Preamble - AMMONIUM NITRATE RULES, 2011

AMMONIUM NITRATE RULES, 2011

PREAMBLE

The following draft of Ammonium Nitrate Rules, 2011, which the Central Government proposes to make in exercise of the powers conferred by sections 5 and 7 of the Explosives Act, 1884 (4 of 1884) is hereby published as required by sub-section (1) of section 18 of the said Act for information of all persons likely to be affected thereby and notice is hereby given that the said draft shall be taken into consideration forty five days after the Gazette containing this notification is made available to the public;

The objections or suggestions may be sent to the Joint Secretary, Ministry of Commerce and Industry, Department of Industrial Policy and Promotion, Room No. 135, Udyog Bhavan, New Delhi-110107. Email: prasad.chaitanya@nic.in;

Any objection or suggestion received from any person with respect to the said draft rules before the date so specified wilt be considered by the Central Government.

Rule 1 - Short title and commencement

(1) These rules may be called the Ammonium Nitrate Rules, 2011.

(2) They shall come into force on the date of their publication in the Official Gazette.

Rule 2 - Definitions

In these rules, unless the context otherwise requires, -

(a) "Act" means the Explosives Act, 1884(4 of 1884);

(b) "Ammonium Nitrate" means the compound having the chemical formula NH4N03 and includes any mixture or compound having more than 45 per cent. Ammonium Nitrate by weight including emulsions, suspensions, melts or gels (with or without inorganic nitrates) but excluding emulsion or slurry explosives and non-explosives emulsion matrix and fertilizers from which Ammonium Nitrate cannot be extracted by any physical or chemical process;

(c) "Chief Controller" means the Chief Controller of Explosives;

(d) "competent person" means a person recognized by the Chief Controller, who is adequately experienced and well conversant in safe manufacture, conversion, storage, transportation and handling of Ammonium Nitrate, as the case may be;

(e) "Controller" includes Joint Chief Controller of Explosives, Deputy Chief Controller of Explosives, Controller of Explosives and Deputy Controller of Explosives;

(f) "converter" means a person or an agency which undertakes conversion of solid form of Ammonium Nitrate into melt form or melt form of Ammonium Nitrate into solid form;

(g) "Conservator" includes any person or agency or firm acting under the authority of the officer or body of persons appointed to be conservator of a port under section 7 of the Indian Ports Act, 1908 (15 of 1908);

(h) "District Authority" means-

(i) in towns having a Commissioner of Police, the Commissioner or a Deputy Commissioner of Police;

(ii) in any other place, the District Magistrate or Additional District Magistrate;

(i) "Departmental Testing Station" means the testing station of the Petroleum and Explosives Safety organization ;

(j) "explosive" means the explosives as defined under clause (d) of section 4 of the Explosives Act, 1884 (4 of 1884).

(k) "emulsion explosive" and "non-explosives emulsion matrix" shall have the same meaning as defined under the Explosives Rules, 2008.

(l) "Form" means a Form specified in the Schedules annexed to these rules;

(m) "licence" means pre-requisite document to manufacture, convert, import, export, stevedoring, bagging, transport, possess, sale and use of Ammonium Nitrate.

(n) "licensing authority" means authority empowered to issue the licence specified in Schedule I.

(o)"Occupier", in relation to a premises means a person who has the control and is responsible for managing the affairs of the premises, and includes, in relation to Ammonium Nitrate, the person in possession of the Ammonium Nitrate:

Provided that in relation to a-

(i) proprietary firm, the proprietor; or

(ii) partnership firm, the partner nominated in writing by all other partners; or

(iii) company, the director or any other person nominated in writing by the Board of Directors; or

(iv) society or association, the office bearer nominated in writing by the governing body, shall be deemed to be the occupier;

(p) "slurry explosive" and "Site mixed explosives" shall have the same meaning as defined under Explosives Rules, 2008;

(q) "store house" means independent building meant to possess or Store Ammonium Nitrate other than Ammonium Nitrate melt;

(r) "stevedore" includes any personoragencyorfirm which undertakes loading and unloading of bulk Ammonium Nitrate from the ship, its transport to the transit store at the port site for its bagging;

(s) "Safety and Security Management Plan" means the comprehensive plan for ensuring and managing safety and ' security in Ammonium Nitrate manufacturing factory, stevedoring, transport, storage and usage premises;

Rule 3 - Scope of applicability of rules and exemptions

(1) These rules are applicable all over India for regulating the manufacturing, conversion, import, export, stevedoring, bagging, transport, and possession for sale or use of Ammonium Nitrate for bonafide purposes.

(2) Nothing in these rules shall apply to possess, use, transport or import or export of Ammonium Nitrate by -

(a) any of the Armed Forces of the Union and Ordnance Factories or other establishments of such Forces for own use in accordance with the rules or regulations made by the Central Government;

(b) Indian Railways while acting as a carrier;

(c) Port authority;

(d) any person employed under the Central or State Government in exercise of any power under the Act or these rules.

(3) established laboratories, educational institutions, medical institutions, hospital and health clinics may possess and use for scientific and educational purpose the Ammonium Nitrate of quantity not exceeding five kilograms under intimation to the local Police Station.

Rule 4 - Control over manufacture, conversion, stevedoring and bagging, import, export, transport, possession for sale or use of Ammonium Nitrate

No person shall undertake manufacture, conversion, stevedoring, import, export, transport or possess for sale or use Ammonium Nitrate except as authorised or licensed under these rules:

Provided that any person carrying on the business of manufacture, conversion, sale, transport, possession, use, stevedoring, bagging, import and export shall be entitled to continue to carry on such business without licence in respect of Ammonium Nitrate for a period of six months from the date of publication of these rules;

Rule 5 - Pre-requisite for grant of licence

No licence shall be granted unless all the relevant provisions laid down under these rules and all conditions contained in the license forms under Part-2 of Schedule II annexed to these rules are complied with:

Provided that all the existing manufacturers, converters, users, transporters, stevedores, braggers, sellers, storehouses, possessors, importers and exporters shall make application for grant of licence under these rules within a period of six months from the date of publication of these rules.

