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  • Sections

  • Rule - 1. Short title and commencement.
  • Rule - 2. Definitions.
  • Rule - 3. Evidence of mineral resources.
  • Rule - 4. Grant of quarry lease.
  • Rule - 5. Bidding parameters.
  • Rule - 6. Notice Inviting Tender and Tender Document.
  • Rule - 7. Auction Process.
  • Rule - 8. Grant procedure.
  • Rule - 9. Upfront payment for quarry lease.
  • Rule - 10. Performance security for quarry lease.
  • Rule - 11. Payments under quarry lease.
  • Rule - 12. Period of the quarry lease.
  • Rule - 13. Area of a quarry lease.
  • Rule - 14. Restriction on maximum area.
  • Rule - 15. New Discovery.
  • Rule - 16. Lease Period for more than one mineral in an area.
  • Rule - 17. Liabilities, powers and privileges of the lessee.
  • Rule - 18. Duties and obligations of the lessee.
  • Rule - 19. Liabilities, rights, powers, privileges and obligations of the Government.
  • Rule - 20. Grant of a quarry permit.
  • Rule - 21. Application for quarry permit.
  • Rule - 22. Procedure for grant.
  • Rule - 23. Conditions on which the quarry permit shall be granted.
  • Rule - 24. Departmental Excavation.
  • Rule - 25. Extraction permitted under the Gujarat Land Revenue Rules, 1972.
  • Rule - 26. Chipping of Outcrops.
  • Rule - 27. Digging of wells and foundation for building.
  • Rule - 28. Removal from agricultural lands.
  • Rule - 29. Existing applications and right of holder of letter of intent.
  • Rule - 30. Reservation of areas for granting quarry parwana.
  • Rule - 31. Grant of quarry parwana.
  • Rule - 32. Conditions for grant of quarry parwana.
  • Rule - 33. Dimension of area for Quarry Parwana.
  • Rule - 34. Security Deposit for Quarry Parwana.
  • Rule - 35. Mining Plan.
  • Rule - 36. Preparation of Mining Plan.
  • Rule - 37. Procedure for approval of the Mining Plan.
  • Rule - 38. Modification and review of the mining plan.
  • Rule - 39. Mining plan to be submitted by existing lessee.
  • Rule - 40. Auction after expiry of a quarry lease.
  • Rule - 41. Lapsing of the quarry lease.
  • Rule - 42. Surrender of the quarry lease.
  • Rule - 43. Termination of the quarry lease.
  • Rule - 44. Transfer of quarry lease.
  • Rule - 45. Creation of Encumbrances.
  • Rule - 46. Transfer void.
  • Rule - 47. Register of mineral concessions.
  • Rule - 48. Inspection of register.
  • Rule - 49. Returns and statements.
  • Rule - 50. Application for revision.
  • Rule - 51. Orders on revision application.
  • Rule - 52. Manner of Payment.
  • Rule - 53. Revision of fee and other amounts payable.
  • Rule - 54. Payment of interest.
  • Rule - 55. Charging of Royalty in case of minerals subjected to processing.
  • Rule - 56. Rate of Royalty, dead rent and surface rent.
  • Rule - 57. Upfront payment and performance security for minerals specified in Part A-I of Schedule III.
  • Rule - 58. Sum Due to be Recovered as Arrears of Land Revenue.
  • Rule - 59. Environmental clearance.
  • Rule - 60. Mine Closure plan.
  • Rule - 61. Submission of progressive mine closure plan.
  • Rule - 62. Submission of Final mine closure plan.
  • Rule - 63. Responsibilities of holder of mineral concession.
  • Rule - 64. Financial assurance.
  • Rule - 65. System of working.
  • Rule - 66. Separate stacking of non-saleable mineral.
  • Rule - 67. Employment of Qualified officers.
  • Rule - 68. Duties of qualified officer.
  • Rule - 69. Environmental Safeguards to be implemented regarding mining operations.
  • Rule - 70. Environment Impact Mitigating Measures.
  • Rule - 71. Open cast working.
  • Rule - 72. Notice of temporary discontinuance of work in mines and obligations of the lease holders.
  • Rule - 73. Intimation of reopening of a mine.
  • Rule - 74. Examination of mineral deposits and taking of samples.
  • Rule - 75. Prohibition of deployment in certain cases.
  • Rule - 76. Exercise of powers on behalf of the Government.
  • Rule - 77. Power to rectify apparent mistakes.
  • Rule - 78. Special provisions relating to minerals specified in Part B of the First Schedule to the Act.
  • Rule - 79. Exploration Obligation.
  • Rule - 80. Facilities for training of students.
  • Rule - 81. Boundaries below the surface.
  • Rule - 82. Power of the Government to give Direction.
  • Rule - 83. Prohibition of Transport of Minerals Beyond Border.
  • Rule - 84. Special Provisions for Mining of Ordinary Sand.
  • Rule - 85. Preservation of cores etc.
  • Rule - 86. Provisions of these rules to be applicable to Government.
  • Rule - 87. Refund.
  • Rule - 88. Conflict.
  • Rule - 89. Amalgamation of quarry leases.
  • Rule - 90. Change of name, nationality etc. to be intimated.
  • Rule - 91. Penalty.
  • Rule - 92. Repeal and saving.

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GUJARAT MINOR MINERAL CONCESSION RULES, 2017

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GUJARAT MINOR MINERAL CONCESSION RULES, 2017

PREAMBLE

In exercsise of the powers conferred by Sec. 15 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), and in suppression of all the rules made in this behalf the Government of Gujarat hereby makes the following rules, namely:

CHAPTER-I PRELIMINARY

Rule - 1. Short title and commencement.

(1)     These rules may be called the Gujarat Minor Mineral Concession Rules, 2017.

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

Rule - 2. Definitions.

(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)      "agent" when used in relation to a mine, means a person specified under sub-clause (c) of sub-sec. (1) of Sec. 2 of the Mines Act, 1952 (35 of 1952);

(c)      "auction premium." means the premium as specified in sub-rule (3) of Rule 5;

(d)      "bank guarantee" means a guarantee to be in Form A or Form V by a bank as may be notified by the Government in Finance Department for acceptance of bank guarantees as security deposit and earnest money deposit;

(e)      "beneficiation" means processing of minerals or ores for the purpose of upgrading the quality, purity or assay grade of the desired product by removing unwanted constituents like gangue minerals or tailings;

(f)       "Cluster" means a group of more than one mines formed when the distance between the peripheries of one lease is less than five hundred meters from the periphery of the other lease in a homogeneous mineral area;

(g)      "Committee" means a committee constituted under Rule 50 for the purpose of revision under CHAPTER XIII;

(h)     "cores" means the samples of subsurface rocks or mineralized zone obtained during the drilling of boreholes;

(i)       "Dead rent" means the amount payable by a quarry lease holder, calculated on the basis of the area leased and not on the quantity of minerals extracted or removed;

(j)       "Financial assurance" means a bank guarantee or a non-interest bearing security deposit to be furnished by quarry lease holder;

(k)      "Form" means a Form appended to these rules;

(l)       "Government" means the Government of Gujarat;

(m)    "Illegal mining" shall have the meaning assigned to such term in the rules made by the Government under Sec. 23-C;

(n)     "landowner" means the owner of a part of the lands in respect of which a quarry lease is granted under these rules;

(o)      "manager" when used in relation to a mine, means a person as specified under Sec. 17 of the Mines Act, 1952 (35 of 1952);

(p)      "Mineral concession" means a quarry prawn, a quarry permit or a quarry lease, as applicable;

(q)      "Mining plan" means a mining plan prepared under these rules and duly approved by the Government for the development of mineral deposits in the area concerned and includes a scheme of mining required to be submitted as per the provisions of these rules;

(r)      "Performance security" means a bank guarantee or a non-interest bearing security deposit, to be provided pursuant to Rule 100 and sub-rule (4) of Rule 29;

(s)      "Quarry lease" means a lease granted for mining and quarrying operations in respect of minor mineral's;

(t)       "Quarry prawn' means a prawn granted pursuant to the provisions of CHAPTER VII;

(u)     "Quarry permit" means a permit granted pursuant to the provisions of CHAPTER IV;

(v)      "rules" means the Gujarat Minor Mineral Concession Rules, 2017;

(w)     "Schedule" means a Schedule appended to these rules;

(x)      "Scheduled Area" includes tribal areas, and scheduled area and tribal area shall have the same meaning as assigned to them under Article 244 of the Constitution of India;

(y)      "section" means a section of the Act;

(z)      "Successful bidder" means the bidder referred to in sub-rule (2) of Rule 8;

(aa) "tender document" means the tender document issued by the Government for conduct of an auction for grant of quarry lease under CHAPTER II;

(bb) "value of estimated resources" means an amount equal to the product of-

(i)       the estimated quantity of mineral resources for which the mineral block is being auctioned, expressed in metric tone; and

(ii)      the last available price per metric tone of such mineral, published by Government; and

(2)     The words and expressions used in these rules but not defined herein above shall have the same meaning as assigned to them in the Act or the rules made there under.

CHAPTER-II QUARRY LEASE

Rule - 3. Evidence of mineral resources.

The Government may grant a quarry lease through an electronic auction in the manner specified in this Chapter in areas where evidence of mineral resources has been established in accordance with the parameters prescribed in Schedule I.

Rule - 4. Grant of quarry lease.

(1)     A quarry lease shall be granted by the Government through an electronic auction process as prescribed herein. Any person submitting a bid for grant of a quarry lease shall be required to fulfill the eligibility conditions prescribed in Schedule II. The terms and conditions specified in Schedule II shall be used only for the purposes of determination of eligibility of a bidder and the successful bidder shall be decided solely on the basis of financial bids submitted by the eligible bidders.

(2)     The following shall be the pre-requisites for conduct of an auction for grant of a quarry lease, namely:

(a)      evidence of mineral resources shall have been established in the proposed quarry lease area in accordance with the parameters prescribed in Schedule I;

(b)      the quarry lease area shall be identified and demarcated using differential global positioning system and shall have a topographic and geological map prepared using total station. The extent of the area so demarcated shall include the area required for all activities falling under the definition of a 'mine' as defined in clause (j) of sub-sec. (1) of Sec. 2 of the Mines Act 1952 (35 of 1952), including non-mineralized area;

(c)      the quarry lease area so demarcated shall classified into forest land, land owned by the Government and land not owned by the Government and any Scheduled Area comprised therein shall also be identified;

(d)      an electronic auction portal 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 Standardization Testing and Quality Certification Directorate, Department of Information Technology, Ministry of Communications and Information Technology, Government of India or any other certification/guidelines as specified by the Government shall have been established;

(e)      the price per metric tone of the mineral's shall have been published by the Government at least once in the twelve months immediately preceding the auction;

(f)       the Government shall provide details of the areas over which a quarry lease is proposed to be granted in the following manner, namely:

(i)       in two daily newspapers circulating in such area, of which one shall be in the regional language;

(ii)      in the local language in the Panchayat, Municipality or Municipal Corporation, as the case may be and in the offices of the District Collector, the Sub-divisional Magistrate and the Tehsil, as applicable;

(iii)     on the website of the Government;

(iv)    on the electronic auction portal; and

(g)      if the area over which a quarry lease is proposed to be granted comprises of a Scheduled Area, the prior approval of the gram sabha for such grant shall have been obtained.

(3)     In case of an auction with respect to a Scheduled Area, the Government may, subject to the provisions of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 and the provisions of the Panchayat (Extension to the Scheduled Areas) Act, 1996, as applicable, identify the areas, excluding areas where a mineral concession is subsisting, in which evidence of mineral resources has been established in accordance with the parameters prescribed in Schedule I. The following conditions would apply to quarry leases granted through an auction in accordance with this Chapter in such identified areas:

(a)      A quarry lease in the Scheduled Area identified pursuant to this sub-rule shall:

(i)       be granted only to a bidder who belongs to a scheduled tribe and is an inhabitant of the Scheduled Area; and

(ii)      only be transferable to a person who belongs to a scheduled tribe and is an inhabitant of the Scheduled Area.

(4)     The Government may, if it considers expedient, prescribe differential terms including with respect to payment and eligibility requirements for quarry leases granted pursuant to auctions conducted in Scheduled Areas identified pursuant to sub-rule (3).

(5)     If one attempt to auction a quarry lease pursuant to sub-rule (3) and sub-rule (4) do not result in the grant of a quarry lease, then the Government shall conduct an auction in which persons other than those specified in clause (a) of sub-rule (3) may also participate, subject to the other conditions specified in these rules. For the purposes of this sub-rule:

(a)      the auction subsequent to the first attempt may be for the same area or an enlarged or reduced area, as the Government may deem fit;

(b)      the differential terms specified pursuant to sub-rule (4) shall not be applicable to such auction; and

(c)      the quarry lease granted pursuant to such auction shall be transferable to any person in accordance with the provisions of CHAPTER XI.

(6)     Restriction to Grant Lease in Certain Areas - No quarry leases for building limestone shall be granted in areas containing more than eighty five per cent CaGO3, except in areas of less than four hectares containing isolated pockets of limestone.

Rule - 5. Bidding parameters.

(1)     The Government shall specify in the tender document, the minimum percentage of the value of mineral dispatched, which shall be known as the "base premium".

(2)     The value of mineral dispatched shall be an amount equal to the product of-

(a)      mineral dispatched in a month; and

(b)      last available sale price of the mineral as published by the Government and as applicable at the time of dispatch:

Explanation.-In case a grade-wise sale price of a mineral has been published by the Government, the price applicable for the relevant grade shall apply with respect to clause (b) above. The computation of value of mineral dispatched shall be applicable to all minerals including overburden.

(3)     The bidders shall quote, as the bidding parameter for the purpose of payment to the Government, premium offer's which shall be a percentage of value of mineral dispatched equal to or above the base premium and the successful bidder shall pay to the Government, an amount known as the "auction premium" equal to the product of the-

(i)       percentage so quoted; and

(ii)      value of mineral dispatched.

Rule - 6. Notice Inviting Tender and Tender Document.

(1)     The Government shall issue a notice inviting tender to commence the auction process and such notice shall contain the following, namely:-

(a)      brief particulars regarding the area under auction, identified and demarcated in accordance with clauses (b) and (c) of sub-rule (2) of Rule 4;

(b)      estimated mineral resources and brief particulars regarding evidence of mineral resources with respect to all minerals discovered in the area in accordance with the provisions of Schedule I;

(c)      particulars of reservation of the mineral block for any specified end-use. In cases where the Government reserves one or more minerals within a block for any specified end-use in the tender document, such minerals shall be utilized solely for the specified end-use and shall not be sold or transferred or otherwise disposed of, either directly or indirectly. Utilization, sale, transfer and other disposal of any mineral for which no end-use has been specified or which is subsequently discovered, shall be subject to such terms and conditions as specified in the rules;

(d)      In case of a Scheduled Area, special conditions, if any prescribed pursuant to sub-rule (3) or sub-rule (4) of Rule 4;

(2)     The tender document issued by the Government shall contain:-

(a)      A geological report pursuant to Schedule I, specifying particulars and estimated quantities of all minerals discovered in the area;

(b)      revenue survey details of the area identified and demarcated in accordance with clauses (b) and (c) of sub-rule (2) of Rule 4; and

(c)      list of clearances and permissions already obtained with respect to such area.

Rule - 7. Auction Process.

The auction shall be an ascending forward online electronic auction and shall comprise of the following rounds, namely:-

(1)     First Round of Auction.-The first round of auction shall be held in the following manner:-

(a)      the bidders shall submit -

(i)       a technical bid comprising amongst others, documentary evidence to confirm eligibility to participate in the auction, bid security and such other documents and payments as may be specified in the tender document; and

(ii)      an initial premium offer which shall be a percentage of the value of mineral dispatched and shall not be lower than the base premium. Notwithstanding anything to the contrary contained in this sub-rule (1), the bidders submitting an initial premium offer less than the base premium shall stand disqualified ab-initio from the bidding process and such bidders shall not be considered as technically qualified bidders. The initial premium offer submitted by such bidders shall also not be valid.

(b)      Subject to clause (a) above, the bidders who are found to be eligible in accordance with sub-rule (1) of Rule 4 and the terms and conditions of the tender document shall be referred to as the "technically qualified bidders".

