 the mines and minerals (regula- tion and development) amend- ment bill, 1958( as introduced in lok sabra)  development) amend nt bill, 1958 (as introduced in the u'1¥4 :bra) a billto a1'lpnd the li-lines find lijiflhats (regulation and development) act, j 957, for the p'( rpu;e of t:xempting mining leases granted before the 25th day of october, 1949, in respect of coal from certain provisions of that act in view of the importance of such leases in the conte;t:t of coal production generally be it emicted by parliament in the ninth year of the republic of india as follows:-1 this act may he called the mines and minerals (regulation and short title development) amendment act, 1958 s 2 after section :;0 cf the mines and minerals (regulation and insertion of development) act, 1957, the following section shall be inserted, and new ~ection shall be deemed always to have been inserted, namely: -~~f~:s~ 10 is "30a notwithstanding anything contained in this act, the special proprovisions of sub-section (1) of section 9 and of sub-section v:isions ~la­(1) of section ]6 snail not apply to or in relation to mining leases~: rear:; granted before the 25th day of october, 1949, 1n respect of coal, f~ ~figran­but the central go-vernment, if it is satisfied that it is expedient !sth~:r' so to do, may, by notification in the official gazette, direct that 1949· all or any of the said provisions (including hny rules made under sections 13 and 18) shall apply to or in relation to such leases subject to such exceptions and modifications, if any, as may be specified in that or in any subsequent notification"  statement of objects and reasonsin view 0$ its importance as a basic fuel and the position it occupies in the country's economy, coal has always been treated dilferently from other minerals it is in recognition of this that no rules have been framed so far under section 7 of the mines and minerals (regulation and development) act, 1948, in regard to modification of the terms and conditions of mining leases for coal granted before the commencement of that act, though other minerals have been covered 2 the mines and minerals (regulation and development) act, 195'1· (67 of 1957), which repjaces the act of 1948, however, specifically extends the rate of royalty prescribed in the second schedule to mining leases granted befor~ the 25th october, 1949, in respect of coal also and makes it obligatory for the other terms and conditions of such leases t~ be brought into conformity with the provisions of the act and the rules made under sections 13 and 18 it is considered that these changes will have numerous undesirable consequences the areas covered by these mining leases are principally in west bengal and bihar'and they account for as much as 80 per cent of the total coal production in the country the royalties paid on this coal vary over a wide range but are generally much below the rate per ton pre:;cribed in the second schedule a sudden and uniform increase of these royalties is1ikely to have an unsettling effect on the industry and may retard the programme of coal production under the second five year plan the same adverse effect would be felt by a sudden modification of the other terms and conditions 3 the object of the present bill is accordingly to exempt mining leases for coal granted before the 25th october, 1949, from the operation of sub-section (1) of section 9 and sub-section (1) of section 16 of the act, with powers to government to extend these provisions to such leases at a future date, subject to such exceptions and modifications as may be considered necessary new delhi; the 19th march1 1958  memorandum regarding delegated legislationsection aoa proposed to be inserted in the principal act by clause 2 of the bill empowers the central government to apply to mining leases granted before the 2,5th day of october, 1949, in respect of coal certain provisions of that act and the rules made thereunder subject to such exceptions and modifications as the central government may think fit to make coal being a basic fuel in the economy of the country has required and continues to require special consideration approximately 80 per cent of the total production of coal in the country is attributable to pre-1949 leases, and such leases have, therefore, always been treated on a footing different from that obta~g in the case of leases for other minerals thus, no rules have been made under section 7 of the mines and minerals (regulation and development) act, 1948, in respect of such leases, although rules have been made in respect of le1'lse~ for other minerals royalties payable under the pre-1949 leases in respect of coal vary over a wide range and are much below those payable under sub-section (l) of section 9 the immediate application of sub-section (1) of section 9 and sub-section (1) of section 16 to such leases, resulting in a sudden and uniform increase of royalties and in the modification of the period and area, may have an unsettling effect on the industry and may adversely affect the programme of coal production power is accordingly being taken to apply the provisions of sub-section (1) of section 9 and sub-section (1) of section 16 as and when it is convenient to do so, subject to such exceptions and modifications, if any, as may be necessary it is possible that the rules under sections 13 and 18 may also have to be modified in their application to such leases in the circumstances of the present case the power delegated is of a normal character  ment) act, 1957 (no 67 of 1957)roj8itica in relpect of minina 1caica 9 (1) the holder of a mining lease granted before the commencement of this act shall, notwithstanding anything contained in the instrument of lease or in any law in force at such commencement, pay royalty in respect of any mineral removed by him 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 holqer of a mining lease granted on or after the commencement of this act shall pay royalty in respect of any mineral removed by him from the leased area at the rate for the time being speciiietl in the second schedule in respect of that mineral (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: provided that the central government shall not-(a) fix the rate of royalty in respect of any mineral so as to exceed twenty per cent of the sale price of the mineral at the pit's head, or (b) enhance the rate of royalty in respect of any mineral more than once during any period of four years      -, 16 (1) all mining leases granted before the 25th day of october, 1949, shall, as soon as may be after the commencement of this act, be brought into conformity with the provisions of this act and the rules made under sections 13 and 18: power to modify miaina ielte ~thbe-october 1949· provided that if the central government is of opinion that in the interests of mineral development it is expedient so to do, it may, for reasons to be recorded, permit any person to hold one or more such mining leases covering in anyone state a total area in excess of that specified in clause (b) of section 6 or for a period exceeding that specified in sub-section (1) of section 8 (2) the central government may, by notification in the official gazette, make rules for the purpose of giving effect to the provisions of sub-section (1) and in particular such rules shall ~ provide-(a) for giving previous notice of the modification or alteration proposed to be made in any existing mining lease to the lessee and where the lessor is not the central government, also to 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; and (c) for the principles on which, the manner in which, and the authority by which, the said compensation shall be determined - - - -  a billto amend the mines and minera13 (regulation and development) act, 1957, for the purpose of exempting mining leases granted before the 25th day of october, 1949, in respect of coal from certain provisions of that act in view of the importance of such leases· in the context of coal production generally (sardar swaran singh, minister of steel, mines and fuel) 