MINERAL
CONCESSION RULES, 1960
As Amended
upto 18.01.2000
G.S.R. 1398, dated the 11th November, 1960 – In
exercise of the powers conferred by section 13 of the Mines and
Minerals ( Regulation and Development ) Act, 1957 ( 67 of 1957 ),
the Central Government hereby makes the following rules, namely :-
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1. Short title. – These rules may be called
the Mineral Concession Rules, 1960.
2. Definitions – In these rules, unless the
context otherwise requires, -
(i) "Act" means the Mines and Minerals
[(Development and Regulation)] Act, 1957 (67 of 1957);
(ii) "Form" means a form set out in schedule I to
these rules;
(iii) "railway" and "railway administration" have
the meanings respectively assigned to them in the Indian Railways
Act, 1890 (9 of 1890);
(iv) "Schedule" means a schedule appended to
these rules.
(v) "section" means a section of the
Act.
3. Saving of Act 33 of 1962. – Nothing in
these rules shall affect the provisions of the Atomic Energy Act,
1962 (33 of 1962) [and the rules made thereunder in
respect of licensing relating to atomic minerals listed in Part B of
the First Schedule to the Act.]
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Grant of Reconnaissance
Permits
4. Application for reconnaissance permit.
– (1) An application for reconnaissance permit shall be made
to the State Government in Form ‘A’ through such officer or
authority as the State Government may specify in this behalf.
(2) (a) Every such
application shall be accompanied by a non-refundable fee
calculated at the rate of five rupees per square
kilometre
(b) a valid clearance certificate, in the form
prescribed by the State Government for payment of mining dues,
such as royalty or dead rent or surface rent payable under the
Act or rules made thereunder, from that Government or any
officer or authority authorised by that Government in this
behalf;
Provided that where a person has furnished an
affidavit to the satisfaction of the State Government stating
that he does not hold and has not held a reconnaissance permit,
it shall not be necessary for him to produce the said valid
clearance certificate:
Provided that an affidavit stating that no dues
are outstanding shall suffice subject to the condition that the
certificate required as above shall be furnished within ninety
days of the date of application and the application shall become
invalid if the party fails to file the certificate within the
said ninety days:
Provided also that where any injunction has
been issued by a court of law or any other competent authority
staying the recovery of any such mining dues or income tax, non-
payment thereof shall not be treated as a disqualification for
the purpose of granting the reconnaissance permit:
Provided further that in case the applicant is
a partnership firm or a private limited company, such
certificate shall be furnished by all persons of the partnership
firm or, as the case may be, all members of the private limited
company.
(c) an affidavit stating that the applicant has
-
(i) filed up–to-date income-tax returns;
(ii) paid the income-tax assessed on him;
and
(iii) paid the income-tax on the basis of his assessment as
provided in the Income-Tax Act, 1961 (43 of
1961).
(d) an affidavit showing the particulars of
areas, mineral-wise in the State, which the applicant or any
person jointly with him -
(i) already holds under a reconnaissance
permit;
(ii) has applied for but not granted; and
(iii) being applied for
simultaneously.
4A. Acknowledgement of application. – (1)
Where an application for the grant of reconnaissance permit is
delivered personally, its receipt shall be acknowledged
forthwith.
(2) Where such application is received by
registered post, its receipt shall be acknowledged on the same
day.
(3) In any other case, the receipt of such
application shall be acknowledged within three days of the
receipt.
(4) The receipt of every such application shall
be acknowledged in Form ‘D-1’.
5. Refusal of application for a reconnaissance
permit. – (1) The State Government may after giving an
opportunity of being heard and for reasons to be recorded in writing
and communicated to the applicant, refuse to grant a reconnaissance
permit over the whole or part of the area applied for.
(2) Where it appears that the application is not
complete in all material particulars or is not accompanied by the
required documents, the State Government shall, by notice, require
the applicant to supply the omission or, as the case may be,
furnish the documents without delay and in any case not later than
thirty days from the date of receipt of the said notice by the
applicant.
6. Status of grant on death of the applicant for
reconnaissance permit. – (1) Where an applicant for the grant of
a reconnaissance permit dies before the order granting him a
reconnaissance permit is passed, the application for the grant of
reconnaissance permit shall be deemed to have been made by his legal
representative.
(2) In the case of an applicant in respect of whom an order
granting a reconnaissance permit is passed but who dies before the
deed referred in sub rule(1) of rule 7A is executed, the order
shall be deemed to have been passed in the name of the legal
representative of the deceased.
7. Conditions of a reconnaissance permit. –
(1) Every reconnaissance permit granted under these rules, shall, in
addition to any other conditions that may be specified therein be
subject to the following conditions namely,
(i) the holder of reconnaissance permit shall
progressively relinquish the area granted under the permit as
follows:-
(a) After completion of two years, the area
shall be reduced to one thousand square kilometres or fifty
per cent of the area granted, whichever is less; and
(b) The area would be further relinquished so
that the permit holder is left with an area not more than
twenty five square kilometers at the end of the third
year.
(ii) The holder of the reconnaissance permit
shall strictly adhere to the minimum expenditure commitment and
specific physical targets specified in the order of grant of the
permit failing which reconnaissance permit may be cancelled.
(iii) The holder of reconnaissance permit shall
make available all data collected by him during the
reconnaissance operations to the Geological Survey of India,
Indian Bureau of Mines and the State Government which may be
made available to any prospecting investor after a minimum
period of two years of the completion of the period of
reconnaissance permit.
(iv) The holder of reconnaissance permit shall
not enter any forest land or any private land without obtaining
permission of the Forest Department or the owner of the private
land, as the case may be.
(v) The holder of reconnaissance permit shall
maintain accurate faithful account of all the expenses incurred
by him on the reconnaissance operations.
(vi) The holder of reconnaissance permit shall
submit to the State Government a six monthly report of the work
done by him and the valuable data collected by him during the
period. The report shall be submitted within three months of the
close of the period to which it relates.
(vii) The permit holder shall also submit to
the State Government within three months of the expiry of the
permit, or abandonment of the operations or termination of the
permit whichever is earlier, a full report of the work done by
him and all information relevant to mineral resources acquired
by him in the course of reconnaissance permit in the area
covered by the permit.
(viii) While submitting reports under sub
clause (vi) or (vii), the permit holder may specify that the
whole or any part of the report or data submitted by him shall
be kept confidential; and the State Government shall thereupon,
keep the specified portions as confidential for a period of two
years from the expiry of the permit, or abandonment of
operations or termination of the permit, whichever is
earlier.
(ix) The permit holder shall allow every
officer authorised by the Central Government or the State
Government in this behalf to examine at any time accounts
maintained and furnish to the Central Government or the State
Government or any other officer authorised by it in that behalf
such information and returns.
(x) The permit holder shall allow any officer
authorised by the Central Government or the State Government in
this behalf to inspect any reconnaissance operations carried on
by him.
(xi) The permit holder shall pay such permit fee as may be
fixed by the State Government, being not less than five rupees
per square kilometer and not more than twenty rupees per square
kilometer of land held by the permit holder for each year or
part thereof.
(2) The reconnaissance permit may contain such
other conditions as may be imposed by the Central Government which
inter-alia may include the condition that the representative of
the Directorate General, Civil Aviation or Ministry of Defence
shall be present during the aerial surveys.
(3) The State Government may, with the approval
of the Central Government, impose such further conditions in the
permit as it may think necessary in the interest of mineral
development and for compliance of various legal
provisions.
(4) In case of breach of any condition imposed on
any holder of reconnaissance permit by or under this rule, the
State Government may by order in writing, cancel the permit,
and/or forfeit in whole or in part, the amount deposited by the
permit holder as security:
Provided that no such order shall be made without
giving the permit holder a reasonable opportunity of stating his
case.
7A. Reconnaissance Permit to be executed within
three months. – (1) Where on any application for a
reconnaissance permit an order has been made for the grant of such
permit, a deed granting such permit shall be executed within ninety
days of the date of the communication of the order or such further
period as the State Government may allow in this behalf, and if no
such deed is executed within such period due to any fault on the
part of the applicant, the State Government may revoke the order
granting the reconnaissance permit and in that event the fee paid
shall be forfeited to the State Government.
(2) The deed referred to in sub rule 1 shall be
in Form F-1, or in a Form as near thereto as circumstances of each
case may require.
(3) The date of the commencement of the period
for which a reconnaissance permit is granted shall be the date on
which the deed is executed after all necessary clearances have
been obtained.
7B. Security deposit. –
(i) An applicant for a reconnaissance permit
shall, before deed referred to in sub rule (1) of rule 7A is
executed, deposit as security for the observance of the terms and
conditions of the permit a sum of twenty rupees in respect of
every square kilometre or part thereof for which the permit is
granted.
(ii) Any deposit made under sub clause (i) above
if not forfeited under the rules shall be refunded to the
applicant as soon as the report referred to in sub rule (1)(vii)
of rule 7 is submitted.
7C. Prospecting Licences and Mining Leases of
other minerals. –The applications received for grant of
prospecting licences or mining leases within the area granted under
reconnaissance permit for minerals other than those for which the
permit has been granted, shall not be refused on the grounds that
the area is not available for grant. The State Government shall
dispose of such applications as per provisions of these rules.
Provided that if a prospecting licence or a mining
lease for other mineral has been granted to some other applicant
within the area granted for a reconnaissance permit and where the
reconnaissance permit holder discovers availability of minerals
covered under his permit within the area so granted subsequently for
prospecting or mining of minerals other than those covered under the
reconnaissance permit, he shall have the right to get such areas
vacated from the licensee or the lessee, as the case may be and such
licensee or lessee shall not hinder the reconnaissance operations
being undertaken by the reconnaissance permit holder.
7D. Registers. – (1) A register of
applications for reconnaissance permits shall be maintained by the
State Government in Form G-1.
(2) A register of reconnaissance permit shall be
maintained by State Government in Form H-1.]
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[8.
Applicability of chapter II, chapter III and chapter IV. –
The provisions of chapter II, chapter III and chapter IV shall apply
to the grant of reconnaissance permits as well as grant and renewal
of prospecting licences and mining leases only in respect of the
land in which the minerals vest in the Government of a State.]
9.
Application for prospecting licence and its renewal. – (1) An
application for prospecting licence and its renewal in respect of
land in which the minerals vest in Government shall be made to the
State Government in Form B and Form E respectively through such
officer or authority as the State Government may specify in this
behalf .
(2)
Every such application shall be accompanied by –
(a)
a [non-refundable] fee calculated in accordance with the provisions
of Schedule II ; and
(b)
(Omitted)
(c)
(Omitted)
(d) a valid clearance certificate, in the form
prescribed by the State Government , of payment of mining dues, such
as royalty or dead rent and surface rent payable under the Act or
the rules made thereunder, from that Government or any officer or
authority by that Government in this behalf ;
Provided [ ] that in case the applicant is a
partnership firm or a private limited company such certificates
shall be furnished by all partners of the partnership firm or, as
the case may be, all members of the private limited company.
[Provided further that where any injunction has been
issued by court of law or any other competent authority staying the
recovery of any such mining dues or income tax, non payment thereof
shall not be treated as a disqualification for the purpose of
granting or renewing the said prospecting licence:
Provided that where a person has furnished an
affaidavit to the satisfaction of the State Government stating that
he does not hold and has not held a prospecting licence, it shall
not be necessary for him to produce the said valid clearance
certificate:
Provided further that a sworn affidavit stating that
no dues are outstanding shall suffice subject to the condition that
the certificate required as above shall become invalid if the party
fails to file the certificate within the said ninety days.]
(e)
an affidavit stating that the applicant has –
(i)
filed up-to-date income tax returns;
(ii)
paid the income tax assessed on him ; and
(iii)
paid the income tax on the basis of self-assessment as provided in
the Income Tax Act ,1961;
(f) an affidavit
showing particulars of areas mineral-wise in [the] State, which the
applicant or any person jointly with him –
(i)
already holds under a prosecuting licence ;
(ii)
has applied for but not granted ; and
(iii)
being applied for simultaneously.