(c)      The technically qualified bidders shall be ranked on the basis of the descending initial premium offer submitted by them and technically qualified bidders holding the first fifty per cent 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 premium 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 qualified bidders shall be determined in accordance with the following:

(i)       the total number of ranks shall be divided in half (rounded off to the higher integer), and the technically qualified bidders holding the top half of the ranks, shall be considered to be qualified bidders; or

(ii)      if sub-clause (i) results in the number of qualified bidders being less than five, then one or more additional rank's in the bottom half shall also be considered, until such additional rank where the number of qualified bidders is not less than five.

(iii)     It is clarified that, if more than one technically qualified bidder holds such additional ranks (on account of their initial premium offer being identical), then all such technically qualified bidders shall be considered to be qualified bidders.

Illustration: Case A: In the event there are a total of ten technically qualified bidders - TQB1-TQB10 and each technically qualified bidder submits a different initial premium offer and they are ranked on the basis of the descending initial premium offer submitted by them in the following manner, TQB1, TQB2, TQB3, TQB4, TQB5, TQB6, TQB7, TQB8, TQB9 and TQB10, then the technically qualified bidders holding the first fifty per cent of ranks i.e. TQB1-TQB5 shall be considered to be qualified bidders.

Case B: However, if the initial premium offer of the following technically qualified bidder is identical:

(I)      TQB1 and TQB2;

(II)     TQB4 and TQB5; and

(III)   TQB7, TQB8 and TQB9, then pursuant to sub-clause (i) of second proviso to clause (c), the technically qualified bidders holding one of half of total of six ranks being ranks 1, 2 and 3 i.e. TQB 1 and TQB2; TQB3; and TQB 4 and TQB5 shall be qualified bidders. As such number of qualified bidders is equal to five, sub-clause (ii) of second proviso to clause (c) shall not apply.

Case C: However, if the initial premium offer of the following technically qualified bidder is identical:

(I)      TQB 5; TQB6 and TQB7;

(II)     TQB8; TQB9, and TQB10, then pursuant to sub-clause (i) of second proviso to clause (c), the total number of ranks shall be six, however the technically qualified bidders holding the top three ranks shall be less than five i.e. TQB1, and TQB2, TQB3.

(III)   In such case if one additional rank is considered then the technically qualified bidder holding rank 4 i.e. TQB4 shall be included, however the total number of qualified bidders shall still be less than five. Accordingly, rank 5 would also be considered and the final list of qualified bidders shall be - TQB1, TQB2, TQB3, TQB4, TQB5, TQB6, TQB7 i.e. a total of seven.

(d)      The auction process shall be annulled in situations where the total number of technically qualified bidders or qualified bidders are less than three:

Provided that the Government may, in its discretion, decide not to annul the auction process if in the third or subsequent attempt, the total number of technically qualified bidders or qualified bidders continues to be less than three. The Government may, in such case, decide to consider the technically qualified bidders as qualified bidders or to consider the existing qualified bidders, so as to continue with the bidding process. 

(2)     Second Round of Auction.-The second round of auction shall be held in the following manner:-

(a)      the highest initial premium offer amongst the qualified bidders shall be the floor premium for the second round of the electronic auction;

(b)      the qualified bidders may submit their final premium offer which shall be a percentage of the value of mineral dispatched and greater than the floor premium:

Provided that the final premium offer may be revised till the conclusion of the auction as specified in the tender document;

(c)      the auction process shall be annulled if none of the qualified bidders submits a final premium offer on the online electronic auction portal;

(d)      the qualified bidder who submits the highest final premium offer shall be declared as the "preferred bidder" immediately on conclusion of the auction.

(3)     The auction process under sub-rules (1) and (2) shall be conducted within the time period stipulated in the tender document.

Rule - 8. Grant procedure.

(1)     The preferred bidder shall submit the first installment being twenty per cent of the upfront payment as per Rule 9 read with Rule 577, within such time frame as may be specified in the tender document.

(2)     Upon receipt of the first installment of the upfront payment, the Government shall issue a "letter of intent" to the preferred bidder and the preferred bidder shall become the "successful bidder".

(3)     The successful bidder shall fulfill the following conditions within such period from the date of issuance of the letter of intent as may be specified in the tender document:

(a)      continuing to be in compliance with all the terms and conditions of eligibility;

(b)      furnishing performance security as specified in Rule 100 read with Rule 577;

(c)      satisfying the conditions specified in CHAPTER VIII with respect to a mining plan (including the mine closure plan);

(d)      furnishing financial assurance as specified in Rule 644;

(e)      obtaining all consents, approvals, permits, no-objections, access rights and the like as may be required under applicable laws for
commencement of mining operations;

(f)       payment of exploration charges, if any; and

(g)      satisfying such other conditions as may be specified by the Government in the tender document:

Provided that a successful bidder may request the Government to extend the time period so prescribed by it in the tender document, by filing an application for extension prior to the expiry of the originally prescribed period. The application for extension shall provide bona-fide reasons for seeking an extension. The Government may, at its sole discretion and for reasons to be recorded in writing, grant an extension to the successful bidder and in case the Government does not grant an extension, the letter of intent shall automatically expire in accordance with the terms thereof.

(4)     Upon fulfillment of the conditions specified in sub-rule (3), the successful bidder shall pay the second installment being eighty per cent of the upfront payment within thirty days and upon such payment the Government shall issue a written order for grant of quarry lease. The Government shall have the right to appropriate the performance security provided by the successful bidder in the event that the successful bidder fails to pay the second installment within the prescribed period of thirty days.

(5)     The date on which a duly executed quarry lease deed in Form B is registered shall be the date of commencement of the quarry lease and the successful bidder shall ensure that it achieves registration of the quarry lease deed within thirty days from the date of its execution. The Government shall have the right to appropriate the performance security provided by the successful bidder in the event that the successful bidder fails to register the quarry lease within the prescribed period of thirty days and the order for grant of quarry lease shall, in such cases, become void.

(6)     The quarry lease shall be for all minor minerals including overburden found in the area pursuant to exploration and prior to the auction and the final premium offer submitted by the successful bidder shall be applicable to all such minerals.

Rule - 9. Upfront payment for quarry lease.

(1)     The following amounts shall be payable by the preferred bidder or successful bidder as upfront payments:

(a)      in case of minerals specified in Part A-II or Part B of Schedule III, an amount equal to one per cent of the value of estimated resources; and

(b)      in case of minerals specified in Part A-I of Schedule III, the amount specified in Rule 577.

(2)     The upfront payment shall be payable to the Government in two installments of twenty per cent and eighty per cent in respect of the minerals for which a quarry lease is granted. The upfront payment shall be adjusted in the following manner:

(a)      in case of minerals specified in Part A-II or Part B of Schedule III, it shall be adjusted against the amount paid under sub-rule (3) of Rule 5, in the manner specified by the Government in the tender document, within the first five years of commencement of production of the mineral; and

(b)      in case of minerals specified in Part A-I of Schedule III, such adjustment shall be carried out in the last year of the quarry lease period.

Rule - 10. Performance security for quarry lease.

(1)     The successful bidder shall provide a performance security equivalent to an amount of one per cent of the value of estimated resources in case of minerals specified in Part A-II or Part B of Schedule III and the performance security shall be adjusted every five years so that it continues to correspond to one per cent of the reassessed value of estimated resources.

(2)     The successful bidder shall provide a performance security of the amount specified in Rule 577 in case of minerals specified in Part A-I of Schedule III.

(3)     The performance security provided may be appropriated as per the provisions of these rules, the tender document and the quarry lease deed.

Rule - 11. Payments under quarry lease.

(1)     The lessee shall pay royalties or dead rent to the Government.

(2)     The lessee shall pay the auction premium to the Government.

(3)     The lessee shall contribute such amounts as may be required under Sec. 15-A to the designated account of the District Mineral Foundation.

(4)     The lessee shall also pay such other amounts as may be required under any law for the time being in force to the concerned authorities.

(5)     The payments shall be made in the manner specified by the Government.

Rule - 12. Period of the quarry lease.

(1)     In case of:

(a)      all minor minerals specified in Part A-II or Part B of Schedule III, the period of quarry lease granted or renewed before the date of commencement of these rules, shall be extended and be deemed to have been extended up to a period ending on March 31, 2025 with effect from the date of expiry of the period of renewal last made or till the completion of period of quarry lease, if any, whichever is later, subject to the condition that all the terms and conditions of the lease have been complied with; and

(b)      minor minerals specified in Part A-I of Schedule III, the period of the quarry leases granted or renewed before the date of commencement of these rules, shall be extended and be deemed to have been extended up to a period ending on March 31, 2020 with effect from the date of expiry of the period of renewal last made or till the completion of period of quarry lease, if any, whichever is later, subject to the condition that all the terms and conditions of the lease have been complied with.

(2)     The Government shall issue a written intimation to all existing quarry lease holders regarding the extension of lease period pursuant to sub-rule (1). The quarry lease holder shall, within thirty days of receipt of such intimation, complete all formalities with respect to such extension including payment of stamp duty for the extended period of quarry lease deed, if applicable.

(3)     On and from the date of commencement of these rules, all quarry leases shall be granted for a period of:

(a)      five years in case of minor minerals specified in Part A-I of Schedule III; and

(b)      thirty years in case of minor minerals specified in Part A-II or Part B of Schedule III.

(4)     Upon expiry of the period of the lease specified in sub-rule (1) or sub-rule (2), the lease shall be put up for auction as per the procedure specified in CHAPTER II :

Provided that any holder of a quarry lease granted, where the mineral is used for captive purpose, shall have the right of first refusal at the time of auction held for such quarry lease after the expiry of the quarry lease period, in the following manner:

(a)      to be eligible to exercise the right of first refusal, the lessee shall comply with the conditions of the quarry lease till its expiry;

(b)      prior to publication of the notice inviting tender, the Government shall provide a written notice to the lessee requiring the lessee to specify its willingness or non-willingness to exercise the right of first refusal in writing, within a period of thirty days of receipt of such notice;

(c)      the notice inviting tender shall specify that the lessee holding the lease prior to expiry of the quarry lease has the right of first refusal and shall also specify his willingness or non-willingness specified pursuant to clause (b), if any;

(d)      upon conclusion of the Second Round of Auction as specified in sub-rule (2) of Rule 7, the Government shall issue a written notice to the lessee seeking written confirmation of his willingness to exercise the right of first refusal within a period of seven days of conclusion of the Second Round of Auction;

(e)      the notice given under clause (d) shall be acknowledged by the lessee;

(f)       the lessee shall, within a period of fifteen days of receipt of the notice issued under clause (d), exercise the right of first refusal in writing to the Government, failing which it shall be construed that the lessee is not desirous of exercising the right of first refusal and the preferred bidder shall be entitled to a quarry lease in the manner provided in Rule 7; and

(g)      if the lessee exercises the right of first refusal in terms of clause (f) and matches the highest final premium offer, the lessee shall be deemed to be the preferred bidder in place of the earlier preferred bidder declared after the Second Round of Auction and shall be entitled to the quarry lease in the manner provided in Rule 8.

Explanation.-For the purposes of the proviso, the term "captive purpose" shall mean the use of more than fifty per cent of the entire quantity of mineral extracted from the quarry lease in a manufacturing unit owned by the lessee.

Rule - 13. Area of a quarry lease.

(1)     The minimum area for which a quarry lease may be granted shall be one hectare:

Provided that the Government may, for reasons to be recorded in writing, grant a quarry lease for an area winch is less than one hectare:

(2)     The area under every quarry lease shall be contiguous; provided that the Government may, for reasons to be recorded in writing, permit grant of a quarry lease over any specified non-contiguous area.

(3)     Where subsequent to an e-auction for grant of a quarry lease, the landowner refuses his consent to the exercise of the rights and privileges of the successful bidder pursuant to these rules, the landowner may submit a written application to the Government for exclusion of the land owned by him from the lease area and the Government may, on being satisfied about the genuineness of the reasons for such request, consider exclusion of such land from the lease area.,

Rule - 14. Restriction on maximum area.

No person shall acquire in respect of a particular mineral, one or more quarry lease in the State covering a total area of more than:

(a)      fifty hectares, in case minerals specified in Part A of Schedule III; and

(b)      five square kilometers, in case minerals specified in Part B of Schedule III:

Provided that the Government may, in the interest of development of any mineral and for reasons to be recorded in writing, increase the maximum lease area for a particular mineral.

Rule - 15. New Discovery.

(1)     Where a quarry lease has been granted for a minor mineral under the rules made under Sec. 15 and subsequent to registration of the quarry lease, a new minor mineral's is discovered, then the quarry lease holder may request the Government in writing to include the new mineral's in the quarry lease. In such case, the Government may grant a quarry lease subject to compliance by the quarry lease holder of the provisions of applicable laws with respect to mining for the new mineral, including submission of a mining plan and payment of the auction premium to the Government:

Provided that where the quarry lease for a minor mineral was granted prior to commencement of these rules, the Government shall have power to specify the rate of payment for the new minerals.

(2)     Where a mining lease has been granted under the rules made under Sec. 13 for a mineral which is not a minor mineral, and subsequent to registration of the mining lease, a new mineral is discovered which is a minor mineral, then at the request of the holder of the mining lease, the Government may grant a quarry lease for the new minerals on such terms and conditions including payment requirements, as may be specified by the Government.

(3)     Where prior to the commencement of an auction for grant of a composite license or a mining lease under the rules made under Section 13, presence of a minor mineral is established, the Government may grant a quarry lease for the minor minerals on such terms and conditions as may be specified by the Government in the tender document for such auction.

(4)     Where a quarry lease has been granted for a minor mineral under the rules made under Section 15, and subsequent to registration of the quarry lease a new mineral is discovered which is not a minor mineral, then the quarry lease holder shall stack such minerals in accordance with the written instructions issued by the Government.

(5)     The Government shall, at the time of making an order granting a quarry lease under this Rule 15, also specify the manner in which the minerals are to be utilized and disposed.

(6)     Any discovery of a new mineral shall be reported in writing to the Government within thirty days of discovery of such mineral.

Rule - 16. Lease Period for more than one mineral in an area.

Where more than one mineral is discovered in an area in respect of which a quarry lease has been granted under these rules or prior to commencement of these rules and a quarry lease is granted for such discovered minerals, the period of lease for the discovered minerals shall expire: (a) on the date of expiry of the lease which was originally granted; or (b) on the completion of extraction of the entire quantity of the minor mineral from the area, whichever is earlier:

Provided that where a minor mineral is discovered in an area where a mining lease has been granted under the Act and the rules made there under, for a mineral which is not a minor mineral, the lease for the minor mineral shall expire on the date of expiry of the mining lease granted under the Act and the rules made there under or on the completion of extraction of the entire quantity of the minor mineral from the area, whichever is earlier.

CHAPTER-III TERMS AND CONDITIONS OF THE QUARRY LEASE

Rule - 17. Liabilities, powers and privileges of the lessee.

Subject to the conditions mentioned hereunder, the lessee shall, with respect to the lease area, have the right for the purpose of conducting mining operations on that land, to:

(a)      search for, mine, quarry, bore, dig, drill for, win, work, dress, process, convert, carry away and dispose of the minerals in respect of which the quarry lease has been granted;

(b)      sink, drive, make, maintain and use in the lease area, any pits, shafts, inclines, drifts, levels, waterways and other works;

(c)      erect, construct, maintain and use on or under the lease area any engines, machinery, plant, dressing-flowers, furnaces, brick-kilns, workshops, store houses, bungalows, go downs, sheds and other building and other works and convenience of the like nature on or under the lease area;

(d)      make any tramways, railways, roads and other ways in or over the said lands and to maintain and go and trespass with or without horses, cattle, wagons, locomotives or other vehicles over the same (or any existing tramways, railways, roads, and other ways in or over the said lands) on such conditions as may be agreed to;

(e)      quarry and obtain building and road materials and ordinary clay and to use and employ the same and to manufacture such ordinary clay into bricks or tiles and to use such bricks or tiles. The lessee shall not sell any such materials, bricks or tiles except on payment of the royalties prescribed herein;

(f)       appropriate and use, with prior written permission of the officer authorized by the Government, water from any streams, watercourses, spring or other sources in or upon the lease area and to divert, step up or darn any such stream, watercourse and collect or impound any such water and to make, construct and maintain any water course, culverts, drains or reservoirs but not so as to deprive any cultivated lands, villages, buildings or watering places for livestock of a reasonable supply of water as before accustomed nor in any way to foul or pollute any streams or springs:

Provided that the lessee shall not interfere with the navigation in any navigable stream nor divert such stream without the previous written permission of the Government;

(g)      use land for purpose of stacking, heaping, storing or depositing thereon any produce of the mines, quarries on works carried on and any tools, equipment, earth and materials and substances dug or raised;

(h)     beneficiate, process, dress, convert the minerals produced from the said lands and carry away such beneficiated/processed, dressed, converted minerals; and

(i)       do any other things as may be specified in the quarry lease deed.

