[Mineral (Auction) Rules, 2015][1] [20th May, 2015] In exercise of the powers
conferred by Section 13 of the Mines and Minerals (Development and Regulation)
Act, 1957 (67 of 1957), the Central Government hereby makes the following rules,
namely. CHAPTER I PRELIMINARY (1) These rules may be called
the Mineral (Auction) Rules, 2015. (2) They shall come into force
on the date of their publication in the Official Gazette. (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) [2][* * *] (c) “Mine Development and
Production Agreement” means the agreement referred to in sub-rule (4) of Rule
10 or sub-rule (8) of Rule 18; (d) “preferred bidder” means
the bidder referred to in sub-clause (iii) of clause (b) of sub-rule (4) of
Rule 9; (e) “qualified bidders” means
the bidder referred to in sub-clause (iv) of clause (a) of sub-rule (4) of Rule
9; (f) “reserve price” means the
minimum percentage of value of mineral despatched as referred to in sub-rule
(1) of Rule 8; (g) “section” means section of
the Act; (h) “Schedule” means a Schedule
appended to these rules; (i) “successful bidder” means
the bidder as referred to in sub-rule (3) of Rule 10 or sub-rule (2) of Rule
18; (j) “technically qualified bidders”
means the bidder as referred to in sub-clause (ii) of clause (a) of sub-rule
(4) of Rule 9; (k) “tender document” means the
tender document issued by a State Government for conduct of an auction referred
to in sub-rule (2) of Rule 9; (l) “upfront payment” means the
payment referred to in sub-rule (1) of Rule 11; (m) “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 tonne; and [3][(ii) the average price per metric tonne of such mineral as
published by Indian Bureau of Mines for the relevant State for a period of
twelve months immediately preceding the month of computation of the Value of
Estimated Resources: [4][Provided that if for any
mineral or mineral grade, the average sale price in respect of the relevant
State for any month is not published by the Indian Bureau of Mines, the average
sale price for the latest month published for such mineral or mineral grade
shall be deemed to be the average sale price for the said month for which
average sale price is not published: Provided further that if
for any mineral or mineral grade, the average sale price in respect of the
relevant State is not published for the entire period of the preceding twelve
months, then the all India average sale price published for such mineral or
mineral grade for the said twelve months shall be used: Provided also that in case
of auction of mineral block for composite licence for minerals and corresponding
deposits as specified in Schedule II of the Minerals (Evidence of Mineral
Contents) Rules, 2015, the ‘estimated quantity of mineral resources’ shall be
arrived in the following manner, namely. (a) the estimated quantity of
mineral resources as assessed under G4 level of exploration for the mineralised
area in the block shall considered the ‘estimated quantity of mineral
resources’ of the block; (b) in case the estimated
quantity of mineral resources is not possible to be assessed under clause (a), then the same shall be arrived at
by multiplying. (i) the average of the
estimated quantity of mineral resource per hectare for the same mineral
available in the mineralised area of nearby mining leases or mineral blocks
having similar geological features and explored upto G3 level in accordance
with the said rules; and (ii) the mineralised area of the
mineral block, which is to be auctioned for composite licence. Explanation. For the purposes of this
clause ‘nearby mining leases or mineral blocks’ shall mean mining leases or
mineral blocks located in the same district or in any adjacent district.]] (n) “value of mineral
despatched” shall have the meaning specified in sub-rule (2) of Rule 8. (2) The words and expressions
used in these rules but not defined herein shall have the same meaning as
assigned to them in the Act or rules made thereunder. These rules shall apply to
all minerals, except. (i) minerals notified as minor
minerals specified under clause (e) of Section 3; (ii) minerals specified in Part
A of the First Schedule to the Act; and (iii) minerals specified in Part
B of the First Schedule to the Act having grade equal to or more than the
threshold value as specified and notified under the Atomic Minerals Concession
Rules, 2016.][5] (1) Where mineral contents of
an area has been established as specified in the Minerals (Evidence of Mineral
Contents) Rules, 2015, mining lease shall be granted in the manner specified
under Chapter II with respect to any notified minerals referred to in
sub-section (3) of Section 10-B or with respect to any minerals other than
notified minerals referred to in sub-section (2) of Section 11. (2) A Composite Licence with
respect to an area where requirements specified in Rule 7 of the Minerals
(Evidence of Mineral Contents) Rules, 2015 have been satisfied, shall be
granted in the manner specified under Chapter III with respect to any notified
minerals referred to in sub-section (2) of Section 10-B or with respect to any
minerals other than notified minerals referred to in sub-section (3) of Section
11. CHAPTER II GRANT
OF MINING LEASE (1) The State Government may
initiate an auction process for grant of a mining lease with respect to an area
within the State if the mineral contents in such area has been established in
accordance with the provisions of the Minerals (Evidence of Mineral Contents)
Rules, 2015. (2) The State Government shall,
prior to issuance of the notice inviting tender with respect to mineral
auction, identify and demarcate the area where a mining lease is proposed to be
granted through auction by using total station and differential global
positioning system and the area so demarcated shall be classified into forests
land, land owned by the State Government and land not owned by the State
Government. (3) The extent of area so
demarcated shall include area required for all the activities falling under the
definition of ‘mine’ as defined in clause (j) of sub-section (1) of Section 2
of the Mines Act, 1952 (35 of 1952). (1) For the purpose of
participating in the auction of mining lease, an applicant shall meet the
requirements as specified in Section 5 and the terms and conditions of
eligibility as specified in Schedule I. (2) The State Government may
having regard to Article 244 and the Fifth Schedule and Sixth Schedule to the
Constitution, the provisions of the Panchayats (Extension to the Scheduled
Areas) Act, 1996 (40 of 1996); and the Scheduled Tribes and other Traditional
Forest Dwellers (Recognition of Forest Rights) Act, 2006 (2 of 2007), make such
amendments to Schedule I as it may deem necessary. (3) [6][The State Government shall
not reserve any mine for captive purpose or any specific end use or partial specific
end use in the auction.] [7][Explanation. This sub-rule shall be applicable in all cases of
auction, notwithstanding any order or direction to the contrary, passed by any
court or authority, prior to the commencement of the Mines and Minerals (Development
and Regulation) Amendment Act, 2021.] (4) [8][Where the State Government
has auctioned a mine as a captive mine for any particular specified end use
before the commencement of the Mineral (Auction) Second Amendment Rules, 2021,
up to fifty per cent. of total mineral produced in such captive mine in a
financial year may be sold in market while ensuring that not less than fifty
per cent. of total mineral produced in such captive mine shall be used during
the financial year for meeting the requirement of the end use plant linked with
the mine and on payment of such additional amount as specified in the Sixth
Schedule to the Act.] [9][Explanation. This sub-rule shall be applicable in all leases
where mineral is required to be used for captive consumption, notwithstanding
any order or direction to the contrary, passed by any court or authority, prior
to the commencement of the Mines and Minerals (Development and Regulation)
Amendment Act, 2021.] (5) The eligibility for
participating in the auction shall be determined as per the terms and
conditions of eligibility for participating in the auction and the Successful
Bidder shall be decided solely on the basis of financial bids submitted by the
eligible bidders. (1) An auction shall be
conducted only through an online electronic auction platform. (2) The State Government may
utilise any online electronic auction platform which meets the minimum
technical and security requirements as specified in the Guidelines for
compliance to Quality requirements of e-Procurement Systems issued by the
Standardisation Testing and Quality Certification Directorate, Department of
Information Technology, Ministry of Communications and Information Technology,
Government of India. (1) The State Government shall
specify in the tender document the minimum percentage of the value of mineral
despatched, which shall be known as the “reserve price”. (2) The value of mineral
despatched shall be an amount equal to the product of, (i) mineral despatched in a
month; and (ii) sale price of the mineral
(grade-wise and State-wise) as published by Indian Bureau of Mines for such
month of despatch. (3) The bidders shall quote, as
per the bidding parameter, for the purpose of payment to the State Government,
a percentage of value of mineral despatched equal to or above the reserve price
and the successful bidder shall pay to the State Government, an amount equal to
the product of, (i) percentage so quoted; and (ii) value of mineral
despatched. (4) Where an area is being
