[14th
March 2022] In exercise of the powers
conferred by sections 15 and 23C of the Mines and Minerals (Development and
Regulation) Act, 1957 (Central Act 67 of 1957), the Governor of Andhra Pradesh
hereby makes the following rules regulating the grant of mining leases in respect
of minor minerals in the State of Andhra Pradesh and for purposes connected
therewith, namely :- PART 1 PRELIMINARY (1)
In these rules, unless the context otherwise
requires; - (a)
"Act" means the Mines and Minerals
(Development and Regulation) Act, 1957(67 of 1957); (b)
"Assistant Director" means
"Assistant Director of Mines and Geology of the jurisdiction concerned,
Government of Andhra Pradesh". (c)
"Auction Premium Amount" means the
price quoted by the bidders in accordance with these rules. (d)
"Deputy Director", means
"Deputy Director of Mines and Geology of the District concerned,
Government of Andhra Pradesh". (e)
"Director", means "Director of
Mines and Geology, Government of Andhra Pradesh". (f)
"E-auction", means "electronic
auction" (g)
"Government", means
"Government of Andhra Pradesh" (h)
"Local societies" include Labour
Contract Cooperative Societies registered before District Cooperative Registrar
under the Andhra Pradesh Co-Operative Societies Act, 1964 or the Andhra Pradesh
Mutually Aided Co-Operative Societies Act, 1995 for the purpose of quarrying
and shall include Co-operative Societies consisting exclusively of
Adivasis/Tribals or individual Adivasis/Tribals in case of Scheduled areas. Provided that any concession
in this tender document shall be provided to local societies who are falling in
the same mandal as the proposed area of quarry lease and such concession shall
be extended to the local societies to obtain the quarry leases for a maximum
total extent of twelve (12) hectares in the State. Explanation: In order to
determine the local status of the societies to be considered for the concession
and subsequent participation in the e-auction process, all the members such
local societies shall be residing in the same mandal as that of the respective
Local society. (i)
"NIT" means "Notice Inviting
Tender" (j)
"Preferred bidder" means the bidder
referred to in subclause (iii) of clause (v) of sub-rule (d) of rule 9; (k)
"Qualified bidders" means the
bidder referred to in clause (if) of sub-rule (d) of ruie 9; (l)
"Reserve Price" means a price,
which shall be the minimum price above which the bidders shall quote their
bids. (m)
"Section" means section of the Act; (n)
"Technically Qualified Bidders"
means the bidder as referred to in clause(iv) of sub-rule (d) of rule 9; (o)
"Tender Document" means the tender
document issued by the Director of Mines & Geology for conduct of an
e-auction referred to in sub-rule(b) of rule 11; (2)
The words and expressions used In these rules
but not defined herein shall have the same meaning as assigned to them in the
Act and Rules made there under. (i)
Mineral bearing areas reserved in favour of
State or Central PSUs as per APMMC Rules, 1966. (ii)
Ordinary Sand (iii)
Patta lands where Pattadar has not provided
their concerned for eauction. (iv)
Forest lands. (v)
Mineral bearing areas for which notices
(LOIs) were issued. (vi)
Existing Prospecting Licenses granted under
APMMC Rules 1966 PART 2 SELECTION OF PREFERRED BIDDER FOR
GRANT OF QUARRY LEASE (i)
The Director shall take prior approval of the
Government for terms and conditions of the tender document before initiation of
auction process. (ii)
The Director may initiate an auction process
for grant of a quarry leases with respect to an area within the State in
accordance with these Rules. (iii)
The Assistant Director of Mines & Geology
shall identify and demarcate the area where a mineral concession is proposed to
be granted through auction using Electronic Total Station (ETS) or Differential
Global Positioning System (DGPS) and the area so demarcated shall be classified
into forests land, land owned by the Government and private persons along with
NOC from the concerned departments and furnish the details to the Director
through the Deputy Director of Mines & Geology concerned. (iv)
The Director shall issue Notice Inviting
Tender with respect to mineral concession auction after receipt of the
proposals from the Deputy Director of Mines & Geology concerned. (v)
The extent of area so demarcated shall
include area required for all the activities falling under the definition of
mine as defined in clause (j) of sub-section (1) of section 2 of the Mines Act,
1952. (vi)
The minimum area proposed for e-auction for
grant of quarry lease under these Rules shall be four (4) hectares. (vii)
The Director of Mines and Geology on his
satisfaction after due consideration of production level, Geographical or Topographical
condition may for reasons to be recorded in writing, decrease the minimum area
proposed for e-auction for grant of quarry lease for all minor minerals except
Ordinary Sand such that the minimum are shall not be less than one (1) hectare. (viii)
The non-refundable tender document fee shall
be as specified by the Director in the tender document. Provided that a concession
of 50% of the tender document fee shall be provided to Local societies and such
