UPSC Prelims 2025 Q89: Indian Economy – Infrastructure & Industry

UPSC Prelims 2025, General Studies Paper I · Indian Economy

1. (a) Both Statement I and Statement II are correct and Statement II explains Statement I
2. (b) Both Statement I and Statement II are correct but Statement II does not explain Statement I
3. (c) Statement I is correct but Statement II is not correct
4. (d) Statement I is not correct but Statement II is correct

Answer: (d) Statement I is not correct but Statement II is correct

Explanation

Mineral Regulation in India — Centre vs State Powers

Statement I: State Governments have NO power to make rules for grant of concessions for minor minerals → FALSE

Under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), Section 15 specifically empowers State Governments to make rules for grant of quarry leases, mining leases, and other mineral concessions for minor minerals (sand, gravel, clay, etc.) within their territories. States actively regulate minor minerals.

Statement II: Central Government has the power to notify minor minerals under MMDR Act → TRUE

The Central Government has the authority to notify and classify which minerals are "minor minerals" under the MMDR Act. The list of minor minerals is notified by the Centre.

Statement I is FALSE, Statement II is TRUE → Answer: Statement I not correct, Statement II correct

MAJOR MINERALS (Coal, Iron Ore, Gold, Bauxite):

MINOR MINERALS (Sand, Gravel, Clay, Brick Earth):

Answer: (d) Statement I is not correct but Statement II is correct.

Why each option is right or wrong

• (a) Incorrect. 'Both correct and II explains I' would require Statement I (States have NO power) to be true — but Section 15 of MMDR Act clearly grants States power to regulate minor minerals.
• (b) Incorrect. 'Both correct but II doesn't explain I' still requires Statement I to be true — it is not. States have clear statutory power over minor mineral concessions.
• (c) Incorrect. 'I correct, II not correct' would mean States can't regulate minor minerals (wrong) and Centre can't notify them (wrong). Both are inverted.
• (d) CORRECT. Statement I is incorrect — States DO have power to make rules for minor minerals (MMDR Act Section 15). Statement II is correct — Centre notifies the list of minor minerals.

Key point

States have FULL power to make rules for minor mineral concessions (MMDR Act, Section 15). Centre notifies which minerals are classified as 'minor minerals.' State = rule-maker for minor minerals.

Remember

States CAN make rules for minor mineral concessions (MMDR Act Section 15). Centre's role = notifying which minerals are classified as 'minor minerals.' Statement I is false, Statement II is true.

Common mistakes

• Thinking the Centre controls all mineral regulation — minor minerals are specifically delegated to States for concession-granting and rule-making.
• Confusing major minerals (Centre-regulated MMDR) with minor minerals (State-regulated for concessions) — this distinction is fundamental to India's mineral governance.
• Not knowing that sand mining (a minor mineral) is a State subject — illegal sand mining controversies are all about State government failures, not Centre's.

Exam tip

Minor minerals = State's domain for rules + concessions. Centre = only notifies the list. Think of sand, gravel, clay, brick earth — all minor minerals causing major controversies at State level (illegal sand mining). MMDR Act Section 15 = State's minor mineral power.

Sources

• Mines and Minerals (Development and Regulation) Act, 1957 — Section 15
• Ministry of Mines — Minor Minerals Notification and State Rules

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