auctioned for more than one mineral, the percentage of value of mineral
despatched as quoted by the successful bidder under sub-rule (3) shall be
applicable for the purpose of payment to the State Government in respect of
each such mineral. (5) If subsequent to grant of a
mining lease, one or more new minerals are discovered, the percentage of value
of mineral despatched as quoted by the successful bidder under sub-rule (3)
shall be applicable for the purpose of payment to the State Government in
respect of each such mineral. (1) Subject to the provisions
of Rule 5, the State Government shall issue a notice inviting tender, including
on their website, to commence the auction process and such notice shall contain
brief particulars regarding the area under auction, including, (a) particulars of the area
identified and demarcated using total station and differential global
positioning system divided into forest land, land owned by the State
Government, and land not owned by the State Government; and (b) estimated mineral resources
and brief particulars regarding evidence of mineral contents with respect to
all minerals discovered in the area during exploration in accordance with the
provisions of the Minerals (Evidence of Mineral Contents) Rules, 2015. (2) The tender document issued
by the State Government shall contain, (a) geological report pursuant
to the Minerals (Evidence of Mineral Contents) Rules, 2015 specifying
particulars and estimated quantities of all minerals discovered in the
area; [10][*
* *] (b) revenue survey details of
the area identified and demarcated using total station and differential global
positioning system divided into forest land, land owned by the State
Government, and land [11][not
owned by the State Government; and] (c) [12][the scheduled date of
commencement of production in case of auction of mining lease in respect of an
area having existence of mineral contents established in accordance with Rule 5
of the Minerals (Evidence of Mineral Contents) Rules, 2015.] (3) The bidders shall be
provided a fixed period, as notified by the State Government, to study the
tender document and such reports and the bidding process shall commence only on
expiry of such period. (4) [13][The auction shall be an
ascending forward online electronic auction and shall comprise of attempts of
auction with each attempt of auction consisting of a first round of auction and
a second round of auction. (5) In the first round of auction,
the bidders shall submit, (A) a technical bid comprising
amongst others, documentary evidence to confirm eligibility as per the
provisions of the Act and the rules made thereunder to participate in the
auction, bid security and such other documents and payments as may be specified
in the tender document; and (B) an initial price offer
which shall be a percentage of value of mineral despatched. [14][Provided that bid security
shall be for an amount equivalent to 0.25 per cent. of the value of estimated
resources or fifty crore rupees, whichever is lower, and shall be submitted in
the form of a bank guarantee or through security deposit: Provided further that in
auction for composite licence for the mineral block having such type of deposit
as specified in serial number I, II and III of Part III of Schedule I to the
Minerals (Evidence of Mineral Contents) Rules, 2015 (except those covered under
Schedule II of the said rules), whose estimated quantity of mineral resources
is not possible to be assessed for calculating the value of estimated resources
under clause (m) of sub-rule
(1) of Rule 2, but the mining potentiality of the block has been identified
based on the existing geoscience data, the bid security shall be fifty lakh
rupees.] [15][Provided also that in case
the area proposed by a person under sub-rule (1-A) of Rule 7 of the Minerals
(Evidence of Mineral Contents) Rules, 2015 is put up for auction to grant a
composite licence, such person shall be required to submit the bid security of
only fifty per cent. of the amount specified in this clause for participating
in the auction for the said area.] (6) Only those bidders who are
found to be eligible in accordance with the terms and conditions of eligibility
specified in Rule 6 and whose initial price offer is equal to or greater than
the reserve price, referred to as “technically qualified bidders”, shall be considered
for the second round of auction. (7) The highest initial price
offer amongst the technically qualified bidders shall be the floor price for
the second round of online electronic auction. (8) The technically qualified
bidders shall be ranked on the basis of the descending initial price offer
submitted by them and the technically qualified bidders holding the first fifty
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 price offers being submitted by two or more
technically qualified bidders, all such technically qualified bidders shall be
assigned the same rank for the purposes of determination of qualified bidders
and in such case, the aforementioned fifty per cent. shall stand enhanced to
the extent of tie occurring within the first fifty per cent. Illustration:
In
the event there are a total of ten technically qualified bidders, and each
technically qualified bidder submits different initial price offer, then the
technically qualified bidders holding the first fifty per cent. of ranks shall
be considered to be qualified bidders. If three such technically
qualified bidders submit the same initial price offer and are ranked in first
fifty per cent. of the total number of ranks, then, all the three technically
qualified bidders shall be considered to be qualified bidders and the total
number of qualified bidders shall stand increased by two. (9) Where the total number of
technically qualified bidders is three or more, the auction process shall
proceed to the second round of auction which shall be held in the following
manner, namely. (i) the qualified bidders may
submit their final price offer which shall be a percentage of value of mineral
despatched and greater than the floor price: Provided that the final
price offer may be revised till the conclusion of the auction as per the
technical specifications of the auction platform; (ii) The auction process shall
be annulled if none of the qualified bidders submits a final price offer on the
online electronic auction platform; (iii) the qualified bidder who
submits the highest final price offer shall be declared as the “preferred
bidder” immediately on conclusion of the auction. (10) Where the total number of
technically qualified bidders is less than three, then no technically qualified
bidder shall be considered to be qualified bidder and the first attempt of
auction shall be annulled. (11) On annulment of the first
attempt of auction, the State Government may decide to. (a) commence the auction
process de novo with
a separate set of terms and conditions and reserve price as it may deem fit and
necessary; or (b) conduct the second attempt
of auction. (12) In case the State
Government decides to conduct the second attempt of auction as per clause (b) of sub-rule (11), the terms and
conditions of the second attempt of auction shall remain the same as in the
first annulled attempt of auction: Provided that the highest
initial price offer of the technically qualified bidders if any in the first
annulled attempt shall be the reserve price in first round of the second
attempt: Provided further that the
bidding shall continue to the second round even in case the number of
technically qualified bidders is less than three.] (1) The State Government shall
intimate to the Central Government the details of all the areas or mines
available with the State Government for auction of mining lease, including the
mining leases expired under Section 8-A and cases covered under sub-section (2)
of Section 10-A, within forty-five days of the commencement of the Mineral
(Auction) Second Amendment Rules, 2021. (2) The State Government shall
intimate to the Central Government regarding the following namely. (a) receipt of any geological
report in respect of any area or mine for auction of mining lease from
Geological Survey of India, Mineral Exploration Corporation Limited or any
other Government or private entity, within a period of forty-five days of
receiving it, along with a tentative schedule for notification of such area and
conducting auction of such area under sub-sections (3) and (4) of Section 10-B,
respectively; (b) publication of notification
under sub-section (3) of Section 10-B along with its copy, within fifteen days
of publication of such notification; (c) issue of notice inviting
tender for auction for mining lease under Rule 9 along with its copy, within
fifteen days of issue of such notice; (d) outcome of any auction for
mining lease, within fifteen days of completion of auction; and (e) termination of mining lease
or lapsing of letter of intent for mining lease, within fifteen days from such
termination or lapse. (3) In case the Central
Government decides to notify an area for auction or conduct auction for mining
lease under the proviso to sub-section (3) or sub-section (4) of Section 10-B,
as the case may be, the provisions of Rules 5 to 9, as applicable to a State
Government, shall mutatis mutandis be also applicable to the Central
Government. (4) Upon successful completion
of the auction, the Central Government shall intimate the details of the
preferred bidder in the auction to the State Government and the State
Government shall grant mining lease for such area to such preferred bidder in