Rule 6 - General Restrictions

(1) Restriction on manufacture -

The Ammonium Nitrate shall not be manufactured at any place other than the place indicated in the licence.

(2) Restriction on storage and conversion -

(a) The Ammonium Nitrate storehouse should not be located in thickly populated areas.

(b) No Ammonium Nitrate shall be converted at any place except at converter's premises duly licensed.

Note: Conversion means converting melt Ammonium Nitrate into solid form such as pill or crystalline or vice-versa.

(c) No person shall extract Ammonium Nitrate from any fertilizer including Calcium Ammonium Nitrate (CAN), having the chemical formula CaNO3NH4NO3 by any chemical or physical process.

(3) Restriction on stevedoring, bagging and possession for sale or use-

(a) No person shall undertake stevedoring, bagging and possession for sale or use Ammonium Nitrate except under conditions of a licence granted under these rules at an authorised store house as specified therein;

(b) No person shall store, process, deliver, receive, handle or transport any Ammonium Nitrate contaminated fully or partially with any organic material, metal powder or scraps, or sulphur, phosphorous etc.

(4) Restriction on import or export-

(a) No person shall import or export any Ammonium Nitrate except under and in accordance with the conditions of licence granted under these Rules;

(b) No Ammonium Nitrate shall be imported or exported except at its ports notified by the Central Government.

(c) The Ammonium Nitrate shall not be imported into India by Sea except through the ports which are duly approved for this purpose by the Ministry of Shipping and Transport Government of India, in consultation with the Chief Controller and declared as Custom's Ports by the Commissioner of Customs.

(5) Restriction on transport and storage -

(a) Ammonium Nitrate shall not be transported with any other explosives, inflammable substances, oil, gases, carbonaceous matter, etc.

(b) No Ammonium Nitrate shall be transported in any carriage vessel or aircraft plying for or carrying passengers on hire.

(6) Restriction on delivery or dispatch-

(a) No person shall deliver or dispatch any Ammonium Nitrate to anyone other than a person who-

(i) is the holder of a licence to possess the Ammonium Nitrate or the agent of a holder of such a licence duly authorised by him In writing on his behalf; or

(ii) Is entitled under these rules to possess the Ammonium Nitrate without a licence.

(b) The Ammonium Nitrate so delivered or dispatched shall in no case exceed the quantity at any point of time for which the person is holding a licence under these rules.

(c) No person shall receive Ammonium Nitrate from any person other than the holder of a licence granted under these rules.

(d) No person shall receive from or transfer Ammonium Nitrate to any person for a temporary storage or safe custody in a /licensed premises unless prior approval is obtained from the licensing authority having jurisdiction.

(7) Restriction on handling Ammonium Nitrate -

No person shall handle or cause to be handled any ammonium Nitrate between the hours of sunset and sunrise:

Provided that nothing in this rule shall apply to handling of Ammonium Nitrate during the dark hours if proper illumination is provided in the area and the place is guarded.

(8) Restriction on employment of children, intoxicated persons and certain other persons -

No. person shall employ, allow or engage a person -

(a) who is below the age of eighteen years; or

(b) who is in a state of intoxication; or

(c) who is mentally or physically challenged, for manufacture, conversion, bagging, storage, sale, loading, unloading or transport of Ammonium Nitrate or to enter any premises permitted under these rules.

(9) Restriction on toxic, corrosive, dangerous or flammable substances - No toxic, corrosive or flammable or otherwise dangerous substances such as carbonaceous matter reducing agents, petroleum, carbide of calcium, compressed gases or any other chemical which may react with Ammonium Nitrate in a manner that may result in an explosion shall be allowed in the premises meant for manufacture, conversion, bagging, storage, import, export, transport or handling of Ammonium Nitrate.

(10) The Ammonium Nitrate shall not be used for blasting either alone or in combination with other ingredients unless permitted under the Explosives Rules, 2008.

Rule 7 - Employment of competent person

(1) No Ammonium Nitrate shall be manufactured or converted except under supervision of a competent person.

Explanation. - The competent person referred to in sub rule (1) shall be a person with degree or diploma in engineering or graduate in science having minimum five years experience in chemical or explosives industry as an essential qualifications and diploma in industrial safety as an optional qualification and shall be employed by the licensee to ensure compliance of safety norms for manufacture and conversion of Ammonium Nitrate.

(2) All operations associated with stevedoring, bagging, handling, transport and use of Ammonium Nitrate in any building or part thereof should be carried out under the supervision of a person employed by the licence holder who is fully conversant with the process thereof and hazards connected therewith and the provisions of these rules.

Rule 8 - Packing of Ammonium Nitrate

No person shall import, export, transport, possess or sell Ammonium Nitrate unless -

(a) it is duly packed in a suitable waterproof bag or container or is suitably bagged by stevedore or converter;

(b) the container or package is marked in accordance with provisions of rule 9;

(c) the packages conform to the relevant standard of Bureau of Indian Standards or other standards accepted and approved by the Chief Controller;

(d) the packages of Ammonium Nitrate for export or import conform to the requirements of the tests as specified under International Maritime Dangerous Goods Code (hereinafter referred to as the IMDG Code in these rules) or United Nations recommendations on the transport of Dangerous Goods.

Rule 9 - Marking on Ammonium Nitrate packages

(1) Marking on packages - Each bag or container containing Ammonium Nitrate shall be marked in conspicuous indelible character, by means of stamping or painting with -

(a) the words "AMMONIUM NITRATE";

(b) purity in percentage;

(c) the name, address and licence number of manufacturer or converter or importer;

(d) identification number of the package;

(e) the net weight of Ammonium Nitrate;

(f) gross weight of the package;

(g) date of manufactureorconversion and batch number;

(h) name, address, licence number and unique identification number of stevedoring agent, if any.

(i) a paper slip, properly protected against moisture, containing the above details shall be kept inside the packets.

(2) In order to appropriately maintain an audit trail of all the bags produced or imported, an electronic bar-coding shall be done by the manufacturer or importer failing which all consignments, save such inscription, shall be deemed as not validly produced or imported and invite punishment or penalties applicable to and commensurate with any illegal production or import of Ammonium Nitrate under the Act.

