 1999 127 138 595 650 2000 117 144 661 707 2001 106 141 667 720 2002 81 97 629 650 2003 83 113 563 578 2004 90 99 599 608 2005 34 35 340 344 Source: Government of India, Ministry of Coal. Dr. Tabrez Ahmad http://energylex.blogspot.in 113
  114. 114. The Mines Act and Development of Mine Safety Legislation in India. Development of Mines Safety Legislation Back ground Mineral is important for development of a nation India is endowed with rich mineral deposits Today India is one of the leading countries in production of coal, iron ore, bauxite and other minerals. About one million persons are engaged in mining industry Dr. Tabrez Ahmad http://energylex.blogspot.in 114
  115. 115. Background At present India produces 87 minerals Mineral sector is growing at a rate of about 7.5% The contribution of mining sector to Gross Domestic Product(at current price) for 2010-11 is estimated as 2.51% of GDP. Dr. Tabrez Ahmad http://energylex.blogspot.in 115
  116. 116. Mineral Industry In India 569Coal Mines 67 Oil & Gas Projects Over 8000 Non-Coal Mines Employing over one (1) million persons directly on a daily average basis Mining is a hazardous profession The credit for establishing the principle of state regulation goes to France. In 1781 Louis XVI created the first inspectorate of mines. In 1849 State of Pennsylvania, in USA enacted law for the benefit of miners. Dr. Tabrez Ahmad http://energylex.blogspot.in 116
  117. 117. India has completed 109 years of State intervention for protecting persons at work in mines Required safeguards for the persons working in mines have been provided in Indian constitution The Constitution of India has empowered the parliament to frame law concerning regulation of labour and safety in mines Dr. Tabrez Ahmad http://energylex.blogspot.in 117
  118. 118. Constitutional obligation Article 246 (entry 55 of the seventh schedule) “regulation of labour and safety in mines and oilfields”. Article 24 “No child below the age of fourteen years shall be employed to work in any factory or mine or engaged in any other hazardous employment” Dr. Tabrez Ahmad http://energylex.blogspot.in 118
  119. 119. Article 39 “the state shall, in particular, direct its policy towards securing - (e) that the health and strength of workers, men and women, and the tender age of children are not abused and that citizens are not forced by economic necessity to enter a vocations unsuited to their age or strength;” Article 42 “The state shall make provision for securing just and humane conditions of work and for maternity relief” Dr. Tabrez Ahmad http://energylex.blogspot.in 119
  120. 120. History of Development of OSH legislation in India 1890- The ILO, at its meeting in Berlin considered the issues related to improvement in the working conditions of miners Following it the Govt. of UK requests Govt. of India to consider the advisability of undertaking legislation for inspection of mines in general and coal mines in particular 1894- Preliminary study of mining conditions in India by one HM Inspector of Mines, Mr. James Grundy 1895- A Committee was appointed by the Govt. of India to Frame suitable legislation to afford full protection to persons working in mines in such matters in which they have a reasonable claim on the State for protection - Committee Submitted report in 1896 - In 1897 two disaster took place one at Kolar Gold field & another at Khost coal mine in Baluchistan Dr. Tabrez Ahmad http://energylex.blogspot.in 120
  121. 121. o 1901 This efforts led to the enactment of the First Indian Mines Act which came into force on 22nd March, 1901 Some of the important provisions of the Mines Act: Inspectors empowered to enter mines and inspect & make enquires Minimum age of employment as 12 years. Supervision by competent manager holding manager's certificate Penalties prescribed for various contraventions. The Act was amended in1910 & 1914 Bureau of Mines Inspection was formed with Calcutta as HQ on Jan 7, 1902 1923 New Indian Mines Act 1923 came into force The Act was amended in 1925, 1927, 1928, 1931, 1935, 1936, 1937, 1940 and 1946. Dr. Tabrez Ahmad http://energylex.blogspot.in 121
  122. 122. o The 1928 amendments made the following additional provisions: o – Overlapping of shifts was prohibited o – same set of workers not to work more than 12 hours o – required to maintain a register of workers and their hours of work. o The amending Act of 1935 made the following new provisions: • The age of children was raised to 15 years • Medical examination for employment of adolescents (15-17 years) belowground. • The limit of weekly hours of work for both surface and underground workers was equalized at 54 • the maximum spread over on any day was fixed. • Mining Boards were required to be set up by provincial governments. Dr. Tabrez Ahmad http://energylex.blogspot.in 122
  123. 123. The amendment Act of 1936 provided the following provision:- • Establishment of Rescue Stations and formation, training and duties of rescue brigades. The 1937 amendment enlarged the powers of the Inspectors The 1940 amendment stipulated -salaries and wages of manager, supervisory staff etc should be paid by the owner of the mine and not by the ‘raising contractor’. The 1946 amendment required the construction and maintenance of pithead baths 1952 The Mines Act 1952 superseded earlier legislation Some of the important provisions of the Mines Act, 1952 are : Definition of mine was enlarged The minimum age for employment as 18 years Compulsory weekly day of rest Weekly hours of work limited to 48 Dr. Tabrez Ahmad http://energylex.blogspot.in 123
  124. 124. Daily maximum work -8 hrs in underground & 9 hrs on surface Restriction on employment of women below ground Provision of first-aid, ambulance, drinking water and other medical facilities. Payment of overtime wages and leave with wages Constitution of tripartite committees in place of mining board Serving of improvement notice Imposition of prohibitory orders for unsafe mines Mine inspectorate empowered to undertake safety and occupational health surveys Govt. empowered to frame rules and regulations on Workmen's Inspectors, Safety Committee, Emergency plan etc Notification of occupational diseases. Punishment both imprisonment & fine Dr. Tabrez Ahmad http://energylex.blogspot.in 124

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