(g)
a statement in writing that the applicant, where the land is not
owned by him, has obtained surface rights over the area or has
obtained the consent of the owner for starting prospecting
operations :
Provided that no such statement shall
be necessary where the land is owned by the Government.
Provided [ ] that the
consent of the owner for starting prosecuting operations in the area
or part thereof may be furnished after execution of the prosecuting
licence but before entry into the said area.
[Provided further that no further consent would be
required in the case of renewal where consent has already been
obtained during grant of the licence.]
(3) The State Government may, for reasons to be
recorded in writing, relax the provisions of clause (d) of sub-rule
(2) of rule 9.
(4)
The grant of clearance certificate under clause (d) of sub-rule (2)
of rule 9 shall not discharge the holder of such certificate from
the liability to pay the mining dues which may subsequently be found
to be payable by him under the Act or the rules made thereunder.
10. Acknowledgement of application. – (1) Where
an application for the grant or renewal of a prospecting licence is
delivered personally, its receipt shall be acknowledged
forthwith.
(2) Where such application is received by registered
post, its receipt shall be acknowledged on the same day.
(3)
In any other case, the receipt of such application shall be
acknowledged within three days of the receipt .
(4) The receipt of every such application shall be
acknowledged in Form D.
10A. (Omitted).
11. Disposal of application for the grant and
renewal of prospecting licence. – (1) (Omitted)
(2) (a) An application
for the renewal of a prospecting licence shall be made at least
ninety days before the expiry of the prospecting licence and shall
be accompanied by –
(i) a
statement relating to the prospecting operations already undertaken
by the applicant;
(ii) the amount of expenditure incurred;
(Iii) the numbers of hours and days for which the work
was undertaken; and
(iv) the period which is required to complete the
prospecting work.
(b)
An application for the renewal for a prospecting licence shall be
disposed of by the State Government before the expiry of the period
of prospecting licence and if the application is not disposed of
within that period, the licence shall be deemed to have been renewed
for a period not exceeding the period prescribed for renewal of
prospecting licence under sub-section (2) of section 7 of the Act,
or the period for which an application is made, whichever is
less.
(3)
The State Government may, for reasons to be recorded in writing and
communicated to the applicant , at the time of renewal, reduce the
area applied for.
[(4) The State Government may condone delay in
submission of an application for renewal of a prospecting licence
made after the time limit prescribed in sub-rule(2) provided the
application for the renewal has been made before the expiry of the
licence.]
12. Refusal of application for a prospecting
licence. – (1) The State Government may, after giving an
opportunity of being heard and for reasons to be recorded in writing
and communicated to the applicant, refuse to grant or renew a
prospecting licence over the whole or part of the area applied
for.
(1A) An application for the grant or renewal of a
prospecting licence made under rule 9 shall not be refused by the
State Government only on the ground that Form B or Form E, as the
case may be, is not complete in all material particulars, or is not
accompanied by the documents referred to in clauses (d),(e),(f) and
(g) of sub-rule (2) of the said rule.
(1B) Where it appears that the application is not
complete in all material particulars or is not accompanied by the
required documents, the State Government shall, by notice, require
the applicant to supply the omission, or as the case may be, furnish
the documents without delay and in any case not later than thirty
days from the date of receipt of the said notice by the
applicant.
(2)
An application for the grant of a prospecting licence shall not be
refused on the ground only that, in the opinion of the State
Government, a mining lease should be granted for the area for which
the application for a prospecting licence has been made:
Provided that where applications for the grant of
prospecting licence and applications for the grant of mining lease
in respect of the same area are received on the same date or on
different dates within a period of thirty days, the applications for
the grant of mining lease shall, if the area was previously held and
worked under a mining lease, be disposed of before the applications
for the grant of prospecting licence are considered.
[Provided further that the applications received for
grant of prospecting licence shall be liable to be considered only
if they have not been already disposed of.]
13. Refund of Fee. – [ ]
13 A. Status of grant on
death of the applicant for prospecting licence. – (1) Where an
applicant for the grant of a prospecting licence dies before the
order granting him a prospecting licence is passed, the applicant
for the grant of a prospecting licence shall be deemed to have been
made by his legal representative.
(2)
In the case of an applicant in respect of whom an order granting a
prospecting licence is passed but who dies before the deed referred
to in sub-rule (1) of rule 15 is executed, the order shall be deemed
to have been passed in the name of the legal representative of the
deceased.
14. Conditions of a prospecting licence. – (1)
Every prospecting licence granted under these rules, shall, in
addition to any other conditions that may be specified therein, be
subject to the following conditions, namely :
(i) the licensee shall pay such prospecting fee as may
be fixed by the State Government, being not less than rupee one and
not more than rupees ten
per hectare of land covered by the licence for each year or
part of a year of the period for which the licence is granted or
renewed ;
(ii)
the licensee may win or carry for purposes other than commercial
purposes -
(a)
any quantity of such minerals within the limits specified under
column 3 of Schedule III without any payment ;
(b)
any quantity of such minerals not exceeding the limit specified
under column 4 of Schedule III, on payment of royalty for the time
being specified in the Second Schedule to the Act in respect to
those minerals:
Provided that if any quantity in excess of the
quantities specified in sub-clause (b) is won and carried away, the
State Government may recover the cost of the excess quantity of
minerals won and carried away.
(iii)
with the written approval of the State Government, the licensee may
carry away quantities of minerals in excess of the limits specified
in Schedule III, on payment of royalty for the time being specified
in the Second Schedule to the Act, for chemical, metallurgical,
ore-dressing and other test purposes;
(iv)
save in the case of land in respect of which the licensee is granted
a mining lease, he shall, within six months next after the
determination of the licence or the date of abandonment of the
prospecting operations, whichever is earlier, securely, plug all
bores and fill up or fence all excavations in the land covered by
the licence;
(v)
the licensee shall report to the State Government the discovery of
any mineral not specified in the licence within a period of sixty
days from the date of such discovery. Consequent upon such
reporting, such newly discovered mineral shall be deemed to have
been included in the prospecting licence;
(vi) Omitted.
(vii)
the licensee shall not except with the previous sanction of the
State Government transfer his licence :
Provided that no prospecting licence shall be
transferred to any person who has not filed an affidavit stating
that he has filed an up-to-date income tax returns and paid the income-tax
assessed
i8on him and
paid the income tax on the basis of self-assessment as
provided in the Income –Tax Act, 1961(43 of 1961) and except on
payment to the State Government of a fee of five hundred rupees.
Provided further that the State Government shall not
grant its sanction for
the transfer of prospecting licence unless the transferee has
accepted all the conditions and liabilities which the transferor has
in respect of such
prospecting licence:
Provided also that the State Government may, by order
in writing after providing the licensee the opportunity of being
heard, cancel such prospecting licence at any time if the licensee
has, in the opinion of the State
Government, committed a breach of this clause or rule 15A.
(viii) the licensee shall not pay a wage less than the
minimum wage prescribed by the Central or the State Government from
time to time under the Minimum Wages Act, 1948 ;
(ix) the licensee shall observe the provisions of the
Mines Act, 1952 [(35 of 1952) and the provisions of the Atomic
Energy Act, 1962 (33 of 1962) insofar as the latter relate to atomic
minerals included in Part B of the First Schedule to the Act.];
(x) the licensee shall -
(a)
take immediate measures for planting in the same area or any other
area selected by the Central or State Government not less than twice
the number of trees destroyed by reasons of any prospecting
operations ;
(b) look after them during subsistence of the licence
after which these shall be handed over to the State Forest
Department or any other authority as may be nominated by the Central
or State Government ;
(c)
restore, to the extent possible, other flora destroyed by
prospecting operations.
(xi)
the licensee shall pay to the occupier of surface of the land such
compensation as may become payable under these rules ;
(xii)
the licensee shall comply with the Mineral Conservation and
Development Rules framed under section 18.
[ ]
(2)
A prospecting licence may contain such other conditions relating to
the following as the State Government may think fit to impose,
namely :
(i)
compensation for damage to land in respect of which the licence has
been granted ;
(ii)
indemnity to Government against the claim of a third party for any
damage, injury or disturbance caused to him by the licensee ;
(iii)
restrictions regarding felling of trees on unoccupied and unreserved
Government land ;
(iv) restrictions on prospecting operations in any
area prohibited by any competent authority ;
(v) operations in a reserved or protected forest ;
(vi) conditions regarding entry on occupied land ;
(vii)
facilities to be given by the licensee for working other minerals in
the licenced area or adjacent areas ;
(viii) filing of civil suits or petitions relating to
disputes arising out of the area under prospecting licence .
[(3) The State Government may, either with the
previous approval of the Central Government or at the instance of
the Central Government, impose such further conditions as may be
necessary in the interest of mineral development, including
development of atomic minerals.]
(4)
In the case of breach of any conditions imposed on any holder of
prospecting licence by or under this rule, the State Government may,
by order in writing, cancel the licence and/or forfeit, in whole or
part, the amount deposited by the licensee under rule 20 ;
Provided that no such order shall be made without
giving the licensee a reasonable opportunity of stating his
case.
15. Licence to be executed within three months.
– (1) Where on any application for a prospecting licence an
order has been made for the grant of such licence, a deed granting
such licence shall be executed within ninety days of the date of the
communication of the order or such further period as the State
Government may allow in this behalf, and if no such deed is executed
within the said period due to any default on the part of the
applicant, the State Government may revoke the order granting the
licence and in that event the fee paid shall be forfeited to the
State Government.
(2) The deed referred to in sub-rule (1) shall be in
Form F, or in a form as near thereto as circumstances of each case
may require.
(3)
The date of the commencement of the period for which a prospecting
licence is granted shall be the date on which the deed is executed
under sub-rule (1).
15A. Where on an application for grant of
sanction to transfer the prospecting licence under clause (vii) of
sub-rule (1) of rule 14, the State Government has granted sanction
for transfer of such license, a transfer deed in Form P, or a form
as near thereto as possible shall be executed within three months of
the date of the consent, or within such further period as the State
Government may allow in this behalf.
16. Report of information obtained by the licensee.
– (1) The licensee shall submit to the State Government a six
monthly report of the work done by him stating the number of persons
engaged and disclosing in full the geological, geophysical or other
valuable data collected by him during the period. The report shall
be submitted within three months of the close of the period to which
it relates.
(2)
The licensee shall also submit to the State Government within three
months of the expiry of the license, or abandonment of operations or
termination of the licence, whichever is earlier, a full report of
the work done by him and all information relevant to mineral
resources acquired by him in the course of prospecting operations in
the area covered by the licence.
(3)
While submitting reports under sub-rules (1) or (2), the licensee
may specify that the whole or any part of the report or data
submitted by him shall be kept confidential; and the State
Government shall thereupon, keep the specified portions as
confidential for a period of two years from the expiry of the
licence, or abandonment of operations or termination of the licence,
whichever is earlier.
17. Omitted
18. Maintenance of accounts. – Every licensee
shall maintain [an accurate] and faithful account of all expenses
incurred by him on prospecting operations and also the quantity and
other particulars of all minerals obtained during such operations
and their despatch.
19. Inspection. – (1) The licensee shall allow
every officer authorised by the Central Government or the State
Government in this behalf to examine at any time accounts maintained
under rule 18 and furnish the Central Government or the State
Government such information and returns as it or any officer
authorised by it in that behalf may require.
(2)
The licensee shall allow any officer authorised by the Central
Government or the State Government in this behalf to inspect any
prospecting operations carried on by him.
20. Security deposits. – (1) An applicant for a
prospecting licence shall, before the deed referred to in sub-rule
(1) of rule 15 is executed, deposit as security for the due
observance of the terms and conditions of the licence a sum of two
thousand and five hundred rupees in respect of the every square
kilometer or part thereof for which the licence is granted.
(2)
Any deposit made under sub-rule (1), if not forfeited under these
rules, shall be refunded to the applicant as soon as the report
referred to in rule 16 is submitted.
21. Registers. – (1) A register of applications
for prospecting licences shall be maintained by the State Government
in Form G.
(2) A register of prospecting licences shall be
maintained by the State Government in Form H.
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22. Application for grant of mining leases.
– (1) An application for the grant of a mining lease in respect
of land in which the minerals vest in the Government shall be made
to the State Government in Form I through such officer or authority
as the State Government may specify in this behalf .