Rule 10 - Recovery of Spillage during handling

if any spillage occurs during the process of handling of Ammonium Nitrate at any stage, it should be carefully collected and bagged and accounted for. The spillage, if not contaminated, may be transferred expeditiously only to a licensed converter after proper accounting and the shortfall accounted shall not exceed 0.2 per cent, at the manufacturer's go down and one per cent, for the converters and stevedores.

Rule 11 - Special precautions against accident

(1) No person shall commit or attempt to commit any act which may tend to cause a fire or explosion in or about any place where Ammonium Nitrate is manufactured, converted, bagged, stored or transported.

(2) Every person possessing Ammonium Nitrate and every person in charge of or engaged in the import, export, manufacture, conversion, bagging, sale, transport or handling of Ammonium Nitrate shall at all times comply with the provisions of these rules and the conditions of the licence relating thereto and observe all due precautions for the prevention of thefts or accidents by fire or explosion.

(3) Every person shall prevent any other person from committing any such act as is prohibited under sub-rule (1).

Rule 12 - Restriction on unauthorized persons and provision of guards

(1) The licence holder shall at his own expense provide security guards for safe custody of Ammonium Nitrate stored in a storehouse.

(2) For the purposes of sub-rule (1), the security guards shall be of such strength as the District Authority may consider it to be sufficient.

(3) The premises used for manufacture of Ammonium Nitrate or conversion of the melt into solid form of Ammonium Nitrate or vice versa and storehouse shall be surrounded by a wall of at least two meters height with security fencing on top and of such strength and construction as to effectively prevent entry of unauthorized persons.

(4) The wall and fence referred to in sub-rule (3) shall maintain clearance of at least the safety distances required under Table 1 from any of the process buildings or sheds.

(5) The storehouse shall be constructed as follows:

(a) the storehouse shall be single storied building, well ventilated with at least 23 centimeters thick walls built of brick or stone mortar, or concrete and roof of RCC or Asbestos sheet or fiber sheet;

(b) the storehouse shall maintain clearance of the safety distances required under Table 1 on all sides and shall be duly protected by two meters high boundary wall and security fencing.

Provided that store houses forming part of Ammonium Nitrate manufacturing plant or Nitrous oxide gas manufacturing plant or explosives manufacturing plant or slurry or emulsion matrix manufacturing plant need not be provided with independent boundary wall and security fencing, if such plants are provided with common boundary wall and security fencing.

(c) the floor level of storehouse shall be not less than forty five centimeters from the ground level and the interior of the storehouse shall be kept clean;

(d) the door of storehouse shall be made of steel of minimum three millimeters thick with non-ferrous hinges and shall open outwards;

(e) safety distances to be maintained- the factory licensed for manufacture or store house licensed for possession, sale or use of Ammonium Nitrate shall maintain the safety distances required under Table 1 from any such premises or any other premises used for storage of similar Ammonium Nitrate, flammable or hazardous materials;

(f) the Storage tank meant for storage of Ammonium Nitrate melt shall be constructed of stainless steel according to sound engineering practice conforming to a national or international code and adequately insulated and supported so as to ensure safety and stability during loading and unloading of Ammonium Nitrate melt into or from such storage tank;

(g) a secondary containment in the form of dyked enclosure made of cement concrete shall be provided and its holding capacity shall not be less than capacity of the largest tank situated within such enclosure;

(h) such storage tanks shall be located not nearer than the distance as specified under safety distance table I of Schedule-III

(i) a suitable hard stand maintaining a clear safety distance all-round of 4.5m from its centre near such Ammonium Nitrate melt storage tank shall be provided for loading or unloading of Ammonium Nitrate melt road tanker;

(j) Maximum storage capacity- Any storehouse used for possession, sell or use of Ammonium Nitrate shall have the floor area of one square meter per tone of Ammonium Nitrate and the storehouse total holding capacity shall not exceed two hundred tones.

Note: The existing storehouses of existing Ammonium Nitrate manufacturing plants shall be exempted from the operation of sub-rules (e) and (j) for a period of one year and the existing storehouses are of the capacity more than 1200 to 1800 MT and attached with the plant, without segregation.

Rule 13 - Prohibition of certain acts

No person shall -

(1) provide false or misleading information or declaration in any application made or statement submitted under these rules; or

(2) falsify, erase or fraudulently alter any entry in any log book, document or other record required to be kept or maintained under these rules; or

(3) change or alter any licence, or other documents issued under these rules.

Rule 14 - Maintenance of records and submission of returns

(1) Every person holding a licence granted under these rules for manufacture, conversion, stevedoring, possession, sale, use, transport, import or export of Ammonium Nitrate shall maintain records in the forms specified in Part 3 of Schedule II to ensure accountability, identification and traceability of Ammonium Nitrate and shall produce such records on demand to an authority specified in rule 49,

(2) Stock books in the forms specified in Part 3 of Schedule if shall be page numbered and certified by any officer authorised under these rules and such records shall be retained for a period of three years, unless otherwise directed by an authority.

(3) The licence holder shall submit monthly returns of Ammonium Nitrate manufactured, converted, stevedored, received, sold or transported or used or destroyed or imported or exported to the licence issuing Authority, District Magistrate and Superintendent of Police in the form specified in Part 3 of Schedule II so as to reach the above authority within tenth day of every succeeding month.

(4) The licence holder shall maintain record and make transaction and file returns by electronic means when directed by the licence issuing authority or the Central Government.

Rule 15 - Safety and Security Management Plan

(1) A person intending to a manufacture, convert, stevedore, bag, possess for sale or use, transport, import and export Ammonium Nitrate shall submit Safety and Security Management Plan to the licensing authority and to the District Authority with the security aspect; duly vetted by the police authorities for approval.

(2) The Plan as referred to in sub-rule (1) shall include the following safety and security aspects, namely:-

(a) assigned responsibility and organizational structure;

(b) hazard identification, risk assessment and control;

(c) provision of information, education and training to the work force, contractors and visitors;

(d) accident reporting and investigation;.

