Explanation

The regulation of mines and minerals in India is governed by the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), which distinguishes between major minerals and minor minerals and allocates regulatory powers accordingly between the Centre and States.

Statement I is incorrect. Contrary to what the statement claims, State Governments are fully empowered to make rules for granting concessions — such as leases and licenses — for the extraction of minor minerals located within their territories. This power is explicitly granted under Section 15 of the MMDR Act. States have both administrative and rule-making authority over minor minerals, making Statement I factually wrong. Mineral regulation is also recognized as a State subject under the Constitution, further reinforcing the states’ role in managing minor minerals.

Statement II is correct. While states regulate the extraction and concession of minor minerals, the Central Government holds the power to classify and notify a mineral as a minor mineral. This power flows from Section 3(e) of the MMDR Act, which allows the Central Government to declare any mineral as a minor mineral by notification in the Official Gazette. Therefore, the definition and classification of minor minerals is a central function, while the regulation and management of their extraction rests entirely with the states.

In essence, there is a clear division of roles — the Central Government decides what is a minor mineral, and the State Governments decide how it is extracted and regulated.