(2) Omitted
(3) (i) Every
application for the grant of renewal of a mining lease shall be
accompanied by-
(a) a non-refundable fee of two thousand and five
hundred rupees ;
(b) Omitted
(c) Omitted
(d) a
valid clearance certificate, in the form prescribed by the State
Government, of payment of mining dues, such as royalty or dead rent
or surface rent payable under the Act or the rules made thereunder,
from that Government or any officer or authority authorised by that
Government in this behalf ;
Provided that in case the applicant is a partnership
firm or a private limited company, such certificates shall be
furnished by all partners of the partnership firm or, as the case
may be, all members of the private limited company ;
[Provided that where
any injunction has been issued by court of law or any other
competent authority staying the recovery of any such mining dues or
income tax non payment thereof shall not be treated as a
disqualification for the purpose of granting or renewing the said
mining lease:
Provided that where a
person has furnished an affidavit to the satisfaction of the State
Government stating that he does not hold and has not held a mining
lease, it shall not be necessary for him to produce the said valid
clearance certificate:
Provided that a
properly sworn affidavit stating that no dues are outstanding shall
suffice subject to the condition that the certificate required as
above shall be furnished within ninety days of the date of
application and the application shall become invalid if the party
fails to file the certificate within the said ninety days:
Provided further that the grant of clearance
certificate under sub-clause(d) shall not discharge the holder of
such certificate from the liability to pay the mining dues which may
subsequently be found to be payable by him under the Act or rules
made thereunder.];
(e) Omitted
(f) an affidavit stating that the applicant has -
(i) filed up-to-date income-tax returns ;
(ii) paid the income-tax assessed on him ; and
(iii) paid the income-tax on the basis of
self-assessment as provided in the Income Tax Act, 1961;
(g) an affidavit showing particulars of area
mineral-wise in [the] state, which the applicant or any person
jointly with him -
(i) already holds under a mining lease ;
(ii)
has already applied for but not granted ;
(iii) being applied for simultaneously ;
(h) a
statement in writing that the applicant has, where the land is not
owned by him, obtained surface rights over the area or has obtained
the consent of the owner for starting mining operations :
Provided that no such statement shall be necessary
where the land is owned by the Government :
Provided further that the consent of the owner for
starting mining operations in the area or part thereof may be
furnished after execution of the lease deed but before entry into
the said area ;
Provided also that no further consent would be
required in the case of renewal where consent has already been
obtained during grant of the lease.
[ ]
(i a)
The State Government may, for reasons to be recorded in writing,
relax the provision of sub-clause (d) of clause (I).
(ii)
Every application for the grant of a mining lease shall in addition
to those specified in clause (I) be accompanied by a deposit of one
thousand rupees for meeting the preliminary expenses in connection
with the grant of the mining lease :
Provided that the
applicant shall deposit such further deposit as may be asked for by
the State Government, within one month from the date of demand of
such deposit.
(4)
On receipt of the application for the grant of a mining lease the
State Government shall take decision to grant precise area for the
said purpose and communicate such decision to the applicant. On
receipt of communication from the State Government of the precise
area to be granted, the applicant shall submit a mining plan, within
a period of six months of such other period as may be allowed by the
State Government, to the Central Government for its approval. The
applicant shall submit the mining plan, duly approved by the Central
Government or by an officer duly authorised by the Central
Government, to the State Government to grant mining lease over that
area.
[(4A) Notwithstanding anything contained in
sub-rule(4), the State
Government shall be competent to approve mining plan of open cast mines (mines other than the
underground mines) in respect of the following non-metallic or
industrial minerals in their respective territorial jurisdiction,
namely:-
(i)
Agate
(ii)
Ball Clay
(iii)
Barytes
(iv)
Calcareous Sand
(v)
Calcite
(vi)
Chalk
(vii)
Clay(Others)
(viii)
Corundum
(ix)
Diaspore
(x)
Dolomite
(xi)
Dunite/pyroxenite
(xii)
Felsite
(xiii)
Felspar
(xiv)
Fireclay
(xv)
Fusch.Quartzite
(xvi)
Gypsum
(xvii)
Jasper
(xviii)
Kaolin
(xix)
Laterite
(xx)
Limekankar
(xxi)
Ochre
(xxii)
Pyrophyllite
(xxiii)
Quartz
(xxiv)
Quartzite
(xxv)
Sand (Others)
(xxvi)
Shale
(xxvii) Silica
Sand
(xxviii) Slate
(xxix)
Steatite/Talc/Soapstone
Provided that the State Government shall exercise the
power of approval of mining plan through an officer or officers who
shall possess the following qualification, experience and post or
pay scale, namely:-
(i)
a degree in Mining Engineering or post-graduate degree in
Geology from a University established or incorporated by or under a
Central Act, a Provincial Act or a State Act, including any
institution recognized by the University Grants Commission
established under section 4 of the University Grants Commission Act,
1956 ( 3 of 1956) or
any equivalent qualification granted by any University or
Institution outside India;
(ii)
professional experience of twelve years in case of a Mining
Engineer in the field of mining engineering and professional
experience of eighteen years in case of a Geologist in the field of
geological survey after obtaining the qualification as specified in
clause (i) in each case; and
(iii)
in the post of Director or Additional Director or Joint
Director of the concerned State Government or in the pay scale, the
maximum of which shall not be less than Rs.15,850/- (Rupees fifteen
thousand eight hundred and fifty only) per month:
Provided further
that the list of the officers fulfilling the qualification,
experience and post or pay-scale specified in the first proviso
shall be sent to the Controller General, Indian Bureau of Mines by
the State Governments
from time to time for the purposes of that proviso;
Provided also where any State Government does not have
such officer as having the requisite qualifications and experience,
the power of approval of mining plan, as aforesaid, in respect of
that State shall be exercise by the Central Government:
Provided also that in the event of the State
Government having officer or officers with requisite qualifications
and experience from any date in future the State Government shall
report the matter to the Controller General, Indian Bureau of Mines
and the State Government shall exercise the power of approval of
mining plan, as aforesaid, thereafter without any reference to the
Central Government
(4B) The Central Government or the State
Government shall dispose of the application for approval of the
mining plan within a period of ninety days from the date of
receiving of such application:
Provided that the aforesaid period of ninety days
shall be applicable only if the mining plan is complete in all
respects and in case of any modifications subsequently suggested by
the Central Government or the State Government, as the case may be,
after the initial submission of the mining plan for approval, the
said period shall be applicable from the date on which such
modifications are carried out and submitted afresh to the Central
Government or the State Government, as the case may be.
(5) The mining plan shall incorporate –
[(i) the plan of the lease hold area showing the
nature and extent of the mineral body, spot or spots where the
mining operations are proposed to be based on the prospecting data
gathered by the applicant or any other person];
(ii) details of the geology and lithology of the area
including mineral reserves of the area ;
(iii) the extent of manual mining or mining by the use
of machinery and mechanical devices ;
(iv)
the plan of the area showing natural water courses, limits of
reserves and other forest areas and density of trees, if any,
assessment of impact of mining activity on forest, land surface and
environment including air and water pollution; details of scheme of restoration of the
area by afforestation, land reclamation, use of pollution control
devices and such other measures as may be directed by the Central
Government or the State Government from time to time.
[(v) a tentative scheme of mining and annual programme
and plan for excavation from year to year for five years ;
(va) a progressive mine closure plan as defined in
clause (00) of rule 3 of the Mineral Conservation and Development
Rules, 1988; and
(vi) any
other matter which the Central Government may require the applicant
to provide in the mining plan.
[(6) The mining plan once approved shall be valid for
the entire duration of the lease:
Provided that any modification or modifications of the
mining plan shall be approved by the competent authority and such
approval of the modified mining plan shall remain valid for the
balance duration of the mining lease.]
22A. Mining operations to be in accordance with
Mining Plans. – (1) Mining operations shall be undertaken in
accordance with the duly approved mining plan.
(2) Modification of the approved mining plan during
the operation of a mining lease also requires prior approval.
22B. Mining plan to be prepared by recognized
persons. – (1) No mining plan shall be approved unless it is
prepared by a qualified person recognized in this behalf by the
Central Government, or duly authorised officer.
(2) No person shall be recognized by the Central
Government for purposes of sub-rule (1) unless he holds -
(i) a degree in mining engineering or a post-graduate
degree in Geology granted by a University established or
incorporated by or under a Central Act, a Provincial Act or a State
Act, including any institutions recognized by the University Grants
Commission established under section 4 of the University Grants
Commission Act, 1956 or any equivalent qualification granted by any
University or institution outside India ; and
(ii) Professional experience of five years of working
in a supervisory capacity in the field of mining after obtaining a
degree.
(3) A person recognized to prepare a mining plan may
also carry out modification of the existing mining plan.
22BB. Procedure for approval of mining plans. –
[(1) Notwithstanding the provisions of rule 63 the mining plan shall
be submitted for approval through authority notified by the
Controller General of the Indian Bureau of Mines or by the State
Government, as the case may be, in this behalf except for minerals
specified in Part A and B of the First Schedule to the Act.
(1a) Every mining plan submitted for approval under
sub-rule (1) shall be accompanied with a non-refundable fee of one
thousand rupees for every square kilometer or part thereof of mining
area covered under the mining lease.
(2) Notwithstanding the provisions of the rule 54, any
person aggrieved by any order made or direction issued in respect of
mining plan by an officer of the Central Government competent to
approve mining plans other than the Chief Controller of Mines,
Indian Bureau of Mines for minerals other than those listed in Part
A and B of the First Schedule to the Act, may within thirty
days of the communication of such order or direction, apply to the
authority to whom the said officer is immediately subordinate, for
the revision of the order or direction:
Provided that any such application may be entertained
after the said period of thirty days if the applicant satisfies the
authority that he had sufficient cause for not making the
application within time;
(3) On receipt of any application for revision under
sub-rule(1), the authority after giving a reasonable opportunity of
being heard to the aggrieved person, may confirm, modify or set
aside the order made or direction issued by any officer subordinate
to him.
(4) Any person aggrieved by an order made or direction
issued by the Chief Controller of Mines, Indian Bureau of Mines,
concerning approval of mining plan may within thirty days of the
communication of such order or direction, apply to the Controller
General, Indian Bureau of Mines for a revision of such order or
direction and his decision thereon shall be final:
Provided that any such application may be entertained
after the said period of 30 days, if the applicant satisfies the
Controller General, Indian Bureau of Mines that he had sufficient
cause for not making the application in time;
(5) On receipt of any such application under sub-rule
(4), the Controller General, Indian Bureau of Mines may confirm,
modify or set aside the order or direction issued by the Chief
Controller of Mines, Indian Bureau of Mines.
(6) (a) Notwithstanding anything
contained in the above sub-rules, any person aggrieved by any order
or direction issued in respect of a mining plan by an authorised
officer of the State Government, may within thirty days of the
communication of such order or direction, apply to the Controller
General, Indian Bureau of Mines for revision of the order or
direction and his decision thereon shall be final;
(b) The procedure enumerated in the preceding
sub-rules shall, mutatis mutandis, be followed in the
disposal of such an application.
(7) The powers under sub-rules (1) and (2) in regard
to approval of mining plans shall be exercised by Director, Atomic
Minerals Directorate for Exploration and Research, Hyderabad, and in
regard to revision under sub-rules (3) to (5) shall be exercised by
Secretary, Department of Atomic Energy, Mumbai, insofar as they
relate to atomic minerals specified in Part B of the First Schedule
to the Act.
(8) The powers under sub-rules (1) to (5) in regard to
approval of mining plan and revision shall be exercised by
authorities designated in this behalf by notification by the
Department of Coal insofar as they relate to coal and lignite
specified in Part A of the First Schedule to the Act.]
22C. Grant of recognition by Central
Government. – (1) Any person possessing the qualification and
experience referred to in sub-rule (2) of rule 22B may apply for
being recognized as a recognized person to the competent authority
appointed for the purpose by the Central Government.
(2) The competent authority, after making such enquiry
as it deems fit, may grant or refuse to grant recognition and where
recognition is refused, the competent authority shall record reasons
in writing and communicate the same to the applicant.