Rule - 18. Duties and obligations of the lessee.

The lessee shall, subject to the provisions of Rule 19, have the following duties and obligations:

(1)     Notice for opening of mine

(a)      The lessee shall send to the lease granting authority, an intimation in Form C of the opening of a mine so as to reach them within fifteen days of such opening.

(b)      The intimation in Form C sent under clause (a) shall be accompanied with a copy of the approved mining plan, - when the mine is being opened after expiry of a five year period from the date of approval of the mining plan.

(2)     No building etc., upon certain places.-The lessee shall not erect, place or set up any building or thing and shall not carry out any surface operations on, in or upon any public ground, burning or burial ground, house, village site, public road or place held sacred by any class of persons or any or other place which the Government may determine as a public ground.

The lessee shall not carry on his operations in a manner that would injure or prejudicially affect any buildings, works, property or rights of other persons and no land will be used by the lessee for surface operations which is already occupied by persons other than the Government, for works or purposes not included in the quarry lease deed.

(3)     No interference.-The lessee shall not interfere with any right of way, well or tank.

(4)     Permission for surface operations in a land not already in use.-The lessee shall, prior to using any land for surface operations which has not already been used for such operations, give written notice of two calendar months to the Government specifying the name or other description of the situation and the extent of the land proposed to be so used and the purpose for which the same is required. The said land shall not be used by the lessee if any objection is issued by the Government within two months of receipt of the lessee's notice in this regard, unless the objections so stated shall on reference to the Government be annulled or waived.

(5)     Not to enter upon reserved forest.-The lessee shall not, without the express sanction of the Divisional Forest Officer, cut down or injure any timber or trees on the lease area but may, without such sanction, clear away any bush wood or under-growth which interferes with any of its operations. Notwithstanding the aforesaid, the lessee shall enter upon any reserved forest included in the lease area only after giving seven days previous written notice to the Divisional Forest Officer and after obtaining the written sanction of that officer and the lessee shall comply with such conditions as that officer may, in his absolute discretion, prescribe.

The lessee shall pay such compensation as may be assessed by the Chief Conservator of Forests for any damage caused to the land in any area of the reserved forest on account of the mining operations carried out in such area.

(6)     No mining operations in certain areas-Except with the written permission of the concern authority the lessee shall not carry on, or allow to be carried on, any mining operations at any point within a distance of:

(a)      fifty meters from any road (excluding a village road or other district road), notified reservoirs, canal, national highway, state highway, boundary of any railway line, public works, cities, towns, villages and other approved continuous habitations, if no blasting is involved; or V i

(b)      two hundred meters from any road, notified reservoirs, canal, national highway, state highway, boundary of any railway line, public works, cities, towns, villages and other approved continuous habitations, if blasting is involved, The aforesaid distance shall be measured (a) in the case of a railway line, horizontally from the outer edge of the cutting, (b) in the case of a canal or reservoir, horizontally from the outer toe of the bank or the outer edge of the cutting, as the case may be, and (c) in case of a building or any other structure for human habitation, horizontally from the plinth thereof. The lessee shall not carry on, or allow to be carried on, any mining operations 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. The written permission of the relevant authority may be conditional upon and subject to terms and conditions, in which case the, lessee shall comply with all such terms and conditions.

Provided that in case any specific guidelines, directions, circulars, etc., are issued with respect to any mineral, mineral category, area, operation or otherwise for the purpose of sustainable mining or environment or pollution related matters, and the same envisage stricter norms, guidelines, directions, etc., the same will also be applicable with respect to mining operations undertaken within the aforesaid limits.

(7)     To strengthen and support the quarry to necessary extent.-The lessee shall strengthen and support to the satisfaction of the railway administration concerned or the Government, as the case may be, any part of the mine which in his opinion, requires such strengthening or support for the safety of any railway, reservoir, canal, road and any other public works or structures, as the case may be.

(8)     Facilities for adjoining Government licenses, and leases.-The lessee shall allow reasonable facilities of access to any existing and future holders of Government licenses or leases over any land which is comprised in or adjoins or is reached by the land held by the lessee:

Provided that no substantial hindrance or interference shall be caused by such holders of licenses or leases to the operations of the lessee and fair compensation as may be mutually agreed upon or in the event of disagreement, as may be decided by the Government shall be paid by them to the lessee for any loss or damage sustained by the lessee by reason of the exercise of this liberty.

(9)     To pay rents, royalties, taxes, etc.-The lessee shall make payments as stipulated in Rule 111 and CHAPTER XIV of the rules. In the event, taxes are payable, the lessee shall gross-up the amount payable and make payment of the aggregate amount.

(10)   To maintain and keep boundary marks.-The lessee shall at his own expense, erect, maintain and keep in good repair all boundary marks and pillars and sign boards according to the Act and the rules with respect to the manner of construction and upkeep of boundary pillars including the following:

(a)      the lessee shall get the measurement of the lease area by District Inspector of Land Records;

(b)      the lessee shall submit the copy of measurement sheet and shall establish the exact limitation marks as per the measurement sheet on the lease area and take care of the limitation marks/stones;

(c)      the lessee should maintain a (sign) board with the schematic map, showing the measurements of the lease area. The expenses of this board preparation, arrangement and its maintenance in good condition shall be the responsibility of the lessee;

(d)      the lessee shall maintain the (sign) board at a proper place, in proper manner, easily visible to the visitors, during the whole lease period and should, for facilitating easy visibility of the notice board, remove the hindrances around it, like bushes, tree branches, shelters etc.;

(e)      the lessee must prepare, establish and maintain in good condition, the (sign) board and its facing, to indicate the landmarks of the lease area. The lessee shall arrange the landmark concrete pillars of 3' * 3' * 3' measurement for indicating the exact limitations of the lease area;

(f)       the lessee shall see that these concrete pillars are maintained in good condition during the entire quarry lease period. These concrete pillars should be painted with yellow colour for good visibility. The number of the pillar and the marks of latitude and longitude measurements of the pillar should be written in black colour;

(g)      except in the case of ordinary sand mineral, in case of all other minerals, the boundary of the lease area should be fenced properly; and

(h)     the District Geologist/the District Assistant Geologist should provide the coordinates of the lease area and these coordinates should be clearly mentioned on the map of the quarry lease and the map of the quarry lease shall be kept by the lessee within the lease area at all times.

(11)   To commence operations within specified time, not to work in certain areas and to work in a workman like manner-

(a)      The lessee shall commence mining operations within the time period specified herein and in the mining plan. All mining operation shall be conducted by the lessee in a proper, skillful and workman-like manner and the lessee shall reduce waste and do careful storage of waste and removal of all valuable minerals within the quarry:

Explanation.-For the purpose of this clause (a) of sub-rule (11) of Rule 188, 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.

(b)      The lessee shall not, in the case of village roads (including any track shown in the revenue record as village road) and other district roads, allow any working to be carried on within a distance of ten meters of the outer edge of the cutting except with the previous permission of the Government in this behalf and otherwise than in accordance with such directions, restrictions and additions, either general or special, which may be attached to such permission.

(12)   To secure and keep in good condition pits, shafts.-The lessee shall during subsistence of the quarry lease, secure and keep open with timber or other durable means, all pits, shafts and workings that may be made or used in the lease area and make and maintain sufficient fences to the satisfaction of the Government around every such pit, shaft or working whether the same is abandoned or not. The lessee shall, during the same period, keep all workings in the lease area accessible, free from water and foul air as far as possible, except such area as may be abandoned.

(13)   Proper Maintenance of Trenches, Working Faces etc.-During the tenure of the quarry lease, the lessee shall take adequate steps to ensure that:

(a)      the height and width of trenches in open quarries are properly maintained to facilitate easy removal of the mineral and waste;

(b)      the working faces are always kept clean;

(c)      the minerals won are stacked in suitable dimensions and each stack is numbered: and

(d)      proper sanitation of the lease area is maintained.

(14)   To submit progress reports.-The lessee shall, in addition to the periodical returns prescribed herein, submit such progress reports as may be required by the Government along with representative samples and analysis of the mineral collected during the quarry operations, within such timelines as may be specified by the Government.

(15)   To Allow Inspection by Government-

(a)      The lessee shall allow the Government or the officer authorized by the Government to enter upon buildings, excavation or land comprised in the quarry lease for the purpose of inspecting the same or inspecting any of the accounts, which he shall make available to the Government. The Government may issue such reasonable directions in writing as it may deem fit, to prevent wasteful extraction and ensure safety and conservation of the minor minerals and it shall be the duty of the lessee to carry out such directions within such period as the Government may specify.

(b)      The lessee shall also supply on demand of the Government, a composite plan of the lease area showing thickness, dip, inclination, etc., of all the seams as also the quantity of reserves quality-wise for minor minerals specified in Part A-II or Part B of Schedule III.

(16)   To report accidents.-The lessee shall send to the Government, without delay, a report of any accident causing death or serious bodily injury or serious injury to property or seriously affecting or endangering life or property which may occur in the course of its mining operations.

(17)   To keep record and accounts regarding production and employees etc.-The lessee shall keep accurate and faithful accounts showing the particulars of:

(a)      production and dispatch register, date-wise,

(b)      prices obtained for the minerals,

(c)      names of purchasers,

(d)      receipts for money received,

(e)      quantity of waste material excavated from the mine,

(f)       the number of persons employed and their nationality,

(g)      labor attendance register,

(h)     the wages paid,

(i)       complete plans of the quarry,

(j)       the unutilized or non-saleable sub grade ores or minerals for future beneficiation,

(k)      contributions made to the District Mineral Foundation,

(l)       payments made to the Government in terms of royalty, dead rent, auction premium, surface rent,

(m)    explosives consumption register,

(n)     details of expenditure incurred towards the mine closure activities,

(o)      bore hole logs along with the chemical analysis reports,

(p)      mineral analysis reports,

(q)      details of mining machinery, and

(r)      copies of all notices and returns, plans, sections and schemes submitted to the Government under these rules.

(s)      The lessee shall allow the officer authorized by the Government, at all reasonable times, free access to enter into and to examine, take extracts or make true copies of, any accounts, plans and records maintained by him and shall furnish to the Government such information and returns as it may require.

(18)   Machinery and plant

(a)      Where heavy earth moving machinery is used in mines, the lessee shall maintain log books duly authenticated by the manager or mining engineer of such mines in respect of each machine showing date-wise account of hours worked, hours not worked, reasons for non-working, consumption of fuel/energy and lubricants and output of the machine during the corresponding working hours.

(b)      The summary of operation of each machine shall be recorded in the log book at the end of each month bringing out the percentage availability and percentage utilization of the machine, average hourly performance and average fuel/energy consumption per hour.

(c)      The log books may be maintained in electronic form or in hard copy and shall be made available to the officer authorized by the Government on demand.

(19)   To maintain plans, etc.-The lessee shall at all times during the quarry lease term maintain at the mine/quarry office correct intelligible up-to-date copy of the approved mining plan and complete plans and sections of the mines/quarries in the lease area. All plans, sections and tracings or copies thereof kept at the quarry shall be serially numbered or suitably indexed. Every plan, section or part thereof prepared pursuant to these rules shall carry thereon a certificate for its correctness and shall be signed by the mining engineer/geologist with date.

Every copy of a plan and section or part thereof submitted or maintained pursuant to these rules shall bear a reference to the original plan or section from which it was copied and shall be certified thereon by the lessee, his agent, mining engineer, manager or geologist. The plans shall show all the operations and working and all the trenches, pits and drillings made by the lessee in the course of operations carried on by him under the quarry lease including all faults and other disturbances encountered.

(20)   To keep records of trenches, pits etc.- The lessee shall keep accurate records of all trenches, pits and drillings made by the lessee in the course of milling operations carried on by the lessee under the quarry lease and shall allow the Government to inspect the same. Such records shall contain the following particulars, namely:

(a)      the subsoil and strata through which such trenches, pits or drillings pass;

(b)      any mineral encountered; and

(c)      such other particulars as the Government may from time to time require.

(21)   To abide by the provisions, of the law in force-

(a)      The lessee shall at all times comply with the provisions of the Act, the rules and the quarry lease deed and shall abide by the provisions of any other applicable law for the time being in force and applicable to him including laws relating to mines and minerals and other matters affecting the safety, health and convenience of the lessee's employees or of the public. The lessee shall not carry on mining or other operations under the quarry lease in any way other than as prescribed under the quarry lease deed and these rules; and

(b)      The lessee has and shall continue to comply with all the terms and conditions of the Act, the rules, the Gujarat Mineral (Prevention of Illegal Mining and Transportation and Storage) Rules, 2017, the mining plan and the tender document, as are required to be complied with by the lessee, with respect to lease area and the lessee shall continue to comply with all the eligibility conditions provided in the Act, the rules and the tender document during the quarry lease term.

(22)   To provide weighing machines.-The lessee shall cause the minerals specified in Part A-I of Schedule III to be weighed at the nearest weigh bridge. In the case of minerals specified in Part A-II or Part B of Schedule III, the lessee shall, unless specifically exempted by the Government in writing, provide and at all times keep at or near the pit head or each of the pit heads at which the minerals shall be brought to bank, a properly constructed and efficient weighing machine and shall from time to time, weigh or cause to be weighed thereon all the said minerals brought to bank, sold, exported and converted and also the converted products. The lessee shall at the close of each day cause the total weights, ascertained by such means of the said minerals, products raised, sold, exported and converted during the previous twenty four hours, to be entered in the books of accounts maintained by the lessee. The lessee shall at all times during the term of the quarry lease, permit the Government to employ any person or persons to be present at the weighing of the said minerals as aforesaid and to keep accounts thereof and to check the accounts kept by the lessee.

(23)   To allow testing of weighing machines.-The lessee shall at any time or times during the term of the quarry lease, allow any person or persons appointed in that behalf by the Government to examine and test every weighing machine to be provided and kept as specified in sub-rule (22) above and the weights used therewith in order to ascertain whether the same respectively are correct and in good; repair and order. If upon any such examination or testing, any such weighing machine or weights shall be found incorrect or out of repair or order, the Government may require that the same be adjusted, repaired and put in order by and at the expense of the lessee. If such requisition is not complied with within fourteen days after the same has been made, the Government may cause such weighing machine or weights to be adjusted, repaired and put in order at the expense of the lessee. If upon any such examination or testing as aforesaid, any error is discovered in any weighing machine or weights to the prejudice of the Government, such error shall be regarded as having existed for three calendar months prior to the discovery thereof or from the last occasion of so examining and testing the same weighing machine and weights, in case such occasion is within the said period of three months, and the lessee make all the payments accounted for accordingly.

(24)   Not to light fire.-The lessee shall not light any fire upon the lease area if lying within the reserved forest areas except under such conditions as the Divisional Forest Officer may in writing specify and the lessee and his agents, workmen, employees etc., shall render prompt assistance in extinguishing any fire on the lease area or in their vicinity. The lessee shall be liable for all damage resulting from the fire caused by the act of or omission of lessee or his agents, workmen, employees etc., and shall pay such compensation for the said damage as may be assessed by the Divisional Forest Officer. The decision of the Divisional Forest Officer as to the amount of compensation payable by the lessee shall be final and binding.

(25)   Precautions for Protection of Environment and Control of Pollution.-The lessee shall take necessary precautions for the protection of the environment and control of pollution while conducting quarry operations in the lease area e.g. planting of trees, reclamation of mined land, use of pollution-control devices and such other measures as may be prescribed by the Central Government or Government from time to time.

(26)   Restoration of top soil.-If the lease area or part thereof are forest lands, the lessee shall take all steps to ease the slopes and restore top soil in lands worked out, exploited or mined and it shall be open to the Government to afforest such lands even during the continuance of the quarry lease.