concession shall be extended to the local societies to obtain the quarry leases
for a maximum total extent of twelve (12) hectares in the State. (a)
For the purpose of participating in the
auction of Quarry lease, the terms and conditions of eligibility as specified
in the sub-rule (b) below. (b)
The applicant, shall have a minimum net
worth, as specified by the Director in the tender document. Provided that the Net worth
requirement of Local societies shall be 50% of the minimum net worth fixed and
such concession shall be extended to the local societies to obtain the quarry
leases for a maximum total extent of twelve (12) Hectares in the State. Explanation: (i)
In case an applicant is a subsidiary of
another company incorporated in India, the net worth of such holding company
may also be considered: Provided that, in such case,
the applicant shall continue to be a subsidiary of such holding company until
such time the applicant meets the aforementioned net worth threshold. (ii)
In case of a company, the net worth shall be
the sum of paid up share capital and the free reserves as per the audited
balance sheet of the financial year ended immediately preceding the date of
issuance of notice inviting tender. (iii)
In case the notice inviting tender is issued
between 1st April to 30th September (both days inclusive) of a year, the
audited balance sheet of the financial year before the immediately preceding
financial year, from the date of issuance of notice inviting tender, may be
submitted by the bidder, if the audited balance sheet of the immediately
preceding financial year is not available. (iv)
In case of an individual, the net worth shall
be the closing cash balance on the last date for submission of application, and
such amount may include amount in savings bank accounts in Scheduled Bank or
Post Office, free and unencumbered fixed deposits in Scheduled Banks, Post
Office, Listed Companies or Government organisation or Public Sector
Undertakings of a State and the Central Government, Kisan Vikas Patra, National
Saving certificate, Bonds, Shares of Listed Companies, Listed Mutual Funds,
Unit Linked Insurance Plan, Public Provident Fund, Surrender Value of Life
Insurance policies, and un-encumbered immovable property in the name of
Applicant. (c)
The State Government may, regard to article
244 and the Fifth Schedule to the Constitution, the provisions of the
Panchayats (Extension to the Scheduled Areas) Act, 1996 (40 of 1996); and the
Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest
Rights) Act, 2006 (2 of 2007), make such amendments to the terms and conditions
of eligibility as it may deem necessary. (d)
The bidder(s), either individually or group
of associations, shall not have any mineral revenue dues to the Government at
the time of submission of bid in e-auction. Explanation: The
partner/director of the company having shareholdings in another quarry/mining
leases held in the State shall not have any Mineral revenue dues for such
quarry/mining leases to the Government. (e)
The bidder shall satisfy such conditions as
may be prescribed by the Director of Mines & Geology in the Tender
Document. (f)
The eligibility for participating in the
auction shall be determined as per the specified terms and conditions of
eligibility and the Preferred Bidder shall be decided solely on the basis of
financial bids submitted by the eligible bidders. (g)
Notwithstanding anything contained in APMMC
Rules, 1966, a quarry lease for areas falling in the notified Tribal Areas
shall be granted only in favour of Co-operative Societies consisting
exclusively of Adivasis/Tribals or individual Adivasis/Tribals through
e-auction conducted by Director. (a)
An auction shall be conducted only through an
online electronic auction platform. (b)
The Director may utilise any online
electronic auction platform which meets the minimum technical and security
requirements as specified in the Guidelines for compliance to Quality
requirements of e-Procurement Systems issued by the Standardisation Testing and
Quality Certification Directorate, Department of Information Technology,
Ministry of Communications and Information Technology, Government of India. Provided that a concession
of 50% of the Bid Security shall be given to Local societies and such
concession shall be extended to the local societies to obtain the quarry leases
for a maximum total extent of twelve (12) Hectares in the State. (a)
An e-auction for selection of preferred
bidder for grant of quarry lease shall be conducted for determination of
"Auction Premium Amount". (b)
For determination of auction premium amount,
the reserve price for quarry lease shall be in the multiples of Dead Rent per
Hectare per annum as specified by Director in the tender document of the
proposed area for the particular mineral, in Indian Rupees. (c)
The bidders shall quote, over and above the
reserve price, for the purpose of payment to the State Government, an amount in
Rupees as "Auction Premium Amount". (d)
The bidders shall quote, as per the bidding
parameter, for the purpose of payment to the Government, an amount more than
