The correct option is 1 and 3 only. Statement 1 is accurate as sand is classified as a 'minor mineral' under the Mines and Minerals (Development and Regulation) Act, 1957. Statement 2 is incorrect because while state governments do have the authority to grant leases, the formulation of rules also involves state-level governance and regulation, meaning the state governments play a significant role in rule-making for minor minerals as well. Statement 3 is correct since state governments are empowered to frame rules to combat illegal mining, ensuring local governance can address specific regional issues related to resource management effectively. This reflects the decentralized approach to mineral resource management in India, balancing local oversight with overarching national policies.