[(3) A recognition shall be granted for an initial
period of ten years and may be renewed for a period(s) not exceeding
ten years at a time:
Provided that the competent authority may refuse to
renew recognition for reasons to be recorded in writing after giving
an opportunity of hearing to the person concerned];
[(4) An appeal shall lie to the Controller General,
Indian Bureau of Mines, against the order of the competent authority
refusing to grant or renew an application for recognition and his
order thereon shall be final].
[Explanation.- For the purpose of this rule,
Chief Controller of Mines, Controller of Mines and the Regional
Controller of Mines, shall be deemed to be competent authority.]
22D. Minimum size of the mining lease:- Minimum
area for grant of mining lease shall not be less than-
(a)
One hectare, in respect of small deposits (not fragmented
portions of larger ones), shallow in nature, isolated and not
exceeding more than 200 metres in strike length. These deposits are
small by virtue of either origin or mode of emplacement or
dislocation due to geological disturbances.
Small deposits shall also include float deposits
(transported) formed due to mechanical weathering and deposition,
alluvial or eluvial placers (buried or otherwise), which generally
have peculiar configurations excepting beach sands or placers;
(b)
Two hectares, in respect of beach sands or placers.
Beach sands or placers are mono or multi mineral
concentrations, including the dunes occurring on and off the coastal
shore line.
These deposits are the products of ebb and flow of
tides, waves and inshore currents, and at places semi-consolidated
to consolidated in nature;
(c) Four hectares, in respect of all mineral deposits
other than those specified under clauses (a) and (b).
23. Acknowledgement of application. – (1) Where
an application for the grant or renewal of mining lease is delivered
personally, its receipt shall be acknowledged forthwith.
(2) Where such application is received by registered
post, its receipt shall be acknowledged on the same day.
(3) In any other case, the receipt of such application
shall be acknowledged within three days of the receipt.
(4) The receipt of every such application shall be
acknowledged in Form D.
23A.
Omitted.
24. Disposal of application for mining lease. –
(1) Omitted.
(2) Omitted.
(3) Omitted.
(4) Where an application for a mining lease for a
mineral or minerals not specified in the existing mining lease or
mining leases is made for the whole or part of the area held under
mining lease by a person other than the lessee, the State Government
shall notify this fact by registered post/ Acknowledgement Due to
the person who already holds mining leases for another mineral in
the land applied for .
(5) (a) If on receipt of the
information referred to in sub-rule (4), from the State Government,
the lessee applies either for prospecting licence or mining lease
for newly discovered mineral or minerals within six months from the
date of communication of the information by the State Government,
the lessee shall be preferred in respect of such grant.
(b) If the lessee fails to apply for prospecting
licence or mining lease within six months, then this fact will be
intimated to the applicant by the State Government and the State
Government will consider the original application in accordance with
the rules.
(6) Omitted.
24A Renewal of mining lease. – (1) An
application for the renewal of a mining lease shall be made to the
State Government in Form J, at least twelve months before the date
on which the lease is due to expire, through such officer or
authority as the State Government may specify in this behalf.
[(2) The renewal or renewals of a mining lease granted
in respect of a mineral specified in Part ‘A’ and Part ‘B’ of the
First Schedule to the Act may be granted by the State Government
with the previous approval of the Central Government.];
[(3) The renewal or renewals of a mining lease granted
in respect of a mineral not specified in Part ‘A’ and Part ‘B’ of
the First Schedule to the Act may be granted by the State
Government.];
Provided that before granting approval for second or
subsequent renewal of a mining lease, the State Government shall
seek a report from the Controller General, Indian Bureau of Mines,
as to whether it would be in the interest of mineral development to
grant the renewal of the mining lease.
Provided further that in case a report is not received
from Controller General, Indian Bureau of Mines in a period of three
months of receipt of the communication from the State Government, it
would be deemed that the Indian Bureau of Mines has no adverse
comments to offer regarding the grant of the renewal of mining
lease.
(4) Omitted.
(5) Omitted.
(6) If an application for the renewal of a mining
lease made within the time referred to in sub-rule (1) is not
disposed of by the State Government before the date of expiry of the
lease, the period of the lease shall be deemed to have been extended
by a further period till the State Government passes order
thereon.
(7) [ ]
(8) Notwithstanding anything contained in sub-rule (1)
and sub-rule (6), an application for the first renewal of a mining
lease, so declared under the provisions of section 4 of the Goa,
Daman and Diu Mining Concession (Abolition and Declaration as Mining
Lease ) Act,1987, shall be made to the State Government in Form J
before the expiry of the period of mining lease in terms of
sub-section (1) of section 5 of the said Act, through such office or
authority as the State Government may specify in this behalf:
Provided that the State Government may, for reasons to
be recorded in writing and subject to such conditions as it may
think fit, allow extension of time for making of such application up
to a total period not exceeding one year.
(9) If an application for first renewal made within
the time referred to in sub-rule (8) or within the time allowed by
the State Government under the proviso to sub-rule (8), the period
of that lease shall be deemed to have been extended by a further
period till the State Government passes orders thereon.
[(10) The State Government may condone delay in an
application for renewal of mining lease made after the time limit
prescribed in sub-rule (1) provided the application has been made
before the expiry of the lease].
24B. Renewal of a mining lease in favour of a
person using the mineral in his own industry. – Every person who
is holding mining lease for a mineral which in used in his own
industry shall be entitled for the renewal of his mining lease for a
period not exceeding twenty years unless he applies for a lesser
period.
Explanation : "Own industry" means an industry
of which the lessee is the owner or in which he holds not less than
fifty percent of controlling interest.
25. Refund and forfeiture, etc. – [ ]
25A. Status of the grant on death of applicant for
mining lease. – (1) Where an applicant for grant or renewal of
mining lease dies before the order granting him a mining lease or
its renewal is passed, the application for the grant or renewal of a
mining lease shall be deemed to have been made by his legal
representative.
(2) In the case of an applicant in respect of whom an
order granting or renewing a mining lease is passed, but who dies
before the deed referred to in sub-rule (1) of rule 31 is executed,
the order shall be deemed to have been passed in the name of the
legal representative of the deceased.
26. Refusal of the applicant for grant and renewal
of mining lease. – (1) The State Government may, after giving an
opportunity of being heard and for reasons to be recorded in writing
and communicated to the applicant, refuse to grant or renew a mining
lease over the whole or part of the area applied for.
(2) An application for the grant or renewal of a
mining lease made under rule 22 or rule 24A, as the case may be,
shall not be refused by the State Government only on the ground that
Form I or Form J, as the case may be, is not complete in all
material particulars, or is not accompanied by the documents
referred to in sub-clauses (d),(e),(f),(g) and (h) of clause (i) of
sub-rule 3 of rule 22.
(3) Where it appears that the application is not
complete in all material particulars or is not accompanied by the
required documents, the State Government shall, by notice, require
the applicant to supply the omission or, as the case may be, furnish
the documents, without delay and in any case not later than thirty
days from the date of receipt of the said notice by the
applicant.
27. Conditions. – (1) Every mining lease shall
be subject to the following conditions :
(a) the lessee shall report to the State Government
the discovery in the leased area of any mineral not specified in the
lease, within sixty days of such discovery;
(b) if any mineral not specified in the lease is
discovered in the leased area, the lessee shall not win and dispose
of such mineral unless such mineral is included in the lease or a
separate lease is obtained therefor ;
(c) the lessee shall pay, for every year, except the
first year of the lease, such yearly dead rent at the rate specified
in the Third Schedule of the Act and if the lease permits the
working of more than one mineral in the same area the State
Government shall not charge separate dead rent in respect of each
mineral:
Provided that the lessee shall be liable to pay the
dead rent or royalty in respect of each mineral whichever be higher
in amount but not both ;
(d) the lessee shall also pay, for the surface area
used by him for the purposes of mining operations, surface rent and
water rate at such rate, not exceeding the land revenue, water and
cesses assessable on the land, as may be specified by the State
Government in the lease ;
(e) Omitted
(f) the lessee shall commence mining operations within
one year from the date of execution of the lease and shall
thereafter conduct such operations in a proper, skillful and
workman-like manner
Explanation.- For the purpose of this clause,
mining operations shall include the erection of machinery, laying of
a tramway or construction of a road in connection with the working
of the mine ;
(g) the lessee shall at his own expenses erect and at
all times maintain and keep in good repair boundary marks and
pillars necessary to indicate the demarcation shown in the plan
annexed to the lease ;
(h) the lessee shall not carry on, or allow to be
carried on, any mining operations at any point within a distance of
fifty metres from any railway line, except under and in accordance
with the written permission of the railway administration concerned
or under or beneath any ropeway or ropeway trestle or station,
except under and in accordance with the written permission of the
authority owning the ropeway or from any reservoir, canal or other
public works, or buildings, except under and in accordance with the
previous permission of the State Government ;
(i) the lessee shall keep [accurate and faithful]
accounts showing the quantity and other particulars of all minerals
obtained and dispatched from the mine, the number and nationality of
the persons employed therein, and complete plans of the mine, and
shall allow any officer authorized by the Central Government or the
State Government in this behalf to examine at any time any accounts,
plans and records maintained by him and shall furnish the Central or
the State Government with such information and returns as it or any
officer authorized by it in this behalf may require ;
(j) the lessee shall keep accurate records of all
trenches, pits and drillings made by him in the course of mining
operations carried on by him under the lease, and shall allow any
officer authorised by the Central or the State Government to inspect
the same. Such reports shall contain the following particulars,
namely :-
(a) the subsoil and strata through which such
trenches, pits or drillings pass ;
(b) any mineral encountered ;
(c) such other particulars as the Central or the State
Government may from time to time require ;
(k) the lessee shall strengthen and support, to the
satisfaction of the railway administration concerned or the State
Government, as the case may be, any part of the mine which in its
opinion requires such strengthening or support for the safety of any
railway, reservoir, canal, roads or any other public works or
buildings ;
(l) the lessee shall allow any officer authorized by
the Central or the State Government to enter upon any building,
excavation or land comprised in the lease for the purpose of
inspecting the same ;
(m) the State Government shall at all times have the
right of pre-emption of the minerals won from the land in respect of
which the lease has been granted ;
Provided that the fair market price prevailing at the
time of pre-emption shall be paid to the lessee for all such
minerals.
(n) The lessee shall store properly the unutilized or
non-saleable sub-grade ores or minerals for future
beneficiation;
(o) in respect of any mineral which in relation to its
use for certain purposes is classified as a major mineral and in
relation to its use for other purposes as a minor mineral, the
lessee who holds a lease for extraction of such mineral under these
rules whether or not it is specified as a major mineral in the lease
deed, shall not use or sell the mineral or deal with it in
whatsoever manner or knowingly allow anyone to use or sell the
mineral or deal with it in whatsoever manner as a minor mineral
:
Provided that if on an application made to it in this
behalf by the lessee, the State Government is satisfied that having
regard to the inferior quality of such mineral, it cannot be used
for any of the purposes by reason of which use it can be called a
major mineral or that there is no market for such mineral as a major
mineral, the State Government may by order permit the lessee to
dispose of the mineral in such quantity and in such manner as may be
specified therein as a minor mineral.
(p) the lessee shall, in the matter of employment,
give preference to the tribals and to the persons who become
displaced because of the taking up of mining operations ;
(q) the lessee shall not pay a wage less than the
minimum wage prescribed by the Central or State Government from time
to time under the Minimum Wages Act, 1948 ;
(r) the lessee shall observe the provisions of the
Mines Act, 1952 [(35 of 1952) and of the Atomic Energy Act, 1962 (33
of 1962) insofar as they relate to atomic minerals included in Part
B of the First Schedule to the Act];
(s) the lessee shall –
(i) take immediate measures for planting in the same
area or any other area selected by the Central or State Government
not less than twice the number of trees destroyed by reasons of any
mining operations ;
(ii) look after them during the subsistence of the
lease after which these trees shall be handed over to the State
Forest Department or any other authority nominated by the Central or
State Government ;
(iii) restore, to the extent possible other flora
destroyed by the mining operations .