accordance with Rule 10.][16] (1) The preferred bidder shall
submit the first instalment [17][of
the upfront payment as per Rule 11 within fifteen days after being declared as
preferred bidder: Provided that the State
Government may, for reasons to be recorded in writing extend the period of
fifteen days by further fifteen days.] [18][(1-A) In case the
preferred bidder fails to submit the first instalment of the upfront amount
within the period or extended period specified in sub-rule (1), the State
Government shall, (a) forfeit the bid security of
the preferred bidder; and (b) offer the bidder who had
submitted the second-highest price offer in the second round of auction to meet
the highest final price offer and if the said bidder agree to the said offer in
writing and submit the first instalment of upfront amount within fifteen days
of receipt of offer, the State Government shall declare said bidder as the
preferred bidder and issue letter of intent in accordance with sub-rule (2): Provided that the State
Government may, for the reasons to be recorded in writing, extend the period of
fifteen days referred to in this clause by further fifteen days.] (2) Upon receipt of the first
instalment of the upfront payment, the State Government shall issue a letter of
intent to the preferred bidder [19][within
fifteen days of receipt of first instalment of upfront payment]. (3) The preferred bidder shall
be considered to be the “successful bidder” upon, (a) continuing to be in
compliance with all the terms and conditions of eligibility; (b) payment of the second
instalment [20][*
* *] of the upfront payment; (c) furnishing performance
security as specified in Rule 12; (d) satisfying the conditions
specified in clause (b) of sub-section (2) of Section 5 with respect to a
mining [21][plan: Provided that, in case of
auction of mining leases under sub-sections (5) and (6) of Section 8-A of the
Act, the vesting order issued under Rule 9-A of the Minerals (Other than Atomic
and Hydro Carbons Energy Minerals) Concession Rules, 2016 shall be applicable;
and] (e) satisfying such other
conditions as may be specified by the State Government with the prior approval
of the Central Government. (4) The successful bidder shall
sign the Mine Development and Production Agreement with the State Government
upon obtaining all consents, approvals, permits, no-objections and the like as
may be required under applicable laws for commencement of mining operations. (5) The successful bidder shall
pay the third instalment [22][*
* *] of the upfront payment subsequent to execution of the Mine Development and
Production Agreement, and upon such payment the State Government shall grant a
mining lease to the successful bidder. (6) The Mining Lease Deed shall
be executed by the State Government within thirty days of the date of
completion of the conditions specified in sub-rule (5) and shall be subject to
the provisions of the Act and the rules made thereunder: [23][Provided that no Mining
Lease Deed shall be executed on expiry of a period of three years from the date
of the letter of intent, and the letter of intent shall be invalidated leading
to annulment of the entire process of auction: Provided further that the
State Government may allow a further period of two years for execution of the
Mining Lease Deed if the reasons for delay were beyond the control of the
preferred bidder.] [24][(6-A) Notwithstanding
anything contained in these rules, the mining lease shall be executed by the
State Government within a period of fifteen days from— (i) the date of issue of Letter
of Intent to the new lessee to whom the vesting order has been issued under
Rule 9-A of Minerals (Other than Atomic and Hydro Carbons Energy Minerals)
Concession Rules, 2016; or (ii) commencement of the Mineral
Auction (Amendment) Rules, 2020; or (iii) the expiry of the lease
period of the previous lessee; (iv) whichever is later. (6-B)
The holder of the Letter of Intent shall comply with all the requirements to
execute the mining lease within the period referred to in sub-rule (6-A),
failing which, the Letter of Intent shall be revoked and the bid security or
the performance security, as the case may be, and any instalment of upfront
payment paid shall be forfeited, and the preferred bidder or successful bidder
may be debarred by the State Government from participating in the future
auction of mineral blocks conducted under the provisions of these rules, for
three years from the date of such debarment: Provided that on receipt of
an application from the holder of the Letter of Intent, the State Government,
may extend the period for execution of the lease deed by a further period not
exceeding fifteen days, on satisfaction that such delay is entirely for the
reasons beyond the control of the holder of Letter of Intent.] (7) The mining lease shall be for
minerals found in the area pursuant to exploration prior to the auction: Provided that where,
subsequent to the auction, any new mineral is discovered, then the holder of
mining lease shall follow the provisions of the [25][Minerals
(Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016]
for inclusion of such new mineral in the Mining Lease Deed. (8) Where, prior to the auction
or subsequent to the auction, presence of minor mineral is established or
discovered, such minor minerals shall be dealt in accordance with such rules
made by the State Government under Section 15. (9) The date on which a duly
executed Mining Lease Deed is registered shall be the date of commencement of
the mining lease. (1) An amount equal to 0.50% of
the value of estimated resources shall be the upfront payment. (2) The upfront payment shall
be payable to the State Government in three instalments of [26][twenty
per cent.; twenty per cent.; and sixty per cent.;] as specified in the tender
document and shall be [27][adjusted
in full at the earliest against the amount to be paid under sub-rule (3) of
Rule 8 on] commencement of production of mineral as specified in the tender
document. (1) The [28][preferred]
bidder shall provide a performance security of an amount of 0.50% of the value
of estimated resources and the performance security shall be adjusted every
five years so that it continues to correspond to 0.50% of the reassessed value
of estimated resources [29][including
the value of any newly discovered mineral that may be included in the mining
lease deed on its discovery]. (2) The performance security
provided through bank guarantee in the format as specified in Schedule III or
through security deposit, may be invoked as per the provisions of. (i) the Mine Development and
Production Agreement; and (ii) the Mining Lease Deed. (1) The lessee shall pay
royalties and dead rent to the State Government as specified in the Act and the
rules made thereunder. (2) The lessee shall pay the
applicable amount quoted under Rule 8 to the State Government on a monthly
basis: [30][Provided that in case of
auction of mining lease in respect of an area having existence of mineral
contents established in accordance with Rule 5 of the Minerals (Evidence of
Mineral Contents) Rules, 2015, the lessee shall pay only fifty per cent of the
amount quoted under Rule 8, for the quantity of mineral produced and dispatched
earlier than the scheduled date of commencement of production as given in the
tender document: Provided further that for
such quantity of mineral produced and dispatched, other payments as specified
in sub-rules (1), (3) and (4) shall be payable in full and the successful
bidder shall obtain all necessary approvals, permissions, licences and the like
as may be required under any law for the time being in force for starting early
production. Explanation. For the purposes of this
sub-rule, it is clarified that the incentive specified in the first proviso on
payment of amount quoted under Rule 8 shall be applicable on the quantity of
mineral produced and dispatched between actual date and the scheduled date of
commencement of production.] (3) The lessee shall contribute
such amounts as may be required under the Act to (a) the designated account of
the National Mineral Exploration Trust; and (b) 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. The State Government shall
charge simple interest at the rate of [31][twelve]
per cent. per annum on any payment due to State Government under these rules
the payment of which is delayed beyond [32][*
* *] the due date thereof. The time period for
compliance of Rules 10 to 14 shall be as specified in the tender document. CHAPTER III GRANT OF COMPOSITE LICENCE (1) The State Government may
initiate an auction process for grant of a Composite Licence with respect to an
area within the State in accordance with the provisions of the Act and this
Chapter subject to the condition that the requirements of Rule 7 of the Minerals
(Evidence of Mineral Contents) Rules, 2015 have been satisfied: Provided that in case of an
auction with respect to a notified mineral, prior approval of the Central
Government shall be required. (2) The State Government shall,
prior to issuance of the notice inviting tender with respect to auction,
identify and demarcate the area where a Composite Licence is proposed to be
granted through auction using total station and differential global positioning
system [33][or
global positioning system]. (1) The auction process as
specified in Rules 6 to 9 shall be applicable for conduct of auction for grant
of a Composite Licence subject to the following, namely. (a) the State Government shall
not make any reservation on the basis of end use; (b) the State Government shall