the reserve price and the Auction premium amount so quoted shall not be
adjusted against annual dead rent or seigniorage fee, as the case may be. (a)
The Director shall issue a notice inviting
tender on their website to commence the e - auction process and such notice
shall contain brief particulars regarding the area under e-auction, including
location, extent, mineral and ETS/DGPS Geo-coordinates. (b)
The tender document issued by the Director of
Mines and Geology shall contain.- (i)
Revenue survey details of the area identified
and demarcated, shall be divided into forests land, land owned by the
Government, and land not owned by the Government. (ii)
Plan showing the area with DGPS Coordinates
attested by the Tahsildar and Assistant Director of Mines & Geology
concerned. (iii)
List of clearances and permissions already
obtained with respect to such area. (iv)
No Objection Certificate (NOC) obtained from
the Tahsildar concerned in the case of Government land, Consent from Pattadar
in the case of Pattaland and in case of areas falling within 500 m from the
boundary of the Forest land, an In-Principle Consent/Approval from DFO
concerned. Provided that the NOC,
Consent from Pattadar and In-Principle Consent/Approval from DFO concerned
shall be obtained by Assistant Director of Mines & Geology prior to issue
of NIT. (c)
The bidders shall be provided a fixed period,
as notified by the Director to study the tender document and such reports and
the bidding process shall commence only on expiry of such period. (d)
The auction shall be an ascending forward
online electronic auction and shall comprise of the following rounds, namely:- (i)
First Round of Auction to be held in the
following manner, namely:- (I)
the bidders shall submit;- (1)
a technical bid comprising amongst others,
documentary evidence to confirm eligibility as per the provisions of the Act
and the rules made thereunder to participate in the auction, bid security and
such other documents and payments as may be specified in the tender document;
and (2)
an initial price offer which shall be above
the reserve price; (II)
only those bidders who are found to be
eligible in accordance with the terms and conditions of eligibility specified
in these Rules and whose initial price offer is greater than the reserve price,
referred to as "technically qualified bidders", shall be considered
for the second round of electronic auction; Provided that the Director
shall constitute a Committee for evaluation of the Technical bids received and
to recommend the "technically qualified bidders". (III)
The Highest initial price offer amongst the technically
qualified bidders quoted above the reserve price shall be the floor price of
the second round of online electronic auction. (IV)
The technically qualified bidders shall be
ranked on the basis of the descending initial price offer submitted by them and
the technically qualified bidders holding the first fifty percent of the ranks
(with any fraction rounded off to higher integer) or the top five technically
qualified bidders, whichever is higher, shall qualify as qualified bidders for
participating in the second round of electronic auction; Provided that if the number
of technically qualified bidders is between three and five, then all the
technically qualified bidders shall be considered as qualified bidders. Provided further that in the
event of identical initial price offers being submitted by two or more
technically qualified bidders, all such technically qualified bidders shall be
assigned the same rank for the purposes of determination of qualified bidders
and in such case, the aforementioned fifty per cent shall stand enhanced to the
extent of tie occurring within the first fifty per cent. Illustration: (i)
In the event there are a total of ten
technically qualified bidders, and each technically qualified bidder submits
different initial price offer, then the technically qualified bidders holding
the first fifty per cent of ranks shall be considered to be qualified bidders. (ii)
If three such technically qualified bidders
submit the same initial price offer and are ranked in first fifty per cent of
the total number of ranks, then, all the three technically qualified bidders
shall be considered to be qualified bidders and the total number of qualified
bidders shall stand increased by two. (V)
Where the total number of technically
qualified bidders is three or more, the auction process shall proceed to the
second round of auction which shall be held in the following manner, namely:- (i)
The qualified bidders may submit their final
price offer which greater than the floor price: Provided that the final
price offer may be revised till the conclusion of the auction as per the
technical specifications of the auction platform; (ii)
The auction process shall be annulled if none
of the qualified bidders submits a final price offer on the online electronic
auction platform; (iii)
The qualified bidder who submits the highest
final price offer shall be declared as the "preferred bidder"
immediately on conclusion of the auction. (VI)
Where the total number of technically
qualified bidders is less than three, then no technically qualified bidder