(27)   Not to Use Minor Minerals for Major Mineral Purpose or any other purpose.-Without the prior permission of the Commissioner, the lessee shall not sell or dispose any of the minerals specified in Part A of Schedule III that are extracted under the quarry lease for a purpose which will classify them as major minerals.

Where the Government reserves one or more minerals within a block for any particular end-use as specified in the tender document, the lessee shall use the minerals solely for the specified end-use and shall not sell or transfer or otherwise dispose the minerals either directly or indirectly.

(28)   To employ Indian nationals.-The lessee shall not employ in connection with the mining operations, any person who is not an Indian national except with the previous written approval of the Government.

(29)   Employment preference.-The lessee shall, in the matter of employment, give preference to the tribal and to the persons who become displaced because of the taking up of mining operations.

(30)   To vacate encroached area.-If the lessee is found to have encroached upon an area not included in the lease area, the Government shall issue a notice to vacate the area. The lessee shall vacate the area and stop excavation in the area immediately. The lessee shall also be liable to pay the fine specified by the Government which may extend up to one hundred per cent of royalty plus premium or an amount equal to the mineral value for the mineral excavated from such area, whichever is higher.

(31)   To reimburse expenses.-If the lessee fails to carry out or perform any of its obligations under these rules or the quarry lease deed within the time specified in that behalf, the Government may cause the same to be carried out or performed and the lessee shall pay the Government, on demand, all expenses incurred in this regard by the Government and the decision of the Government as to such expenses shall be final.

(32)   Removal of workings that are not to be delivered to the Government.-The lessee may erect on the lease area any structures, machinery, tramways etc., required for bona fide quarry purposes. The lessee may, after paying the rents, rates, royalties, auction premiums and any other payment payable under these rules or the quarry lease deed, on the surrender, expiry or termination of the quarry lease term or within six calendar months thereafter, whichever is earlier (unless the quarry lease is surrendered or terminated on account of default of the lessee, in which case the lessee shall not be entitled to take down and remove anything from the lease area) take down and remove for its own benefit, all or any mineral excavated during the currency of the quarry lease, engines, machinery, plant, buildings structures, tramways, railways and other works, erections and conveniences which may have been erected, set up or placed by the lessee in or upon the lease area and which the lessee is not bound to deliver to the Government or which the Government does not desire to purchase.

(33)   Limited mining rights.-The lessee shall not be entitled to conduct the mining operations in any other area outside the lease area. The rights granted to the lessee to conduct mining operations are exclusive within the lease area.

(34)   Authorizations.-The lessee shall obtain and maintain all governmental approvals required for conducting the mining operations within the lease area and performing its obligations under the quarry lease. The Government shall undertake, on a no-obligation basis, to expeditiously provide all necessary approvals and assistance for conducting mining operations and as otherwise may be reasonably required by the lessee in relation to the rights granted to it under the quarry lease.

(35)   Geological and archaeological finds.-Other than rights to mine for the mineral's, geological or archaeological rights shall not form part of the rights granted to the lessee hereunder or under the quarry lease deed and except in relation to the mineral's, the lessee shall not have any mining rights or interest in the underlying minerals, metals, gas, oil, fossils, antiquities, structures or other remnants or things either of particular geological or archaeological interest and such rights, interest and property on or under the lease area shall vest in and belong to the Government under applicable law. The lessee shall take all reasonable precautions to prevent its workmen or any other person from removing or damaging such interest or property and shall inform the Government forthwith of the discovery thereof and comply with such instructions as the Government may reasonably give for the removal of such property.

(36)   No Claim against Government.-The Government shall be immune from the lessee's claims for damage on account of any land having been included in his lease which may subsequently be discovered not to have been available for the quarry lease.

(37)   Erection of buildings.-The lessee or his transferees or assignees shall not erect any building in contravention of the provisions of any law for the time being in force relating to the erection of building or in contravention of any orders issued by any officer under any such law within whose jurisdiction the lease area is situated.

(38)   Additional Conditions.-A quarry lease deed may contain such other conditions as the Government may deem necessary in regard to the following, namely:

(a)      the time-limit, mode and place of payment of rents, royalties and any other payments payable under the rules;

(b)      compensation for damage to land in respect of which the lease has been granted;

(c)      restrictions regarding felling of trees on unoccupied and unreserved Government land;

(d)      the restriction of surface operations in any area prohibited by any authority;

(e)      the notice by the lessee for surface occupation;

(f)       the provision of proper weighing machines and maintenance of weighing records;

(g)      facilities to be given by the lessee for working other minerals in the leased area or adjacent area;

(h)     the entering and working in a reserved or protected forest;

(i)       the securing of pits and shafts;

(j)       the reporting of accidents;

(k)      indemnity to Government against the claim of a third party for any damage, injury or disturbance caused to him by the lessee;

(l)       the delivery of possession of lands and mines on the surrender, expiration or termination of the lease;

(m)    the time limit for removal of any mineral, plant, machinery and other properties from the lease hold area after expiration, termination, surrender or abandonment of the quarry lease;

(n)     the forfeiture of property left after termination of the lease;

(o)      the power to take possession of the plant, machinery, premises and mines in the event of war or emergency; .

(p)      filing of civil suits or petitions relating to disputes arising out of the area under lease:

Provided that in case of a quarry lease granted through auction, the Government shall specify conditions relating to filing of such civil suits or petitions in the tender document for auction of the quarry lease;

(q)      the lessee shall abide by the provisions of any law for the time being in force and applicable to him relating to mines and minerals and other matters affecting the safety, health and convenience of the lessee's employees or of the public; and

(r)      such other special conditions which the Government may specify.

Rule - 19. Liabilities, rights, powers, privileges and obligations of the Government.

(1)     Survey and demarcation.- When a quarry lease is granted by the Government, arrangements shall be made by the Government at the expense of the lessee for the survey, identification and demarcation of the area granted under the quarry lease using differential global positioning system and preparation of topographic and geological map using total station and possession of the area shall be deemed to have been handed over to the lessee on the date that the quarry lease deed is executed.

(2)     Right of Pre-emption.- The Government shall at all times have the right of preemption of the minerals won from the lease area. If the Government is desirous of exercising its right of pre-emption with respect to any mineral's the Government shall pay the fair market price of such minerals prevailing at the time of pre-emption, as determined by the Government. In order to assist in arriving at the said fair market price, the lessee shall, if so required, furnish to the Government for its information, particulars of the quantities, descriptions and prices of the mineral or products thereof sold to third parties and shall produce, to the officer or officers as may be authorized by the Government, original or authenticated copies of contracts and charter parties entered into for such sale.

(3)     Right of entry and inspection.- The Government or any person authorized in that behalf by the Government shall have the right to:

(a)      enter into and upon the lease area and to construct upon, over or through the same, any railways, tramways, roadways or pipelines for any purpose authorized by the Government and to get from the lease area stones, gravel, earth and other materials for making, maintaining and repairing such railways, tramways, roads or any existing railways and roads:

Provided that before such liberty or power is exercised, a notice of not less than sixty days shall be given to the lessee and the area utilized by Government for any of the aforesaid purpose shall be excluded from the lease area and the lessee will not be entitled to claim any compensation for such exclusion; and

(b)      to pass over or along any such railways, tramways, road lines and other ways, at all times, with or without horses, cattle or other animals, carts, wagons, carriages, locomotives or other vehicles for all purposes:

Provided that in the exercise of such liberty and power by such other person authorized by the Government, no substantial hindrance or interference shall be caused to or with the liberties, powers and privileges of the lessee and fair compensation as may be mutually agreed upon or in the event of disagreement, as may be decided by the Government, shall be made to the lessee for all loss or damage substantial hindrance or interference caused to the lessee by such other person authorized by the Government.

(4)     War or emergency situations.- In the event of the existence of a state of war or emergency (of which existence the President of India shall be the sole judge and a notification to this effect in the Gazette of India shall be conclusive proof), the Government with the consent of the Central Government shall, from time to time and at all times during the quarry lease term, have the right (to be exercised by a notice in writing to the lessee) forthwith to take possession and control of the works, plant, machinery and premises of the lessee on or in connection with the lease area or the operations under the quarry lease and during such possession or control, the lessee shall conform to and obey all directions given by or on behalf of the Central Government or Government regarding the use or employment of such works, plants, premises and minerals, provided that fair compensation shall be paid to the lessee for all loss or damage sustained by him by reason or in consequence of the exercise of the powers conferred hereby. The exercise of such power shall not result in termination or extension of the quarry lease term or affect the terms and provisions of the quarry lease other than to the extent specified herein.

(5)     Right to sell workings.- If at the end of six calendar months after the expiry or termination of the quarry lease on account of default of the lessee, there shall remain in or upon the lease area any mineral, engines, machinery, plant, buildings structures, tramways, railways and other work, erections and conveniences or other property, the same shall be deemed to become the property of the Government and may be sold or disposed of in such manner as the Government shall deem fit without liability to pay any compensation or to account to the lessee in respect thereof.

(6)     Acquisition of land of third parties and compensation thereof.- If after the receipt of an offer of compensation for any damage which is likely to arise from the proposed operation of the lessee, the occupier of the surface or any part of the said lands refuses his consent to the exercise of the rights and powers reserved to the Government and granted by the quarry lease, the lessee shall report the matter to the Government and shall deposit with it the amount offered as compensation and if the Government is satisfied that the amount of compensation is reasonable or if it is not so satisfied and the lessee shall have deposited with it such further amount as the Government may consider reasonable, the Government shall order the occupier to allow the lessee to enter upon the said land and carry out such operations as may be necessary for the purpose of the quarry lease. In assessing the amount of such compensation the Government shall be guided by the principles of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

(7)     Changes to demarcation of the lease area.- Where subsequent to grant of a quarry lease, the landowner refuses his consent to the exercise of the rights and privileges of the lessee pursuant to the rules, the landowner may submit a written application to the Government for exclusion of the land owned by him from the lease area. The Government may, on being satisfied about the genuineness of the reasons for such request, consider exclusion of such land from the lease area.

CHAPTER-IV QUARRY PERMIT

Rule - 20. Grant of a quarry permit.

The Government may, upon receipt of an application in writing, grant a quarry permit in accordance with the provisions of this Chapter for using a minor mineral specified in Part A of Schedule III, to an individual who is an Indian national or company as defined in clause (20) of Sec. 2 of the Companies Act, 2013, for work relating to:

(i)       the Government,

(ii)      a Government undertaking; or

(iii)     state or national importance: or

(iv)    excavation of earth for basement:

Provided that the Government may, upon receipt of an application in writing, also grant a quarry permit for ordinary sand to:

(a)      an individual who is an Indian national, for using up to one hundred metric tones for construction of a house for dwelling purposes;

(b)      labor co-operative societies registered under the Gujarat Co-operative Societies Act, 1961 as on the date of commencement of these rules and traditionally undertaking manual mining, in accordance with the provisions of this Chapter.

Rule - 21. Application for quarry permit.

(1)     An application for grant of a quarry permit may be made to the Government in Form D with a non-refundable fee at the rate of rupees one thousand for every one hundred metric tones or part thereof of the minor minerals proposed to be extracted under the quarry permit.

(2)     In case the land for which the quarry permit is applied for is occupied by someone, a letter of no objection to the extraction of the mineral obtained from the occupier of such land, shall be attached with the application:

Provided that in case of private lands under cultivation, an order from the revenue officer authorized to permit the non-agricultural use of the land shall be enclosed.

(3)     Every application shall be accompanied by certified true copies of the relevant extract of the record of rights in respect of the land from which the minor mineral is proposed to be extracted and removed along with a map of the area from which the mineral is to be excavated.

Rule - 22. Procedure for grant.

(1)     On an application made to the Government in writing and on payment of the following sums of money by the applicant, the Government may grant a quarry permit, in Form E, to any person:

(a)      payment of one hundred per cent of the royalty to the Government as specified in the rules;

(b)      payment of a permit premium equivalent to fifty per cent of the royalty to the Government as specified in the rules;

(c)      in addition to the payments made under clauses (a) and (b), payment of a sum equivalent to twenty per cent of the aggregate of royalty and permit premium as a security deposit, which shall be refunded without any interest payments, after any adjustments as may be deemed appropriate by the Government, after ninety days from the date of expiry of the quarry permit;

(d)      contribution of such amounts as may be required under Sec. 15-A to designated account of the District Mineral Foundation; and

(e)      payment of such other amounts as may be required under any law for the time being in force to the concerned authorities.

(2)     In the event that the royalty rates are increased by the Government during the tenure of the quarry permit, the permit holder shall pay to the Government, within fifteen days of the date of such notification, the additional royalty, permit premium, security deposit and district mineral foundation contribution amounts.

(3)     The Government may refuse to grant a quarry permit for reasons to be recorded and communicated to the applicant in writing. The amount of royalty, permit premium, security deposit and contributions to the District Mineral Foundation shall be refunded on refusal to grant a quarry permit.

(4)     No quarry permit for building limestone shall be granted in areas containing more than eighty five per cent CaCO3, except in the areas of less than four hectares containing isolated pockets of limestone.

(5)     A quarry permit shall be granted in a Scheduled Area, only upon receiving a recommendation from the Gram Sabha within whose area the quarry permit is applied for.

Rule - 23. Conditions on which the quarry permit shall be granted.

(1)     Every quarry permit granted under Rule 200 shall be subject to the following conditions:

(a)      quarry permits for extraction of minor minerals not exceeding twenty thousand metric tones for a period of up to ninety days shall be granted by the District Collector:

Provided that the Commissioner of Geology and Mining may, for reasons recorded in writing, grant a quarry permit for any longer period as it may deem fit for quantities exceeding two thousand metric tones but up to one lakh metric tones:

Provided further that the Government may, for reasons recorded in writing, grant a quarry permit for any longer period as it may deem fit for quantities exceeding one lakh metric tones;

(b)      the depth of the pit below the surface shall not exceed six meters:

Provided that in case of a quarry permit concerning ordinary sand, the same shall be governed as per Rule 844;

(c)      the mineral shall be used for the specific purpose for which quarry permit is granted;

(d)      the holder of a quarry permit shall commence quarrying operations in accordance with the approved mining plan and after obtaining all applicable environmental clearances for the area; and

(e)      the holder of a quarry permit shall comply with all laws, rules, regulations, notifications, orders and the like, as may be applicable to the activities undertaken pursuant to a quarry permit.

(2)     The Government may incorporate relevant additional conditions in the quarry permit, as it may deem fit, regarding:

(a)      the time-limit, mode and place of payment of rents and royalties;

(b)      the compensation for damage to land for which the quarry permit is granted;

(c)      the felling of trees;

(d)      entering and working in any reserved or protected forest;

(e)      reporting of all accidents;

(f)       indemnity to Government against claims of third parties;

(g)      the period within which the minor mineral shall be extracted and removed;

(h)     forfeiture of property left on the land for which the quarry permit is granted after cancellation of the permit; and

(i)       plugging of bore holes and filling up or fencing all excavations in the land for which the quarry permit was granted, on the expiry or cancellation of the permit.

(3)     The Government may cancel a quarry permit in case of breach of any of the conditions subject to which it is granted. On cancellation of the permit, the quarried materials lying on the land from which they are extracted shall become the absolute property of the Government.

(4)     If a holder of a quarry permit discovers any minerals which are not included in the quarry permit, he shall immediately inform the Government in writing and shall stack such minerals and shall dispose the same only in accordance with instructions issued by the Government in writing.

CHAPTER-V EXEMPTIONS

Rule - 24. Departmental Excavation.

Any Department of the Government, municipality or Panchayat may extract minor minerals for captive purposes, subject to a general or special order or instructions issued by Government from time to time.

Rule - 25. Extraction permitted under the Gujarat Land Revenue Rules, 1972.

The extraction of minor minerals in accordance with the provisions of Rules 67, 68, 69 and 70 of the Gujarat Land Revenue Rules, 1972 or any rules corresponding to such rules shall be undertaken subject to applicable terms and conditions.

Rule - 26. Chipping of Outcrops.

The search for and winning of minor minerals on the surface by chipping of outcrops by a geologist's hammer without involving any disturbance of the soil by way of digging of pits, trenches or otherwise shall not require a mineral concession.

Explanation.-For the purpose of this rule chipping of rock samples from the outcrop or collection of a few samples from the depth of up to a meter shall not be deemed as disturbing the soil or the surface.

Rule - 27. Digging of wells and foundation for building.

