THE ANDHRA PRADESH MINOR MINERAL CONCESSION RULES, 1966

 

PREAMBLE

In exercise of the powers conferred by sub-section (1) of Section 15 of the Mines and Minerals (Regulation and Development) Act, 1957 (Act No. 67 of 1957), the Governor of Andhra Pradesh hereby makes the following rules regulating the grant of mining leases in respect of minor minerals in the State of Andhra Pradesh and for purposes connected therewith, namely.

Rule - 1. Short title.

These rules may be called the Andhra Pradesh Minor Mineral Concession Rules, 1966.

Rule - 2. Commencement and Application.

(1)     They shall come into force on the date of publication of these rules in the Andhra Pradesh Gazette.

(2)     They extend to the entire State of Andhra Pradesh.

Rule - 3. Repeal.

On the commencement of these rules, the rules in the Mining Manual which regulate the grant of mineral concessions in respect of minor minerals and the Rules regulating the working of Minor Minerals, 1954, made by the erstwhile Government of Hyderabad and published at pages 60-73 of Part I-C Rules of the Hyderabad Government Gazette, dated 25th February, 1954, shall stand repealed except as regards things done or omitted to be done before such commencement.

Rule - 4. Definitions.

In these rules, unless the context otherwise requires.

(a)      "Assistant Director" means the Assistant Director of Mines and Geology in-charge of the district;

(b)      (ii) Deputy Director" means the Deputy Director of Mines and Geology in charge of the region;

[1][(iii) "Joint Director" means the Joint Director of mines and Geology].

[2][(iii) "District Panchayat Officer" means the District Panchayat Officer is in-charge of the District].

(c)      'Director' means the Director of Mines and Geology, Andhra Pradesh;

(d)      'Form' means a form appended to these Rules;

(e)      'Notification' means a notification published in the A.P. Gazette;

(f)       'Ordinary sand or clay' means.

(i)       the ordinary sand used for building or other similar purposes, but not used for industrial purposes, such as, refractory, ceramic, glass staring and metallurgical industries; and

(ii)      the ordinary clay used for small scale manufacture of bricks, tiles, pots and the like but not used for large scale manufacturing purposes, such as, for the manufacture of ceramics or cement.

Rule - 5. Quarrying to be under lease or permit.

No person shall undertake quarrying of any minor mineral in any area, except under and in accordance with the terms and conditions of a quarry lease or a permit granted under these rules:

Provided that the Government shall have power to grant exemption from obtaining a lease or permit for quarrying any minor mineral in any area in the case of any category of persons, subject to such conditions as maybe specified in the order granting such exemption.

Rule - 6. Non-Government Lands.

The Government may, on application from any person possessing sub-soil rights, grant a share in the quarrying fees.

Rule - 7. Preparation of plans and demarcation of the leased area.

When a quarry lease is granted over any area arrangement shall be made by the Assistant Director at the expense of the lessees for the preparation of a plan and the demarcation of the area granted under the lease, after collecting a fee calculated according to the rates specified below:

Rule - 8. Form of lease deed.

[4][The license deed shall be executed in Form 'O' and the lease deed shall be executed in Form 'G'.]

Rule - 9. Authority to grant quarry lease or permit.

[5][(i) Every application for grant of renewal of quarry lease for any minor mineral except sand granite in respect of a land shall be made in Form-B to the Assistant Director Mines and Geology, in whose Jurisdiction the land lies.]

(ii)   No quarry lease shall be granted in respect of areas covering any tank or river bed, irrigation or drainage channel and of lands under the control of the Public Works Department, a municipality, or a local authority except after consultation with the Executive Engineer of the Division or the River Conservator, or the Commissioner of the Municipality or the Block Development Officer of the Panchayat Samithi or the concerned Executive Officer appointed under Section 30 of the Andhra Pradesh Gram Panchayats Act. 1964, as the case may be.

[6][(iii) In respect of minor minerals except [7][ * * *] those mentioned in sub-rule (5) of Rule 12 which are worked to meet the immediate or timely requirements, the Assistant Director may permit to carry on quarrying operations on payment of seigniorage fee in advance.]

(iv)   Permit granted under sub-rule (iii) shall in no case be for more than [8][sixty days:]

[9][(v) [* * *]

[10][Povided that the applications for grant of a lease or a permit in respect of a reserve forest land shall be disposed of after consultation with the Divisional or the District Forest Officer concerned.]

Rule - 9-A. [Reservation of areas for exploitation in the public sector, etc.

(1)     The State Government may, by notification in the Official Gazette, reserve any area for exploitation by the Government, a Corporation established by any Central, State or Provincial Act or a Government Company within the meaning of Section 617 of the Companies Act, 1956 (Central Act 1 of 1956).

(2)     Availability of area for regrant to be notified. No area which has been reserved by the Government under Rule 9-A(1) shall be available for grant of quarry lease unless the availability of the area for grant is notified in the Official Gazette specifying a date (being a date not earlier than thirty days from the date of the publication of such notification in the Official Gazette) from which such area shall be available for grant.