shall be considered to be qualified bidder and the first attempt of auction
shall be annulled. (VII) On
annulment of the first attempt of auction, the Director may decide to;- (a)
commence the auction process de novo with a
separate set of terms and conditions and reserve price as it may deem fit and
necessary; or (b)
Conduct the second attempt of auction. (VIII)
In case the Director decides to conduct the
second attempt of auction as per clause (ii) of sub-rule (g) above, the terms
and conditions of the second attempt of auction shall remain the same as in the
first annulled attempt of auction Provided that the highest
initial price offer of the technically qualified bidders if any in the first
annulled attempt shall be the reserve price in first round of the second
attempt: Provided further that the
bidding shall continue to the second round even in case the number of
technically qualified bidders is less than three. (IX)
Second Round of Auction to be held in the following
manner, namely:- (i)
The qualified bidders may submit their final
price offer which shall be greater than the floor price: Provided that the final
price offer may be revised till the conclusion of the auction as per the
technical specifications of the auction platform; (ii)
The auction process shall be annulled if none
of the qualified bidders submits a final price offer on the online electronic
auction platform; (X)
The qualified bidder who submits the highest
final price offer shall be declared as the "preferred bidder" by
Director immediately on conclusion of the auction. (a)
Upon completion of auction process, the
preferred bidder shall pay the Auction Premium amount to Director in the Head
of Account as specified by the Director of Mines and Geology within two weeks
from completion of e-auction. (b)
Upon receipt of the Auction Premium amount,
the Director of Mines and Geology / Deputy Director of Mines and Geology
concerned, as the case may be, shall issue a notice (letter of intent) to the
preferred bidder as specified in sub-rule (d) below. (c)
In case, preferred bidder is not able to
furnish the Auction Premium amount within two weeks from completion of
e-auction, the second highest bidder will be given preference by the Director
to match the highest Auction Premium amount and after remittance of the highest
Auction Premium Amount, the respective bidder shall become preferred bidder and
a Notice (Letter of Intent) be issued as per sub-rules (a) and (b) above. (d)
The Preferred Bidder shall comply with the
following conditions for grant of Quarry lease deed within the period specified
in rule 7 & 12(5) of the APMMC Rules 1966, for the minor minerals as the
case may be:- (i)
Continuing to be in compliance with all the
terms and conditions of eligibility; (ii)
Submission of Security Deposit as specified
by the Director in the tender document. (iii)
Obtaining Approved Mining Plan, Environmental
Clearance, Consent for Establishment, Forest Clearance (in case of Forest land)
and any other relevant consents, approvals, permits and the like as may be
required under applicable laws for commencement of quarry operations; (iv)
Satisfying such other conditions as may be
specified by the Director of Mines and Geology. (v)
Affidavit regarding annual minimum production
conditions to be submitted as specified in the Tender document. (e)
Upon fulfillment of the conditions specified
above, the Director of Mines and Geology/ Deputy Director of Mines and Geology
concerned, as the case may be, shall grant a Quarry Lease to the Preferred
Bidder and such Quarry Lease shall be subject to the provisions of APMMC Rules
1966. (f)
If the Preferred Bidder failed to fulfill the
conditions specified in sub rule (d) above within the specified period, the
notice issued as per sub rule (b) above shall deemed to be cancelled and
payments made so far shall be forfeited. (g)
The Quarry Lease Deed shall be executed by
the Assistant Director of Mines & Geology as per Rule 12(5)(e) and 13(1) of
the APMMC Rules 1966, for the respective minor minerals, as the case may be. (h)
Any new mineral is discovered in the Quarry
Lease area granted through auction during the lease period, then the holder of
Quarry lease shall follow the provisions of the APMMC Rules, 1966 as amended
from time to time for inclusion of such new mineral in the Quarry Lease Deed. (i)
The date on which the Quarry Lease Deed is
duly executed shall be the date of commencement of the Quarry lease. PART 3 MISCELLANEOUS Provided that such Local
societies shall be a Qualified Bidder in the auction of that particular area
and match the highest premium amount quoted for such quarry lease in e-auction
conducted by Director. Provided further that the
total extent of quarry leases to be held by such local Societies shall be
twelve (12) hectares in the State of Andhra Pradesh by using the Right of first
refusal under this rule. (i)
In the cases of the existing leases covered
under the areas of pattalands where the consent is provided and Government
lands, on the expiry of the lease period, the area shall be put up for
e-auction. (ii)
The process of e-auction shall be started
well in advance so that before the expiry of the lease period, new lease may be
