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Goa, Daman and Diu Mining Concessions (Abolition and Declaration as Mining Leases) Act,1987

Act No : 16


Section : SHORT TITLE

GOA, DAMAN AND DIU MINING CONCESSIONS (ABOLITION AND DECLARATION AS MINING LEASES) ACT, 1987
16 of 1987
23rd May, 1987

After Goa, Daman and Diu became part of India, the provisions of the
Mines and Minerals (Regulation and Development) Act 1957(1957 Act) except section 16 were extended to that Union territory with effect from 1-10-1963 and section 16 was extended with effect from 15-1-1966. The Controller of Mining Leases in exercise of the powers conferred on him under section 16 of the Act, proceeded with the modification of the mining concessions granted under the earlier Portuguese Mining Laws of 1906 so as to bring them in conformity with the provisions of the 1957 Act. The concession holders challenged the proceedings of the Controller on the ground that the concessions held by them were not existing mining leases within the meaning of the provisions of the 1957 Act, The Bombay High Court in its judgment dated 29-9-1983 held that the concessions were not mining leases within the meaning of 1957 Act. As a result of this judgment, the Controller of Mining Leases could not take further action to modify the concessions. The High Court in another case held that no royalty could be charged on the minerals extracted by the concession holder, as such mining concessions are not mining leases.

2. The above two decisions have resulted in a situation in which all the existing mining concessions in Goa, Daman and Diu are not subject to the provisions of any law. The Portuguese Mining Laws had been repealed on the commencement of the 1957 Act and the aforesaid decisions have declared that these concessions are not mining leases under the 1957 Act. It is, therefore, necessary to bring all these mining concessions under the provisions of the 1957 Act for the purpose of regulation of these mines and for the development of minerals under the control of the Union. The Bill, therefore, seeks to provide for the following, among other matters, namely:-

(1) abolition of such of the mining concessions granted prior to the merger of Goa, Daman and Diu from the date of merger, i.e. 20th December, 1961 and such of those mining concessions granted after the merger from the date next after the dates of such grant, and declaring all such concessions as mining leases under the 1957 Act which shall be in operation as such, from the dates of such declaration to a period of six months from the date of assent by the President of this legislation;

(2) a right of renewal of the lease under the provisions of the 1957 Act and the rules thereunder after the expiry of the period of lease, i.e., a period of six months from the date of assent by the President of this legislation.

(3) Payment of amounts for the abolition of the mining concession and declaring them as mining leases and for the appointment, of a Commissioner of Payments to disburse such amounts;

(4) a validation provision declaring that royalties or dead rent payable for a mining lease under the 1957 Act shall be payable by the mining concession holders from the date on which their concessions were declared as mining leases and to provide that any amount paid by such concession holders shall not be refundable to them on the ground that the mining concessions are not mining leases.

3. The Bill seeks to achieve the above objects. -Gaz. of Ind., 30-4-1987, Pt. II, S. 2, Ext., p. 45 (No. 21)
An Act to provide for the abolition of the mining concessions in operation in the Union territory of Goa, Daman and Diu and specified in the First and the Second Schedules, and for the declaration of such mining concessions as mining leases under the Mines and Minerals (Regulation and Development) Act, 1957with a view to the regulation of the mines to which such concessions relate and for the development of minerals under the control of the Union and for matters connected therewith or incidental thereto.

Whereas certain mining concessions have been granted in perpetuity under the former Portuguese Mining Laws (Decree of 20th day of September, 1906) in the territories now included in the Union territory of Goa, Daman and Diu by the former Portuguese Government and by the Government of Goa, Daman and Diu:

And whereas the aforesaid mining laws have ceased to be in force and doubts have been expressed as to whether such mining concessions are mining leases within the meaning ofthe Mines and Minerals (Regulation and Development) Act 1957:

And whereas it is expedient in the public interest to abolish such mining concessions and declare them as mining leases under the aforesaid Act for the purpose of making the provisions of that Act applicable to the mines to which such concessions relate with a view to the regulation of such mines and for development of minerals under the control of the Union so as to subserve the common good:

Be it enacted by Parliament in the Thirty-eighth Year of the Republic of India as follows :

SECTION 01: SHORT TITLE

This Act may called the Goa, Daman and Diu Mining Concessions (Abolition and Declaration as Mining Leases) Act, 1987.



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