(3)     Premature applications. Applications for the grant of a quarry lease in respect of areas whose availability for grant is required to be notified under Rule 9-A (2) shall if,-

(a)      No notification has been issued under that rule; or

(b)      Where any such notification has been issued, the period specified in notification has not expired, shall be deemed to be premature and shall not be entertained; and the application fee thereon, if any paid, shall be refunded][11]

Rule -9-B. [Notification of the Sand bearing areas for Granting leases by Sealed Tender cum Public Auction.

(1)     All the sand bearing areas in the State shall be leased out by Sealed Tender cum Public Auction reach or Village wise wherever applicable by Mandal Revenue Officer or Revenue Divisional Officer or Joint Collector for a specified period in any case not more than two years with an yearly enhancement of 10% of the knocked down amount and subject to the conditions prescribed in the notice of Sealed Tender cum Public Auction as specified in rule 9-C.

Note: No reach/Village partly or fully covered by scheduled areas shall be leased out to any person who is not a member of Scheduled Tribe.

Explanation: For the purpose of this rule.

(a)      The expression "Scheduled Tribes" shall have the same meaning assigned to it in Clause (26) of article 360 of the Constitution of India, and

(b)      The expression "Scheduled Areas" shall have the same meann,. assigned to it in Paragraph 6 of the fifth Schedule to the Constitution f India.

(2)     The District Level Committee as constituted under G.O. Ms. No. 356.Industries and Commerce Department, dated 22-11-1999 and G.O. Ms. No. 165, Industries and Commerce (MI) Department, dt. 23-2-2000 respectively is competent authority to club or sub-divide reachs wherever necessary. The District Level Committee constituted is as follows:

(a)      The District Level Committee shall consult the River Conservsator with regard to the reaches falling under the River Conservancy Act, 1884. The Committee shall be made competent to issue orders of stopping the lifting of sand, after giving due opportunity to the successful bidder if he violates any condition of auction of lifting the sand against the provisions of the Andhra Pradesh (Andhra Area) Rivers Conservancy Act, 1884 (Act. VI of 1886).

(b)      The District Level Committee shall be the authority competent to decide on any matter or problem arising during the course of implementation of these rules.

(3)     The Reaches identified in Major Rivers where the sand is lifted and carried by means of boats, the Registered Boatsmen Coop. Society registered under the Andhra Pradesh Coop. Societies Act. 1864 shall be given preference by allowing 10% concession on the highest bid/ tendered amount offered in the Auction Hall. The Concessional knocked amount be paid by the successful registered Boatsmen's Coop. Society in not more than four equal quarterly installments well before commencement of each quarter. If there is more than one Boatsmen Coop. Society participating in the Auction and claims for the same reach, local registered Boatsmen Coop. Society shall be given preference. However, if there is more than one local registered Boatsmen Society participating in the auction and claims for the same reach the successful bidder/tenderer shall be decided by drawing lots. If non-local Societies participates and claims for the same reach the successful bidder/ tenderer shall be declared by drawing lots among the other non-local registered Coop. Sopcieties.

(4)     Sand means ordinary sand used in construction activities under the Andhra Pradesh Minor Mineral Concession Rules, 1966. The sale of sand shall be on the basis of auction-cum-tender system which denotes tha offers of tenders shall be accepted while simultaneously holding auction with a view to maximize earnings.][12]

Rule - 9-C. [Notice of Sealed Tender-cum-Auction.

(1)     When an area is to be leased out by sealed tender-cum-public auction for sand quarrying the District Level Committee shall issue a notice in form 'A' giving due publicity in the Local Newspapers of not less than 15 days before the date of Auction or any such other manner as it deems fit. The Notification shall contain the date, time and venue for the conduct of auction and the eligibility criterim of participants. In addition to this committee shall get the copies of notice also affixed on

(i)       Notice Board of Gram Panchayat; and

(ii)      Notice Board of Mandal Parishad, Mandal Revenue Office in the District including Collector, District Panchayat Officer, District Information and Public Relations Officer, Zilla Parishad, Revenue Divisional Officer etc.,

(2)     The upset price shall be fixed by the Assistant Director of Mines and Geology and District Panchayat Officer taking into account the River Conservancy Act, 1884 the availability of sand, the bids in the previous year etc.,][13]

Rule - 9-D. Submission of Sealed Tender and accepting the Bid.

(1)     (i) any person who intends to obtain a lease for Quarrying sand in a reach or village as notified under Rule 9-C shall submit Sealed Tender for the grant of the lease in the prescribed form so as to reach the concerned officer before the date and time as specified in the notification.

(ii) Any person intending to submit the Scaled Tender shall do so for any reach or village separately in Form 'A-II' in a Sealed Cover super scribing.

(a)      Notification Number;

(b)      Name of the Tender; and

(c)      The Reach/village quoted for

(iii) Every such Sealed Tender shall be accompained by an application in prescribed Form 'A-II' along with the enclosures as required under item 2 thereunder as specified in the Annexure.