granted without any gap; (iii)
The existing lessee shall have right of first
refusal at the time of e-auction held for such lease after expiry of the lease
period in the following manner namely;- (a)
to be eligible to exercise the right of first
refusal, the lessee shall comply with the conditions of the mining lease, the
act and the rules made thereunder till its expiry and shall emerge as technical
qualified bidder as per provisions laid down in these rules. (b)
upon conclusion of the e-auction, the
Director of Mines & Geology shall issue a notice to the lessee seeking
written confirmation of his/her willingness to exercise the right of first
refusal within a period of seven days of the conclusion of the e-auction; (c)
the notice given under clause (ii) shall be
acknowledged by the lessee and who shall, within a period of two weeks of
receipt of notice, exercise the right of first refusal in writing to the
Director of Mines & Geology, failing which it shall be construed that the
lessee is not desirous of exercising the right of first refusal and the
successful bidder shall be entitled to a mining lease in the manner provided in
these rules (d)
if these, lessee exercise the right of first
refusal and matches the highest final offer price, the lessee shall be deemed
to be successful bidder in place of the earlier successful bidder declared
after the e-auction shall be entitled to a mining lease in the manner provided
in these rules. (e)
in case the lease holder or preferred bidder
or Lol holder, expires the lease shall be considered to be granted in the name
of the successor of the deceased person. (a)
In a proposed mineral block, where the land
owned by the Private persons (pattalands) is more than 75% of the total
proposed area, then proposed mineral block shall be considered as Pattaland and
shall be disposed as per the procedure laid down in these rules and APMMC Rules
1966. (b)
For the mineral bearing areas which are
falling in pattalands and where the pattadar concerned has provided consent for
grant of quarry lease through e-auction; Prior to issue of NIT for
conduct of e-auction in areas held by private persons, a consent from Pattadar,
as the case may be, shall be obtained by Assistant Director of Mines and
Geology by entering into an agreement with the pattadar or person authorized by
Pattadar in this regard as per sub-rule (c) below. Provided that the Consent
received from Pattadar shall be irrevocable and shall be valid till expiry of
lease period or till exhaust of the mineral, whichever is later. (c)
The lease holder shall pay an additional
amount equal to twenty percent (20%) of Seigniorage Fee to pattadar on mineral
dispatches made from the lease area through the Director on monthly basis. (a)
The Director shall publish the details of the
Successfully auctioned blocks in the website of Department of Mines &
Geology on monthly basts with the following details: (i)
Details of block - Name of the mineral,
Location, Assistant Director of Mines and Geologys Jurisdiction and District. (ii)
Highest Auction Premium Amounts (iii)
Extent in Hectares and Highest Auction
Premium Amount per hectare (b)
The Director shall also publish the district
wise and mineral wise highest Auction premium amounts and the average hectare
wise highest Auction premium amounts of the successfully auctioned blocks in
the last 12 months and 36 months in the website of Department of Mines &
Geology on monthly basis.Andhra
Pradesh Minor Mineral Auction Rules, 2022
These rules may be called the Andhra Pradesh Minor Mineral Auction Rules, 2022.
These rules shall extend to the whole state of Andhra Pradesh and shall apply
to all minor minerals except for the following:
Preferred Bidder shall be selected by the Director through an electronic
auction in the manner as specified in these Rules.
The period for which a quarry lease shall be granted for the minor minerals
specified under these Rules as per Rule 12(5) and 15 of the Andhra Pradesh
Minor Mineral Concession Rules 1966, as the case may be.
The Bid security shall be as specified by Director in the tender document for
the proposed area.
The security deposit shall be provided as the manner prescribed by Director
which may be invoked as per the provisions of Quarry Lease Deed and existing
APMMC Rules, 1966.
The time period for compliance of these rules shall be as specified in the
tender document.
In case of auction of quarry leases, Local societies shall be given right of
first refusal in the auction of quarry leases falling within their Mandal.
The proceeds pertaining to Auction Premium amounts of successfully auctioned
blocks shall be remitted as per the procedure laid down by Director.
The Government shall be the sole Authority to issue clarifications, exemptions,
guidelines or relaxation orders from time to time, in implementation of these
rules.
The General provisions of Minor Mineral Concession Rules, 1966 or any
subsequent rules/amendments to be issued by Government or the orders,
guidelines, clarifications issued by Government in this regard from time to
time shall apply to any situation, which is not expressly stated herein.