The digging of wells for water and foundation for building and disposal of the minor mineral extracted thereof shall not require a mineral concession.

Rule - 28. Removal from agricultural lands.

Any occupant of an agricultural land shall be permitted to remove minerals from the agricultural land for the betterment thereof:

Provided that any sale of the mineral or any removal of the mineral by any other person from agricultural lands shall require a permit from the Government, which permit shall be granted in accordance with and governed by the same procedure for grant of a quarry permit as set out in CHAPTER IV. 

CHAPTER-VI GRANT OF QUARRY LEASE PURSUANT TO EXISTING APPROVAL

Rule - 29. Existing applications and right of holder of letter of intent.

(1)     All applications for grant of a quarry lease received prior to the date of commencement of these rules shall become ineligible.

(2)     Without prejudice to sub-rule (1), where the Government has communicated a prior written approval for grant of a quarry lease or if a letter of intent has been issued in writing by the Government to grant a quarry lease, before the commencement of these rules, the quarry lease shall be granted in accordance with the provisions of sub-rules (3) to (6) (inclusive):

(3)     The Government shall issue an order in writing for grant of a quarry lease to the holder of a letter of intent upon satisfaction of the following conditions within a period of two years from the date of commencement of these rules, failing which the right of such an applicant for grant of a quarry lease shall be forfeited automatically and in such cases, the Government would not be required to issue any order for this purpose:

(a)      fulfillment of the conditions of the prior approval or the letter of intent;

(b)      the holder of letter of intent having obtained all consents, approvals, permits, no-objections and the like as may be required under applicable laws for commencement of mining operations;

(c)      the holder of letter of intent having satisfied the conditions specified in CHAPTER VIII with respect to a mining plan (including the mine closure plan);

(d)      furnishing financial assurance as specified in Rule 64:

Provided that upon receipt of a written application, stating reasons for non-fulfillment of the conditions within a period of two years, the Government may, for reasons recorded in writing, extend the period of two years by an additional period of not more than six months:

Provided further that, save for the right to receive a quarry lease pursuant to the prior approval or the letter of intent, these rules shall apply to quarry lease granted pursuant to the prior approval or the letter of intent.

(4)     The order for grant of a quarry lease shall be in writing and shall inter aha also specify that the person in whose favor the order has been issued shall be required to furnish a performance security in accordance with such order in the form of a bank guarantee as per the format specified in Form A or a non-interest bearing security deposit.

(5)     A quarry lease deed shall be executed in the format specified in Form B by the Government within thirty days of the date of completion of the conditions specified in sub-rule (4) and shall be subject to the provisions of the Act and the rules made there under.

(6)     Any letters of intent granted pursuant to an auction process in the State shall continue to be governed by the tender documents relating to such auctions and a quarry lease deed shall be executed in the format specified in Form F by the Government within such period as specified in the grant order. The provisions of sub-rule (2) to (5) shall not apply to such letters of intent:

Provided that save for the right to receive a quarry lease pursuant to the letter of intent, these rules shall apply to quarry lease granted pursuant to the letter of intent.

(7)     The date on which a duly executed quarry lease deed is registered shall be the date of commencement of the quarry lease, and the holder of the letter of intent shall ensure that it achieves registration of the quarry lease deed within thirty days from the date of its execution.

CHAPTER-VII GRANT OF A QUARRY PARWANA

Rule - 30. Reservation of areas for granting quarry parwana.

The District Collector may, for the purpose of grant of a quarry parwana, notify areas of isolated pockets of sand stone and ordinary sand which are not used as major minerals. When any area is so notified, no quarry lease shall be granted for such notified area.

Rule - 31. Grant of quarry parwana.

(1)     On an application made to the District Collector in Form G, he may grant a quarry parwana to extract and remove a minor mineral from a plot not exceeding two thousand square meters, as may be notified by the District Collector. The District Collector may grant such quarry parwana in the following order of preference to persons belonging to the following communities:

(a)      individual families of Khanias, belonging to the Schedule Castes or the Schedule Tribes, who do physical work of excavating the minor mineral themselves in the notified area applied for:

Provided that the applicant shall be required to attach a certificate to that effect, with the application, issued by the authority authorized to issue such certificate;

(b)      individual families of Khanias, who do physical work of excavating the minor mineral themselves in the notified area applied for;

(c)      individual Khanias who do physical work in excavating minor minerals themselves in any other areas:

Provided that in case of a quarry parwana for ordinary sand, the communities who are traditionally engaged in ordinary sand mining, namely, Vanjara and Ode, may be given priority and in case of a quarry parwana for sandstone, the comaiunities who are traditionally engaged in sandstone mining, namely, Sompura, may be given priority:

Provided further that no quarry parwana shall be granted to any person who holds a quarry lease.

(2)     In case of granting a quarry parwana in a Scheduled Area, the recommendation of the Gram Sahha in whose area the notified area is situated shall be obtained prior to granting the quarry parwana.

Rule - 32. Conditions for grant of quarry parwana.

(1)     The quarry parwana shall be granted in Form H on payment of a non-refundable fee of:

(a)      rupees five hundred for an area up to one thousand square meters, and

(b)      rupees one thousand for an area more than one thousand square meters.

(2)     The quarry parwana holder shall make an application for renewal of the quarry parwana along with payment of a non-refundable fee at the rate of:

(a)      rupees five hundred for an area up to one thousand square meters, and

(b)      rupees one thousand for an area more than one thousand square meters.

(3)     The quarry parwana shall hot be renewed for a period exceeding one year at a time. The application for renewal of the quarry parwana shall be made in Form G at least two months before the expiry of the quarry parwana. If the application for renewal is not made at least two months before the expiry of the quarry parwana, an additional fee of rupees fifty shall be paid for delay in applying for renewal of the quarry parwana:

Provided that the quarry parwana shall not be renewed in the event that the application for renewal is made after expiry of the quarry parwana.

(4)     The quarry parwana shall be granted for a maximum period of one year, ending on 31st March of the subsequent year:

Provided that if a quarry parwana has been granted in the last quarter of a financial year, it shall be valid up to the 31st March of the succeeding year.

Explanation.-for the purpose of this sub-rule (4), the expression 'financial year' shall mean the period commencing from April 1 of a year and ending on March 31 of the subsequent year.

(5)     The quarry parwana holder shall pay in advance, royalty on the mineral to be extracted at fifty per cent of the rate mentioned in Table A of Schedule IV or fifty per cent of the dead rent mentioned in Table B of Schedule IV, whichever is higher.

(6)     The quarry parwana holder shall pay rupees five per hundred square meters or part thereof as surface rent in advance annually.

(7)     The quarry parwana holder shall also contribute such amounts as may be required under Sec. 15-A to designated account of the District Mineral Foundation.

(8)     The quarry parwana holder shall commence quarrying operations in accordance with the approved mining plan and after obtaining all applicable environmental clearances for the area.

(9)     In the event of any contravention of any of the provisions of this CHAPTER VII or the conditions of the quarry parwana, the quarry parwana shall be liable to be terminated.

(10)   If any mineral is removed without payment of royalty as required to be paid under the quarry parwana, the District Collector or any officer duly authorized by him may enter the land in respect of which the quarry parwana is granted and take possession of all or any of minerals or movable property or such part of it as will suffice to recover the royalty payable.

(11)   If the payment of any amount recoverable under the quarry parwana is not made within thirty days from the due date, the same may be recovered as arrears of land revenue and the quarry parwana may be terminated.

(12)   On or after expiry of the period of the quarry parwana or when the quarry parwana is terminated before the date of expiry of the period, the quarry parwana holder shall not, after the date of such cancellation, carry on any quarrying operations or remove any mineral that may have been excavated.

(13)   The quarry parwana holder shall maintain accounts to verify the production and payment of royalty in the manner as may be specified by the Commissioner.

(14)   In case no quarrying operations are carried out in the notified area specified in the quarry parwana, for a period of ninety days without any reasonable cause or without permission of the District Collector, the quarry parwana shall be liable to be terminated after giving the quarry parwana holder an opportunity to state his case.

(15)   Notwithstanding anything to the contrary contained herein, the provisions of Rule 56 shall not apply to a quarry parwana issued under this CHAPTER VII.

Rule - 33. Dimension of area for Quarry Parwana.

The dimension of the area to be granted under a quarry parwana shall be a square or rectangular.

Rule - 34. Security Deposit for Quarry Parwana.

The person to whom a quarry parwana is granted shall pay a sum equivalent to ten per cent of the royalty as security deposit before issuance of the quarry parwana to him:

Provided that the District Collector may refund the security deposit, on an application within sixty days, to the quarry parwana holder in case the quarry parwana is surrendered or the period of the quarry parwana has expired and no renewal thereof has been applied for and in case the deposit is not required to be applied to any of the purposes mentioned in the rules.

CHAPTER-VIII SCIENTIFIC AND SYSTEMATIC MINING

Rule - 35. Mining Plan.

(1)     No mining operations shall be undertaken except in accordance with the mining plan which has been approved by the Government in terms of Rules 35, 35, 36 and 37:

Provided that in cases which are exempt from the requirement of procuring an environmental clearance under the Environment Impact Assessment Notification, 2006, issued by the Ministry of Environment and Forests, no mining plan shall be required.

(2)     The mining plan shall incorporate:-

(a)      the plan of the mineral concession 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 provided by the Government or gathered by the bidder or any other person;

(b)      details of the geology and lithology of the area including mineral resource and reserves of the area;

(c)      the extent of manual mining or mining by the use of machinery and mechanical devices; '

(d)      the plan of the area showing natural water courses, limits of reserves and other forest areas and density of trees, if any, assessment of impact of mining activity on forest, land surface and environment including air and water pollution, details of scheme of restoration of the area by afforestation, land reclamation, use of pollution control devices and such other measures as may be directed by the Government in writing from time to time;

(e)      a tentative scheme of mining and annual programme and plan for excavation from year to year for five years;

(f)       a progressive mine closure plan as defined under these rules, if applicable;

(g)      tentative estimate about accretion of mine waste and its manner and its manner and mode of disposal and confinement;

(h)     manner of mineral processing and mineral up-gradation including mode of tailing disposal;

(i)       pre-feasibility report prepared in accordance with the Environment Impact Assessment Notification, 2006,; and

(j)       any other information which the Government may require the bidder to provide in the mining plan.

(3)     The mining plan shall be made in accordance with a manual/guidelines, as may be specified by the Government, in that regard:

Provided that the Government may revise or update, every five years or earlier if required, the formats of the mining plan and the mine closure plan prescribed by it:

Provided further that in case of mining of granite or marble, the mining plan shall conform to Granite Conservation and Development Rules 1999 or the Marble Development and Conservation Rules 2002, respectively.

(4)     The Government may impose such conditions as it considers necessary by an order in writing if such modification or imposition of conditions are considered necessary in the light of the experience of operation of mining plan or in view of the change in the technological development.

(5)     If the mining operations are not carried out in accordance with the approved mining plan or any information contained in the mining plan is found to be incorrect, misleading or non-compliant with applicable laws including these rules, the Government may by order, suspend all or any of the mining operations and permit continuance of only such operations as are required to restore the conditions in the mine as envisaged under the approved mining plan or modified mining plan, for the purpose of restoration to the extent possible:

Provided that the mineral concession holder should be informed in writing about the violation and if the violation is not rectified within a period of forty five days thereof, a show cause notice should be given asking reasons why the mining operations should not be suspended and, further, if no satisfactory reply is received within a period of thirty days, the mining operations can be suspended:

Provided further that the competent authority may revoke the suspension after the mineral concession holder rectifies the violation intimated in this regard.

Rule - 36. Preparation of Mining Plan.

(1)     Every mining plan shall be prepared by a person who has the following qualifications and experience:

(a)      a degree in mining engineering or a post-graduate degree in geology obtained from 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 Sec. 4 of the University Grants Commission Act, 1956 or any equivalent qualification granted by any university or institution outside India and recognized by the Government of India; and

(b)      relevant professional experience of five years of working in a supervisory capacity in the field of mining after obtaining the degree.

(2)     Only a person qualified to prepare a mining plan may carry out modifications to a mining plan.

(3)     It shall be the obligation of the successful bidder/mineral concession holder to ensure that the mining plan is prepared in accordance with applicable laws.

(4)     For the purposes of preparation of a mining plan, the successful bidder may, upon a written request in Form I, be granted a limited prospecting permit to conduct prospecting operations. The purpose of such limited exploration shall be strictly to gather information and data for the purposes of preparing a mining plan. Any minerals won during such exploration shall be handed over to the Government, free of cost:

Provided that the successful bidder may retain the core recovered during the prospecting operations.

(5)     The prospecting permit shall be granted in the format specified in Form J.

Rule - 37. Procedure for approval of the Mining Plan.

(1)     The mining plan shall be submitted to the Government.

(2)     Every mining plan submitted for approval under sub-rule (1) shall be accompanied by a fee of rupees five thousand.

(3)     The Government shall, by an order in writing, dispose of the application for approval of the mining plan within a period of ninety days from the date of receiving of such application:

Provided that the aforesaid period of ninety days shall be applicable only if the mining plan is complete in all respects, and in case of any modifications subsequently suggested by the Government after the initial submission of the mining plan for approval, the said period shall be applicable from the date on which such modifications are carried out and submitted afresh to the Government.

(4)     The Government may, by an order in writing, at any time direct modification of the mining plan or impose such conditions in the mining plan as it may consider necessary.

Rule - 38. Modification and review of the mining plan.

(1)     The mining plan for minerals specified in Part A-II or Part B of Schedule III, once approved, shall be subject to review and updation at an interval of every five years starting from date of registration of the duly executed quarry lease deed.

(2)     At least one hundred twenty days before the expiry of every five years period specified in sub-rule (1), the lessee shall submit a mining plan for mining operations, for the minerals specified in Part A-II or Part B of Schedule III, for a period of five subsequent years prepared in accordance with Rule 366, which shall be disposed of in accordance with Rule 377:

Provided that the mining operations shall not be carried out or allowed to be carried out by the quarry lease holder till the approval of the scheme of mining.

(3)     The mining plan for minerals specified in Part A-I of Schedule III, once approved, shall be subject to review and updation at least once during the period of the quarry lease.

(4)     A quarry lease holder may seek modifications in the approved mining plan as are considered expedient, keeping in view changes in the business environment; or in the interest of safe and scientific mining, conservation of minerals, for the protection of environment; or any other reason to be specified in writing by the quarry lease holder. Any modification to a mining plan shall be approved in writing by the authority that approved the initial mining plan.

(5)     In case of modifications to a mining plan, the provisions of Rule 37 shall apply mutates mutandis.

Rule - 39. Mining plan to be submitted by existing lessee.

(1)     Where mining operations for minor minerals have been undertaken before the commencement of these rules without an approved mining plan, the lease holder of such lease shall submit a mining plan within a period of six months from the date of commencement of the rules, to the Government for its approval.

(2)     If a lease holder has not been able to submit the mining plan within the specified time for reasons beyond his control, he may apply in writing for extension of time giving reasons to the Government.

(3)     The Government on receiving an application made under sub-rule (2) above, may on being satisfied extend, through an order in writing, the period for submission of the mining plan for a period which may not exceed one year.

(4)     The Government may, through an order in writing, approve the mining plan submitted by the lease holder under sub-rule (1) with modifications to be carried out in the mining plan and the lease holder shall carry out such modifications and re-submit the modified mining plan for approval of the Government.

(5)     The Government shall, within a period of ninety days from the date of receipt of the mining plan or the modified plan convey its or his approval or disapproval in writing to the applicant and in case of disapproval it or he shall also convey the reasons for disapproving the said mining plan or the modified mining plan:

Provided that in case of disapproval of a mining plan, no mining operations shall be carried out until the mining plan is resubmitted and is approved in accordance with these rules.

(6)     If no decision is conveyed within the period stipulated under sub-rule (5), the mining plan or the modified mining plan, as the case may be, shall be deemed to have been provisionally approved and such approval shall be subject to the final decision whenever communicated.

(7)     The mining plan submitted under sub-rule (1) shall be prepared by a person specified in sub-rule (1) of Rule 36.

CHAPTER-IX EXPIRY OF A QUARRY LEASE

Rule - 40. Auction after expiry of a quarry lease.

On the expiry of the lease period, the quarry lease shall be put up for auction as per the procedure specified in the rules.