subject to compliance of Rule 16, issue a notice inviting tender, including on
their website, to commence the auction process and such notice shall contain
brief particulars regarding the area under auction, including, (i) particulars of the area
identified and demarcated using total station and differential global
positioning system [34][,
or global positioning system]; and (ii) estimated mineral resources
with respect to all minerals discovered in the area and brief particulars
regarding satisfaction of the requirements specified in Rule 7 of the Minerals
(Evidence of Mineral Contents) Rules, 2015; (c) the tender document issued
by the State Government, shall contain, (i) geological report specifying particulars and
estimated quantities of all minerals discovered in the area during exploration
pursuant to Minerals (Evidence of Mineral Contents) Rules, 2015; and [35][(ii) details of the area identified, demarcated using total
station and differential global positioning system, or global positioning
system;] (d) the bidders shall be
provided a fixed period, as prescribed by the State Government, to study the
Tender Document and such reports and the bidding process shall commence only on
expiry of such period. (1) The State Government shall
intimate to the Central Government the details of all the areas or mines
available with the State Government for auction of composite licence, including
the prospecting licence expired under Section 7 and cases covered under
sub-section (2) of Section 10-A, within forty-five days of the commencement of
the Mineral (Auction) Second Amendment Rules, 2021. (2) The State Government shall
intimate to the Central Government regarding the following namely. (i) receipt of any geological
report in respect of any area or mine for auction of composite licence from the
Geological Survey of India, Mineral Exploration Corporation Limited or any
other Government or private entity, within a period of forth-five days of
receiving it, along with a tentative schedule for notification of such area and
conducting auction of such area under sub-sections (4) and (5) of Section 11,
respectively; (ii) publication of notification
under sub-section (4) of Section 11 along with its copy, within fifteendays of
publication of such notification; (iii) issue of notice inviting
tender for auction for composite licence along with its copy, within fifteen
days of issue of such notice; (iv) outcome of any auction for
composite licence, within fifteen days of completion of auction; and (v) termination of composite
licence or lapsing of letter of intent for composite licence, within fifteen
days from such termination or lapse. (3) In case the Central
Government decides to notify an area for auction or conduct auction for
composite licence under the proviso to sub-section (4) or sub-section (5) of
Section 11, as the case may be, the provisions of Rules 16 and 17, as
applicable to a State Government, shall mutatis mutandis be also applicable to the
Central Government. (4) Upon successful completion
of the auction, the Central Government shall intimate the details of the
preferred bidder in the auction to the State Government and the State
Government shall grant composite licence for such area to such preferred bidder
in accordance with Rule 18.][36] (1) Upon completion of the
auction process, the preferred bidder shall submit a performance security in
the manner specified in sub-rule (1) of Rule 19 [37][within
fifteen days after being declared as preferred bidder] and upon receipt of such
performance security, the State Government shall issue a letter of intent [38][to
the preferred bidder within fifteen days of receipt of performance security: Provided that the State
Government may, for the reasons to be recorded in writing, extend the period of
fifteen days for submission of performance security by further fifteen days.] [39][(1-A) In case the
preferred bidder fails to submit the performance security within the period or
extended period specified in sub-rule (1), the State Government shall, (a) forfeit the bid security of
the preferred bidder; and (b) offer the bidder who had
submitted second-highest price offer in the second round of auction to meet the
highest final price offer and if the said bidder agree to the said offer in
writing and submit the performance security within fifteen days of receipt of
offer, the State Government shall declare the said bidder as the preferred
bidder and issue letter of intent in accordance with sub-rule (2): Provided that the State
Government may, for the reasons to be recorded in writing, extend the period of
fifteen days by further fifteen days.] (2) On receipt of the letter of
intent the preferred bidder shall be considered to be the successful bidder upon
fulfilment of the following conditions, namely. (a) compliance with all the
terms and conditions of eligibility; (b) obtaining all consents,
approvals, permits, no-objections and the like as may be required under
applicable laws for commencement of prospecting operations; and (c) submitting the Scheme of
prospecting. (3) Upon fulfilment of the
conditions specified in sub-rule (2), the State Government shall grant a
Composite Licence to the successful bidder and such Composite Licence shall be
subject to the provisions of the Act and the rules made thereunder, as
applicable to a prospecting licence and mining lease. [40][Provided that on expiry of
a period of one year from the date of the letter of intent, no Prospective
Licence Deed of Composite Licence shall be executed and the letter of intent
shall be invalidated leading to annulment of the entire process of auction: Provided further that the
State Government may allow a further period of six months for execution of the
Prospective Licence Deed, if the reasons for delay were beyond the control of
the preferred bidder.] (4) The minimum area for grant
of a Composite Licence shall not be less than the minimum area for which a
mining lease may be granted in accordance with the provisions of the [41][Minerals
(Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016]
and the maximum area shall be in accordance with Section 6 as applicable to a
prospecting licence. (5) The holder of a Composite
Licence shall conduct geological exploration of the area under the Composite
Licence so as to ascertain evidence of mineral contents and shall submit
periodic reports in accordance with the Act and rules made thereunder, as
applicable to a prospecting licence and all reports, studies and other
documentation related to the geological exploration of the area under the
Composite Licence shall be submitted to the State Government and Indian Bureau
of Mines. (6) If a holder of a Composite
Licence, (a) fails to complete
prospecting operations in accordance with sub-section (9) of Section 11 or
fails to establish the existence of mineral contents in accordance with [42][*
* *] the Minerals (Evidence of Mineral Contents) Rules, 2015, such holder shall
not be eligible to receive a mining lease and the Composite Licence shall be
terminated; (b) [43][completes prospecting
operations and submits to the State Government the result of the prospecting
operations in the form of a geological report prepared in accordance with
sub-section (10) of Section 11 resulting in determination of evidence of
mineral contents conforming to the Mineral (Evidence of Mineral Contents)
Rules, 2015; specifying the area required for grant of a mining lease,
accompanied with the first installment of the upfront payment as specified in
Rule 11, then the State Government shall issue a letter of intent for mining
lease within a period of fifteen days: Provided that any excess
area shall be deemed to be surrendered by the holder of Composite Licence after
completing its reclamation: Provided further that after
submission of the geological report prepared in accordance with the Mineral
(Evidence of Mineral Contents) Rules, 2015, the holder of composite licence may
relinquish the entire area and in such case the State Government shall, after
being satisfied that the geological report has been prepared conforming to the
said rules, return the performance security.] (7) [44][* * *] (8) A Mine Development and
Production Agreement shall be executed between the State Government and the
holder of Composite Licence if the holder of a Composite Licence. (a) continues to comply with
the terms and conditions of eligibility; (b) pays the second instalment
being [45][twenty
per cent] of the upfront payment; (c) furnishes the enhanced
performance security as specified in sub-rule (2) of Rule 19; (d) satisfies the conditions
specified in clause (b) of sub-section (2) of Section 5 with respect to a
mining plan; (e) obtains all consents,
approvals, permits, no-objections and the like as may be required under
applicable laws for commencement of mining operations; and (f) satisfies such other
conditions as may be specified by the State Government with the prior approval
of the Central Government. (9) The holder of the Composite
Licence shall pay the third instalment being [46][sixty
per cent] of the upfront payment, subsequent to execution of the Mine
Development and Production Agreement, and upon such payment, the State
Government shall execute a Mining Lease Deed with the holder of the Composite
Licence within thirty days of the date of completion of all the conditions
specified in sub-rule (8). (10) The mining lease shall be
subject to the provisions of the Act and the rules made thereunder. (11) The mining lease shall be
for minerals found in the area pursuant to exploration prior to the auction: Provided that where