(t) the lessee shall pay to the occupier of the
surface of the land such compensation as may become payable under
these rules ;
(u) the lessee shall comply with the Mineral
Conservation and Development Rules framed under section 18.
(2) A mining lease may contain such other conditions
as the State Government may deem necessary in regard of the
following, namely :-
(a) the time-limit, mode and place of payment of rents
and royalties ;
(b) the compensation for damage to the land covered by
the lease;
(c) the felling of trees ;
(d) the restrictions of surface operations in any area
prohibited by any authority ;
(e) the notice by lessee for surface occupation ;
(f) the provision for proper weighing machines ;
(g) the facilities to be given by the lessee for
working other minerals in the leased area or adjacent area ;
(h) the entering or working in a reserved or protected
forest ;
(i) the securing of pits and shafts ;
(j) the reporting of accidents ;
(k) the indemnity to Government against claims of
third parties;
(l) the delivery of possession of land and mines on
the surrender, expiration or determination of the lease ;
[(la) the time limit for removal of mineral, ore,
plant, machinery and other properties from the lease hold area after
expiration, or sooner determination or surrender or abandonment of
the mining lease];
(m) the forfeiture of property left after
determination of lease ;
(n) the power to take possession of plant, machinery,
premises and mines in the event of war or
emergency ;
(o) filing of civil suits or petitions relating to
disputes arising out of the area under lease.
[(3) The State Government may, either with the
previous approval of the Central Government or at the instance of
the Central Government, impose such further conditions as may be
necessary in the interests of mineral development, including
development of atomic minerals.]
(4) If the lessee does not allow entry or inspection
under clause (i),(j) of (l) of sub-rule (1), the State Government
shall give notice in writing to the lessee requiring him to show
cause within such time as may be specified in the notice why the
lease should not be determined and his security deposit forfeited;
and if the lessee fails to show cause within the aforesaid time to
the satisfaction of the State Government, the State Government may
determine the lease and forfeit the whole or part of the security
deposit.
(5) If the lessee makes any default in the payment of
royalty as required under section 9 or payment of dead rent as
required under Section 9A or commits a breach of any of the
conditions specified in sub-rules (1),(2) and (3), except the
condition referred to in clause (f) of sub-rule (1), the State
Government shall give notice to the lessee requiring him to pay the
royalty or dead rent or remedy the breach, as the case may be,
within sixty days from the date of the receipt of the notice and if
the royalty or dead rent is not paid or the breach is not remedied
within the said period, the State Government may without prejudice
to any other proceedings that may be taken against him, determine
the lease and forfeit the whole or part of the security deposit.
28. Lapsing of leases. – (1) Subject to other
conditions of this rule where mining operations are not commenced
within a period of two years from the date of execution of the
lease, or is discontinued for a continuous period of two years after
commencement of such operations, the State Government shall, by an
order , declare the mining lease as lapsed and communicate the
declaration to the lessee.
(2) Where a lessee is unable to commence the mining
operation within a period of two years from the date of execution of
the mining lease, or discontinues mining operations for a period
exceeding two years for reasons beyond his control, he may submit an
application to the State Government, explaining the reasons for the
same, at least three months before the expiry of such period.
(3) Every application under sub-rule (2) shall be
accompanied by a fee of Rs.200/-.
(4) The State Government may on receipt of an
application made under sub-rule (2) and on being satisfied about the
adequacy and genuineness of the reasons for the non-commencement of
mining operations or discontinuance thereof, pass an order before
the date on which the lease would have otherwise lapsed, extending
or refusing to extend the period of the lease :
Provided that where the State Government on receipt of
an application under sub-rule (2) does not pass an order before the
expiry of the date on which the lease would have otherwise lapsed,
the lease shall be deemed to have been extended until the order is
passed by the State Government or until a period of two years,
whichever is earlier.
Explanation 1: Where the non-commencement of
the mining operations within a
period of two years from the date of execution of mining
lease is on account of -
(a) delay in acquisition of surface rights ; or
(b) delay in getting the possession of the leased area
; or
(c) delay in supply or installation of machinery ;
or
(d) delay in getting financial assistance from the
banks, or any financial institutions ; or
(e) ensuring supply of the mineral in an industry of
which the lessee is the owner or in which he holds not less than 50%
of the controlling interest ;
and the lessee is able to furnish documentary evidence
supported by a duly sworn affidavit, the State Government may
consider if there are sufficient reasons for non-commencement of
operations for a continuous period of more than two years.
Explanation 2: Where the discontinuance of
mining operations for a continuous
period of two years after the commencement of such
operations is an account of -
(a) orders passed by any statutory or judicial
authority ; or
(b) operations becoming highly uneconomical ; or
(c) strike or lock out ;
and the lessee is able to furnish documentary evidence
supported by a duly sworn affidavit, the State Government may
consider if there are sufficient reasons for discontinuance of
operations for a continuous period of more than one year.
[Explanation 3.- In case of mining lessee who
has undertaken reconnaissance perations or in case
of mining lessee whose capital investment in mine
development is planned to be in excess of Rs.200 crores and where
the mine development is likely to take more than two
years, the State Government shall consider it to
be sufficient reason for non-commencement of
mining operations for a continuous period of more than two
years.]
28A.(1)Where a lessee is unable to commence the mining
operations within a period of two years from the date of execution
of the mining lease, or discontinues mining operations for a period
of exceeding two years for reasons beyond his control, he may submit
an application to the State Government explaining the reasons for
the same at least within six months from the date of its lapse :
Provided that the lease has not been revived under
this provision for more than twice during the entire period of the
lease .
(2) Every application under sub-rule (1) shall be
accompanied by a fee of Rs 500/-;
(3) The State Government on receipt of an application
made under sub-rule (1) and on being satisfied about the adequacy
and genuineness of the reasons for non-commencement of mining
operations or discontinuance thereof taking into consideration the
matters specified in the Explanation to rule 28, pass an order
reviving the lease.
29. Restriction on determination of lease. –
(1) The lessee shall not determine the lease except after notice in
writing of not less than twelve calendar months to the State
Government or to such officer, or authority as the State Government
may specify in this behalf :
Provided that where a lessee holding a mining lease
for a group of minerals applies for the surrender of any mineral
from the lease on the ground that deposits of that mineral have
since exhausted or depleted to such an extent that it is no longer
economical to work the mineral, the State Government may permit the
lessee to surrender that mineral, subject to the following
conditions , namely:-
(a) the lessee applies for such surrender of mineral
at least six months before the intended date of surrender ; and
(b) the lessee gives an undertaking that he will not
cause any hindrance in the working of the mineral so surrendered by
any other person who is subsequently granted a mining lease in
respect of that mineral :
Provided further that where a lessee applies for the
surrender of the whole or a part of lease-hold area on the ground
that such area is barren or the deposits of minerals have since
exhausted or depleted to such an extent that it is no longer
economical to work such area, the State Government shall permit the
lessee, from the date of receipt of the application, to surrender
that area if the following conditions are satisfied, namely :-
(a) the lease hold area to be surrendered has been
properly surveyed and is contiguous ,
(b) the lessee has paid all the dues payable to the
Government under the lease up to the date of application, and
(c) the lessee has obtained a certificate under rule
29A.
Provided also that surrender of the lease area by the
lessee shall be permitted only thrice during the period of the lease
on fulfilling the conditions :-
(i) that at least a period of five years has elapsed
since the last surrender; and
(ii) that the provisions of the mining plan including
the environment management plan thereof have been complied with
.
(2) Every application for the surrender of a part of
lease-hold area in accordance with the provisions of sub-rule (1),
shall be accompanied by a deposit of two hundred rupees for meeting
the expenditure for the purpose of survey and demarcation of the
area to be surrendered :
Provided that the lessee shall deposit such further
amount, not exceeding two hundred rupees, as may be demanded by the
State Government for meeting any additional expenditure for the said
purpose within one month from the date of demand of such deposit
:
Provided further that where the whole or any part of
the amount deposited has not been expended, it shall be refunded to
the lessee within two months from the date of completion of the work
of survey and demarcation of the area to be surrendered .
(3) Upon the issuance of the order by the Regional
Controller of Mines or the officer authorized by the State
Government in this behalf, as the case may be, under sub-rule (6) of
rule 23F of Mineral Conservation and Development Rules, 1988, for
forfeiting the sum assured, on non-performance of the measures
contained in the approved mine closure plan referred to in sub-rule
(1) of rule 23A of Mineral Conservation and Development Rules, 1988
by the lessee, it shall be the responsibility of State Government to
realize any letter of credit or bond or any other surety, guarantee
provided or obtained as financial assurance for the purpose of
performance of protective, reclamation and rehabilitation measures
as contained in the approved mine closure plan and shall carry out
such measures either by itself, or appoint an agent to do so.
29A. Provision for closure-(1) The lessee shall
not determine the lease or part thereof unless a final mine closure
plan duly approved by the Regional Controller or the officer
authorized by the State Government in this behalf, as the case may
be, is implemented as per the approval.
(2) For the purposes of sub-rule (1), the lessee shall
be required to obtain a certificate from the Regional Controller of
Mines or officer authorized by the State Government in this behalf,
as the case may be, to the effect that protective, reclamation and
rehabilitation work in accordance with the approved mine closure
plan or with such modifications as approved by the competent
authority have been carried out by the lessee.
30. Rights of lessee. – Subject to the
condition mentioned in rule 27, the lessee with respect to the land
leased to him shall have the right for the purpose of mining
operations on the land -
(a) to work the mines ;
(b) to sink pits and shafts and construct buildings
and roads ;
(c) to erect plant and machinery ;
(d) to quarry and obtain building and road materials
and make bricks ;
(e) to use water and take timber ;
(f) to use land for stacking purpose ;
(g) to do any other thing specified in the lease.
31. Lease to be executed within six months. –
(1) Where, on an application for the grant of a mining lease, an
order has been made for the grant of such lease, a lease deed in
Form K or in a form as near thereto as circumstances of each case
may require, shall be executed within six months of the order or
within such further period as the State Government may allow in this
behalf, and if no such lease deed is executed within the said period
due to any default on the part of the applicant, the State
Government may revoke the order granting the lease and in that event
the application fee shall be forfeited to the State Government.
[(2) The date of the commencement of the period for
which a mining lease is granted shall be the date on which a duly
executed deed under sub-rule (1) is registered.]
32. Security deposit. – An applicant for a
mining lease, shall before the deed referred to in rule 31 is
executed, deposit as security for the due observance of the terms
and conditions of the lease [ten thousand rupees].
33. Survey of the area leased. – When a mining
lease is granted by the State Government, arrangements shall be made
by the State Government at the expense of the lessee for the survey
and demarcation of the area granted under the lease .
34. Manner of exercise of preferential rights for
mining lease. – A mining lease to any person who has a
preferential right thereto under sub-section (1) of section 11, may
at his option, be granted to him either for the whole of the area
for which he holds the prospecting licence or such part or parts
thereof as he may select but the State Government may for any
reasons to be recorded in writing reduce the area or exclude a
portion therefrom .
[35. Preferential rights of certain persons. –
Where two or more persons have applied for a reconnaissance permit
or a prospecting licence or a mining lease in respect of the same
land, the State Government shall, for the purpose of sub-section(2)
of Section 11, consider, besides the matters mentioned in clauses
(a) to (d) of sub-section(3) of Section 11, the end use of the
mineral by the applicant.]
36. Boundaries below the surface. – The
boundary of the area covered by a mining lease shall run vertically
downwards below the surface towards the centre of the earth.
37. Transfer of lease. – (1) The lessee shall
not, without the previous consent in writing of the State Government
and in the case of mining lease in respect of any mineral specified
in [Part ‘A’ and Part ‘B’ of] the First Schedule to the Act, without
the previous approval of the Central Government :-
(a) assign, sublet, mortgage, or in any other manner,
transfer the mining lease, or any right, title or interest therein,
or
(b) enter into or make any [bonafide] arrangement,
contract, or understanding whereby the lessee will or may be
directly or indirectly financed to a substantial extent by, or under
which the lessee's operations or undertakings will or may be
substantially controlled by, any person or body of persons other
than the lessee:
Provided further that where the mortgagee is an
institution or a Bank or a Corporation specified in Schedule V, it
shall not be necessary for the lessee to obtain any such consent of
the State Government .
