Which of the following statements regarding the new Exploration Licence (EL) regime in India is/are correct?
1. The Exploration Licence allows private entities to undertake reconnaissance and prospecting operations for specified critical and deep-seated minerals.
2. The Exploration Licence holder is granted an automatic Mining Lease upon the successful discovery of economically viable mineral reserves.

Question

Accepted Answer

A. 1 only — Statement 1 is correct; the MMDR Amendment Act 2023 introduced ELs for reconnaissance and prospecting of 29 critical minerals. Statement 2 is incorrect; the EL holder does not get an automatic mining lease. Instead, the block is auctioned, and the EL holder receives a share of the auction premium paid by the winning mining entity.

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