(iv) Soon after the receipt of the Sealed Tenders from the Tenderers. necessary entry should be made in the register by the District Panchayat Officer concerned while issuing acknowledgment to the Tenderer. Such Sealed Tenders so received shall be kept under the safe custody of District Panchayat Officer. He has to ensure that all such Sealed Tenders and registers are kept safe under his personal custody duly observing all the possible safety measures.

(v) (a) Every tenderer shall be eligible to participate in the auction after he obtains Hall tickets from District Panchayat Officer.

(b) In case of Boatsmen Cooperative Soceity who can participate in the auction in respect of areas like water tanks, ponds and from where sand is to be lifted in Boats, a statement of annual audited statement of accounts audited by the Cooperative Department of the preceding year or in its absence, the previous preceding year is sufficient.

(c) The tenderer shall present by himself or through his authorised agent in the auction hall at the time of opening of the Sealed Tender. The Sealed Tenders shall be opened after the bidding is over for each rech or village.

(d) 25% of the upset price should be fixed as Earnest Money Deposit in case of those participating in the auction. The same amount shall be fixed as Earnest Money Deposit to be paid by persons filing the tenders. This amounts shall be remitted through Demand Draft drawn in favour of District Panchayat Officer concerned.

(vi) It shall be at the discreition of the auctioning authority to accept or reject the tender or bid for the reasons to be recorded.

(a)      A Tender once submitted shall not be withdrawn before the bid is concluded.

(b)      The auctioning authority shall announce at the commencement of the bidding the names of person or persons who had submitted Sealed Tender and the Hall Ticket holders for all reaches/Villages.

(2)     The proceedings for the disposal of reach or village for quarrying sand shall be concluded on tenders or bids as the case may be by the auctioning authority. The tenders shall be opened only when it is ensured by the auctioning authority that there is no further bidding for the reach or village. He shall knock down the highest tender or bid provided he satisfied with the same. In case the highest bid amount and one or more tendered amount remaining the same, the knocking down of the reach or village shall be decided by drawing lots immediately. However, the auctioning authority concerned shall have the power to reject the highest tender or bid on substantial grounds to be recorded in writing at the time of auction and accept another next tender or bid.

Rule - 9-E.

No person shall be admitted in the auction hall without the Hall Ticket issued by the District Panchayat Officer concerned. The right of quarrying sand shall ordinarily be knocked down to the highest tenderer or bidder but rights is reserved to the officer conducting the proceedings or by the District Level Committee or by the Government as the case may be to reject any tender or bid without assigning any reasons therefor. The Earnest Money Deposit made by the unsuccessful tenderer or bidders shall be returned to them after seven days from the closer of the auction Proceedings for the lease hold. The right of quarrying shall be strictly subject to the confirmation or otherwise by the competent authority who has the right to retuse to confirm the right of quarrying sand with the reasons recorded therein.

Rule - 9-F. The Auctioning authority may at his own discretion reject any persons tender or bid who.

(a)      has been convicted for any offence committed under any law for the time being in force or any offence under the Mines and Minerals (Development and Regulation) Act, 1957 or s a debtor to the Government of Andhra Pradesh

Rule - 9-G.

The following are the confirming and appellate authority

Rule - 9-H. Deposit of the Lease amount: and execution of lease agreement.

(1)     When the tender/bid is knocked down by the competent authority the successful tender or bidder shall remit in a Zilla Parishad General funds a sum equivalent to 25% of the knocked down amount and submit the same to the District Panchayat Officer on the immediate next working day.

(2)     The successful tenderer/Bidder on receipt of the order of the confirmation shall remit the remaining 75% of the knocked down amount in the General Funds of the Zilla Parishad concerned on or before the dates specified in the order of confirmation and submit the challans to the concerned District Panchayat Officer along with a security deposit of 2% of the knocked down amount subject to the minimum of Rs. 1,000/-(Rupees one Thousand only) through Postal saving account or Bank Guarantee Certificate from any nationalized banks duly pledged in favour f Chief Executive Officer's of Zilla Parishad's concerned and execute the lease deed in form G-I on stamped paper as per the Registration and Stamp Act within a week from the date mentioned in the order of confirmation. The lease period shall commence with effect from the date of the execution of the lease deed. However, the confirming authority shall have the power to condone the delay in payment of the 75% of the knocked down amount, not exceeding two weeks from the date of confirmation of sale.

(3)     If the successful tenderer or Bidder fails to pay either 25% of the knocked down amount on the next working day or the reamining 75% of the knocked down amount within the specified time as mentioned in the confirmation order or extended period, the amount so far paid by the successful tenderer/bidder shall be forfeited to the Government. The confirming authority is competent to forfeit the deposits to the Government.

(4)     In the event of default by the first successful tenderer or bidder, the competent authority may issue confirmation order in favour of the second or subsequent highest tenderer or bidder in descending order provided if he retains the 25% of the minimum bid deposited at the time of participating in the auction.

Rule - 9-I.