(1A) The State Government shall not give its consent
to transfer of mining lease unless the transferee has accepted all
the conditions and liabilities which the transferor was having in
respect of such mining lease.
(2) Without prejudice to the provisions of sub-rule
(1) the lessee may,
transfer his lease or any right, title or interest therein to
a person who has filed an affidavit stating that he has filed an
up-to-date income-tax returns, paid the income tax assessed on him
and paid the income tax on the basis of self-assessment as provided
in the Income Tax Act, 1961( 43 of 1961), on payment of a fee of
five hundred rupees to the State Government :
Provided that the lessee shall make available to the
transferee the original or certified copies of all plans of
abandoned workings in the area and in a belt 65 metres wide
surrounding it ;
Provided further that where the mortgagee is an
institution or a Bank or a Corporation specified in Schedule V, it
shall not be necessary for any such institution or Bank or
Corporation to meet with the requirement relating to income tax
;
Provided further that the lessee shall not charge or
accept from the transferee any premium in addition to the sum spent
by him, in obtaining the lease, and for conducting all or any of the
operations referred to in rule 30 in or over the land leased to him
;
[ ]
(3) The State Government may, by order in writing
determine any lease at any time if the lessee has, in the opinion of
the State Government, committed a breach of any of the provisions of
sub-rule (1) or sub-rule (1A) or has transferred any lease or any
right, title or interest therein otherwise than in accordance with
sub-rule (2) ;
Provided that no such order shall be made without
giving the lessee a reasonable opportunity of stating his case.
37A. Transfer of lease to be executed within three
months. – Where on an application for transfer of mining lease
under rule 37, the State Government have given consent for transfer
of such lease, a transfer lease deed in Form O or a form as near
thereto, as possible, shall be executed within three months of the
date of the consent, or within such further period as the State
Government may allow in this behalf.
[38. Amalgamation of leases. – The State
Government may, in the interest of mineral development and with
reasons to be recorded in writing, permit amalgamation of two or
more adjoining leases held by a lessee:
Provided that the period of amalgamated leases shall
be co-terminus with the lease whose period will expire first:
Provided further that prior approval of the Central
Government shall be required for such amalgamation in respect of
leases for minerals specified in Part ‘A’ and Part ‘B’ of the First
Schedule to the Act.].
[39. Pending applications for transfer and
amalgamation. – An application for the transfer of a mining
lease or the amalgamation of mining leases pending at the
commencement of these rules shall be disposed of in accordance with
these rules.].
40. Registers. – (1) A register of applications
for mining leases shall be maintained by the State Government in
Form L.
(2) A register of mining leases shall be maintained by
the State Government in
Form-M.
________________________________________________________________________
41. Applicability of this chapter. – The
provisions of this chapter shall apply only to the grant of
prospecting licences and mining leases in respect of land in which
the minerals vest exclusively in a person other than the Government
.
42. Restrictions on the grant of prospecting
licence and mining lease. – (1) No prospecting licence or mining
lease shall be granted to any person unless he has filed an
affidavit stating that he has –
(i) filed up-to-date income tax returns ;
(ii) paid the income tax assessed on him , and
(iii) paid the income tax on the basis of
self-assessment as provided in the Income Tax Act, 1961 (43 of
1961).
(2) Except with the previous approval of the Central
Government, no prospecting licence or mining lease shall be granted
in respect of any mineral specified in the First Schedule to the
Act.
43. Renewal of prospecting licence. – Omitted
.
44. Conditions of prospecting licence. – Every
prospecting licence shall be subject to the following conditions
:
(i) the licensee shall pay the grantor such
prospecting fee as may be agreed upon, being not less than one
rupees and not more
than ten rupees per hectare of the land covered by the licence for
each year or a part of the year of the period for which a licence is
granted or renewed ;
(ii) in the case of minerals other than gold, silver,
precious stones or mica, the licensee shall not win or carry away
the minerals for commercial purposes ;
Provided that the licensee may win or carry away for
purposes other than the commercial purposes –
(a) any quantity of such minerals within the limits
specified in Schedule III without any payment ;
(b) any quantity of such minerals exceeding such
limits but not exceeding twice such limits, which is won during
prospecting operations, on payment of royalty for the time being
specified in the Second Schedule to the Act in respect of those
minerals ;
(c) any quantity of limestone not exceeding 500 tonnes
for testing its use in any industry specified by the Central
Government in this behalf, on payment of royalty for the time being
specified in the Second Schedule to the Act in respect of limestone
;
(iii) in the case of gold, silver, precious stones or
mica the licensee may carry away any quantity won during the course
of prospecting operations on payment of royalty for the time being
specified in the Second Schedule to the Act in respect of such
mineral ;
(iv) such other conditions as may be agreed upon
between the parties not being inconsistent with the provisions of
the Act or these rules.
45. Conditions of mining lease. – Every
mining lease will be subjected to the following conditions :
(i) the provisions of clauses (b) to (l) and (p) to
(u) of sub-rule (1) of rule 27 shall apply to such leases with
modification that in clauses (c) and (d) for the words "State
Government" the word "lessor" shall be substituted ;
(ia) mining operations shall be undertaken in
accordance with the duly approved mining plan ;
(ii) (omitted) ;
(iii) the lease may contain such other conditions, not
being inconsistent with the provisions of the Act and these rules,
as may be agreed upon between the parties ;
(iv) if the lessee makes any default in payment of
royalty as required by section 9 or commits a breach of any of the
conditions of the lease, the lessor shall give notice to the lessee
requiring him to pay the royalty or remedy the breach, as the case
may be, within sixty days from the date of the receipt of the notice
and if the royalty is not paid or the breach is not remedied within
such period, the lessor without prejudice to any proceedings that
may be taken against the lessee determine the lease ;
(v) the lessee may determine the lease at any time by
giving not less than one year's notice in writing to the lessor
;
46. Transfer or assignment. – (1) No
prospecting licence or mining lease or any right, title or interest
in such licence or lease shall be transferred to a person unless he
has filed an affidavit stating that he has filed an up to date
income tax return, paid the income tax assessed on him and paid the
income tax on the basis of self-assessment as provided in the Income
Tax Act, 1961( 43 of 1961).
(2) No prospecting licence or mining lease or any
right, title or interest in such licence or lease in respect of any
mineral specified in the First Schedule to the Act shall be
transferred except with the previous approval of the Central
Government.
47. Submission of copy of licence or lease. –
Every person obtaining a prospecting licence or a mining lease
shall, within three months of the grant of such lease or licence,
submit to the State Government concerned a certified copy of the
licence or lease in duplicate.
48. Communication of transfer or assignment. –
Every transferee or assignee of a prospecting licence or a mining
lease or of any right, title or interest therein, shall, within one
month of such transfer or assignment, inform the State Government of
the transfer or assignment and of the terms and conditions of such
transfer and assignment .
49. Prohibition of premium. – No person
granting or transferring a prospecting licence or any right, title
or interest in any such licence or lease shall charge or pay any
premium in addition to, or in lieu of the prospecting fee ,surface
rent ,dead rent , royalty payable, under the Act or such
proportionate part of such fee, rent or royalty as is payable in
respect of such right, title, or interest .
50. Prohibition of working of mines. – If the
State Government has reason to believe that the grant or transfer of
a prospecting licence or a mining lease or any right, title or
interest in such licence or lease is in contravention of any of the
provisions of this chapter, the State Government may, after giving
the parties an opportunity to represent their views and with the
approval of the Central Government, direct the parties concerned not
to undertake any prospecting or mining operations in the area to
which the licence or lease relates.
51. Returns and Statements. – The holder of a
prospecting licence or a mining lease shall furnish to the State
Government such returns and statements and within such period as may
be specified by it.
52. Penalty. – (1) If the holder of a
prospecting licence or a mining lease or his transferee or assignee
fails, without sufficient cause, to furnish the documents or
information, or returns referred to in rule 46, rule 47, rule 48, or
rule 51, or acts in any manner in contravention of rule 49 or rule
50, he shall be punishable with imprisonment for a term which may
extend to one year or fine which may extend to five thousand rupees
or with both.
(2) If any person grants or transfers or obtains a
prospecting licence or mining lease or any right, title or interest
therein, in contravention of any of the provisions of this chapter,
he shall be punishable with imprisonment which may extend to one
year or a fine which may extend to five thousand rupees or both.
__________________________________________________________
53. Chapters III and
IV to apply to prospecting licences and mining leases in respect of
minerals which vest partly in Government and partly in private
persons. – The provisions of chapters III and IV shall apply in
relation to the grant of the prospecting licences and mining leases
in respect of minerals which vest partly in Government and partly in
private persons as they apply in relation to the grant of the
prospecting licences and mining leases in respect of minerals which
vest exclusively in the Government :
Provided that the dead
rent and royalty payable in respect of mineral which partly vest in
the Government and partly in private person shall be shared by the
Government and by that person in proportion to the shares they have
in the minerals
__________________________________________________________
54. Application for
revision. – (1) Any person aggrieved by any order made by the
State Government or other authority in exercise of the powers
conferred on it by the Act or these rules may, within three months
of the date of communication of the order to him, apply to the
Central Government in triplicate in Form N for revision of the
order. The application should be accompanied by a Bank Draft for
five thousand rupees on a nationalized bank in the name of 'Pay and
Accounts Officer, Department of Mines' payable at New Delhi or
through a treasury challan for five thousand rupees under the Head
of Account - 0853 - Non-ferrous Mining and Metallurgical Industries
-102 Mineral Concession Fees, Rent and Royalties :
Provided that any such application may be entertained
after the said period of three months if the applicant satisfies the
Central Government that he had sufficient cause for not making the
application within time.
(1A) [ ]
(2)
In every application under sub-rule (1) against the order of a State
Government refusing to grant a prospecting licence or a mining
lease, any person to whom a prospecting licence or mining lease was
granted in respect of the same area or for a part thereof, shall be
impleaded as party.
(3)
Along with the application under sub-rule (1), the applicant shall
submit as many copies thereof as there are parties impleaded under
sub-rule (2).
(4)
On receipt of the application and copies thereof, the Central
Government shall send a copy of the application to each of the
parties impleaded under sub-rule (2) specifying a date on or before
which he may make his representations, if any, against the revision
application .
(5)
Omitted.
55. Orders on
revision application. – (1) On receipt on an application for
revision under rule 54, copies thereof shall be sent to the State
Government or other authority and to all the impleaded parties
calling upon them to make such comments as they may like to make
within three months from the date of issue of the communication, and
the State Government or other authority and the impleaded parties,
while furnishing comments to the Central Government shall
simultaneously endorse a copy of the comments to the other
parties.
(2)
Comments received from any party under sub-rule (1) shall be sent to
the other parties for making such further comments as they may like
to make within one month from the date of issue of the communication
and the parties making further comments shall send them to all the
other parties.
(3)
The revision application, the communications containing comments and
counter-comments referred to in sub-rule (1) and (2) shall
constitute the records of the case.
(4)
After considering the records referred to in sub-rule (3), the
Central Government may confirm, modify or set aside the order or
pass such other order in relation thereto as the Central Government
may deem just and proper.
(5)
Pending the final disposal of an application for revision, the
Central Government may, for sufficient cause, stay the execution of
the order against which any revision application has been made
____________________________________________________________
56. Power to rectify apparent mistakes. – Any
clerical or arithmetical mistakes in any order passed by the
government or any other authority or officer under these rules and
any error arising therein from accidental slip or omission, may,
within two years from the date of the order, be corrected by the
Government, authority or officer, as the case may be :
Provided that no order prejudicial to any person shall
be passed unless he has been given a reasonable opportunity for
stating his case.
57. Copies of permits, licences and leases and
annual returns to be supplied to Government. – (1) A copy of
every [reconnaissance permit, prospecting licence and mining lease]
granted or renewed under these rules shall be supplied by each State
Government within two months of such grant or renewal to the
Controller General, Indian Bureau of Mines and the [Director
General, Mines Safety].
