Correct Option (D):
Statement I is incorrect. Under Section 15(1) of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), State Governments are explicitly empowered to make rules for regulating the grant of quarry leases, mining leases, or other mineral concessions in respect of minor minerals located within their respective territories. This provision grants State Governments significant authority over the extraction of minor minerals.
Statement II is correct. As per Section 3(e) of the MMDR Act, the Central Government has the power to declare any mineral as a 'minor mineral' through a notification in the Official Gazette for the purposes of the Act. This allows the Central Government to define and modify the list of minor minerals.
Incorrect Options:
Options 1 and 2 are incorrect because Statement I is factually wrong. State Governments do possess the power to make rules for the grant of concessions for minor minerals. Therefore, any option asserting Statement I as correct is invalid.
Option 3 is incorrect because Statement II is factually correct. The Central Government indeed has the power to notify minor minerals under the relevant law. Therefore, an option claiming Statement II to be incorrect is invalid.