CHAPTER-X LAPSE, SURRENDER OR TERMINATION

Rule - 41. Lapsing of the quarry lease.

(1)     A quarry lease shall lapse in accordance with the provisions of Sec. 4-A. Subject to the conditions of this rule, where quarrying operations are not commenced within a period of two years from the date of execution of the quarry lease, or are discontinued for a continuous period of two years after commencement of such operations, the quarry lease shall lapse.

(2)     The lapsing of a quarry lease shall be recorded through an order issued by the Government and shall also be communicated to the lessee.

(3)     Where a lessee is unable to commence the quarrying operations within a period of two years from the date of execution of the quarry lease or discontinuation of quarrying operations for reasons beyond his control, he may submit an application to the Government, explaining the reasons for the same, at least three months before the expiry of such period of two years:

Provided where the lessee has failed to make the application within the time stipulated above, the quarry lease shall lapse on expiry of the period of two years.

(4)     The Government shall, after examining the adequacy and genuineness of the reasons for the non-commencement of quarrying operations or discontinuance thereof, pass an order, within a period of three months from the date of receipt of the application made under sub-rule (3) or the date on which the quarry lease would have otherwise lapsed, whichever is earlier, either granting or rejecting such request:

Provided that, such quarry lease shall lapse on failure to undertake mining operations or inability to continue the same before the end of a period of six months from the date of the order of the Government communicating that the lease has not lapsed.

(5)     The Government may, on an application made by the quarry lease holder submitted within a period of six months from the date of its lapse and on being satisfied about the adequacy and genuineness of the reasons for non-commencement of quarrying operations or discontinuance thereof was beyond the control of the holder of the quarry lease, revive the quarry lease within a period of three months from the date of receiving the application from such prospective or retrospective date as it thinks fit but not earlier than the date of lapse of the quarry lease:

Provided that no quarry lease shall be revived more than twice during the entire period of the quarry lease.

(6)     Every application made under sub-rule (3) prior to lapse of the quarry lease or under sub-rule (5) for revival of the quarry lease shall specify in detail:

(a)      the reasons on account of which it will not be possible for the lessee to undertake or on account of which the lessee failed to undertake quarrying operations or continue such operations;

(b)      the manner in which such reasons are beyond the control of the lessee: and

(c)      the steps that have been taken by the lessee to mitigate the impact of such reasons.

Provided that the Government may seek such additional information, documents or clarifications with respect to the application as it may require.

(7)     Every application under sub-rule (3) or sub-rule (5) shall be accompanied by a nonrefundable fee of rupees five thousand per hectare or part thereof or fifty thousand, whichever is higher.

(8)     The Government shall have the right to enforce the performance security of the lessee to carry out protective, reclamation and rehabilitation measures in the leased area of the quarry lease which has lapsed.

(9)     The lessee shall pay any expenditure over and above the performance security incurred by the Government, towards protective, reclamation and rehabilitation measures in the leased area of the quarry lease which has lapsed.

Rule - 42. Surrender of the quarry lease.

(1)     The lessee may make a written application to the Government in Form K for surrender of the entire area of the quarry lease after giving a notice in writing of not less than six calendar months from the intended date of surrender. Such application shall be accompanied by an approved final mine closure plan:

Provided that the lessee may make a written application for surrender of a part of the area under quarry lease only in case the lessee has been unable to obtain forest clearance for such area and in such cases, the minimum area of the quarry lease shall stand adjusted accordingly.

(2)     The Government shall allow, through an order in writing, surrender of a quarry lease under sub-rule (1) if the following conditions are satisfied:,

(a)      the lessee has submitted documents to evidence implementation of the approved final mine closure plan; and

(b)      all dues with respect to the quarry lease have been settled.

(3)     In case of surrender of the entire area of the quarry lease prior to exhaustion of mineral resources, the performance security provided by the lessee shall be forfeited.

(4)     In the event that the lessee surrenders the entire area of the quarry lease prior to expiry of the lease tenure on account of exhaustion of the mineral resources, the performance security provided by the lessee shall be returned after adjustment of dues, if any.

(5)     The lessee shall pay any expenditure over and above the performance security incurred by the Government, towards protective, reclamation and rehabilitation measures in the leased area of the quarry lease which has been surrendered.

Rule - 43. Termination of the quarry lease.

(1)     The Government shall have the right to terminate the quarry lease in the following situations:

(a)      The Government may, by an order in writing, terminate the quarry lease at any time if the lessee has, in the opinion of the Government, transferred the quarry lease or any right, title, or interest therein or encumbered the quarry lease otherwise than in accordance with these rules or the terms of the quarry lease deed:

Provided that no such order shall be made without giving the lessee a reasonable opportunity of being heard.

(b)      If the lessee does not allow entry or inspection under sub-rules (15), (17), (20), (22) and (23) of Rule 188, the Government shall give notice in writing to the lessee requiring him to show cause within fifteen days of the notice as to why the quarry lease should not be terminated and his performance security forfeited; and if the lessee fails to show cause within the aforesaid time to the satisfaction of the Government, the Government may terminate the quarry lease and forfeit or appropriate the whole or part of the performance security in the manner specified in the quarry lease deed and these rules.

(c)      If the lessee is convicted of illegal mining and there are no interim orders of any court of law suspending the operation of the order of such conviction in appeals pending against such conviction in any court of law, the Government may, without prejudice to any other proceedings that may be taken under the Act, the rules, the Gujarat Mineral (Prevention of Illegal Mining and Transportation and Storage) Rules, 2017, after giving the lessee an opportunity of being heard and for reasons to be recorded in writing and communicated to the lessee, terminate the quarry lease and forfeit or appropriate the whole or part of the performance security in the manner specified in the quarry lease deed and the rules.

(d)      Subject to clause (b) of sub-rule (1) of Rule (1) 3 (Sic ?), if the lessee makes any default in any payment prescribed under these rules or the quarry lease deed or commits a breach of any of the conditions specified in Rule 177, 188 or 19, the Government shall give notice in writing to the lessee requiring him to pay such payments and remedy the breach, as the case may be, within sixty days from the date of the receipt of the notice and if such payments are not paid or/and the breach is not remedied within the said period, the Government may, without prejudice to any other proceedings that may be taken against him, terminate the quarry lease and forfeit or appropriate the whole or part of the performance security in the manner provided in the quarry lease deed and these rules.

(e)      If the lessee fails to comply with the production requirements specified in the quarry lease deed and such non-compliance exceeds for more than seven instances in case of minerals specified in Part A-II or Part B of Schedule III or for more than three instances in case of minerals specified in Part A-I of Schedule III, the Government shall have a right to terminate the quarry lease without prejudice to any other proceeding to be taken against the lessee. The Government shall also have the right to terminate the quarry lease in the event that the annual production for minerals specified in Part A-I of Schedule III exceeds the total annual production limit for the mineral as per approved mining plan.

(f)       Notwithstanding anything contained in the foregoing provisions, the Government may terminate the quarry lease at any time by giving to the lessee six months' notice in writing, if the lease area or any part thereof is required by the Government under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013). A declaration in this regard, under the signature of the Government that the lease area, or as the case may be, the part of the area is so required shall, as between the lessee and the Government be conclusive.

(g)      On the termination of the quarry lease as stipulated above, the lease area shall be resumed by the Government, or the landowner, as the case may be, and the lessee shall be paid such compensation, for the investment made for the development of mining area only and not for the land and mineral, as may be determined by the Government for the purpose. For the purpose of assessing the amount of compensation, the Government shall determine the compensation in accordance with the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013).

(h)     If the lessee fails to comply with of provisions of the Act, the rules or the quarry lease deed.

(2)     Subject to sub-rule (1), in the event of termination of a quarry lease, the Government shall have the right to enforce the performance security of the lessee to carry out protective, reclamation and rehabilitation measures in the area.

(3)     The lessee shall pay any expenditure over and above the performance security incurred by the Government, towards protective, reclamation and rehabilitation measures in the leased area of the quarry lease which has been terminated.

(4)     The lessee shall at the expiry or sooner termination of the quarry lease thereof deliver to the Government, within such period as may be notified by the Government:

(a)      all mines, pits, waterways and other works sunk or made on or under the lease area except such as have been abandoned with the sanction of the Government;

(b)      in an ordinary and fair course of working, all engines, machinery, plant, buildings, structures, other works and conveniences which at the commencement of the quarry lease term were upon or under the lease area including all such machinery set up by the lessee below ground which cannot be removed without causing injury to the mines, quarries or works under the lease area; and

(c)      all buildings and structures of bricks or stone erected by the lessee above ground level in good repair order and condition and fit in all respects for further working of the mines and minerals.

(5)     Upon termination of the quarry lease, the lessee shall retain all documents, books and records related to the lease area for a period of three years or such longer period as may be specified under applicable law. The lessee may also retain such books and records in electronic form if permitted under applicable law.

CHAPTER-XI TRANSFERS

Rule - 44. Transfer of quarry lease.

(1)     A quarry lease holder (the transferor) may transfer such concession to any person eligible to hold a quarry lease in accordance with these rules (the transferee) with the prior written approval of the Government in the manner specified in the rule:

Provided that in cases of an auction under sub-rule (3) and sub-rule (4) of Rule 4, the transferee shall satisfy the eligibility criteria prescribed under such auction.

(2)     The transferor and the transferee shall, prior to the transfer, jointly submit a written application to the Government in the format specified in Form L, namely the "transfer application", which shall also contain details of the consideration payable by the transferee for the transfer, including the consideration in respect of the work already undertaken and the reports and data generated during the operations. The transfer would be subject to payment of such amount by the transferor as specified in clause (a) of sub-rule (4) and submission of a duly executed transfer deed as specified in clause (b) of sub-rule (4).

(3)     The Government within a period of ninety days from the date of receiving a transfer application made under sub-rule (2) shall convey its decision to approve or reject such transfer for reasons to be recorded in writing:

Provided that if the Government does not convey its decision for such a transfer, within a period of ninety days from the date of receiving such a transfer application, it shall be construed that the Government has no objection to such transfer:

Provided further that no such transfer of a quarry lease shall be made in contravention of any condition subject to which the quarry lease was granted.

(4)     The transferor shall within a period of thirty days from the date of receipt of the written approval from the Government as specified in sub-rule (3) or expiry of the period after which it is construed that the Government has no objection to such transfer pursuant to the first proviso to sub-rule (3), as the case may be:

(a)      make payment of:

(i)       in case of minerals specified in Part A-I of Schedule III: rupees one lakh if residual value of mineral resources is up to rupees one crores and rupees two lakh if residual value of mineral resources is greater than rupees one crores; and

(ii)      in case of minerals specified in Part A-II or Part B of Schedule III: rupees five lakhs if residual value of mineral resources is up to rupees ten crores and rupees ten lakhs if residual value of mineral resources is greater than rupees ten crores;

(b)      submit a duly registered deed in the format specified in Form M namely the "transfer deed".

(5)     Subject to receipt of payments under sub-rule (4), the date of commencement of the transfer deed shall be the date on which a duly executed transfer deed is registered. On and from the transfer date, the transferee shall be liable towards the Government with respect to any and all liabilities with respect to the quarry lease.

(6)     All transfers effected under this rule shall be subject to the condition that the transferee has accepted all the conditions and liabilities under any law for the time being in force which the transferor was subject to in respect of such a quarry lease.

(7)     When the ownership of a quarry lease is transferred as per provisions of Rule 444, the transferor shall hand over to the transferee within a period of seven days of the transfer of the ownership, borehole cores along with records and samples preserved, if any, all plans, sections, reports, registers and other records maintained in pursuance of the provisions of these rules or orders made there under, and all correspondence relevant thereto relating to the quarry lease; and when the requirements of these rules have been duly complied with, both the transferor and the transferee shall forthwith send to the Government a detailed list of borehole cores, plans, sections, reports, registers and other records that have been transferred.

Rule - 45. Creation of Encumbrances.

A person holding a quarry lease shall not except with the prior written permission of the Government or the officer authorized by the Government:

(a)      assign, sublet, mortgage or otherwise encumber the quarry lease or any right, title or interest therein; or

(b)      enter into or make any arrangement, contract or understanding whereby the quarry lease holder will or may be directly or indirectly financed to a substantial extent by or under which the operations or undertaking of the quarry lease holder will or may be substantially controlled by, any person or body of persons other than the holder of the quarry lease.

Rule - 46. Transfer void.

Any transfer of a quarry lease or creation of an encumbrance thereon which is not in compliance with these rules shall be void ab-initio.

CHAPTER-XII REGISTERS AND RETURNS

Rule - 47. Register of mineral concessions.

The Government shall maintain:

(1)     A register of quarry lease, in electronic and physical form, in Form N.

(2)     A register of quarry permit in Form O.

(3)     A register of quarry parwana in Form P.

Rule - 48. Inspection of register.

The registers maintained by the Government under Rule 477 shall be open to inspection by any person on payment of a fee of rupees one hundred.

Rule - 49. Returns and statements.

(1)     The quarry lease holder shall furnish to the Government:

(a)      every month, a monthly return in electronic form in Form Q before the tenth day of the succeeding month;

(b)      an annual return in electronic form in Form R for every financial year, before the 30th April of the succeeding year.

(2)     The quarry permit holder shall submit online monthly e-return including details of mineral usage as per Form S before the tenth day of the succeeding month;

(3)     The quarry parwana holder shall submit monthly return including details of mineral usage as per Form T before the tenth day of the succeeding month;

(4)     The mineral concession holder shall furnish to the Government, other such returns and statements and within such period as may be specified as per the rules.

(5)     If it is found that the mineral concession holder has submitted incomplete or wrong or false information in monthly or annual returns or fails to submit a return within the date specified, the Government may:

(a)      order suspension of all mining operations in the mine and may revoke the order of suspension only after ensuring proper compliance;

(b)      take action to initiate prosecution under these rules; and/or

(c)      recommend termination of the mineral concession, in case such suppression or misrepresentation of information indicates abetment or connivance of illegal mining. 

CHAPTER-XIII REVISION

Rule - 50. Application for revision.

(1)     Any person aggrieved by any order made by any authority in exercise of the powers conferred on it under these rules or the non-passing of' any order by any authority in exercise of the powers conferred on it under these rules within the time prescribed therefore may, within two months of:

(a)      the date of communication of the order to him; or

(b)      the date on which the time period for passing such order expired, apply to the Government in triplicate in the form specified in Form U for revision of the order or passing of an order, as the case may be:

Provided that the State Government may of its own motion also call for any record of proceeding and revise any order made by such authority.

(2)     Any person aggrieved by any order made by the Government under these rules or non-passing of any order by the Government within the time prescribed therefore may, within two months of:

(a)      the date of communication of the order to him; or

(b)      the date on which the time period for passing such order expired, apply to the Committee to be constituted by the Government in triplicate in the form specified in Form U for revision of the order or passing of an order, as the case may be.

Provided that the Committee may of its own motion also call for any record of proceeding and revise any order made by the Government.

(3)     The application under sub-rule (1) or sub-rule (2) shall be in writing and should be accompanied by a non-refundable fee of rupees ten thousand by way of a treasury challan:

Provided that any such application may be entertained after the said period of two months if the applicant satisfies the Government or the Committee, as the case may be, that he had sufficient cause for not making the application within time.

(4)     In every application under sub-rule (1) or sub-rule (2) against the order refusing to grant a mineral concession, any other person to whom a mineral concession was subsequently granted in respect of the same area or for a part thereof, shall be impleaded as a party.

(5)     The applicant shall, along with the application under sub-rule (1) or sub-rule (2), submit to the Government or the Committee, as the case may be, as many copies thereof as there are parties impleaded.

(6)     On receipt of the application and copies thereof, the Government or the Committee, as the case may be, shall send where applicable, a copy of the application to all the impleaded parties including the concerned authority or the Government, as the case may be, calling upon them to make such comments as they may like to make within two months from the date of issue of such communication, if any, against the revision application.

Rule - 51. Orders on revision application.

(1)     The concerned authority or the Government, as the case may be and the impleaded parties shall, while furnishing comments to the Government or the Committee, as the case may be, simultaneously endorse a copy of the comments to the other parties by registered post acknowledgement due.

(2)     Comments received from any party under sub-rule (1) shall be sent to the other parties for making such further comments as they may like to make within one month from the date of issue of the communication and the parties making further comments shall send them to all the other parties by registered post acknowledgement due.