(e) emergency response planning and preparedness such as first aid, testing of emergency plan once in a year;

(f) Disaster Management plan and provision of escape routes, identifying and assessing security risk associated with the activities; evacuation plan, appropriate fire fighting controls;

(g) set of process adopted by the holder of the licence to carry out authorized activities and keeping of Ammonium Nitrate secure;

(h) maintenance of schedules for plant and equipment;

(i) standard operating procedure;

(j) competence of (sic) for tasks

(k) nature of the (sic)

(l) documentation and record keeping so as to ensure accountability, identification and traceability of Ammonium Nitrate;

(m) security arrangement for storehouse containing Ammonium Nitrate melt, transport of Ammonium Nitrate by truck, security during transport of Ammonium Nitrate including its loading or unloading;

(n) mechanism for controlling and restricting access of unauthorized person to Ammonium Nitrate Storage;

(o) assigning of responsibility for ensuring compliance with plan or task.

(3) Every person engaged in the manufacturing factory shall be imparted training in safety and security aspects by competent persons periodically during and manufacture, handling transportation and storage of ammonium Nitrate and records of such training shall be Maintained.

Rule 16 - Import or export

General

No licence for import or export of Ammonium Nitrate by land shall be granted without the previous sanction of the Central Government in each case, wherein the Central Government may impose conditions and restriction in consultation with the Chief Controller.

Rule 17 - Compliance of port Rules

The provision of rules regulating handling of Ammonium Nitrate at the notified ports issued under the Act; and respective Port Rules and byelaws shall be observed.

Rule 18 - Import of Ammonium Nitrate

(1) Ammonium Nitrate shall preferably be imported in the bagged form and whenever Ammonium Nitrate is imported in bulk, it shall be bagged or packed suitably by stevedoring agency duly authorized in writing by importer and having valid licence for clearing Ammonium Nitrate form the ship and for its transport in looses form to transit store at the port for further bagging

(2) The stevedoring agent shall Maintain records of Ammonium Nitrate received and dispatched to each importer (sic) accountability, idenntication and traceability and file Returns.

(3) Imported Ammonium Nitrate shall not be dispatched from ports except in bagged form and each bag of Ammonium Nitrate shall be marked by stevedoring agent in accordance with rule 9.

(2) Declaration by importer -

A person holding an import licence granted under these rules shall furnish a declaration to the Chief Controller-

(a) in Form R-3 under Part 3 of Schedule II as soon as ship carrying Ammonium Nitrate sails from the port of loading;

(b) in Form R-4 under Part 3 of Schedule II as soon as any shipment of Ammonium Nitrate is cleared from the port of import.

(3) Declaration by master of ship or by the ship's agent-

(a) the master of every ship carrying Ammonium Nitrate or the agent for such ship shall give the Conservator of the port not less than forty eight hours' notice of its intended arrival at the port;

(b) the master of every ship carrying Ammonium Nitrate shall deliver to the pilot before entering any port, a written declaration in Form C-1, under Part 4 of Schedule II, provided that if in anticipation of a ship's arrival, the agent for such ship delivers to the Conservator of the port a written declaration as aforesaid under his signature, no such declaration need to be made by master of the ship;

(c) every declaration delivered to a pilot under clause (b) of sub-rule (3) shall be made over by him without delay to the Conservator of the port and all declarations received by the Conservator of the port shall be forwarded by him, with all convenient dispatch to the Commissioner of Customs,

(4) Restrictions on import by air-the Ammonium Nitrate shall not be imported by air.

Rule 19 - Export of Ammonium Nitrate

(1) Restrictions on export by air--

the Ammonium Nitrate shall not be exported by air.

(2) Declaration by exporter or his agent--

the exporter or his authorised agent shall give notice to the conservator of the port before forty eight hours that; he intends to bring Ammonium Nitrate to port for export and shall not bring the Ammonium Nitrate to any part of the port without the prior permission in writing from the said officer.

(3) Export of Ammonium Nitrate shall only be in the bagged form and marked in accordance with rule 9.

(4) Transport in passenger carriages and vessels--

Save as otherwise expressly provided in these rules, no explosive shall be transported in any carriage vessel or aircraft plying for or carrying passengers on hire.

Rule 20 - Procedure to be followed during transportation

(1) Every consignment of Ammonium Nitrate or Ammonium. Nitrate melt transported under licence shall be accompanied by a pass issued by the consignor in Form R-11(b) of Part-3 of Schedule II.

(2) The pass referred in sub-rule (1) shall be attached to the way-bill, invoice or bill of entry or dispatch note as the case may be.

(3) An intimation in Form R-11(a) of Part-3 of Schedule II shall be sent by the consignor at least forty eight hours in advance to the District Superintendent of Police of place of dispatch as well as to District Superintendent of Police of place of receipt.

(4) A copy of every pass issued under sub-rule (2) shall forthwith be sent by the consignor to--

(a) the District Authority who issued the licence of the consignor;

(b) the District Superintendent of Police in whose jurisdiction the place from which the consignment is sent is situated;

(c) the District Superintendent of Police in whose jurisdiction the place to which the consignment is sent is situated.

(5) The consignor should send a route map to destination to the enrooted District Superintendents of Police.

Rule 21 - Documents to be available during transport

(1) The Ammonium Nitrate or Ammonium Nitrate melt shall be transported only by transporters holding valid licence issued by the District Authority,

(2)     (i) The tanker for transportation of Ammonium Nitrate melt shall be constructed of stainless steel, properly and adequately insulated according to sound engineering practice conforming to national or international code and secured or mounted over a vehicle chassis ensuring total safety and stability during transportation and shall be of design duly approved by Chief Controller of Explosives;

(ii) The gross carrying capacity of such Ammonium Nitrate melt tanker shall not exceed the load limit prescribed by the Road Transport Authority for such vehicle;

(iii) The inlet and outlet valves of such Ammonium Nitrate melt tanker shall be of such construction and design so as to permit its secured locking and sealing.

(3) The truck carrying Ammonium Nitrate shall be properly and securely tied from all sides by providing three layers of tarpaulin for covering and rope for tying and sealing and shall ensure that the driver or any attendant thereof has in his possession the following documents during transport, namely:-

(a) copy of indent in Form R-10 under Part 3 of Schedule II, issued by the consignee;

(b) the copy of transport pass in Form R-11(b) under Part 3 of Schedule II issued by the consignor;

(c) the original copy of bill or bill of entry of Ammonium Nitrate being transported.