The competent authority shall maintain a register duly mentioning all the particulars of all the participants who possess hall tickets and have submitted sealed tenders. The person whose tender or bid is knocked down shall sign and mention his name in block letters' duly affixing his thumb impression in the register.

Rule - 9-J.

The District Level Committee shall have the power to cancel the auction conducted duly recording the reasons thereof under the Rule 9-B and confirmation orders issued by the Competent authority under 9-G if he has not satisfied with the publicity, participation and the amount knocked down etc.

Rule - 9-K.

The successful tenderer or bidder shall have no claims for any compensation or extension of the lease period for the delay caused by himself in paying the required amounts and executing the agreements.

Rule - 9-L.

In case of the areas which are not leased out by sealed tender-cum-public auction and new area, the District Level Committee shall make alternative arrangements for quarrying sand in order to protect monetary loss to the Governments the Dsitrict Level Committee for issue of Temporary permits shall make such arrangements by the concerned District Panchayat Officer for a period not exceeding 15 days. All the participants shall put their respective bids in a secured box with proper date and time and venue. At the end of the prescribed time the box shall be opened by the Committee and the highest bidder will be given the confirmation orders for temporary permits.

Provided that in case the lease expires the District Panchayat Officer may permit the earlier lessee to continue the quarrying operation on payment of proportionate amount with 10% enhancment which should not exceed 60 days.

If the earlier lessee does not come forward to continue the quarrying operations. the District Panchayat Officer may regulate the quarrying by following the above procedure.

Provided further that the Government may for valid reasons continue the same for more than 60 days.

Rule - 9-M.

The lessee should observe the conditions stipulated by the Conservator of Rivers and the Ground Water Department and Irrigation and Command Area Development.

Rule - 9-N.

The lessee should make use of authorised ramps and paths only for transport of sand from the quarry and not open any new ramps or paths.

Rule - 9-O.

If the successful tenderer or bidder dies after the privilege is knocked down to him, his legal heirs shall be responsible to execute the lease deed and to carry out the business by remitting their dues to the Government. If the legal heirs do not want to continue the privilege, they should, within 30 days from the date of death of the Auction purchaser intimate the auctioning authority their intention in writing by Regiustered post. In such cases the auctioning authority shall make alternative arrangement or reauction the privilege. The amounts deposited by the deceased bidder shall be refunded to the legal heirs.

Rule - 9-P.Payment of second year lease amount.

The lessee shall pay the knocked down amount along with 10% enhancement towards the second year lease amount in the General Funds of Zilla Parishad and submit the challans to the Disctict Panchayat Officer concerned on or before 45 days of the expiry of the first year lease period. If no such payment is received, the District Level Committee shall cancel the lease and forfeit the security deposit and shall make necessary arrangement for leasing out the area through sealed tender-cum-public auction. However, the Joint Collector, may condone the delay in payment of second year lease amount provided the lessee makes a request for the condonation of delay before the expiry of first year lease period. However, the District Level Committee may condone the delay in payment of second year amount received even after the expiry of the first year lease period in genuine cases. In respect of the reaches identified to the Boatsman, Co-operative Societies, the society shall pay the second year amount along with 10% enhancement in not more than four equal quarterly installments and each instalment shall be paid well before commencement of each quarter. If no such payment is received the District Level Committee shall cancel the lease and forfeit the security deposit.

Rule - 9-Q.

If the auctioning authority notices that any person in the auction hall before or at the time or bidding behaves or acts in such a manner as to cause loss to Government or induces or forbids any person from bidding he may suspend him from participating in the auction and remove him from the auction hall.

Rule - 9-R.

The successful tenders or bidder shall be bound to observe Rules and Regulations and instruction of Panchayat Raj Department, Mines and Geology, Ground Water Department, Revenue Department and the Government orders that may be in force during the currency of the lease or privilege.

Rule - 9-S.

Lessee granted for sand by Tender or by Public auction are not liable for transfer.

Rule - 9-T.

The successful bidder or tenderer shall charge the price for sand at the pit head taking into consideration the mining cost, seigniorage fee and the reasonable profit. The District Level Committee may regulate the maximum sale price either suo-moto or representation made taking into consideration the factors that the price charge is abnormally high.

Rule - 9-U.Sand exempted from payment of Seigniorage Fee.

The sand required for Weaker Sections Housing Programme and other State Government Schemes is exempted from payment of seigniorage fees on certificate issued by the District Collector or any other officer nominated by him.

Rule - 9-V.

Whenever the Ground Water effect is noticed, safety of structure is effected due to sand quarrying by the lease holder, the Collector concerned shall denotify the area in consultation with Ground Water Department and with the concerned District Panchayat Officer and the local bodies as the case the case may be.

Rule - 9-W.

No movement of sand shall be allowed across the border to the neighboring State.

Rule - 9-X.

Persons authorized to check unauthorized transportation or the sand.