subsequent to the auction, any new mineral is discovered, then the holder of
the mining lease shall follow the provisions of the [47][Minerals
(Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016]
for inclusion of such new mineral in the Mining Lease Deed. (12) Where prior to the auction
or subsequent to the auction, presence of minor mineral is established or
discovered, such minor minerals shall be dealt in accordance with such rules as
may be made by the State Government under Section 15. (13) The date on which a duly
executed Mining Lease Deed is registered shall be the date of commencement of
the mining lease. (1) An amount of 0.25% of the
value of estimated resources shall be payable by the preferred bidder as
performance security prior to the issuance of the Composite Licence. [48][Provided that for the
mineral block having such type of deposit as specified in serial numbers I, II
and III of Part III of Schedule I to the Minerals (Evidence of Mineral
Contents) Rules, 2015 (except those covered under Schedule II of the said
rules), whose estimated quantity of mineral resources is not possible to be
assessed for calculating the value of estimated resources under clause (m) of
sub-rule (1) of Rule 2, but the mining potentiality of the block has been
identified based on the existing geoscience data, the performance security
shall be one crore and fifty lakh rupees.] (2) The amount of performance
security shall be revised, prior to the issuance of the mining lease, to an amount
of 0.50% of the value of estimated resources [49][established
by the holder of the Composite Licence after completion of prospecting
operations in accordance with sub-section (9) of Section 11 of the Act
resulting in determination of evidence of mineral contents conforming to the
Mineral (Evidence of Mineral Contents) Rules, 2015]. (3) The performance security
provided under sub-rule (2) shall be adjusted every five years so that it
continues to correspond to 0.50% of the reassessed value of estimated resources. (4) [50][The performance security
shall be provided through bank guarantee in the format as specified in Schedule
IV or through security deposit, which may be invoked as per the provisions of. (i) the prospecting licence
deed; (ii) the Mine Development and Production
Agreement; (iii) the Mining Lease Deed: Provided that the State
Government on being satisfied that the holder of Composite Licence has
completed prospecting operations in accordance with sub-section (9) of Section
11 of the Act but is unable to establish the existence of mineral contents even
after making all possible efforts in accordance with [51][*
* *] the Minerals (Evidence of Mineral Contents) Rules, 2015, shall return the
bank guarantee or the security deposit provided by the holder of the Composite
Licence as performance security:] [52][Provided further that in
case the holder of composite licence fails to complete prospecting operations
in accordance with sub-section (9) of Section 11, the performance security
provided by it shall be forfeited.] CHAPTER IV MISCELLANEOUS 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 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. (1) Notwithstanding anything
contained in these rules. (a) if the holder of a
Composite Licence or mining lease discovers any mineral specified in Part B of
the First Schedule to the Act and not specified in such licence or lease, in
the area granted under such licence or lease, the discovery of such mineral
shall be reported to the Director, Atomic Minerals Directorate for Exploration
and Research, Hyderabad within sixty days from the date of discovery of such
mineral; (b) the licencee or lessee
shall not win or dispose of any mineral specified in Part B of the First
Schedule to the Act unless such mineral is included in the licence or lease or
a separate licence or lease for the purpose has been obtained; (c) the quantities of any
mineral specified in Part B of the First Schedule to the Act recovered
incidental to such prospecting or 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 licencee or lessee as may be directed by the
Atomic Minerals Directorate for Exploration and Research. (2) The licencee or lessee
referred to in sub-rule (1) shall, within sixty days from the date of discovery
of any mineral specified in Part B of the First Schedule to the Act, apply to
the Secretary, Department of Atomic Energy, Mumbai, through the State
Government, for grant of a licence to handle such minerals under the provisions
of the Atomic Energy Act, 1962 (33 of 1962) and the rules made thereunder and
the Department of Atomic Energy shall intimate to the State Government
regarding issue of the licence in this regard. The holder of a mining
lease shall complete detailed exploration (G1 level exploration) and prepare a
detailed feasibility study report conforming to Part IV and V of the Mineral
(Evidence of Mineral Contents) Rules, 2015 over the entire area under the
mining lease, within a period of five years from the date of commencement of
such mining lease. When the day of completion
of any requirement under these rules is falling due on a public holiday, the
day of completion shall be deemed to be due on the next successive working day. Explanation. The expression “public
holiday” includes Saturday, Sunday and any other day declared to be a public
holiday by the Central Government or the State Government, as the case may be.][53] [54][SCHEDULE I Terms and conditions of
eligibility [See Rules 6(1) and 6(2)] (1) The following net worth
requirements shall be applicable for an auction of mining lease depending on
the Value of Estimated Resources, namely. (a) If the Value of Estimated
Resources is equal to or more than one thousand crore rupees, the applicant,
including an individual, shall have a net worth more than 2 per cent. of Value
of Estimated Resources. (b) If the Value of Estimated
Resources is less than one thousand crore rupees but more than one hundred
crore rupees, the applicant, including an individual, shall have a net worth
more than 1 per cent. of Value of Estimated Resources. (c) If the Value of Estimated
Resources is less than or equal to one hundred crore rupees, the applicant,
including an individual, shall have a net worth more than 0.5 per cent. of
Value of Estimated Resources. [55][Provided that the net
worth requirement shall not exceed two hundred crore rupees.] (2) In case of auction of
Composite Licence, the applicant shall have a net worth of more than 1 per
cent. of the Value of Estimated Resources and where the value of Estimated
Resources is equal or less than one hundred crore rupees, the applicant must
have a net worth more than 0.5 per cent. of Value of Estimated Resources: [56][Provided that the net
worth requirement shall not exceed one hundred crore rupees: Provided further that for
the mineral block having such type of deposit as specified in serial numbers I,
II and III of Part III of Schedule I to the Minerals (Evidence of Mineral
Contents) Rules, 2015 (except those covered under Schedule II of the said
rules), whose estimated quantity of mineral resources is not possible to be
assessed for calculating the value of estimated resources under clause (m) of
sub-rule (1) of Rule 2, but the mining potentiality of the block has been
identified based on the existing geoscience data, the applicant shall have a
net worth more than or equal to twenty-five crore rupees.] Explanation. (1) In case an applicant is a
subsidiary of another company incorporated in India, the net worth of such
holding company may also be considered: Provided that, in such
case, the applicant shall continue to be a subsidiary of such holding company
until such time the applicant meets the aforementioned net worth threshold. (2) In case of a company, the
net worth shall be the sum of paid up share capital and the free reserves as
per the audited balance sheet of the financial year ended immediately preceding
the date of issuance of notice inviting tender. (3) In case the notice inviting
tender is issued between 1st April to 30th September
(both days inclusive) of a year, the audited balance sheet of the financial
year before the immediately preceding financial year, from the date of issuance
of notice inviting tender, may be submitted by the bidder, if the audited
balance sheet of the immediately preceding financial year is not available. (4) In case of an individual,
the net worth shall be the closing cash balance on the last date for submission
of application, and such amount may include amount in savings bank accounts in
Scheduled Bank or Post Office, free and un-encumbered fixed deposits in
Scheduled Banks, Post Office, Listed Companies or Government organisation or
Public Sector Undertakings of a State and the Central Government, Kisan Vikas
Patra, National Saving certificate, Bonds, Shares of Listed Companies, Listed
Mutual Funds, Unit Linked Insurance Plan, Public Provident Fund, Surrender
Value of Life Insurance policies, and un-encumbered immovable property in the
name of Applicant.] SCHEDULE
II Indicative list of
specified End Use [57][* * *] SCHEDULE
III Format of Performance
Security [See Rules 12(2)] [Reference number of the bank] [date] To The Governor of [Name of
State] [address] Whereas [58][A. [Name of the Preferred
Bidder] incorporated in India under the Companies Act, [1956/2013] with
corporate identity number [CIN of the Preferred Bidder], whose registered
office is at [address of registered office], India and principal place of
business is at [address of principal place of business, if different from