(d) the route map from the point of origin to the destination point.

(4) The documents mentioned in sub-rule (1) shall be produced by the transporter on demand by the authority empowered under rule 49.

(5) The consignor shall ensure delivery of consignment of Ammonium Nitrate to storehouse of the consignee at the declared destination and the Form R-11(b) duly acknowledged by the Consignee should be retained as record by the Consignor.

(6) Dispatch of Ammonium Nitrate to carriers for transport.--

(a) No person shall dispatch any Ammonium Nitrate to a carrier other than the Indian Railways for the purpose of transport.

(b) No person shall dispatch any Ammonium Nitrate to the Indian Railways for the purpose of transport unless he has given the Station Master a notice in writing--

(i) of his intention to tender such Ammonium Nitrate;

(ii) certifying that the Ammonium Nitrate has been packed and marked in accordance with rules 8 and 9;

(iii) stating the quantity of Ammonium Nitrate to be transported;

(iv) that he has received a reply and intimation in writing from the Station Master that he is prepared to receive the Ammonium Nitrate for immediate dispatch;

(v) that he has received a confirmation from the consignee regarding readiness to receive Ammonium Nitrate as authorised under these rules.

(c) No person shall bring, send or forward to, or upon any railway any Ammonium Nitrate which the Indian Railways have by any notice of regulation for the time being in force notified.

Rule 22 - Loading, unloading, maintenance and operation of a truck or tanker engaged in transport of Ammonium Nitrate

(1) The truck or tanker engaged in transport of Ammonium Nitrate, should appoint only such drivers or cleaners, whose antecedents are verified by the local police and a list of such drivers or cleaners along with all personal particulars should be made available to the local police in advance to carry out the verification and the re-verification of such staff should be carried out at regular intervals, preferably once in a year.

(2) The truck or tanker carrying Ammonium Nitrate is accompanied by at least two able bodied guards.

(3) The driver or operator of a truck or tanker carrying or containing Ammonium Nitrate shall not stop for a longer period than is reasonably required, and shall avoid stops at places where public safety is likely to be in danger:

Provided that where a truck or tanker transporting or containing Ammonium Nitrate is parked over night due to any reasons beyond the control of the driver, the premises in which the truck or tanker is parked-

(a) shall not be used for any purpose that might give rise to the presence therein of an open flame, matches or any substance or article likely to cause explosion or fire;

(b) shall be away from any habitation or any go down containing articles of a flammable nature or other hazardous goods:

Provided that the nearest police station shall be informed about the location and temporary parking of the truck or tanker,

(4) A truck or tanker while transporting Ammonium Nitrate shall be adequately secured at the expense of the licence holder and if the consignment of Ammonium Nitrate is likely to pass through sensitive areas notified by the Ministry of Home Affairs, it should be escorted by armed police escort or guard, provided by the District Police Administration.

Rule 23 - Procedure on accidents

(1) Where a vehicle transporting Ammonium Nitrate is involved in an accident, fire or any other occurrence that causes a significant delay in the delivery of Ammonium Nitrate or damage to the vehicle or Ammonium Nitrate, the driver or any other authorised person accompanying the vehicle shall--

(a) comply with all requirements of law relating to road accidents;

(b) inform the nearest police station;

(c) inform the licensee who shall-

(i) inform the Chief Controller and the Controller in whose jurisdiction the accident has taken place giving the full details of Ammonium Nitrate carried and accident;

(ii) arrange for safe storage and custody of Ammonium Nitrate till examination by the Controller if required, and then arrange for transport to the destination or place designated by the Controller.

(2) In case of a breakdown of a truck or tanker carrying Ammonium Nitrate, the driver or the person in charge of the vehicle shall inform the licensee who shall in turn inform the Chief Controller and the controller in whose jurisdiction the vehicle is broken down giving full details of the Ammonium Nitrate and the circumstances attending the breakdown.

(3) Ammonium Nitrate melt shall be transported in the melt tanker with discharge faucets duly sealed by the melt supplying firm and the melt supplying firm shall issue quality control certificate indicating clearly the concentration factor of the melt.

(4) The converter or user shall verify that the seal on discharge faucet is intact and verify concentration factor of Ammonium Nitrate.

(5) The transport of Ammonium Nitrate in sensitive areas notified by Ministry of Home Affairs shall not be allowed during the period of sunset to sunrise. The movement of Ammonium Nitrate should be informed to the concerned police authorities regarding the origin of the consignment and its destination in writing.

(6) Fire extinguishers to he provided.--

(a) Every truck or tanker shall be provided with two fire extinguishers of minimum five kilograms capacity and one of the extinguishers shall be capable of dealing with fire involving electric circuits and the other, with other inflammable components.

(b) The fire extinguishers shall always be kept in good working condition.

(c) The fire extinguishers shall be located where they will be convenient and ready for immediate use.

(d) The fire extinguishers shall be examined and recharged according to the manufacturers' recommendations.

Rule 24 - Possession in authorised premises

(1) A person holding licence for possession of Ammonium Nitrate granted under these rules shall store the Ammonium Nitrate only in premises specified in the licence.

(2) The premises in which Ammonium Nitrate is kept shall be used only for possession and sale or use of such Ammonium Nitrate and for no other purposes.

(3) No person shall sell Ammonium Nitrate from any premises other than those licensed under these rules.

(4) The authorized storehouse shall be kept securely closed or locked except when goods are being placed in or taken out from It or when it must be kept open for some other bonafide purpose,

(5) The keys of the authorized shall be kept secured in licence holder's custody or with his authorised agent and shall be produced for inspection by the inspecting officer officer.

(6) The name and address of the person along with passport size photograph with whom the keys will he kept shall he furnished to the licensing authority and the District authority having jurisdiction,

Rule 25 - Quantity of Ammonium Nitrate to be purchased in a given period of time

A licence holder for possession, sale or use of Ammonium Nitrate in and from a storehouse shall purchase only such quantity of Ammonium Nitrate in a given as may be specified in the licence.