(a)      The District Collector shall take all precautionary measures to stop illegal mining of sand in the District. In case of any illegal mining of sand by any person from any quarry or reach unauthorisedly and is transporting it thereof, the Collector, Joint Collector, Revenue Divisional Officer or Mandal Revenue Officer or S.H.O. having jurisdication, Chief Executive Officer, Zilla Parishad, District Panchayat officer, Divisional Panchayat Officer, Extension Officer (Pts), Executive Officer, Gram Panchayat Including sarpanch, Assistant Director of Mines and Geology, Motor Vehicle Inspectors etc., should stop the vehicles and file cases in the nearest Police Station against the owner of the lorry, tractor, tipper etc., driver and cleaner immediately.

(b)      The seized vehicle along with seized material can be returned on collection of penalty as decided by the District Committee.

(c)      The Way bill for transporting sand shall be in the Form A II (a).

Rule - 10. Seignior age fee or dead rent.

[14]["(1) When Quarry lease is granted under these rules, the seigniorage fee or dead rent, whichever is higher, shall be charged on all Minor Minerals despatched or consumed from the land at the rates specified in Schedule I and Schedule, II, as the case may be"].

(2)   When quarry lease is granted, the assessment on the land together with the seigniorage fee or dead rent, whichever is higher, shall also be charged.

[15][(3) When the quarry lease is granted,-

(a)      The dead rent for the 1st year shall be paid by the lessee at the time of execution of lease deed and for the subsequent years, every year in advance.

(b)      The seigniorage fee shall be paid before the mineral is removed from the leased area:]

[16][(4) (a) Notwithstanding anything contained in sub-rules (2) and (3), every quarry lease holder including temporary permit holder except the person-organisations who obtained quarry lease with exemption from payment of seigniorage fee for the specified minerals in the sector shall pay the seigniorage fee to the successful tenderer/ bidder (herein after referred, to as authorised agent) as per the relevant rates in Schedule I to Rule 10 and as per the relevant rates in Rule 12 (5)(e) in force as on the day of notification of the auction notice. All the quarry lease holders for the specified Minor Minerals are deemed to have come under this provision for the payment of seigniorage fee from the date, the authroised Agent makes agreement in Form-M for the concerned Sector.

(b) When the quarry leases are granted under Rule 12 for the specified minor minerals, seigniorage fee or dead rent whichever is higher shall be charged on such minerals despatched or consumed from the land at the relevant rates specified in Schedule I and Schedule II or the relevant rates of seigniorage fee or dead rent specified under Rule 12(5) (e) respectively along with the land assessment on the assessment made by the Assistant Director '' concerned. Every lessee who has been granted leases for specified Minor minerals under aforesaid provisions shall submit the detailed accounts as required by the Assistant Director concerned for the purpose of making annual assessment for the mineral revenue before 10th of April every year. The Authorised Agent does not have any claim on the dead rent if any, fallen due from the lessees on annual assessment made by the Assistant Director concerned.

(c) The additional amount of seigniorage fee over and above the rates in force as on the day of notification of auction notice due to revision of rates of seigniorage fee made from time to time shall be paid by the lessees directly to the Government and the authorised agent shall not have any claim for such payments.

(d) In respect of specified minor minerals, the Assistant Director may grant temporary permits for limited quantities and for limited period over the specified areas to meet immediate and timely requirement and the payment of seigniorage fee on such temporary permits shall be made to the Authorised Agent.

(e) In case, the right of collection of seigniorage fee is not disposed off in sealed Tender-cum-Public Auction or even if it is disposed off but the authorised agent does not perform due to any reason, the sectors are deemed to have not been notified for public auction and the collection of seigniorage fee and dead rent shall be made as per sub-rules (1) of Rule 10 and Rule 12(5)(e) as the case may be.]

Rule -10-A. [Sectors to be made by the Joint Director for grant of Collection of seigniorage fee in respect of specified Minor Minerals by Sealed Tender-cum-Public Auction.

(1)     The Joint Director shall form the sectors duly specifying the areas within the sectors for giving away the right of collection of seigniorage fee in respect of any specified minor minerals in each sector in sealed Tender-cum-Public Auction. The minimum bid amount for each of the sector shall be fixed by the Joint Director taking into account the quarrying activity, the demand and supply of Minerals, the Infrastructure, etc.

(2)     Notwithstanding anything contained in sub-rules (1) and (2) of Rule 10 the right of collection of seigniorage fee for the specified minor minerals within the sector shall be given away in Sealed Tender-cum-Public Auction for the specified period and in any case not more than one year subject to the conditions prescribed in the notice of auction under Rule 10-B.][17]

Rule -10-B. [Notice of Sealed Tender-cum-Public Auction and mode of disposal of the Sector.

(1)     When the right of collection of seigniorage fee for the specified minor minerals in the sector is to be disposed off in the Sealed Tender-cum-Public Auction, the Assistant Director shall issue a notice in Form-A 1, giving due publicity in any local News Paper not less than fifteen days before the date of Auction or in such other manner as deemed fit.