registered office] OR [Name of individual] who is citizen of India, having
income tax permanent account number [number], residing at [address] OR [partnership
firm/association of individuals], all members of whom are Indian citizens and
residents of India whose principal place of business is at [address of
principal place of business] (the “Preferred Bidder”) is required to provide an
unconditional and irrevocable bank guarantee for an amount equal to INR
[figures] (Indian Rupees [words]) as a performance security valid until [date
of expiry of performance bank guarantee] (“Expiry Date”).] B. The Performance Security is required to be
provided to The Governor of [Name of State], (the “State”) for discharge of
certain obligations under the Tender Document dated, [date] with respect to
auction of [particulars of auction] and the Mine Development and Production
Agreement to be executed between the State and the Successful Bidder
(collectively the “Agreement”). C. We, [name of the bank] (the “Bank”) at the
request of the [59][Preferred]
Bidder do hereby undertake to pay to the State an amount not exceeding INR
[figures] (Indian Rupees [words]) (“Guarantee Amount”) to secure the
obligations of the Successful Bidder under the Agreement on demand from the
State on the terms and conditions herein contained herein. Now therefore, the Bank
hereby issues in favour of the State this irrevocable and unconditional payment
bank guarantee (the “Guarantee”) on behalf of the Successful Bidder in the
Guarantee Amount: (1) The Bank for the purpose
hereof unconditionally and irrevocably undertakes to pay to the State without
any demur, reservation, caveat, protest or recourse, immediately on receipt of
first written demand from the State, a sum or sums (by way of one or more
claims) not exceeding the Guarantee Amount in the aggregate without the State
needing to prove or to show to the Bank grounds or reasons for such demand for
the sum specified therein and notwithstanding any dispute or difference between
the State and Successful Bidder on any matter whatsoever. The Bank undertakes
to pay to the State any money so demanded notwithstanding any dispute or
disputes raised by the Successful Bidder in any suit or proceeding pending
before any court or tribunal relating thereto the Bank's liability under this
present being absolute and unequivocal. (2) The Bank acknowledges that
any such demand by the State of the amounts payable by the Bank to the State
shall be final, binding and conclusive evidence in respect of the amounts
payable by Successful Bidder to the State under the Agreement. (3) The Bank hereby waives the
necessity for the State from demanding the aforesaid amount or any part thereof
from the Successful Bidder and also waives any right that the Bank may have of
first requiring the State to pursue its legal remedies against the Successful
Bidder, before presenting any written demand to the Bank for payment under this
Guarantee. (4) The Bank further
unconditionally agrees with the State that the State shall be at liberty,
without the Bank's consent and without affecting in any manner the Bank's
obligation under this Guarantee, from time to time to: (i) vary and/or modify and of
the terms and conditions of the Agreement; (ii) extend and/or postpone the
time for performance of the obligations of the Successful Bidder under the
Agreement, or (iii) forbear or enforce any of
the rights exercisable by the State against the Successful Bidder under the
terms and conditions of the Agreement. (iv) and the Bank shall not be
relieved from its liability by reason of any such act or omission on the part
of the State or any indulgence by the State to the Successful Bidder or other
thing whatsoever which under the law relating to sureties would, but for this
provision, have the effect of relieving the Bank of its obligations under this
Guarantee. (5) Any payment made hereunder
shall be made free and clear of and without deduction for, or on account of,
any present or future taxes, levies, imposts, duties, charges, fees,
commissions, deductions or withholdings of any nature whatsoever. (6) The Bank agrees that State
at its option shall be entitled to enforce this Guarantee against the Bank, as
a principal debtor in the first instance without proceeding at the first
instance against the Successful Bidder. (7) The Bank further agree that
the guarantee herein contained shall remain in full force and effect during the
period that specified in the Agreement and that it shall continue to be
enforceable till all the obligations of the Successful Bidder under or by
virtue of the said Agreement with respect to the Performance Security have been
fully paid and its claims satisfied or discharged or till the State certifies
that the terms and conditions of the Agreement with respect to the Performance
Security have been fully and properly carried out by the Successful Bidder and
accordingly discharges this guarantee. Notwithstanding anything contained
herein, unless a demand or claim under this guarantee is made on the Bank in
writing on or before the Expiry Date the Bank shall be discharged from all
liability under this guarantee thereafter. (8) The payment so made by the
Bank under this Guarantee shall be a valid discharge of Bank's liability for
payment thereunder and the State shall have no claim against the Bank for
making such payment. (9) This Guarantee is subject
to the laws of India. Any suit, action, or other proceedings arising out of
this Guarantee or the subject matter hereof shall be subject to the exclusive
jurisdiction of courts at the State of [respective State]. (10) The Bank has the power to
issue this Guarantee in favour of the State. This guarantee will not be
discharged due to the change in the constitution of the Bank (11) The Bank undertakes not to
revoke this Guarantee during its currency except with the previous consent of
the State in writing. (12) The State may, with prior
intimation to the Bank, assign the right under this Guarantee to any other
departments, ministries or any governmental agencies, which may act in the name
of the Governor. Save as provided in this Clause 12, this Guarantee shall not
by assignable or transferable. (13) Notwithstanding anything
contained herein, (a) The liability of the bank
under this bank guarantee shall not exceed the Guarantee Amount. (b) This bank guarantee shall
be valid up to the Expiry Date. (14) The Bank is liable to pay
the guaranteed amount or any part thereof under this bank guarantee only and
only if the State serves upon the Bank a written claim or demand on or before
the Expiry Date. Dated the [day] day of
[month] [year] for the Bank. In witness whereof the
Bank, through its authorized officer, has set its hand and stamp. ————————————— (Signature) ————————————— (Name and Designation) (Bank Stamp) [60][SCHEDULE IV Format of Performance
Security for Composite Licence [See Rule 19(4)] [Reference number of the
bank] [date] To The Governor of [Name of
State] [address] WHEREAS (A) [Name of the Preferred
Bidder] incorporated in India under the Companies Act, [1956/2013] with
corporate identity number [CIN of the Preferred Bidder], whose registered
office is at [address of registered office], India and principal place of
business is at [address of principal place of business, if different from
registered office] OR [Name of individual] who is citizen of India, having
income tax permanent account number [number], residing at [address] OR
[partnership firm/association of individuals], all members of whom are Indian
citizens and residents of India whose principal place of business is at
[address of principal place of business] (the “Preferred Bidder”) is required
to provide an unconditional and irrevocable bank guarantee for an amount equal
to INR [figures] (Indian Rupees [words]) as a performance security valid for an
initial period of [•]([•]) years from the date hereof (“Expiry Date”). (B) The Performance Security is
required to be provided to the Governor of [Name of State], (the “State”) for
discharge of certain obligations under the Tender Document dated, [date] with
respect to auction of [particulars of auction] AND the deed for grant of a
prospecting licence to be executed between the State and the Successful Bidder AND
the Mine Development and Production Agreement to be executed between the State
and the Successful Bidder (collectively the “Agreement”). (C) We, [name of the bank] (the
“Bank”) at the request of the Preferred Bidder or Successful Bidder do hereby
undertake to pay to the State an amount not exceeding INR [figures] (Indian
Rupees [words]) (“Guarantee Amount”) to secure the obligations of the Preferred
Bidder or Successful Bidder under the Agreement on demand from the State on the
terms and conditions herein contained herein. (D) Now, therefore, the Bank
hereby issues in favour of the State this irrevocable and unconditional payment
bank guarantee (the “Guarantee”) on behalf of the Preferred Bidder or
Successful Bidder in the Guarantee Amount: (1) The Bank for the purpose
hereof unconditionally and irrevocably undertakes to pay to the State without
any demur, reservation, caveat, protest or recourse, immediately on receipt of
first written demand from the State, a sum or sums (by way of one or more
claims) not exceeding the Guarantee Amount in the aggregate without the State
needing to prove or to show to the Bank grounds or reasons for such demand for
the sum specified therein and notwithstanding any dispute or difference between
the State and Preferred Bidder or Successful Bidder on any matter whatsoever.
