Legal Format | India

Mining Lease Agreement for Stone Quarrying in India

This updated sample deed is intended for a private arrangement concerning use of land for stone quarrying. It should be adapted to the applicable State or Union Territory law, the mineral involved, land title, mining or quarry permit, environmental conditions and safety requirements.

Important: A private lease or landowner agreement does not by itself confer a legal right to extract minerals. Mining or quarrying may be carried on only under the authority required by the Mines and Minerals (Development and Regulation) Act, 1957 and the applicable mineral concession or minor-mineral rules. Stone is commonly regulated as a minor mineral under State/UT rules. Environmental clearance, pollution-control permissions, forest/wildlife approvals, mine-safety requirements and explosives permissions may also apply depending on the site and operations.

What this format covers

  • Land description, quarrying rights and lease term
  • Rent and production-linked contractual payment
  • Government royalty, dead rent, taxes and statutory dues
  • Mining/quarry permits and environmental permissions
  • Blasting, explosives, worker safety and site protection
  • Accounts, inspection, indemnity, restoration and termination

Current legal framework to check before use

The principal central legislation is the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), as amended. For minor minerals, the detailed grant, renewal, transfer, royalty, dead-rent and operating requirements are substantially governed by rules made by the relevant State Government or Union Territory administration.

Mine occupational safety and working conditions are governed by the Occupational Safety, Health and Working Conditions Code, 2020, brought into force on 21 November 2025, together with applicable rules, regulations, standards, directions and transitional provisions. Use and storage of explosives must comply with the Explosives Act, 1884, the Explosives Rules, 2008 as amended, and the requirements of the competent authorities including PESO and, where applicable, DGMS.

Environmental permissions must be checked under the Environment (Protection) Act, 1986, the EIA Notification, 2006 as amended, and other applicable environmental, pollution-control, forest and wildlife laws. Registration and stamp duty for this deed are State-specific and should be verified locally before execution.

Lease Agreement for Quarrying of Stones

THIS DEED OF LEASE is made at on this day of , 20.

Between

Mr./Ms./M/s. , son/daughter/wife of / a , residing/having its office at , hereinafter called the "Lessor" (which expression shall, unless repugnant to the context, include his/her/its heirs, legal representatives, successors and permitted assigns) of the First Part;

And

M/s. , a company incorporated under the Companies Act, 2013 / a partnership / LLP / proprietorship / other lawful entity, having its registered or principal office at , acting through its authorised signatory Mr./Ms. , hereinafter called the "Lessee" (which expression shall, unless repugnant to the context, include its successors and permitted assigns) of the Second Part.

Whereas

1. The Lessor represents that the Lessor has lawful title or other lawful authority over the land situated at , more particularly described in the Schedule below ("Demised Land").

2. Stone deposits are stated to exist in or under the Demised Land. The parties acknowledge that ownership or possession of surface land does not by itself constitute statutory authority to win, extract, remove, transport or sell any mineral.

3. The Lessee has requested use of the Demised Land for lawful quarrying of the mineral/stone specified as for a period of years, strictly subject to every statutory lease, permit, licence, environmental clearance, consent and approval required by law.

NOW THIS DEED WITNESSETH that, in consideration of the rent and other contractual payments agreed below, and subject always to applicable law and statutory permissions, the Lessor grants to the Lessee the contractual right to use the Demised Land for the permitted quarrying purpose for the agreed term. Nothing in this deed shall be interpreted as granting a statutory mining right that only a competent Government or authority may grant.

I. Covenants of the Lessee

(a) To pay the agreed rent and contractual production-linked payment, if any, in the manner and at the times stated in this deed.

(b) To pay all statutory royalty, dead rent, surface rent, taxes, duties, fees, cess and other amounts lawfully payable to the Central Government, State Government, local authority or other competent authority in connection with the quarry and the Demised Land, except any amount expressly agreed to be borne by the Lessor.

(c) To comply with all applicable laws, rules, notifications, permit conditions, environmental safeguards, safety standards and lawful directions of competent authorities.

II. Terms and Conditions

1. Entry and operations. The Lessee may enter the Demised Land and conduct only those quarrying operations that are lawfully permitted by the competent authorities and by this deed.

2. Fixed rent. The Lessee shall pay the Lessor a fixed contractual rent of ₹ per month, payable on or before the day of each month, during the subsistence of this deed unless otherwise lawfully agreed in writing.

3. Production-linked payment. In addition to fixed rent, the Lessee shall pay the Lessor ₹ per metric tonne / cubic metre / other agreed unit of lawfully extracted stone as contractual consideration. This payment is separate from any statutory royalty or other Government levy. Payment shall be made within days after the end of each calendar quarter, supported by production and dispatch records.

4. Records and inspection. The Lessee shall maintain accurate records of extraction, dispatch, weighment, permits, e-transit passes and statutory returns as required by law. The Lessor may inspect records relevant to contractual payments on reasonable notice, without obstructing operations or requiring disclosure prohibited by law.

5. Statutory permissions before commencement. The Lessee shall not commence mining, quarrying, excavation, crushing, blasting, removal or dispatch of mineral until all required statutory rights, quarry leases/permits, approvals, registrations, environmental clearances, consents and licences have been obtained and are valid. Copies shall be furnished to the Lessor on reasonable request.

6. Equipment. The Lessee may bring to the site lawful machinery, equipment, tools and materials reasonably required for permitted operations, subject to approval conditions and safety requirements.