(2)     The right of collection of seigniorage fee in a sector shall be obtained in Sealed Tender-cum-Public Auction. A person intends to participate in Public Auction is entitled to submit a sealed tender and similarly a person who submits a sealed tender is entitled to participate in public action.][18]

Rule -10-C. [Submission of Sealed Tenders and accepting the Bid.

(1)     (a) Any person who intends to obtain the right of collection of seigniorage fee in respect of specified minor minerals within the sector shall submit sealed tender along with the application for issue of Hall Ticket so as to reach the Assistant Director before the time and date published in the Auction Notification.

(b) Any person intending to submit the sealed tender shall do so far any sector for obtaining the right of collection of seigniorage fee in Form A-3 in a sealed cover super scribing the particulars stated below, namely.

(i)       Auction Notification Number;

(ii)      Name of the Tenderer; and

(iii)     Name of the Sector.

(c) Every such sealed tender shall be accompanied by an application for issue of Hall Ticket along with the enclosures as required under item (2) of the Annexure to Form-A 1.

(d) Soon after the receipt of Sealed Tender from the Tenderer, the necessary entry should be made in the Register by the Assistant Director and issue acknowledgment to the Tenderer. Such Seald Tenders shall be kept under the safe custody of the said Assistant Director. He has to ensure that all such sealed tenders and the Registers are kept safe under his personal custody duly observing all possible safety measures.

(e) Every tenderer shall be issued a Hall Ticket to participate in the auction without insisting any further payments as required under item (2) of the Annexure to Form-A 1 by the Assistant Director.

(f) The Sealed Tenders shall be opened after the bidding is over in each sector. It is the responsibility of the person/persons who submitted the sealed tenders to make themselves present at the time of opening of the sealed tenders. Sealed tenders shall be opened in the Auction Hall by the Assistant Director irrespective of the presence of the Tenderers.

(g) (i) A tender once submitted shall not be withdrawn before the bid is concluded.

(ii) The Assistant Director shall announce at the commencement of the bidding for each sector the names of the Tenderers as well as the proposed bidders who have obtained Hall Tickets for that Sector.

(2)     The proceedings for the disposal of the sector shall be concluded on tender or bid as the case may be by the Assistant Director. The hike in biding in the auction hall by the bidders shall not exceed 25% of the minimum bid each time, the tenders for the sector shall be opened only when it is ensured by Assistant Director that there is no further bidding. He shall knock down the highest tender/bid provided he is satisfied with the procedure. In case the highest bid amount and one or more tendered amounts remaining the same, the knocking down for the sector shall be decided by drawing lots immediately. However, the Assistant Director shall have the power to reject the highest tender/bid on reasons to be recorded therefor and accept any other next lower tender/bid. subject to approval of the Joint Director.

(3)     The Assistant Director may at his own discretion reject any person's tender /bid who,

"(a) has been convicted for any penal offence or any offence under the Mines and Minerals (Regulation and Development) Act, 1957. or

(b)   is a debtor to the Government of Andhra Pradesh in the Mines and Geology Department."

(4)     If the Assistant Director noticed that any person in the Auction Hall before or at the time of bidding behaves or acts in such manner as to cause loss to Government or induces or for bids any person from bidding he may suspend him from bidding and participating in the auction and remove him from the Auction Hall.

(5)     No person will be admitted into auction hall without the Hall Ticket issued by the Assistant Director. The right of collection of seigniorage fee will be ordinarily knocked down to the highest tenderer/bidder, but the right is reserved to the officer conducting the proceedings or by the Director or by the Government as the case may be to reject any tender/ bid without assigning any reason thereof. The right of collection of seigniorage fee shall be strictly subject to the confirmation by the competent person who has the right to refuse to confirm with reasons recorded.

(6)     The Assistant Director shall maintain a register by duly mentioning all the particulars of the participants who have submitted sealed tenders and the persons who have obtained Hall Ticket for bidding. The persons whose tender/bid is knocked down shall sign and mention his name in block letters by duly affixing his signature/thumb impression in the Register.

(7)     If the successful Tenderer/Bidder dies after the privilege is knocked down his legal heirs shall have the right and be responsible to execute the agreement and to carry out the business by remitting the dues to the Government. If the heirs do not want to exercise the privilege, they should within fifteen days from the date of death of the successful tenderer/bidder intimate the Assistant Director their intention in writing by registered post. The amounts deposited by the deceased tenderer/bidder shall be refunded to the legal heirs. In such cases the Assistant Director shall submit proposals to the competent authority for issuing confirmation to the next highest eligible tenderer/bidder.][19]

Rule -10-D. [Confirming Authority.

(1)     The Deputy Director shall confirm the knocked down amounts provided he is satisfied with the publicity, procedures, participation in the sealed Teder-cum-Auction and the knocked down amount."

(2)     The Director may issue confirmation orders in favour of any persons/ organisations for the sectors not disposed off in sealed Tender-cum-Public Auction or even if disposed off, not resulted in making agreement any time on the offers received with 25% of offered amount in the form of demand draft in favour of the Director.