Rule 26 - Accountability and transaction of Ammonium Nitrate

(1) All licenses granted under these rules shall bear the photograph of the licence.

(2) For purchase and transaction of Ammonium Nitrate, following procedures shall be observed, namely;

(a) indent for supply of Ammonium Nitrate in Form R.10 under part 3 of Schedule II shall be signed by the licence holder or his authorised representative;

(b) photograph and specimen signature of the licence holder or occupier shall be filed with the supplier of Ammonium Nitrate;

(c) photograph, specimen signature and address of the licence holder's authorised representative duly attested by the licence holder or occupier shall be filed with the supplier of Ammonium Nitrate.

(3) "The licensee should engage only authorised representative, whose antecedents are verified by the local police and a list of such authorised representative along with all personal particulars should be available to the local police in advance to carry out the verification and re- verification of such staff should be carried out at regular intervals, preferably once in a year.

(a) the supplier of Ammonium Nitrate shall verify the photograph and signature before affecting the delivery;

(b) the authorised representative mentioned in clause (c), shall represent one licence holder only for receiving Ammonium Nitrate on his behalf

Rule 27 - Authority issuing Licenses

The licenses for specific purposes may be granted by the authorities specified in Part 1 of Schedule I.

Rule 28 - Payment of Fees

(1) The following annual fee shall be payable for issuance of licences for different activities, namely:-

(b) Licence to possess and sale Ammonium Nitrate, from a storage attached to Ammonium Nitrate manufacturing or

(2) When licence issuing authority is Chief Controller, the fees payable shall be paid by a crossed bank draft and when issuing authority is District Authority, the fees payable shall be paid in such manner as may be specified by him.

(3) When licence is sought for more than one financial year, the fees for desired number of financial years at the rate specified in sub-rule (1) above shall be payable.

Rule 29 - Prior approval before construction

(1) A person desiring to obtain a licence for manufacture, possession for sale, use, transport of Ammonium Nitrate, under these rules, shall obtain prior approval from the authority empowered to grant such licence, by submitting documents mentioned in rule 32.

(2) The District Magistrate while granting the prior approval, shall return to the applicant one set of approval together with plans showing distances required to be kept clear in and around the premises.

(3) The Chief Controller or Controller while granting the prior approval, shall return to the applicant one set of approval together with plans showing distances required to be kept clear in and around the premises and an additional set of the said documents to enable the applicant to submit the same to the authority authorised to issue no objection certificate.

Rule 30 - Application for grant of licence

After the construction of premises is completed, the applicant shall apply for grant of licence along with documents stated in rule 32 to the authority empowered to grant such licence.

Rule 31 - Period of validity of licence

The licensing authority may grant a licence for the period deemed necessary but not exceeding- five financial years or part thereof for all purposes except for one year for import and export.

Rule 32 - Documents to be submitted for seeking approval or licence

The following documents shall be submitted for approval or licence, namely: -

(1) Application in appropriate Form as per Part-1 of Schedule II.

(2) Safety and Security Management Plan prepared as required under rule 15.

(3) The plan of the proposed buildings or storehouse and the site showing approach road to the storehouse or stevedore's transit store or manufacturing or conversion premises, all buildings in and around.

(4) The particulars of person employed for handling of Ammonium Nitrate their qualification and experience. The applicant shall file an affidavit regarding their character and antecedents.

(5) Passport size photographs of the occupier along with documentary evidence of nomination as occupier.

(6) The scrutiny or Licence fee as per sub rule (1) of rule 28.

(7) The certificate of completion duly endorsed by Chartered Engineer.

(8) No Objection Certificate from the concerned District Authority, where the District Authority is not the licence issuing authority.

Rule 33 - Procedure to be observed for Issue of no objection certificate and grant of licence by the District Authority

(1) The applicant desiring to obtain a licence from the Chief Controller or Controller shall apply to the District Authority with copies of the site plan showing the location of the premises for issue of a certificate to the effect that there is no objection to the applicant receiving licence for the site proposed.

(2)     (a) On receipt of the application for issue of no objection certificate or grant of licence, the District Authority shall verify the antecedents of the applicant, lawful possession of the site, genuineness of the purpose, interest of public and any other verifications or enquiries as may be specifically required by the licence issuing authority to be carried out, if any, and on any other matter as deemed necessary if the area of the proposed site does not fall within the purview of Indian Mines Act, 1952.

(b) The Director general of Mines Safety shall be the authority to grant no objection certificate if the area of the proposed site comes under the Indian Mines Act, 1952.

(c) For verification of the interest of public, the District Authority shall forthwith cause a notice to be published calling upon the public to submit objections, if any, with reasons thereof, within a period of one month from the date of publication of the notice and specifying the date, time and place for consideration of objections by him.

(d) Where the site of the proposed premises lies within 1.5 kilometers of the limits of the jurisdiction or any town planning, municipal authority or port or air port or satellite or space craft launching station or similar establishment of notional importance, the District Authority shall cause the notice to be served to such authority or establishment.

(e) The day of hearing for consideration of objections shall be fixed as early as possible, after the expiration of the period of one month from the date of publication of notice.

(f) On receipt of objection, the District Authority shall call the person or persons raising objection and also the applicant, giving not less than seven clear days before the day fixed for hearing for consideration of the objection.

(g) On the day fixed for the hearing or any day to which such hearing may be adjourned from time to time, the District Authority shall hear any objection relating to the issue of either no objection certificate or grant of licence and upon further enquiry as deemed necessary; the District Authority shall assess justification of such objection.

(3) The District Authority or the Director General of Mines Safety, as the case may be, shall make verification of lawful possession of the site, genuineness of the purpose, and other verifications or enquiries as may be specifically required by the licence issuing authority to be carried out, if any, and on any other matter as deemed necessary.

Provided that no No. Objection Certificate from Director General of Mines Safety is required for storage of Ammonium Nitrate within mines area for the purpose of manufacture of Ammonium Nitrate Fuel Oil explosives at site having valid licence in Licence Form (sic) granted under the Explosives Rules, 2008.

(4) The District Authority shall complete the enquiry within a period of there months or as expeditiously as possible and such authority shall after being satisfied, grant no objection certificate in Form C-2 of Part-4 of Schedule-II or grant of the licence, as the case may be, along with site plan duly signed and sealed by such authority.