7. Temporary facilities. Temporary sheds, site offices or safety facilities may be installed only where permitted by law and by the relevant approvals. No permanent construction shall be made without the Lessor's written consent and every required statutory sanction.

8. Explosives and blasting. No explosive shall be possessed, stored, transported, handled or used except under valid authority and in accordance with the Explosives Act, 1884, the Explosives Rules, 2008 as amended, applicable mine-safety law and the conditions imposed by PESO, DGMS or any other competent authority. Blasting shall be performed only by duly authorised and competent persons.

9. Mining plan and permitted limits. Excavation shall remain within the sanctioned lease/permit area, depth, bench parameters, mining plan and other statutory limits. The blank depth restriction in this private deed shall not override any approved mining plan or legal condition.

10. Access road. Responsibility for obtaining lawful access, right of way and permissions for movement of machinery and mineral transport shall be borne by . No public or private land may be used without lawful authority.

11. No encroachment. The Lessee shall not encroach upon adjoining land or operate beyond the legally demarcated and approved area.

12. Trees, forest and wildlife. No tree shall be cut and no forest or wildlife area shall be used except under permissions required by applicable forest, wildlife, environmental and State laws. Timber or other forest produce shall be dealt with only as permitted by law.

13. Mineral restriction. The Lessee may extract and remove only the mineral(s) lawfully authorised under the applicable lease/permit. Discovery of any other mineral or material shall be reported and dealt with strictly as required by law.

14. Contractual security for unpaid amounts. Subject to applicable law and without obstructing any statutory seizure, Government claim or lawful mineral transport, the Lessor may exercise contractual remedies for unpaid rent or contractual consideration. No clause in this deed authorises unlawful detention or disposal of mineral.

15. Assignment and contracting. The Lessee shall not assign, transfer, sublet or otherwise part with any right under this deed without the Lessor's prior written consent and, where required, prior approval of the competent statutory authority. Engagement of contractors shall not relieve the Lessee of legal or contractual responsibility.

16. Government dues. Statutory royalty and all other charges payable for extraction, dispatch, transport or sale of mineral shall be paid by the person made liable under the applicable law, permit or concession conditions.

17. Indemnity. To the extent permitted by law, the Lessee shall indemnify the Lessor against losses, claims, penalties, clean-up costs and liabilities arising from the Lessee's breach of law or this deed; unauthorised quarrying; environmental damage; unsafe operations; blasting or explosives; injury, death or property damage caused by the Lessee or its contractors; encroachment; or failure to pay statutory dues for which the Lessee is legally responsible. This indemnity shall not protect the Lessor from the Lessor's own fraud, wilful misconduct or statutory liability that cannot lawfully be transferred.

18. Closure and restoration. On expiry or earlier termination, the Lessee shall stop operations as required by law, secure the site, remove movable equipment within days/months, and comply with mine-closure, reclamation, environmental-restoration and authority directions. Any treatment of unremoved property must comply with applicable law and shall not affect Government rights or statutory obligations.

III. Covenants of the Lessor

(a) The Lessor represents that the Lessor has the lawful capacity to grant the land-use rights expressly created by this deed, subject to statutory mining rights and Government authority.

(b) So long as the Lessee pays contractual amounts and complies with this deed and applicable law, the Lessor shall not unlawfully interfere with the Lessee's permitted use of the Demised Land during the term.

IV. Termination

(a) Default. If rent or other contractual payment remains unpaid for more than months after due date; a material covenant is breached and not cured within the agreed cure period; a mandatory permit is suspended or cancelled; the Lessee becomes subject to insolvency/liquidation proceedings materially affecting performance; operations fail to commence within months without lawful reason; or operations remain closed for more than months, the non-defaulting party may exercise termination rights after giving the notice required by this deed and applicable law.

(b) Acquisition or prohibition. If the Demised Land or a material part is lawfully acquired, quarrying is prohibited by a competent authority, the statutory mineral concession expires or is terminated, or continuation becomes unlawful, this deed shall be suspended or terminated to the extent required by law. Accrued rights and statutory closure obligations shall survive.

(c) Lessee's voluntary termination. The Lessee may terminate this deed by giving months' prior written notice, subject to payment of amounts lawfully due and completion of statutory closure, restoration and surrender requirements. Any pre-agreed compensation or liquidated damages shall apply only to the extent enforceable under applicable law and shall be ₹ / calculated as .

(d) Force majeure. Neither party shall be treated as in breach for delay caused by events beyond reasonable control, to the extent recognised by applicable law and this deed, provided prompt notice is given and reasonable mitigation is undertaken.

(e) Dispute resolution and jurisdiction. Disputes shall first be addressed through good-faith written negotiations. Any agreed arbitration clause should specify the seat, language, number of arbitrators and applicable procedure. Courts and statutory tribunals shall retain jurisdiction wherever jurisdiction cannot lawfully be excluded.

The Schedule

District:
State/UT:
Village/Taluk/Tehsil:
Survey/Khasra/Plot No.:
Area:
Boundaries / coordinates:
Mineral authorised:
Statutory lease/permit reference, if granted:

IN WITNESS WHEREOF the parties have executed this deed on the date and at the place first stated above.

LESSOR

Signature:
Name:
LESSEE

Signature:
Name / Authorised Signatory:
WITNESS 1

Signature:
Name & address:
WITNESS 2

Signature:
Name & address:

Official references

This is a general drafting format, not a substitute for a State-specific quarry lease, Government mineral concession, environmental clearance, mining plan, registration instrument or professional review. Applicable requirements differ by mineral, area, land classification, scale of operation and State/UT.