(3)     If the agreement made by the Authorised Agent is cancelled due to any reason, the Director may nominate and issue confirmation in favour of any person or organisation on specific conditions for the unexpired period of original agreement. Such nominee shall make the agreement in Form-M with the Assistant Director as stipulated in the confirmation order.][20]

Rule -10-E. [Deposit of knocked down amount.

(1)     The successful Tenderer/ Bidder shall pay the knocked down amount in four quarterly instalments. The amount equivalent to 25% of the knocked down amount towards first instalment shall be paid in the Government Treasury within the immediate next two working days and produce challan to the Assistant Director.

(2)     The confirmation orders will be issued by competent authority on making payment of 25% of the knocked down amount as required under sub-rule (1). The successful tenderer/bidder on receipt of order of confirmation shall furnish security deposit of 2% of knocked down amount subject to the minimum of Rs. 1,000/- and maximum of Rs. 25,000/- in the manner as prescribed in the confirmation order and execute agreement in Form 'M' with the Assistant Director within the time prescribed in the confirmation order on stamped paper as per the Registration and Stamps Act by duly furnishing three bank guarantees in favour of the Assistant Director concerned for an amount equivalent to 25% of the knocked down amount under each guarantee which are valid for six, nine and twelve months against the respective quarterly instalment payments. The respective bank guarantees shall be released by the Assistant Director on payment of the respective quarterly instalments. The security deposit shall be released by the Assistant Director soon after the expiry of the lease period provided the Authorised Agent fulfilled all the lease conditions and other provisions of the Andhra Pradesh Minor Mineral Concession Rules, 1966.

(3)     In the event of default by the first successful tenderer/bidder for payment of 25% of the knocked down amount as required under sub-rule (1) or completion of formalities for executing the agreement as required under sub-rule (2) the competent authority may issue confirmation orders in favour of the second or the third highest tenderer/bidder in the descending order with due stipulations of time limit for payment of 25% of the amount offered by the respective tenderer/bidder and discharging the other formalities for making agreement as required under sub-rule (2). However, in case the second and third highest tenderer/bidders also become defaulters, the other tenderers/bidders who offered and participated over and above the minimum bid and who retained the deposit of 10% of the minimum bid with the Auctioning Authority after the auctions, may be considered for issue of confirmation orders in the descending order by the competent authority duly stipulating the time limits for payment of 25% of the offered amount by the respective tenderer/bidder and discharging the other formalities for concluding agreement as required under sub-rule (2).

(4)     The successful tenderer/bidder on executing the agreement in Form 'M' shall pay the subsequent quarterly instalments atleast fifteen days before the end of the proceeding quarter.

(5)     The Director may condone the delay in payment of the amounts, fulfilment of other formalities and making agreement under sub-rules (1) to (4) on valid grounds.

(6)     If the successful tenderer/bidder fails to pay 25% of the knocked down amount within two immediate working days or fails to furnish the bank guarantee for 75% of knocked down amount within the time specified in the confirmation order or fails to make agreement in Form 'M' after completing all the formalities or fails to pay the quarterly instalments within the prescribed time, the amount so far paid by the successful tenderer/bidder by way of deposits and the amounts under bank guarantee shall be forfeited to the Government by the confirming authority. If the second or the third highest tenderer/bidder fails to pay the amounts or complete the formalities as stipulated in the confirmation order, the confirming authority forfeit the amount so far paid by way of deposits including the bank guarantees to the Government. If the fourth or any subsequent bidder who has been issued confirmation order and made agreement in Form 'M' after completing the formalities fails to pay the second or any subsequent instalments in time, the confirming authority shall forfeit the security deposit and the bank guarantee to the Government. Any forfeiture shall be done by the confirming authority after giving an opportunity.

(7)     The deposit of second and third highest tenderer/bidders shall be returned after the agreement is made in Form-M in case they are not found to be defaulters for the payment of 1/4 of the amount as required under sub-rule (1) and the completion of other formalities under sub-rule (2). The deposits of others shall be returned after three days of auction on a written request by the participants for the same and the deposits of those who like to avail the opportunity of getting the lease in case the first, second and third highest tenderer/bidder become defaulters will be retained with the Assistant Director and returned after the agreement is made.][21]

Rule -10-F. [Power of the Director to cancel the Auction.

The director shall have the power to cancel at any time the sealed Tender-cum-Public Auction conducted under Rule 10-A(2) and the confirmation issued by the Deputy Director concerned under Rule 10-D if the Director feels that the publicity, participation and the amounts knocked down are not satisfactory and also due to any other lapses.][22]

Rule -10-G. [Liberties. of the Tenderer/Bidder.