The Bank undertakes to pay to the State any money so demanded notwithstanding
any dispute or disputes raised by the Preferred Bidder or Successful Bidder in
any suit or proceeding pending before any court or tribunal relating thereto
the Bank's liability under this present being absolute and unequivocal. (2) The Bank acknowledges that
any such demand by the State of the amounts payable by the Bank to the State
shall be final, binding and conclusive evidence in respect of the amounts
payable by Preferred Bidder or Successful Bidder to the State under the
Agreement. (3) The Bank hereby waives the
necessity for the State from demanding the aforesaid amount or any part thereof
from the Preferred Bidder or Successful Bidder and also waives any right that
the Bank may have of first requiring the State to pursue its legal remedies
against the Preferred Bidder or Successful Bidder, before presenting any
written demand to the Bank for payment under this Guarantee. (4) The Bank further unconditionally
agrees with the State that the State shall be at liberty, without the Bank's
consent and without affecting in any manner the Bank's obligation under this
Guarantee, from time to time to: (i) vary and/or modify and of
the terms and conditions of the Agreement; (ii) extend and/or postpone the
time for performance of the obligations of the Preferred Bidder or Successful
Bidder under the Agreement, or (iii) forbear or enforce any of
the rights exercisable by the State against the Preferred Bidder or Successful
Bidder under the terms and conditions of the Agreement, and the Bank shall not
be relieved from its liability by reason of any such act or omission on the
part of the State or any indulgence by the State to the Preferred Bidder or
Successful Bidder or other thing whatsoever which under the law relating to
sureties would, but for this provision, have the effect of relieving the Bank
of its obligations under this Guarantee. (5) Any payment made hereunder
shall be made free and clear of and without deduction for, or on account of,
any present or future taxes, levies, imposts, duties, charges, fees,
commissions, deductions or withholdings of any nature whatsoever. (6) The Bank agrees that State
at its option shall be entitled to enforce this Guarantee against the Bank, as
a principal debtor in the first instance without proceeding at the first
instance against the Preferred Bidder or Successful Bidder. (7) The Bank further agrees
that this bank guarantee and the guarantee obligations herein contained shall
remain in full force and effect and shall continue to be enforceable till: (i)
all the obligations of the Preferred Bidder or Successful Bidder under or by
virtue of the said Agreement with respect to the Performance Security have been
fully paid and its claims satisfied or discharged; or (ii) till the State
certifies that the terms and conditions of the Agreement with respect to the
Performance Security have been fully and properly carried out by the Preferred
Bidder or Successful Bidder and accordingly discharges this guarantee; or (iii)
on provision of a revised performance security under sub-rule (2) of Rule 19 of
the Mineral (Auction) Rules, 2015 whichever is later. Notwithstanding anything
contained herein, unless a demand or claim under this guarantee is made on the
Bank in writing on or before the Expiry Date the Bank shall be discharged from
all liability under this guarantee thereafter. (8) The payment so made by the
Bank under this Guarantee shall be a valid discharge of Bank's liability for
payment thereunder and the State shall have no claim against the Bank for
making such payment. (9) This Guarantee is subject
to the laws of India. Any suit, action, or other proceedings arising out of
this Guarantee or the subject matter hereof shall be subject to the exclusive
jurisdiction of courts at the State of [respective State]. (10) The Bank has the power to
issue this Guarantee in favour of the State. This guarantee will not be
discharged due to the change in the constitution of the Bank. (11) The Bank undertakes not to
revoke this Guarantee during its currency except with the previous consent of
the State in writing. (12) The State may, with prior
intimation to the Bank, assign the right under this Guarantee to any other
departments, ministries or any governmental agencies, which may act in the name
of the Governor. Save as provided in this Clause 12, this Guarantee shall not
by assignable or transferable. (13) Notwithstanding anything
contained herein, (a) the liability of the bank
under this bank guarantee shall not exceed the Guarantee Amount; and (b) this bank guarantee shall
be valid up to the Expiry Date. (14) The Bank is liable to pay
the Guaranteed Amount or any part thereof under this bank guarantee only and
only if the State serves upon the Bank a written claim or demand on or before
the Expiry Date. Dated the [day] day of
[month] [year] for the Bank. In witness whereof the
Bank, through its authorized officer, has set its hand and stamp. .................. (Signature) (Name and Designation) (Bank Stamp).] [1] Ministry of Mines,
Noti. No. G.S.R. 406(E), dt. 20-5-2015, published in the Gazette of India,
Extra., Part II, Section 3(i), dt. 20-5-2015, pp. 15-24, No. 322 [2] Omitted by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). Prior to omission it read as: ‘(b)
“Composite Licence” means prospecting licence-cum-mining lease granted under
Rule 18;’ [3] Subs. by G.S.R.
1469(E), dated 30-11-2017 (w.e.f. 30-11-2017). [4] Subs. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). Prior to substitution it read as: “Provided
that if for any mineral or mineral grade, the average sale price in respect of
the relevant State for any month is not published by Indian Bureau of Mines,
the all India average sale price published by Indian Bureau of Mines for such
mineral or mineral grade for that month shall be used;” [5] Subs. by G.S.R.
1469(E), dated 30-11-2017 (w.e.f. 30-11-2017). [6] Subs. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). Prior to substitution it read as: “(3)
The powers of Central Government under the proviso to sub-section (6) of
Section 10-B shall be exercised by the State Government for reservation of
particular mine or mines for any particular end use including the end use as
specified in Schedule II and the State Government may earmark certain
percentage of mines for end use.” [7] Ins. by G.S.R.
776(E), dated 2-11-2021 (w.e.f. 2-11-2021). [8] Subs. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). Prior to substitution it read as: “(4)
Where the State Government reserves a mine or mines for any particular specified
end use, the minerals extracted under the mining lease shall,— (i)
be utilised solely for the specified end use; and (ii)
not be sold or transferred or otherwise disposed of, either directly or
indirectly: Provided
that quantity of mineral equivalent to twenty five per cent. of total mineral
excavated in the previous financial year, for which end use was specified can
be sold in the current financial year.” [9] Ins. by G.S.R.
