The correct option is that Statement I is not correct but Statement II is correct because, under the Mines and Minerals (Development and Regulation) Act, 1957, while the central government has the authority to categorize and notify minor minerals, state governments retain the power to legislate and regulate the extraction of those minerals within their jurisdictions. This means that states can formulate rules and grants for concessions concerning minor minerals found in their territory, thus contradicting Statement I. Therefore, the centralized framework allows for both central oversight and state-level control in mineral resources management.