(3)     The revision application, the communications containing comments and counter-comments referred to in sub-rules (1) and (2) shall constitute the records of the case.

(4)     After considering the records referred to in sub-rule (3), the Government or the Committee, as the case may be, may:

(a)      confirm the order; or

(b)      set aside the order and direct the concerned authority or the Government, as the case may be, to reconsider the order on such grounds as it may deem just and proper.

(c)      In case the order is set aside under clause (b), the concerned authority or the Government, as the case may be, shall reconsider its earlier order and issue a revised order within ninety days of receipt of directions from the Government or the Committee, as the case may be.

(5)     The Government or the Committee, as the case may be, may, pending the final disposal of an application for revision, stay the execution of the order against which any revision application has been made for sufficient cause and through an order in writing.

(6)     Before passing any order adversely affective a person, such person shall be given the opportunity of stating his case.

(7)     Protection of action taken in good faith.- Notwithstanding the above, no suit, prosecution or other legal proceedings shall he against any authority in exercise of the powers conferred on it under these rules for anything which is in good faith done or intended to be done.

CHAPTER-XIV PAYMENTS

Rule - 52. Manner of Payment.

Any amount payable under the Act or rules made there under except that payable in respect of revision petition under sub-rule (1) or sub-rule (2) of Rule 500, shall be paid in such manner as the Government may specify in this behalf.

Rule - 53. Revision of fee and other amounts payable.

The Government may, by notification in the Official Gazette, enhance or reduce any fee, rate of payment or any other amount payable by holder of a mineral concession:

Provided that the Government shall not enhance the rate of royalty, rate of dead rent, or amount of financial assurance in respect of any mineral more than once during any period of three years.

Rule - 54. Payment of interest.

The Government shall, without prejudice to the provisions contained in these rules, charge simple interest at the rate of eighteen per cent per annum on:

(a)      any payment due to Government under Rule 111;

(b)      any fee, cess or other sum due to the Government under these rules;

(c)      any other payment under the terms and conditions of mineral concession, the payment of which is delayed beyond thirty days from the due date thereof. Such interest shall be charged from the due date of payment and until payment of such amount.

Rule - 55. Charging of Royalty in case of minerals subjected to processing.

(1)     In case processing of run-of-mine mineral is carried out within the leased area, then royalty shall be chargeable on the processed mineral removed from the leased area.

(2)     In case run-of-mine mineral is removed from the leased area to a processing plant which is located outside the leased area, then royalty shall be chargeable on the unprocessed run-of-mine mineral and not on the processed product.

Rule - 56. Rate of Royalty, dead rent and surface rent.

(1)     The holder of a mineral concession granted under these rules shall pay royalty in respect of minor minerals, specified in Table A of the Schedule IV, removed or consumed by him or by his agent, manager or employee from the leased area at the rates respectively specified against them in Table A of the said Schedule.

(2)     The quarry lease holder granted under these rules shall pay yearly dead rent in respect of minor minerals specified in Table B of Schedule IV, at the rates respectively specified against each minor mineral.

(3)     In case the royalty paid during a year under sub-rule (1) in respect of a minor mineral is greater than the dead rent payable, no dead rent shall be payable under sub-rule (2).

(4)     Where the royalty paid during a year under sub-rule (1) in respect of a minor mineral is less than the dead rent payable under sub-rule (2), only the difference between the two amounts shall be payable as dead rent.

(5)     If in the same lease hold area, more than one minor mineral is permitted to be mined, the lessee shall be liable to pay royalty for each such mineral or as the case may be, the Government shall not charge separate dead rent for every such minor mineral:

Provided that the lessee shall be liable to pay:

(a)      the aggregate of royalty in respect of all minerals; or

(b)      the highest dead rent applicable with respect to the minerals included in the relevant quarry lease, whichever is higher.

Illustration.-In case three minerals are included in the quarry lease, the dead rent which is highest with respect to any of the said three minerals shall be considered for the purpose of (b) above.

(6)     The holder of a mineral concession granted under these rules shall also pay a yearly surface rent to the Government for the surface area leased to him, at the rate of rupees one thousand per hectare or part thereof or at the non-agriculture assessment rate prescribed by the Revenue Department from time to time, whichever is higher.

Rule - 57. Upfront payment and performance security for minerals specified in Part A-I of Schedule III.

In case of minerals specified in Part A-I of Schedule III, the upfront payment to be made under Rule 9 and the performance security to be furnished under Rule 10 shall each be for an amount equal to the aggregate of:

(a)      fifty per cent of the estimated annual royalty payable for the first year of the lease which shall be a product of the:

(i)       royalty for the mineral's per metric tone; and

(ii)      estimated quantity of mineral resources being auctioned expressed in metric tone divided by the tenure of the lease; and

(b)      fifty per cent of the estimated annual auction premium payable for the first year of the lease which shall be a product of the: (i) highest final premium offer; and (ii) value of estimated resources divided by the tenure of the lease.

Rule - 58. Sum Due to be Recovered as Arrears of Land Revenue.

Any rent, royalty, tax, fee, penalty, auction premium or other sum due to the Government may be recovered as arrears of land revenue on the basis of a certificate issued by the Government.

CHAPTER-XV ENVIRONMENT MANAGEMENT

Rule - 59. Environmental clearance.

Mining operations will be undertaken only pursuant to a valid environmental clearance in accordance with the provisions of the Environment (Protection) Act, 1986 and the rules and notifications issued there under, including the Environment Impact Assessment Notification, 2006.

Rule - 60. Mine Closure plan.

Every mine shall have a mine closure plan which shall contain steps to be taken for reclamation, rehabilitation measures taken in respect of a mine or part thereof commencing from cessation of quarrying or processing operations in a mine/cluster or part thereof. The mine closure plan shall be of two types:

(a)      progressive mine closure plan; and

(b)      final mine closure plan.

Rule - 61. Submission of progressive mine closure plan.

(1)     The progressive mine closure plan shall be prepared by the quarry lease holder only for minerals specified in Part A-II or Part B of Schedule III, for the purpose of providing protective, reclamation and rehabilitation measures in a mine or part thereof.

(2)     The progressive mine closure plan shall be prepared in the manner specified and in the standard format as per the guidelines issued by the Government in this regard.

(3)     In case of fresh grant of quarry lease, a progressive mine closure plan as a component of mining plan shall be submitted to the Government.

(4)     The lessee shall, in case of an existing quarry lease, submit a progressive mine closure plan to the Government/officer authorized by the Government in this behalf for approval within a period of one year from the date of commencement of these rules.

(5)     The lessee shall review the progressive mine closure plan every five years from the date of its approval in case of existing mine or from the date of opening of the mine in case of fresh grant of quarry lease, as the case may be and shall submit to the officer authorized by the Government for its approval.

(6)     The Government/officer authorized by the Government shall convey his approval or refusal of the progressive mine closure plan in writing within a period of ninety days from the date of receipt:

(i)       Provided that the aforesaid period of ninety days shall be applicable only if the progressive mine closure plan is complete in all respects, and in case of any modifications subsequently suggested by the Government after the initial submission of the progressive mine closure plan for approval, the said period shall be applicable from the date on which such modifications are carried out and submitted afresh to the Government.

(7)     If the approval or refusal of the progressive mine closure plan is not conveyed to the lessee, within the period as specified in sub-rule (6), the progressive mine closure plan shall be deemed to have been provisionally approved and such approval shall be subject to the final decision whenever communicated.

Rule - 62. Submission of Final mine closure plan.

(1)     The final mine closure plan shall be prepared by all mineral concession holders under these rules for the purpose of decommissioning, reclamation and rehabilitation in the mine, cluster or part thereof after cessation of mining and mineral processing operations.

(2)     The final mine closure plan shall be prepared in the manner specified and in the standard format as per the guidelines issued by the Government in this regard

(3)     The lessee shall submit final mine closure plan to the Government/officer authorized by the Government for the approval one year prior to the proposed closure of the mine. Such final mine closure plan shall be approved by the Government and the approval or refusal of the final mine closure plan shall be conveyed within a period of ninety days from the date of its receipt:

Provided that the aforesaid period of ninety days shall be applicable only if the final mine closure plan is complete in all respects, and in case of any modifications subsequently suggested by the committee referred at sub-rule (3) of Rule 644 after the initial submission of the final mine closure plan for approval, the said period shall be applicable from the date on which such modifications are carried out and submitted afresh.

(4)     If approval or refusal of the final mine closure plan is not conveyed in writing to the lessee within time period as specified in sub-rule (3), the final mine closure plan shall be deemed to have been provisionally approved and such approval shall be subject to the final decision whenever communicated in writing.

Rule - 63. Responsibilities of holder of mineral concession.

(1)     The holder of a mineral concession shall have the responsibility to ensure that the protective measures contained in the mine closure plan including reclamation and rehabilitation work have been carried out in accordance with the approved mine closure plan or with such modifications as approved by the Government/officer authorized by the Government under these rules.

(2)     The holder of a mineral concession shall submit to the Government/officer authorized by the Government a yearly report before 1st July of every year setting forth the extent of protective and rehabilitative works carried out as envisaged in the approved mine closure plan and if there is any deviation, reasons thereof.

Rule - 64. Financial assurance.

(1)     Financial assurance shall be furnished by every lease holder for due and proper implementation of the approved progressive and final mine closure plan. The amount of financial assurance shall be rupees one lakh per hectare or part thereof the quarry lease area put to use for mining and allied activities:

Provided that a quarry lease holder shall be required to enhance the amount of financial assurance with the increase in the area of mining and allied activities:

Provided further that, where a quarry lease holder undertakes reclamation and rehabilitation measures as part of the progressive closure of mine, the amount so spent shall be reckoned as the sum of the financial assurance already spent by the lease holder and the total amount of financial assurance to be furnished by the lease shall be reduced to that extent.

(2)     The financial assurance shall be submitted by way of a bank guarantee in the format as provided in Form V or a non-interest bearing security deposit. The financial assurance should remain valid:

(a)      for an initial period of five years and thereafter for subsequent periods of five years or the remaining term of the quarry lease, whichever is lower, in case of minerals specified in Part A-II or Part B of Schedule III; or

(b)      for the entire duration of the quarry lease term, for minerals specified in Part A-I of Schedule III, as the case may be.

(3)     Release of financial assurance shall be effective upon the notice given by the lease holder for the satisfactory compliance of the provisions contained in the mine closure plan and certified by a committee comprising of three members, one each from the following departments, as nominated by the respective head of department: (a) Geologist (CGM); (b) Gujarat Pollution Control Board; and Roads and Buildings Department.

(4)     If the committee referred at sub-rule (3) has reasonable grounds for believing that the protective, reclamation and measures as envisaged in the approved mine closure plan in respect of which financial assurance was given have not been or will not be carried out in accordance with mine closure plan, either fully or partially, the committee shall give the lease holder a written notice of its intension to issue the orders for forfeiting the sum assured at least thirty days prior to the date of the order to be issued.

(5)     Within thirty days of the receipt of notice referred to in sub-rule (4) if no satisfactory reply has been received in writing from the lease holder, the committee referred at sub-rule (3) shall pass an order for forfeiting the surety amount (pursuant to security provided under sub-rule (2)) and a copy of such order shall be endorsed to the Government.

(6)     Upon the issuance of an order by the committee referred at sub-rule (3), the Government may realize/invoke any security provided under sub-rule (2) for the purpose of performance of protective, reclamation, rehabilitation measures and shall carry out those measures, or appoint an agent to do so.

Rule - 65. System of working.

(1)     System of working in quarry lease shall be performed by formation of benches.

(2)     Such benches in mineral and overburden including weathered mineral shall be staked separately and the benches in overburden or weathered mineral shall be kept sufficiently away in advance so that their working does not interfere with the working of quarry.

(3)     In order to ensure optimum production with minimum waste generation, every lease holder shall endeavor to deploy machinery and equipment as per the mining plan.

Rule - 66. Separate stacking of non-saleable mineral.

(1)     The non-saleable mineral or sub-grade mineral at a quarry or mine bottom shall regularly be collected and transported to the surface and the quarry or mine floor shall be kept reasonably clear of debris.

(2)     The overburden and waste material obtained during mining operations shall not be allowed to be mixed with non-saleable or sub grade minerals. The mineral, overburden, waste material, non-saleable mineral or sub-grade mineral shall be stacked separately on the ground earmarked for the purpose.

(3)     The ground selected for dumping of top soil, overburden, waste material and non-' saleable mineral or sub-grade mineral shall be far away from workings of quarry or mine, but within the leased area.

Rule - 67. Employment of Qualified officers.

(1)     For the purpose of carrying out mining operations in accordance with these rules, every quarry lease holder shall employ a part-time mining engineer and a part-time geologist.

(a)      In case of minerals specified in Part A of Schedule III, the part-time mining engineer and geologist can be employed up to a maximum of:

(i)       eighteen mines/quarries where mining is carried out by manual means; and

(ii)      twelve mines/quarries where mining is carried out by any other means; provided that all such mines/quarries are located within a radius of fifty kilometers.

(b)      In case of minerals specified in Part B of Schedule III, the part-time mining engineer and geologist can be employed up to a maximum of six mines/quarries; provided that all such mines/quarries are located within a radius of fifty kilometers:

Provided further that a whole-time geologist may be employed in-lieu of a part-time mining engineer.

(2)     A geologist or mining engineer referred in sub-rule (1) above shall possess the qualifications specified below:-

(a)      Geologist.-A postgraduate degree in Geology obtained from a University established or incorporated by or under a Central Act, a Provincial Act or a State Act, including any institution recognized by the University Grants Commission established under Sec. 4 of the University Grants Commission Act, 1956 or any equivalent qualification;

(b)      Mining Engineer:

(i)       A degree in mining engineering obtained from a University established or incorporated by or under a Central Act, a Provincial Act or a State Act, including any institution recognized by the University Grants Commission established under Sec. 4 of the University Grants Commission Act, 1956 or any equivalent qualification; or

(ii)      three years full time diploma certificate in Mining Engineering awarded by the State Technical Education Boards with two years experience in mining operations.

(3)     If a quarry lease holder possesses the qualifications as mentioned in sub-rule (1), he may appoint himself as the qualified officer for the purpose of sub-rule (1).

(4)     The lease holder shall intimate the Government, the details of qualified officer employed by him together with consent of such officer. When the employment of any such qualified officer is terminated or any such qualified officer leaves the said employment, the holder of the quarry lease shall within fifteen days from the date of such appointment, termination or leaving, inform such changes in writing to the Government.

(5)     The quarry lease holder shall also comply with the provisions of the Mines Act, 1952 (35 of 1952) with regard to employment of qualified officers.

Rule - 68. Duties of qualified officer.

(1)     Duties of Geologist: It shall be the duty of the geologist to:-

(a)      be responsible for periodic updating of minerals resources, maintenance of bore cores or samples and bore hole logs;

(b)      plan for conservation of mineral resources and optimal utilization of the minerals and ores in the mining leases;

(c)      prepare a scheme of prospecting as per the format specified by the Government and to carry out the investigation operation as per the scheme;

(d)      prepare the necessary geological maps, plans and sections which are required to delineate the ore body;

(e)      carry out petrological and mineralogical studies of host rock and mineralized zones;

(f)       calculate reserves and its grade;

(g)      provide all the necessary information requited for controlling the quality of the minerals produced;

(h)     maintain proper records of the prospecting operations and records of sinking of shafts and boreholes as provided under these rules;

(i)       work out the appropriate method of sampling and ensure preparation of samples accordingly;

(j)       update the reserve figures, grade-wise and category-wise at the end of every year in case of a working mine;

(k)      identify the associated rocks and minerals and maintain proper records of the stacks of non-salable/sub-grade minerals produced; and

(l)       carry out all such orders and directions as may be given in writing under these rules by the Government and to forward a copy of all such orders or directions to the lease holder.