(5) If the District Authority or the Director General of Mines Safety, as the case may be, objects to the grant of the no objection certificate on any of the grounds relating to the purpose of no objection certificate, no licence shall be granted by the licence issuing authority except with the sanction of the Central Government.

(6) The District Authority or the Director General of Mines Safety, as the case may be, shall grant no objection certificate or licence or convey his refusal for granting no objection certificate or licence, as the case may be, with reasons thereof in writing to the applicant as expeditiously as possible but not later than a period of six months from the date of receipt of application from the applicant.

Rule 34 - Grant of a Licence

(1) The Licence issuing Authority, on being satisfied with the documents received for grant of licence, in the Form specified in Schedule II and after making such inquiry, if any, as it may consider necessary, shall, subject to the other provisions of the Act and these rules, by order in writing either grant the licence or refuse to grant the same.

(2) The licensing authority may verify the facilities of the licence and on satisfaction shall endorse the licence.

(3) The licensing authority, if necessary, may impose additional conditions to the license.

(4) The District Authority may refer the case to the Chief Controller for seeking any expert opinion.

Rule 35 - Renewal of licence

(1) Every licence except the licences granted for a specific period not exceeding on year, shall be renewable for a maximum period of five financial years ending on the 31st March

(2) Every application under sub-rule (1) for renewal of the licence shall be accompanied by the following documents, namely:--

(a) application in Form R - 1;

(b) the original licence;

(c) the required renewal fee as specified in the schedule.

(3) A licence may be renewed by the authority empowered to grant such licence :

Provided that a licence which has been granted by the Chief Controller may be renewed without any alteration by a Controller duly authorised by the Chief Controller in this behalf:

Provided further that a licence, which has been granted by the District Magistrate, may be renewed without any alteration by a Sub-Divisional Magistrate or an Executive Magistrate duly authorised by the District Magistrate in this behalf.

(4) Every application for the renewal of a licence shall be made so as to reach the licensing authority or the authority empowered to renew the licence on or before three months (i.e. 31st December) of the date on which the licence expires together with the licencefees.

Provided that the application received after the 31st December till the date of expiry of the licence shall be treated as late application and the licences shall be renewed with the late fees equivalent to one year's licence fee.

(5) If the application for renewal reaches the renewing or licensing authority on or before the date of expiry, the licence shall be deemed to be in force until such date as the licensing authority renews the licence or until an intimation that the renewal of the licence is refused has been communicated to the applicant and if no application is received till the date of validity of the licence, the licence shall stand expired.

(6) The same fee shall be charged for the renewal of a licence for each year as for grant thereof.

(7) Where a licence renewed for more than one financial year is surrendered before its expiry, the renewal fee paid for the unexpired portion of the licence shall be refunded to the licensee:

Provided that no refund of renewal fee shall be made for any financial year during which the licensing authority received the renewed licence for surrender.

(8) When a licence is renewed by the Chief Controller or a Controller, an intimation to that effect shall be sent to the District Magistrate, concerned and when a licence is renewed by the District Magistrate, intimation to that effect shall be sent to the Controller having jurisdiction.

Rule 36 - Amendment of licence in respect of alteration or change in the premises or licenses capacity, but not Involving change of name of licensee or partners or directors or members

(1) A licence granted under these rules may be amended by the authority empowered to grant the licence if the amendment is consistent with the provisions of these rules.

(2) A licensee who desires to have his licence amended shall submit the following particulars to the licensing authority, namely:-

(a) an application in the form stating nature of the amendment and the reasons there for;

(b) the original licence together with enclosures to it;

(c) plans showing the details of the proposed amendment if such plans are required by the licensing authority for the purpose of amendment;

(d) the required amendment fee as specified in the rule 28.

(3) The licensing authority after scrutiny of the documents submitted under sub-rule (2), and after making such further inquiries and taking such action as deemed necessary, may take suitable action to amend the licence.

Rule 37 - Procedure for change of partners or directors or members or occupier

Whenever any new partner or member or director is inducted in the partnership firm or society or association or company, as the case may be, without any change in the name of the licence holder firm or society or association or company, the licence holder shall submit application to the licence issuing authority for accepting the newly inducted partners or members or directors,-

(a) the names and addresses of newly inducted partners or directors, or members, as the case may be, and in case the occupier is changed, photographs of the new occupier;

(b) the requisite scrutiny fee as specified in the rule 28;

(c) a Certificate of verification of antecedents from the District Authority of the newly inducted partners or members or directors or occupier, as the case may be where the District Authority is not the licence issuing authority ;and

(d) any other document as may be called for by the licensing authority.

Rule 38 - Refusal to grant licence

The licensing authority refusing to accord approval or grant licence including amendment shall record in writing the reasons for such refusal and communicate the same to the applicant and before refusal, the applicant shall be given an opportunity of being heard.

Rule 39 - Refusal to renew a licence

(1) The licensing authority refusing to amend or renew a licence shall record the reasons for such refusal in writing.

(2) The licensing authority shall refuse to renew a licence if such licence can be revoked in accordance with the Act or these rules.

(3) A brief statement of reasons for refusal to renew a licence shall be given to the holder of the licence on demand unless in any case the licensing authority is of the opinion that it will not be in public interest to furnish such statement.

(4) Where the renewal of the licence is refused, the fee paid for the renewal shall be refunded to the licence holder after deducting the proportionate fee for the period beginning from the date from which the licence was to be renewed up to the date from which renewal thereof is refused.

(5) Before refusing the renewal of a licence under the rule, the holder of the licence shall be given an opportunity of being heard.

Rule 40 - Cancellation of No Objection Certificate

(1) No objection certificate granted under rule 33, may be cancelled by the authority issuing the same or authority superior to it, if such authority is satisfied, that-

(a) the licence holder has ceased to have any right for the lawful possession over the premises;

(b) the licence holder is convicted and sentenced for any criminal offence or ordered to execute under Chapter VIII of the Code of Criminal Procedure, 1973 (2 of 1974), a bond for keeping peace for good behaviour;

(c) the cancellation of no objection certificate is absolutely necessary for public peace and safety:

Provided that before cancellation of the no objection certificate, the licence holder shall be given an opportunity of being heard.

