MINERAL CONCESSION RULES, 1960
CHAPTER IV
Grant of mining leases in respect of land in which the
minerals vest in the Government
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 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 in respect of non-metallic or
industrial minerals for mines other than ‘A’ category mines; as specified in
sub-clause (i) of clause (b) of sub-rule(1) of rule 42 of Mineral Conservation and
Development Rules, 1988.
Provided that the State Government shall exercise the power of approval
of mining plan through an officer or officers having the requisite qualifications and
experience for the purpose as may be prescribed by the Controller General, Indian Bureau
of Mines from time to time:
Provided further 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 exercised 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.];
(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 the 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 ; and];
(v) 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.
(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.]
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.];
(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 sixty 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
operations 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) Omitted.
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) Omitted
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,
subject to the conditions specified in the proviso to rule 35, 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.
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