Successful Bidders Can Now Obtain Surface Rights Directly Through District Collector
Team News Riveting
Raipur, November 27
The Ministry of Mines, Government of India, has issued a significant order under Section 20A of the Mines and Minerals (Development & Regulation) Act, 1957, directing all State Governments to ensure time-bound implementation of surface rights compensation and land access for mining operations.
The order aims to address the widespread delays caused by private land negotiations and to facilitate faster commencement of production from auctioned mineral blocks.
Key Provision: Direct Application to District Collector for Surface Rights
A major reform introduced through this directive enables successful bidders of auctioned mineral blocks to apply directly to the District Collector for obtaining surface rights over the mineral-bearing land. This removes the earlier requirement for companies to purchase land directly from private landowners—a process that often resulted in:
* Long delays due to individual negotiations,
* The involvement of brokers and intermediaries,
* Artificial escalation of land prices, and
* Uncertainty and obstruction in project timelines.
Under the new framework, the District Collector/Revenue authorities will facilitate the process, ensuring full, transparent, and timely compensation to the actual landowners, eliminating the role of middlemen and ensuring orderly development of mines.
Mandatory Timelines for States
The Ministry has directed that:
Officer for determining annual surface compensation must be appointed within 30 days, in accordance with Rule 52 of the MCR-2016.
In case the State fails to appoint an officer, the District Collector/District Magistrate/Deputy Commissioner will automatically be deemed the competent authority.
Annual compensation must be paid by 30 June every year, unless the State specifies otherwise.
For part-year operations, compensation must be paid pro-rata and before commencement of mining.
The appointed officer must determine annual compensation within 90 days of receiving the request.
State authorities must ensure unhindered entry of concession holders into the mineral-bearing land as per Section 24A.
Objective of the Reform
The Ministry observed that although numerous mineral blocks have been successfully auctioned by states, only a limited number have become operational due to delays in acquiring surface rights. This order aims to:
* Expedite mine development,
* Boost mineral production,
* Create employment opportunities, and
* Increase State revenues through premium, royalty, DMF, and other statutory levies.
The Ministry has urged States to comply with the directives promptly in the interest of national resource conservation, transparency, and sustainable mineral development Industry groups, including the National Employers Federation (NEF), have welcomed the move, calling it a “game-changing step” that eliminates land-related bottlenecks and protects landowners from exploitation by intermediaries.