(2) The authority issuing the no objection certificate or the State Government cancelling no objection certificate shall record, in writing, the reasons for such cancellation and shall immediately furnish to the licence holder and the licensing authority concerned, copy of the order cancelling the no objection certificate and the reason for such cancellation.

(3) In case an appeal is made against the cancellation of no objection certificate, such appeal shall be preferred within a period of sixty days, before the authority superior to the District Authority or the Director General of Mines Safety, as the case may be, and the appellate authority may consult the Chief Controller, if so desired.

Rule 41 - Suspension and revocation or cancellation of licence

(1) Every licence granted under these rules shall.--

(I) stand cancelled, if -

(a) the licence holder has ceased to have any right for the lawful possession over the authorised premises;

(b) the licence holder is convicted and sentenced under any criminal offences or ordered to execute under Chapter VIII of the Code of Criminal Procedure, 1973(2 of 1974), a bond for keeping peace for good behaviour;

(II) stand cancelled, if the No Objection Certificate is cancelled by the District Authority or the State Government.

(III) be liable to be suspended or cancelled by an order of the licensing authority for any contravention of the Act or these rules or of any condition contained in such licence, or by order of the Central Government, if it is satisfied that there are sufficient grounds for doing so:

Provided that before suspending or cancelling a licence under this rule, the holder of the licence shall be given an opportunity of being heard.

(2) The suspension or cancellation shall take effect from the date specified therein.

(3) An order of suspension or revocation of a licence shall be deemed to have been served if sent by post to the address of the licence holder entered in the licence.

(4) The suspension of a licence shall not debar the holder of the licence from applying for the renewal.

(5) Notwithstanding anything contained in sub-rule (1), an opportunity of being heard may not be given to the holder of the licence before his licence is suspended or cancelled in cases -

(i) where the licence is suspended by a licensing authority as an interim measure for violation of any of the provisions of the Act or these rules or of any conditions contained in such licence and in his opinion such violation is likely to cause imminent danger to the public:

Provided that where a licence is so suspended, the licensing authority shall give the holder of the licence an opportunity of being heard before the order of suspension is confirmed; or

(ii) where the licence is suspended or cancelled by the Central Government, in the public interest or in the interest of the security of the State, such opportunity should not be given.

(6) A licensing authority or the Central Government suspending or cancelling a licence shall record its reason for so doing in writing.

Rule 42 - Procedure on expiry, suspension or revocation or cancellation of licence

(1) A licence holder on the expiry, suspension or revocation or cancellation of the licence shall forthwith give notice to the licensing authority, of the description and quantity of Ammonium Nitrate in his possession and shall comply with the directions which the licence issuing authority may give in regard to their disposal.

(2) In case the licence is revoked or cancelled by the licensing authority, fee for unexpired portion shall be reimbursed to the applicant by the licensing authority.

Rule 43 - Provision for appeal

(1) An appeal against an order of the licensing authority refusing to grant or renew a licence or suspending or revoking a licence shall lie, if the order is passed by the-

(a) Chief Controller, to the Central Government.

(b) District Authority, to the immediate superior to such Authority.

(2) Every appeal referred in sub-rule (1) shall be preferred within a period of sixty days of the date of the communication of such order.

Rule 44 - Procedure to be followed by the appellate authority

(1) On receipt of the appeal and if such appeal can be admitted in accordance with the Act the appellate authority may call for records of the case from the authority who passed the order appealed against and may make such further enquiries as it may deem necessary and after giving the appellant an opportunity of being heard, pass final orders.

(2) The action taken by the appellate authority shall conform to the provisions of section 6F of the Act.

Rule 45 - Procedure on death or disability of licence holder

(1) If a licence holder dies or becomes insolvent or becomes mentally incapable or otherwise disabled, the licence granted to him under these rules shall stand cancelled on the date of the licence holder's death or mental incapacity or insolvency or disability, as the case may be.

(2) The legal heirs or representatives of the licence holder shall as soon as may be, inform the licensing authority-

(a) the date of death, insolvency, mental incapacity or other disability as the case may be, of the licence holder; and

(b) shall await the directions of the licensing authority with regard to the disposal of the Ammonium Nitrate kept at the authorized premises.

Rule 46 - Loss of licence

Where a licence granted under these rules or an authenticated copy granted thereof, is lost or accidentally destroyed, a duplicate may be granted on payment of fees, as given under rule 28.

Rule 47 - Power of officers to demand licence or pass

(1) Every person holding a licence granted under these rules shall, when called upon to do so by any authority specified in rule 49, produce it, or an authenticated copy of it, at such time and place as may be directed by such officer.

(2) Every person in charge of a consignment of Ammonium Nitrate or Ammonium Nitrate melt in transit having a valid pass issued under these rules shall produce it when called upon to do so by any authority specified in rule 49.

(3) Copies of any licence may, for the purposes of these rules, be authenticated free of charge by the authority, which granted the licence.

Rule 48 - Executive control over authorities

Every authority other than the Central Government acting under these rules shall be subject to the directions and control of the Central Government:

Provided that nothing in these rules shall be deemed to affect the powers of executive control of the Chief Controller over the Officers sub-ordinate to him.

Rule 49 - Powers of search and seizure

(1) Any authority specified in column (1) of the Table below may within the jurisdiction specified in the corresponding entry in column

(2) of that Table -

(a) enter, inspect and examine any place, aircraft, train, carriage, vessel or any mode of transport in which an Ammonium Nitrate is being manufactured, converted, possessed, used, sold, transported, exported or imported under a licence granted under these rules, or in which he has reason to believe that an Ammonium Nitrate has been or is being manufactured, converted, possessed, used, sold, transported, exported or imported in contravention of the Act or these rules;

(b) search for Ammonium Nitrate or ingredients thereof;

(c) take samples of any Ammonium Nitrate or ingredients found therein;

(d) seize, detain and remove any Ammonium Nitrate or ingredients thereof found therein together with connected documents thereof in respect of which he has reason to believe that any of the provisions of the Act or these rules have been contravened.

Table______________