(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 or consumed by him or by his agent, manager, employee, contractor or sub-lessee] 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 holder of a mining lease granted on or after the commencement of this Act shall pay royalty in respect of any [mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee] [ Inserted by Act 56 of 1972, Section 4 (w.e.f. 12.9.1972).] from the leased area at the rate for the time being specified in the Second Schedule in respect of that mineral.

[(2-A) The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972, shall not be liable to pay any royalty in respect of any coal consumed by a workman engaged in a colliery provided that such consumption by the workman does not exceed one-third of a tonne per month.] [Inserted by Act 56 of 1972, Section 4 (w.e.f. 12.9.1972). ]

(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 enhance the rate of royalty in respect of any mineral more than once during any period of ] [ Substituted by Act 56 of 1972, Section 4, for the proviso (w.e.f. 12.9.1972).][three years] [ Substituted by Act 37 of 1986, Section 8, for " four years " (w.e.f. 10.2.1987).].]