(2) A consolidated annual return of all
[reconnaissance permits, prospecting licences and mining leases]
granted or renewed under these rules shall also be supplied by each
State Government to the Controller General, Indian Bureau of Mines
in such form as may be specified by him, not later than the
30th of June following the year to which the return
relates. A copy of such return shall also be supplied by the State
Government to [Director General, Mines Safety] at the same time.
(3) Every State Government shall send copies of all
returns received by it under sub-rule (1) of rule 19 and clause (i)
of sub-rule (1) of rule 27 to the Controller General, Indian Bureau
of Mines .
58. Reservation of areas for exploitation in the
public sector, etc. – Omitted.
59. Availability of area for regrant to be
notified. – [(1) No area –
which was previously held or which is being held under
a reconnaissance permit or a prospecting licence or a mining lease;
or
which has been reserved by the Government or any local
authority for any purpose other than mining; or
in respect of which the order granting a permit or
licence or lease has been revoked under sub-rule (1) of rule 7A or
sub-rule(1) of rule15 or sub-rule(1) of rule 31, as the case may be;
or
in respect of which a notification has been issued
under the sub-section (2) or sub-section (4) of Section 17; or
which has been reserved by the State Government under
Section 17A of the Act
shall be available for grant unless –
(i) an entry to the effect that the area is available
for grant is made in the register referred to in sub-rule (2) of
rule 7D or sub-rule (2) of rule 21 or sub-rule (2) of rule 40 as the
case may be; and
(ii) the availability of the area for grant is
notified in the Official Gazette and specifying a date (being a date
not earlier than thirty days from the date of the publication of
such notification in the Official Gazette) from which such area
shall be available for grant:
Provided that nothing in this rule shall apply to the
renewal of a lease in favour of the original lessee or his legal
heirs notwithstanding the fact that the lease has already
expired:
Provided further that where an area reserved under
rule 58 or under section 17A of the Act is proposed to be granted to
a Government Company, no notification under clause (ii) shall be
required to be issued:
Provided also that where an area held under a
reconnaissance permit or a prospecting licence, as the case may be,
is granted in terms of sub-section(1) of section 11, no notification
under clause (ii) shall be required to be issued.].
(2) The Central Government may, for reasons to be
recorded in writing, relax the provisions of sub-rule (1) in any
special case.
60. Premature applications. – Application for
the grant of a [reconnaissance permit, prospecting licence or mining
lease] in respect of areas whose availability for grant is required
to be notified under rule 59 shall, if -
(a) no notification has been issued, under that rule ;
or
[(b) where any such notification has been issued, the
period specified in the notification has not expired, shall be
deemed to be premature and shall not be entertained.].
[61. Lessor to supply certain information to the
lessee. – Where any area has previously been held under a
reconnaissance permit or prospecting licence or mining lease, the
person who was granted such permit or licence or lease shall make
available to the new permit holder or licensee or lessee the
original or certified copies of all plans of abandoned workings in
that area and in a belt preferably 60 metres surrounding it.].
62. Change of name, nationality, etc to be
intimated. – (1) An applicant for, or the holder of a
[reconnaissance permit, a prospecting licence or a mining lease]
shall intimate to the State Government within sixty days any change
that may take place in his name, nationality or other particulars
mentioned in the relevant Forms .
[(2) If the holder of a reconnaissance permit or a
prospecting licence or a mining lease fails, without sufficient
cause, to furnish the information referred to in sub-rule(1), the
State Government may determine the reconnaissance permit or
prospecting licence or mining lease, as the case may be:
Provided that no such order shall be made without
giving the permit holder or the licensee or the lessee, as the case
may be, a reasonable opportunity of stating his case.].
63. Previous approval of the Central Government to
be obtained through State Government. – Where in any case
previous approval of the Central Government is required under the
Act or these rules, the application for such approval shall be made
to the Central Government through the State Government .
63A. The State Government shall dispose of the
application for grant of reconnaissance permit, prospecting license
or mining lease in the following period:
a)
Reconnaissance Permit – within six months from the date of
receipt of the application for reconnaissance permit under rule
4A.
b)
Prospecting License-within nine months from the date of
receipt of the application for prospecting license under rule
10.
c)
Mining Lease-within twelve months from the date of receipt of
the application for mining lease under rule 22:
Provided that the aforesaid periods shall be
applicable only if the application for reconnaissance permit,
prospecting license or mining lease, as the case may be, is complete
in all respects;
Provided further that the disposal by the State
Government in case of minerals listed in the First Schedule to the
Act shall mean either recommendation to the Central Government for
grant of the mineral concession, or refusal to grant the mineral
concession by the State Government under rule 5 for reconnaissance
permit, rule 12 for prospecting license and rule 26 for mining
lease, and in all other cases, disposal shall mean either intimation
regarding grant of precise area, or refusal to grant the mineral
concession under rule 5 for reconnaissance permit, rule 12 for
prospecting license and rule 26 for mining lease;
Provided also that in case the State Government is not
able to dispose of the application for grant of reconnaissance
permit, prospecting license or mining lease within the period as
specified above, the reasons for the delay shall be given in
writing;
64. How the fees and deposit to be made. – Any
amount payable under the Act or these rules except that payable in
respect of revision petition under sub-rule (1) of rule 54, shall be
paid in such manner as the State Government may specify in this
behalf .
64A. The State Government may, without prejudice to
the provisions contained in the Act or any other rule in these
rules, charge simple interest at the rate of twenty four percent per
annum on any rent, royalty or fee other than the fee payable under
sub-rule (1) of rule 54 or other sum due to that Government under
the Act or these rules or under the terms and conditions of any
prospecting licence or mining lease from the sixtieth day of the
expiry of the date fixed by that Government for payment of such
royalty, rent, fee or other sum and until payment of such royalty,
rent, fee or other sum is made.
64B. Charging of Royalty in case of minerals
subjected to processing:-
(1) In case of
processing of run-of-mine mineral is carried out within the leased
area, then royalty shall be chargeable on the processed mineral
removed from the leased area.
(2) In case
run-of mine mineral is removed from the leased area to a processing
plant which is located outside the leased area, then, royalty shall
be chargeable on the unprocessed run-of-mine mineral and not on the
processed product.
64C. Royalty on tailings or rejects:- On
removal of tailings or rejects from the leased area for dumping and
not for sale or consumption, outside leased area such tailings or
rejects shall not be liable for payment of royalty:
Provided that in case so dumped tailings or rejects are used
for sale or consumption on any later date after the date of such
dumping, then, such tailings or rejects shall be liable for payment
of royalty.
64D. Guidelines for computing royalty on minerals
on ad valorem basis:- Every mine owner, his agent, manager,
employee, contractor or sub-lessee shall follow the following
Guidelines for computation of the amount of royalty on minerals
where the royalty is charged on ad valorem basis, namely:-
Guidelines:
The Guidelines for calculation of royalty in typical
cases are as follows, namely:-
Case 1: All non
atomic and non fuel minerals and minerals other than aluminium,
primary gold, silver, copper, lead, zinc, nickel and tin –
The Indian
Bureau of Mines publishes ‘Monthly Statistics of Mineral Production’
which contains state-wise total value of each mineral produced
during a month in a State. The State-wise average value for
different individual minerals as published by Indian Bureau of mines
in the ‘Monthly Statistics of Mineral Production’ shall be the bench
mark for computation of royalty by the concerned State Government in
respect of any mineral produced any time during a month in any mine
in that State. For the purpose of computation of royalty the State
Government shall add twenty per cent to this bench mark value. This
value shall be reckoned to be the sale price for the purpose of
computation of royalty. Also the value of the minerals published in
the latest published issue of the ‘Monthly Production’ will be
deemed to be applicable for the mineral mined in the previous month,
irrespective of when the royalty actually accrues. If for a
particular mineral, the information for a State is not published in
a particular issue, the last information available for that mineral
in the State in a previous issue shall be referred, failing which
the latest published information for the mineral for all India shall
be referred.
Case 2. For
Atomic minerals, prescribed under Atomic Energy Act, 1962(33 of
1962):
The minerals
under this category include ilmenite, leucoxene, rutile and zircon
obtained mainly from the beach sand deposits in the coastal states.
The basis of collection of royalty shall be the actual mineral
content in the beach sand mined.
(a) In case of
sale in the domestic market, the per tonne sale price of the
separated mineral actually realized, less the cost of transportation
from the lease boundary to point of sale as shown by the mine owners
in their sale vouchers or bills or invoices shall be considered for
computing ad valorem royalty. To avoid payment of taxes on royalty
the mine owners in their own interest record the price and royalty
separately in the sale vouchers or bills or invoices instead of
indicating a composite price inclusive of royalty. In case the
price, royalty and transportation cost are not shown separately it
shall be assumed that the price indicated in the sale vouchers or
bills or invoices is exclusive of royalty and transportation cost,
and royalty shall be charged accordingly.
(b) In case of
direct export by mine owners the sale value for the purpose of
royalty shall ordinarily be the free on board (FOB) price realized
less transportation charges from the lease boundary to the port,
loading and unloading charges at the port, port charges (including
sampling and analysis and demurrage charges, if any), insurance
charges, royalty, taxes and interest charges on loan for export.
However, in case of cost insurance and freight (CIF) sales, sea
freight insurance and cost of unloading at the destination port
shall also be deducted from such price. For such purposes the mine
owner may prepare invoices or bills indicating the free on board
price or cost insurance freight price as the case may be each of the
other charges separately.
Explanation –
For the purposes of calculation of royalty in case of minerals
Produced in
captive mines (other than aluminium, copper, lead zinc, tin, nickel,
gold and silver) and those not actually sold, Case 1. and 2. shall
be applicable.
Case 3 : For aluminium, primary gold, silver,
copper, lead, zinc, nickel and tin -
The total contained metal in the ore produced during
the period for which the royalty is computed and reported in the
statutory returns under Mineral Conservation and Development Rules,
1988 or recorded in the books of the mine owners shall be considered
for the purposes of computing the royalty in the first place and
then the royalty shall be computed as the percentage of the average
metal prices in the London Metal Exchange (hereinafter referred to
as the LME) for copper, lead, zinc, nickel, silver and tin and
London bullion Market Association price (commonly known as London
price) for gold during the period of computation of royalty. The
foreign exchange rate for conversion of rupee shall be the selling
rate on the date of the period of computation as published in
newspaper namely, The Economic Times. For the LME prices as well as
for London price of the commodity, either of the following three
sources shall be referred to, namely:-
(i)
Non-ferrous Report : Minerals and Metals Review,
28/30, Anantwadi,
P.O.Box.2749,
Mumbai-400002
(ii)
Metal Bulletin
16, Lower Marsh,
London, SE-17 RJ
(iii)
World Metal Statistics; (Monthly or Quarterly Summary),
By World Bureau of Metal Statistics,
27a High Street, Ware,
Herts SG12 9BA,
United Kingdom
Case 4: For by-product gold and silver –
The guidelines for computation of ad valorem royalty shall be
linked to the total quantity of metal produced and the LME price for
silver and London Bullion Market Association price (commonly known
as London price) for gold as in the case 3 above. However, in this
case, the actual final production of the metal shall be considered
instead of the metal content in the ore produced for the purposes of
computing royalty.
65. Facilities for training of students. – (1)
Every owner, agent or manager of a mine shall permit students of
mining and geological institutions approved by the Central
Government to acquire practical training of the mines and plans
operated by them and provide all necessary facilities required for
the training of such students.
(2) Application for training from students of
institutions teaching mining or geology should be forwarded to the
owner, agent or manager of a mine through the Principal or Head of
the Institution. Cases of refusal to provide facilities for
practical training by any owner, agent or manager of a mine should
be referred to the Controller General, Indian Bureau of Mines.
66. Geophysical data to be supplied to the
Geological Survey of India and the Department of Atomic Energy.
– (1) A [permit holder or licensee or lessee] shall furnish
-
(a) all geophysical data relating to prospecting/
mining fields or engineering and ground water surveys, such as
anomaly maps, sections, plans, structures, contour maps, logging
collecting by him during the course of [reconnaissance or
prospecting or mining] operations to the Director General,
Geological Survey of India, Calcutta and the Director of Geology and
Mining of the State in which the [reconnaissance or prospecting or
mining] operations are carried on.