776(E), dated 2-11-2021 (w.e.f. 2-11-2021). [10] The word “and”
omitted by G.S.R. 195(E), dated 17-3-2021 (w.e.f. 17-3-2021). [11] Subs. for “not owned
by the State Government.” by G.S.R. 195(E), dated 17-3-2021 (w.e.f. 17-3-2021). [12] Ins. by G.S.R.
195(E), dated 17-3-2021 (w.e.f. 17-3-2021). [13] Subs. by G.S.R.
1469(E), dated 30-11-2017 (w.e.f. 30-11-2017). [14] Ins. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [15] Ins. by G.S.R.
857(E), dated 14-12-2021 (w.e.f. 14-12-2021). [16] Ins. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [17] Subs. for “being ten
per cent. of the upfront payment as per Rule 11” by G.S.R. 422(E), dated
18-6-2021 (w.e.f. 18-6-2021). [18] Ins. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [19] Ins. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [20] The words “being ten
per cent” omitted by G.S.R. 422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [21] Subs. for “plan; and”
by G.S.R. 190(E), dated 20-3-2020 (w.e.f. 20-3-2020). [22] The words “being
eighty per cent.” omitted by G.S.R. 422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [23] Ins. by G.S.R.
1469(E), dated 30-11-2017 (w.e.f. 30-11-2017). [24] Ins. by G.S.R.
190(E), dated 20-3-2020 (w.e.f. 20-3-2020). [25] Subs. for “Mineral
Concession Rules, 1960” by G.S.R. 1469(E), dated 30-11-2017 (w.e.f.
30-11-2017). [26] Subs. for “ten per
cent.; ten per cent.; and eighty per cent.” by G.S.R. 422(E), dated 18-6-2021
(w.e.f. 18-6-2021). [27] Subs. for “adjusted
in full against the amount paid under sub-rule (3) of Rule 8 within the first
five years of” by G.S.R. 1469(E), dated 30-11-2017 (w.e.f. 30-11-2017). [28] Subs. for
“successful” by G.S.R. 1469(E), dated 30-11-2017 (w.e.f. 30-11-2017). [29] Ins. by G.S.R.
1469(E), dated 30-11-2017 (w.e.f. 30-11-2017). [30] Ins. by G.S.R.
195(E), dated 17-3-2021 (w.e.f. 17-3-2021). [31] Subs. for “twenty
four” by G.S.R. 776(E), dated 2-11-2021 (w.e.f. 2-11-2021). [32] The words “sixty days
from” omitted by G.S.R. 776(E), dated 2-11-2021 (w.e.f. 2-11-2021). [33] Subs. for “and the
area so demarcated shall be classified into forests land, land owned by the
State Government, and land not owned by the State Government” by G.S.R. 137(E),
dated 18-2-2022 (w.e.f. 18-2-2022). [34] Subs. for “divided
into forest land, land owned by the State Government, and land not owned by the
State Government” by G.S.R. 137(E), dated 18-2-2022 (w.e.f. 18-2-2022). [35] Subs. by G.S.R.
137(E), dated 18-2-2022 (w.e.f. 18-2-2022). Prior to substitution it read as: “(ii)
revenue survey details of the area identified, demarcated using total station
and differential global positioning system divided into forest land, land owned
by the State Government, and land not owned by the State Government;” [36] Ins. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [37] Ins. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [38] Subs. for “to the
preferred bidder” by G.S.R. 422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [39] Ins. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [40] Ins. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [41] Subs. for “Mineral
Concession Rules, 1960” by G.S.R. 1469(E), dated 30-11-2017 (w.e.f.
30-11-2017). [42] Subs. for
“sub-section (10) of Section 11, and” by G.S.R. 422(E), dated 18-6-2021 (w.e.f.
18-6-2021). [43] Subs. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). Prior to substitution it read as: “(b)
completes prospecting operations in accordance with sub-section (9) of Section
11 resulting in determination of evidence of mineral contents conforming to the
Mineral (Evidence of Mineral Contents) Rules, 2015, such holder shall make an
application to the State Government for grant of a mining lease accompanied
with the first instalment, being ten per cent. of the upfront payment: Provided
that the mining lease shall be granted only with respect to the area for which
evidence of mineral contents has been found and shall not be for an area larger
than the maximum area for which a mining lease may be granted under the Act: Provided
further that any excess area shall be deemed to be surrendered by the holder of
Composite Licence after completing its reclamation.” [44] Omitted by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). Prior to omission it read as: “(7)
Upon receipt of the duly completed mining lease application and the first
instalment of the upfront payment as specified in clause (b) of sub-rule (6),
the State Government shall issue a letter of intent for mining lease.” [45] Subs. for “ten per
cent.” by G.S.R. 422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [46] Subs. for “eighty per
cent.” by G.S.R. 422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [47] Subs. for “Mineral
Concession Rules, 1960” by G.S.R. 1469(E), dated 30-11-2017 (w.e.f.
30-11-2017). [48] Ins. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [49] Ins. by G.S.R.
1469(E), dated 30-11-2017 (w.e.f. 30-11-2017). [50] Subs. by G.S.R.
1469(E), dated 30-11-2017 (w.e.f. 30-11-2017). [51] The words
“sub-section (10) of Section 11 of the Act, and” omitted by G.S.R. 422(E),
dated 18-6-2021 (w.e.f. 18-6-2021). [52] Ins. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [53] Ins. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [54] Subs. by G.S.R.
1469(E), dated 30-11-2017 (w.e.f. 30-11-2017). [55] Ins. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [56] Ins. by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [57] Omitted by G.S.R.
422(E), dated 18-6-2021 (w.e.f. 18-6-2021). [58] Subs. by G.S.R.
1469(E), dated 30-11-2017 (w.e.f. 30-11-2017). [59] Subs. for
“Successful” by G.S.R. 1469(E), dated 30-11-2017 (w.e.f. 30-11-2017). [60] Ins. by G.S.R.
1469(E), dated 30-11-2017 (w.e.f. 30-11-2017).Mineral
(Auction) Rules, 2015
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MINERAL (AUCTION) RULES, 2015
MINERAL (AUCTION) RULES, 2015
Rule - 1. Short title and commencement.
Rule - 2. Definitions.
Rule - [3. Application.
Rule - 4. Grant of concession.
Rule - 5. Prerequisites for auction of Mining Lease.
Rule - 6. Eligibility for Mining Lease.
Rule - 7. Electronic Auction.
Rule - 8. Bidding parameters.
Rule - 9. Bidding Process.
Rule - [9-A. Conduct of auction of mining lease by Central Government.
Rule - 10. Grant of Mining Lease.
Rule - 11. Upfront payment for mining lease.
Rule - 12. Performance security for mining lease.
Rule - 13. Payments under mining lease.
Rule - 14. Payment of Interest.
Rule - 15. Time Period.
Rule - 16. Prerequisites for auction of Composite Licence.
Rule - 17. Auction for Composite Licence.
Rule - [17-A. Conduct of auction of composite licence by Central Government.
Rule - 18. Grant of Composite Licence.
Rule - 19. Performance Security for Composite Licence.
Rule - 20. Power to rectify apparent mistakes.
Rule - 21. Special provisions relating to minerals specified in Part B of the First Schedule to the Act.
Rule - 22. Exploration Obligation.
Rule - [23. When day of completion of any requirement is a public holiday.