|Consider the following statements|
|1. Under the Panchayat Extension to Scheduled Areas Act, 1996 the prior recommendation of the Gram Sabha is required when a prospecting license or a mineral concession is granted.|
|2. A holder of a coal or lignite mining lease will pay 26% of profits to the District Mineral Foundation. Which of the statement given above is/are correct?|
A) 1 only
B) 2 only
C) Both 1 and 2
D) neither 1 nor 2
Correct Answer: C
Solution :[c] The PESA Act gives local bodies the powers to regulate mineral prospecting and make recommendations for leases for minor mineral leases.
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