(2)     Duties of Mining Engineer: It shall be the duty of the mining engineer to:

(a)      take all necessary steps to plan and conduct mining operations, so as to ensure conservation of minerals, systematic development of the mineral deposits and protection of environment in and around the quarry lease area in accordance with these rules;

(b)      prepare and maintain plans, sections, reports and schemes in accordance with these rules;

(c)      carry out the study of the associated rocks and minerals, identify them and stack the various minerals produced separately;

(d)      carry out all such orders and directions as may be given in writing under these rules by the Government and to forward a copy of such orders or directions to the holder of quarry lease;

(e)      ensure that there is sufficient provision of proper materials, appliances and facilities at all times at quarry lease for the purpose of carrying out the provisions of these rules and orders issued there under and Where he is not the lessee of the quarry lease, he shall make requisition in writing to the lessee for anything required for the aforesaid purpose. A copy of every such requisition shall be recorded in bound paged book kept for the purpose. The lessee shall provide, as soon as possible after receipt of such requisition, the materials and facilities requisitioned by the mining engineer.

Rule - 69. Environmental Safeguards to be implemented regarding mining operations.

(1)     Mine working shall be strictly as per the conditions of approved mining plan including the environment management plan, as the case may be.

(2)     Failure to comply with sub-rule (1) may result in termination of quarry lease after giving thirty days' notice to the lease holder for compliance.

Rule - 70. Environment Impact Mitigating Measures.

The following measures shall be incorporated in the environment management plan and shall be followed by every lease holder:

(1)     Removal and utilization of top soil:

(a)      The top soil collected during mining operations shall be managed to stack systematically at the approved site; and

(b)      Top soil so stacked shall be utilized for plantation or for restoration and rehabilitation of the land no longer required for mining operations or for stabilizing/landscaping the overburden dumps.

(2)     Storage of overburden, waste rock, etc:

(a)      The overburden, waste rock and non-saleable mineral generated during mining operations shall be managed to stack separately in properly formed dumps on grounds earmarked in approved environmental clearance;

(b)      The over burden dump shall be properly secured to prevent the degradation of the surrounding land or silting of water courses.

(c)      Wherever possible, the waste rock or overburden or other rejects shall be used for back filling the worked out quarry or mine where the mineral has been recovered up to the optimum depth, with a view to restore the land to its original use or desired alternate use. Where the backfilling is not feasible, the waste dumps shall be scientifically vegetated by suitable native species to prevent erosion and surface run off; and

(d)      The maximum height of the already existing waste dumps shall not exceed five meters and it shall be protected by walls of rubble stones or Geo-green blanket to prevent the flow of fine particles.

(3)     Reclamation and Rehabilitation of lands:-

Restoration, reclamation and rehabilitation of land affected by mining operations shall be undertaken in a phased manner so that the work is completed before the conclusion of mining operations and the abandonment of the quarry or mine, with a view to leave a productive and sustainable site.

(4)     Precaution against ground vibrations.-

Whenever any damage to public buildings or monuments is apprehended due to their proximity to the quarry lease area, scientific investigations shall be carried out by the holder of the quarry lease so as to keep the ground vibrations caused by blasting operations within safe limit.

(5)     Precaution against air pollution:

(a)      Air pollution due to dust, exhaust emissions or fumes during, mining or processing operations for mineral and related activities shall be controlled and kept within permissible limits as specified under any environmental law for the time being in force. Main haulage roads of the mine shall be kept wet by sprinkling of water; and

(b)      Periodical examination of air quality shall be monitored by the association of the cluster and results shall be intimated to concerned District Geologist/District Assistant Geologist as well as the regional officer of the State Pollution Control Board.

(6)     Discharge of toxic liquids:

All possible precautions shall be taken to prevent or reduce to a minimum, the discharge of toxic and objectionable liquid effluents from a quarry or mine, workshop or beneficiation or metallurgical plants, tailing ponds, into surface or ground water bodies, ground water aquifers and usable lands. These effluents shall conform to the standards laid down in this regard.

(7)     Precaution against noise pollution:

(a)      Noise arising out of mining and processing operations for a mineral at the source shall be controlled so as to keep it within the permissible limit; and

(b)      Periodical examination of noise pollution shall be monitored by the association of the cluster and results shall be intimated to concerned District Geologist/District Assistant Geologist as well as the regional officer of the State Pollution Control Board.

(8)     Restoration of fauna/flora:

(a)      Effective measures shall be taken for plantation in the area earmarked in the environment management plan. It shall be ensured that plantation shall be done at least five per cent of the total land of the cluster as specified every year;

(b)      The earmarked site for plantation shall be fenced and proper planning of watering and caring the plants shall be implemented. The same shall be looked after during the subsistence of the cluster;

(c)      Suitable trees shall be planted along cluster boundary, on both sides of the major roads, near site office of the mine and over the inactive dumps;

(d)      The lease holder shall not cut or injure any trees in area of his quarry lease without the previous sanction in writing of any officer authorized in this behalf under any law in force; and

(e)      All precautionary measures shall be taken during mining operations for conservation and protection of endangered fauna and flora.

(9)     Water management:

(a)      Water collected shall be analyzed and if found potable then it shall be diverted for drinking purpose in consultation with Gujarat Water Supply and Sewerage Board.

(b)      Accumulated un-potable rain water shall be de-watered and diverted to nearby pond/aquifer/river/nallah, catchments area by providing suitable pipe line or drains or link canals, as the case may be, in consultation with Gujarat Water Supply and Sewerage Board;

(c)      The procedure of water harvesting shall be adopted to recharge the ground water table;

(d)      Effective steps shall be taken for setting up of a water treatment plant wherever required to treat the effluents collected in the working pits; and

(e)      For working below ground water level, the quarry lease holder shall carry out a detailed hydro-geological study taking into account the mine water discharge, management of discharged water and shall obtain prior approval of the State Ground Water Department.

(10)   Corporate Social Responsibility:

(a)      Regular health check-up camps for the workers engaged in mines shall be organized;

(b)      Occupational health surveillance programme of the workers shall be undertaken periodically to observe any contractions due to exposure to dust and take corrective measures, if needed;

(c)      Insurance cover to all workers engaged in mines shall be provided;

(d)      Common vocational training center shall be setup at a district level; and

(e)      Local needs of habitant like school, crèche, hospital, veterinary hospital, sanitation, drinking water etc., shall be considered positively.

Rule - 71. Open cast working.

(1)     In open cast workings, the benches formed shall be so arranged that the benches in mineral and overburden are separate so as to avoid mixing of waste with the minerals.

(2)     The benches in overburden shall be kept sufficiently in advance so that their workings do not interfere with the working of minerals.

(3)     Orientation of the workings and sequence of mining operations shall be such that different grades of minerals can be obtained simultaneously for blending with a view to achieve optimum recovery of minerals from the deposit.

Rule - 72. Notice of temporary discontinuance of work in mines and obligations of the lease holders.

(1)     Temporary discontinuance shall mean the planned or unplanned suspension of mining operations in a mine or part thereof and where the operations are likely to be resumed not earlier than sixty days.

(2)     The lessee shall send to lease granting authority written notice in Form W when the mining or mineral processing operations in the mine or part thereof are discontinued for a period exceeding sixty days so as to reach them within seventy five days from the date of such temporary discontinuance.

(3)     Where the discontinuance takes place as a result of the occurrence of natural calamity beyond the control of the lessee, or in compliance with any order or directions issued by any statutory authority established under any law in force or any tribunal or a court, a written notice of discontinuance, under this sub-rule shall be submitted to the lease granting authority within a period of fifteen days of such discontinuance in Form W.

(4)     During the temporary discontinuation of a mine or part thereof, it shall be the responsibility of the lessee to comply with the reasonable prohibitive measures to restrict access for unauthorized entry, provide protective measures to potentially dangerous sources of electrical and mechanical installations, the mine openings or workings and all other structures. It shall be ensured that all contaminated effluents are controlled and all physical, chemical, biological monitoring programme have been continued. It shall also be ensured that all rock piles, over burden piles and stock piles and tailings and other water impoundment structures have been maintained in stable and safe conditions.

Rule - 73. Intimation of reopening of a mine.

The lessee shall send to the lease granting authority, a written intimation in Form C of reopening of a mine after temporary discontinuance so as to reach them within fifteen days from the date of such reopening.

Rule - 74. Examination of mineral deposits and taking of samples.

The Government may enter and inspect a mine and may examine any mineral deposit in any area under quarry lease and take samples there from at any time for the purposes of these rules.

Rule - 75. Prohibition of deployment in certain cases.

If any mine or part thereof, in the opinion of the Government poses a grave and immediate threat to the conservation of minerals or to environment, it may, by an order in writing to the lessee, require him to take such measures as may be specified in the order and may prohibit, until the requirements as specified in the order are complied with to its satisfaction, the deployment of any person other than those required for compliance with the requirement of the order.

CHAPTER-XVI MISCELLANEOUS

Rule - 76. Exercise of powers on behalf of the Government.

For the purposes of these rules, the references to the expression "Government" shall mean reference to the one or more of the officers specified in Schedule V. No authority exercising the powers conferred on it under these rules shall be entitled to delegate such powers. In the event that any power conferred under these rules has not been assigned to the jurisdiction of any officer under Schedule V, such power shall be exercised by the Government.

Rule - 77. Power to rectify apparent mistakes.

Any clerical or arithmetical mistake in any order passed by the Government or any authority or officer under these rules and any error arising therein due to accidental slip or omission, may be corrected, through an order in writing, by the Government, the concerned authority or officer, as the case may be:

Provided that no rectification order prejudicial to any person shall be passed unless such person has been given a reasonable opportunity of being heard.

Rule - 78. Special provisions relating to minerals specified in Part B of the First Schedule to the Act.

Notwithstanding anything contained in these rules:

(1)     if the holder of a mineral concession discovers any mineral specified in Part B of the First Schedule to the Act and not specified in such mineral concession, in the area granted under such mineral concession, the discovery of such mineral shall be reported in writing to the Director, Atomic Minerals Directorate for Exploration and Research, Hyderabad within sixty days from the date of discovery of such mineral;

(2)     the holder of such mineral concession shall not win or dispose of any mineral specified in Part B of the First Schedule to the Act unless a separate lease or license for the purpose has been obtained;

(3)     the quantities of any mineral specified in Part B of the First Schedule to the Act recovered incidental to such mining operations shall be collected and stacked separately and a report to that effect shall be sent to the Director, Atomic Minerals Directorate for Exploration and Research, Hyderabad every month for such further action by the lessee or permit holder as may be directed by the Atomic Minerals Directorate for Exploration and Research.

Rule - 79. Exploration Obligation.

(1)     A quarry lease holder granted through auction shall, for minerals listed in Part B of Schedule III, namely:

(a)      if at the time of auction, exploration up to level of inferred mineral resources (333) had been completed and included in geological report forming part of the tender document, within a period of one year from the registration of the relevant lease deed:

(i)       complete exploration to establish indicated mineral resources (332) as per Part I of Schedule I; and

(ii)      prepare and submit a pre-feasibility study report conforming to Part II-B of Schedule I.

(b)      if at the time of auction, exploration up to level of indicated mineral resources (332) had been completed and included in geological report forming part of the tender document, then the quarry lease holder shall prepare and submit a pre-feasibility study report conforming to Part II-B of Schedule I within a period of fifteen days from the registration of the relevant lease deed.

Rule - 80. Facilities for training of students.

(1)     Every lessee, agent or manager of a mine shall permit researchers or students of mining, geological and mineral processing institutions approved by the Government to conduct research or acquire practical training of the mines and plants operated by them and provide all necessary facilities required for the training of such students.

(2)     Applications for research or training from students of institutions teaching mining, geology or mineral processing shall be forwarded to the lessee, agent or manager of a mine through the Principal or Head of the Institution.

(3)     Cases of refusal to provide facilities for research or practical training by any lessee, agent or manager of a mine shall be referred to the Government for its written decision within a period of thirty days.

Rule - 81. Boundaries below the surface.

The boundaries of the area covered by a quarry lease shall run vertically downwards below the surface towards the center of the earth.

Rule - 82. Power of the Government to give Direction.

The grant of a mineral concession under these rules shall be subject to such general instruction and directions as may be issued by the Government from time to time regarding conservation and scientific and economic development of minerals and industrial use of the mineral in the State.

Rule - 83. Prohibition of Transport of Minerals Beyond Border.

(1)     No movement of ordinary sand shall be allowed beyond the border of the State except to the Union Territory, Diu.

(2)     The Government may, by notification, restrict the transport of any other mineral beyond the border of the State.

(3)     In case any vehicle is found transporting any mineral referred to in sub-rules (1) or (2), to the neighboring State, it shall be treated as violation of Act and the rules made there under in this regard. In such case, the penal provisions as specified therein, except compounding provisions, shall be applicable.

Rule - 84. Special Provisions for Mining of Ordinary Sand.

The provisions of circular no PIL/2011/HG-14 (6)/Chh dated December 27, 2012 read with clarification issued on January 20, 2014 (bearing same circular number), shall continue to be applicable with respect to the mining of ordinary sand.

Rule - 85. Preservation of cores etc.

(1)     Every quarry lease holder and every agency authorized under the second proviso to sub-sec. (1) of Sec. 4 shall:

(a)      preserve intact, until submission of the final geological report, all cores and specimens of different types of rocks and minerals obtained during drilling or sinking operations,

(b)      not destroy any cores or samples generated and preserved as per clause (a) above without the prior permission in writing from the Director General, Geological Survey of India and the Government.

(2)     The Government may, by an order in writing, require the quarry lease holder or the agency authorized under the second proviso to sub-sec. (1) of Sec. 4, to preserve the cores or specimens of rocks and minerals obtained from specific boreholes or shafts in a specific manner or for any specific period or relax the provisions of this rule to such an extent as they may deem fit.

(3)     The quarry lease holder or any other agency authorized under the second proviso to sub-sec. (1) of Sec. 4 shall adhere to the procedure for preservation and submission of cores as provided in the manual issued by the Geological Survey of India from time to time and shall preserve the identified borehole cores to be collected by the Geological Survey of India, after completion of all the required studies at the time of submission of the final geological report.

Rule - 86. Provisions of these rules to be applicable to Government.

The Government or its agencies carrying out prospecting or mining operations, as the case may be, without a mineral concession shall be bound by all the provisions of these rules in the same manner as they are applicable to holders of mineral concessions.

Rule - 87. Refund.

No monies paid under these rules shall be refunded unless expressly provided otherwise in these rules.

Rule - 88. Conflict.

In case of any conflict between these rules and the provisions of the Granite Conservation and Development Rules 1999, or the Marble Development and Conservation Rules 2002, the provisions as specified therein with respect to Granite and Marble respectively, shall prevail over these rules.

Rule - 89. Amalgamation of quarry leases.

(1)     The Government may in the interest of mineral development and with reasons to be recorded in writing, permit amalgamation of two or more adjoining quarry leases held by a lessee:

Provided that the period of amalgamated quarry leases shall be co-terminus with the quarry lease whose period will expire first.

(2)     The quarry lease holder shall, within thirty days of the date of amalgamation of quarry leases carried out under sub-rule (1), inform the Government in writing.

Rule - 90. Change of name, nationality etc. to be intimated.

(1)     An applicant for, or the holder of a mineral concession shall intimate to the Government within sixty days any change that may take place in his name, nationality, name of the mine or other particulars furnished to the Government.

(2)     If the holder of a mineral concession fails without sufficient cause to furnish the information referred to in sub-rule (1), the Government may impose a fine which may extend to rupees one lakh and in the case of continued contravention of the provisions of sub-rule (1), the Government may terminate the mineral concession:

Provided that no such order shall be made without giving the concession holder a reasonable opportunity of stating his case.

CHAPTER-XVII PENALTY

Rule - 91. Penalty.

Any contravention of any provision of these rules shall be punishable with imprisonment for a term which may extend to two years or with fine which may extend to rupees five lakhs, or with both, and in the case of a continuing contravention, with additional fine which may extend to rupees fifty thousand for every day during which such contravention continues after conviction for the first such contravention.

CHAPTER-XVIII REPEAL AND SAVING

Rule - 92. Repeal and saving.

(1)     On the commencement of these rules, the Gujarat Minor Mineral Concession Rides, 2010 shall cease to be in force with respect to all minor minerals covered under the Gujarat Minor Mineral Concession Rules, 2017 except as regards things, done or omitted to be done before such commencement.

(2)     On the commencement of these rules, with respect to the minerals to which these rules apply, any reference to the Gujarat Minor Mineral Concession Rules, 2010 in the rules made under the Act or any other document shall be construed as referenced to the Gujarat Minor Mineral Concession Rules, 2017, to the extent it is not repugnant to the context thereof.

 

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