(b) all information pertaining to investigations of
atomic minerals collected by him during the course of
[reconnaissance or prospecting or mining] operations to the
[Director, Atomic Minerals Directorate for Exploration and Research,
Hyderabad] and to the Director of Geology and Mining of the State,
in which the [reconnaissance or prospecting or mining] operations
are carried on.
(2) Data or information referred to in sub-rule (1)
shall be furnished every year reckoned from the date of commencement
of the period of the [reconnaissance permit or prospecting licence
or mining] lease.
66A.(1) Notwithstanding anything contained in the
Rules, the holder of a prospecting licence or mining lease for a
mineral other than a minor mineral shall be free to undertake
prospecting/ mining operations also in respect of the atomic
minerals, in the area held by him on the conditions that :
(i) if in the course of prospecting / mining
operations, he discovers any atomic mineral/minerals, he shall
within sixty days from the date of discovery of such minerals report
the fact of such discovery to the Director, [Atomic Minerals
Directorate for Exploration and Research, Hyderabad] and the
Director of Geology and Mining of the State in which the prospecting
or mining operations are carried on .
[(ii) that the quantities of atomic minerals recovered
incidental to such prospecting or mining operations shall be
collected and stacked separately and a report to that effect sent to
the Secretary, Department of Atomic Energy, Mumbai and the Director,
Atomic Minerals Directorate for Exploration and Research, Hyderabad
every three months for such further action by the licensee or lessee
as may be directed by the Atomic Minerals Directorate for
Exploration and Research or the Department of Atomic Energy].
[(2) The licensee or lessee referred to in sub-rule(1)
shall be free to remove and dispose of any quantity of atomic
minerals, on obtaining a licence for that purpose from the
Department of Atomic Energy and on payment of royalty to the State
Government];
[(3) The licensee or lessee referred to in sub-rule
(1) shall, within the period referred to therein, apply to the
Secretary, Department of Atomic Energy, Mumbai, through the State
Government, for grant of a licence to handle the said atomic
minerals under the provisions of the Atomic Energy Act, 1962 (33 of
1962):
Provided that if in the opinion of the Department of
Atomic Energy the atomic mineral/minerals recovered incidentally to
such prospecting/mining operations is not of economically
exploitable grade or the quantity found is insignificant, it may
advise the State Government to exempt the licensee/lessee from
obtaining a separate licence/lease for/or inclusion of the atomic
minerals under these Rules.];
(4) The provisions of clause (ii) of sub-rule (1) of
rule 14 and clause (b) of sub-rule (1) of rule 27 shall not apply in
relation to atomic minerals .
[(5) For the purpose of rule 66(1)(b) and this rule,
‘atomic minerals’ means the minerals listed in Part B of the First
Schedule to the Act.].
67. Lease period. – Where more than one mineral
is found in an area and lease is granted for exploiting two or more
minerals, the period of lease for all minerals shall be co-terminus
with that for which the first lease was originally granted .
68. Repeal. – On the commencement of these
rules, the Mineral Concession Rules, 1949, shall cease to be in
force, except as regards things, done or omitted to be done before
such commencement.
________________________________________________
69. Associated
minerals. – The following shall be the group of associated
minerals for the purposes of section 6 of the Act namely:-
(i)
Apatite, Beryl, Cassiterite, Columbite, Emerald, Felspar,
Lepidolite, Mica, Pitchblende, Quartz, Samarskite. Scheelite, Topaz,
Tantalite, Tourmaline.
(ii) Iron, Manganese, Titanium, Vanadium and Nickel
minerals.
(iii) Lead, Zinc, Copper, Cadmium, Arsenic, Antimony,
Bismuth, Cobalt, Nickel, Molybdenum and Uranium minerals, and Gold
and Silver, Arsenopyrite, Chalcopyrite Pyrite, Pyrrhotite and
Pentlandite.
(iv) Chromium, Osmiridium, Platinum and Nickel
minerals.
(v)
Kyanite, Sillimanite, Corundum, Dumortierite and Topaz
(vi) Gold, Silver, Tellurium, Selenium and
Pyrite..
(vii) Barytes, Fluorite, Chalcocite, Selenium and
minerals of Zinc, Lead and Silver.
(viii) Tin and Tungsten minerals.
(ix) Limestone, Dolomite and Magnesite.
(x)
Ilmenite, Monazite, Zircon, Rutile, [Leucoxene], Garnet and
Sillimanite.
(xi) Sulphides of copper and iron.
(xii) Coal, Fireclay and Shale.
(xiii) Magnetite and Apatite.
(xiv) Magnesite and Chromite.
(xv) Talc, Soapstone and Steatite and Dolomite.
(xvi)Celesite, Phosphatic Nodules, Clay and
Gypsum.
70. Sand not be
treated as minor mineral when used for certain purposes. – Sand
shall not be treated as a minor mineral when used for any of the
following purposes, namely:-
(i)
purposes of refractory and manufacture of ceramic;
(ii) metallurgical purposes;
(iii) optical purposes;
(iv) purposes of stowing in coal mines
(v)
for manufacture of silvicrete cement;
(vi) for manufacture of sodium silicate;
(vii) for manufacture of pottery and glass.
71.
[ ]
________________________________________________
72. Payment of compensation to owner of surface
rights etc. – [(1) The holder of a reconnaissance permit or
prospecting licence or mining lease shall be liable to pay to the
occupier of the surface of the land over which he holds the
reconnaissance permit or prospecting licence or mining lease as the
case may be, such annual compensation as may be determined by an
officer appointed by the State Government by notification in this
behalf in the manner provided in sub-rules (2) to (4).]
(2) In the case of agricultural land, the amount
of annual compensation shall be worked out on the basis of the
average annual net income from the cultivation of similar land for
the previous three years.
(3) In the case of non-agricultural land, the
amount of annual compensation shall be worked out on the basis of
average annual letting value of similar land for the previous
three years.
(4) The annual compensation referred to in
sub-rule (1) shall be payable on or before such date as may be
specified by the State Government in this behalf.
73. Assessment of compensation for damage. –
[(1) After the termination of a reconnaissance permit or a
prospecting licence or a mining lease, the State Government shall
assess the damage, if any, done to the land by the reconnaissance or
prospecting or mining operations and shall determine the amount of
compensation payable by the permit holder or licensee or the lessee
as the case may be to the occupier of the surface land];
(2) Every such assessment shall be made within a
period of one year from the date of termination of the
[reconnaissance permit or prospecting licence or mining lease] and
shall be carried out by an officer appointed by the State
Government by notification in this behalf.
74. Issue of notification where prospecting
operations are to be undertaken by the Geological Survey of India
etc. – (1) Where a prospecting operation is to be undertaken by
the Geological Survey of India, the Indian Bureau of Mines, the
Atomic Minerals Division of the Department of Atomic Energy of the
Central Government, the Directorate of Mining and Geology of any
State Government (by whatever name called), or the Mineral
Exploration Corporation Limited, the State Government shall issue a
notification in the official Gazette giving details of the area, and
the period for which prospecting operations are to be
undertaken.
(2) The State Government shall not grant any
prospecting licence or mining lease to any other person for an
area or a part thereof in relation to which a notification has
been issued under sub-rule (1).
(3) The State Government may revoke a
notification issued under sub-rule (1), if the prospecting
operations have been completed before the expiry of the period
stated in the notification.
75. Prospecting or mining operation by State
Governments. – Where a State Government proposes to undertake
prospecting or mining operations of any mineral, it shall issue a
notification in the official Gazette giving details of the area and
the period for which such operations are proposed to be
undertaken.
[Provided that if the State Government fails to
undertake prospecting or mining operation within the period
mentioned in the notification, the notification so issued shall
lapse at the expiry of the said period unless the period is
extended by a fresh notification].
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SCHEDULE I
1.
Application for Reconnaissance Permit
Form A
2.
Application for prospecting licence
Form B
3.
Receipt of applications for Prospecting Licence/ Mining Lease
or renewals Form D
4.
Receipt of application for Reconnaissance Permit
Form D-1
5.
Application for renewal of Prospecting Licence
Form E
6.
Prospecting Licence Deed
Form F
7.
Reconnaissance Permit Deed
Form F-1
8.
Register of applications for Prospecting Licences
Form G
9.
Register of applications for Reconnaissance Permits
Form G-1
10.Register of
Prospecting Licences
Form H
11.Register of
Reconnaissance Permits
Form H-1
12.Application for
Mining Lease
Form I
13.Application
for renewal of Mining Lease
Form J
14.Mining
Lease Deed
Form K
15.Register of
applications for Mining Lease
Form L
16.Register of
Mining Leases
Form M
17.Application for
revision
Form N
18.Model
form for transfer of Mining Lease
Form O
19.Model
Form for transfer of Prospecting Licence
Form P
SCHEDULE
II
(See rule
9(2)(a)
Application fee
for prospecting licences
(1) For
first square kilometre or part thereof Rupees Two hundred and
fifty Rupees
(2) For each additional
square kilometre fifty Rupees
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SCHEDULE III
[See rule 14(1)
(ii) (a) & (b)]
Maximum quantities
of ores and minerals removable
|
Class |
Mineral/ore |
Quantities
that can be carried away without any
payment |
Maximum
quantity that can be carried away by payment of
royalty |
|
1 |
2 |
3 |
4 |
|
Class-I |
Asbestos,
graphite, mica, native sulphur, auriferous rock with
visible uranium mineral and uranium bearing minerals,
minerals of rare earths group, beryl, tentalite,
columbite-concentrates of ores of antimony, arsenic,
bismuth, chromium, copper, lead. nickel, tin, titanium,
tungsten, zinc. |
250
kg |
10
tonnes |
|
Class-II |
Auriferous
rock and gravel containing no visible gold,
metalliferous ores meant for extracting cadmium, cobalt,
mercury, molybdenum, silver, hellium, vanadium, barytes,
bitumen, borax, corundum, emery, grossularite, felsper,
fluorspar and calcite. |
5
tonnes |
200
tonnes |
|
Class-III |
Uraniferous
rock without visible uranium minerals, metalliferous
ores meant for extracting antimony, arsenic, bismuth,
chromium, copper, lead, nickel, tin, titanium, tungsten,
zinc and compound ores containing metals of cadmium,
cobalt, mercury, molybdenum, silver, hellium and
vanadium, gypsum, limestone, iron pyrites, shales, red
and yellow ochre, bauxite metalliferous ores meant for
extracting aluminium, iron and manganese. |
10
tonnes |
200
tonnes |
|
Class-IV |
Limestone,sillimanite,
kyanite, magnesite, serpentine, steatite, vermiculite,
fireclay, kaolin and other refractory materials, coal
and lignite. |
50
tonnes |
200
tonnes |
|
Class-V. |
All other
minerals not specified above |
10
tonnes |
200
tonnes |
SCHEDULE IV
Omitted by G.S.R.
1010, dated 15.9.1973
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SCHEDULE
V
Institutions/Banks/Corporations
(See rule
37)
1. A
Scheduled Bank as defined in clause (e) of Section 2 of the
Reserve Bank of India Act, 1934 (2 of 1934).
2. A Bank
specified in column 2 of the First Schedule to the Banking
companies (Acquisition and Transfer of Undertakings) Act, 1970
(5 of 1970).
3. A
Finance Corporation owned and controlled by a State
Government.
4. A
State Industrial Development Corporation.
5. Unit
Trust or India.
6.
Industrial Finance Corporation of India.
7. State
Trading Corporation of India.
8.
Industrial Credit and Investment Corporation of India.
9. Life
Insurance Corporation of India.
10.
Industrial Development Bank of India.
11.
Industrial Reconstruction Corporation of India Ltd.,
Calcutta.
12. State
Industrial Corporation of Maharashtra.
13.
General Insurance Corporation of India and its four
subsidiaries, viz. (1) Oriental Insurance Co., New Delhi, (2)
New India Assurance Co., Bombay, (3) National Insurance Co.,
Calcutta and (4) United Insurance Co, Madras.
14. The
Export and Import Bank of India.
15. The
National Bank of Agriculture and Rural
Development. |
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