The tenderer/bidder after executing the agreement in Form-M prescribed in Rule 10-E (2) will be at liberty to collect the seigniorage fee in force as on the day of notification of the auction notice from the leaseholders including temporary permit holders except persons/ organisations who obtained quarry leases with exemption from payment of seigniorage fee, in respect of Minor Mineral specified in the Auction notification at the relevant rates mentioned in Schedule I of Rule 10(1) and 12(5)(e) at or before the time of despatch of the minor minerals from the leased areas. He shall have no right to collect the seigniorage fee from any persons/companies who are not the quarry leaseholders. The Authorised Agent shall also be entitled to collect the seigniorage fee from all the new leases granted and executed from the specified Minor Minerals during the currency of the Agreement period. He, however, does not have any right for any type of compensation arising out of non-working of the quarries and due to expiry, lapse, determination, cancellation, etc, of the leases.][23]

Rule -10-H. Termination of agreement.

The successful [24][Tenderer/Bidder] shall abide by the conditions of the agreement executed in Form-M. The Director shall be competent to terminate or cancel the agreement for any violation of the provisions of the Andhra Pradesh Minor Mineral Concession Rules, 1966 or conditions of the agreement after giving due notice. The Director shall also be competent to forfeit all the amounts by way of deposits or otherwise or amounts covered under bank guarantee to the Government upon such termination or cancellation.

Rule - [10-I.

(i)       No specified minor mineral shall be despatched from any of the leased areas in the sector without a valid way bill duly stamped by the Assistant Director concerned issued through the authorised agent or his representatives. Contravention of this clause shall result in levy of normal seigniorage fee along with five times penalty by the Assistant Director concerned on a complaint filed by the authorised agent and on establishing the same by the Assistant Director. The normal seigniorage fee and the penalty so levied shall be paid to the authorised agent. If by any chance, the complaint by the authorised agent results in non-establishing the unauthorised transportation by the lessees due to inadequate or insufficient evidence in the complaint does not confer any right on the authorised agent to claim any sort of compensation from the Government. However, the persons/organisations who are holding the quarry leases with exemption from payment of seigniorage fee shall obtain despatch permits from the Assistant Director directly as required under Rule 34.

(ii)      The valid way bills duly stamped by the Assistant Director concerned shall be supplied to the lessees other than persons/organisations who obtained leases with exemption from payment of seigniorage fee in the sector on payment of the normal seigniorage fee as per his requirement by the authorised agent. 

(iii)     The Assistant Director concerned shall stamp on the way bills for different specified minor minerals once in a month for the estimated quantity on submission of the requisition by the authorised agent without any payment and he shall submit the particulars to the Director and the Deputy Director concerned before 5th of the succeeding month.

(iv)    The authorised agent shall submit monthly return in Form C-l to the Assistant Director, Deputy Director concerned and the Director for every month before 5th of the succeeding month.][25]

Rule - 10-J.

The successful tenderer/bidder after making agreement shall be bound to observe the laws, rules and regulations, instructions of Mines and Geology Department and the Government that might be enforced during the currency of the lease or the privilege.

Rule - 10-K.

The right of collection of seigniorage fee obtained through sealed tender-cum-auction is not liable for transfer.

Rule - 10-L.

The successful tenderer/bidder shall have no claim for compensation or extension of lease period for the delay in passing orders or the delay caused by himself in paying the required amounts and executing the agreement. However, Government may exempt or waive the proportionate amount for the non performed periods on valid reasons.

Rule - 10-M.

The Director may nominate any officer of the Department to discharge the functions under any of the provisions under Rule 10 in the event of non-availability of the concerned officer or due to any other exigency.

Rule - 10-N.

In case of any doubt as the application or interpretation of the version of any of these conditions the decision of the Government of Andhra Pradesh on the issue shall be final.][26]

 

Schedule I and II under Rule 10

[27][SCHEDULE I

RATES OF SEIGNIOR AGE FEE

 

 

SCHEDULE II

Rule - 11. [Power of the Government and the Director.

(1)     Power of Government. Government reserves the right-

(a)      to cancel the quarry lease granted and executed under these rules if it is considered necessary to do so either due to change in the policy; or in the public interest by giving previous notice.

(b)      to grant the leases for any minor minerals by duly exempting from the priorities fixed under different provisions under these rules on nomination or otherwise subject to certain specified conditions for any category of land in favour of any Section of the society.

(c)      to waive the collection of seigniorage fee and dead rent at their discretion.

(2)     The Director shall have the powers.

(a)      to prohibit quarrying operations in part or in the whole of the area under lease or free-hold areas for the reasons recorded in consultation with the competent authority.

(b)      to impose any special conditions in quarry leases granted under these rules.

(c)      to close any quarry or prohibit quarrying operations or reserve the land for being worked by any particular department of the Government or a local authority and to regulate quarrying operations according to the Law in force.

(d)      to regulate the quarrying operations by issuing temporary permits for any minor mineral during the transmission period whenever there is a proposal to change the policy by the Government for the grant of the leases.][29]

Rule - 12. Grant of lease.

[30][(1) A quarry lease for any minor mineral except sand and granite useful for cutting and polishing shall be granted on application subject to the provisions of sub-rules (2) and (3) and each such application for grant of quarry lease shall be accompanied by Treasury or Bank challan for rupees one thousand in token of the remittance towards fees.]

(1-A) [31][* * *1

(2)   Whenever more than one application are received for grant of a quarry lease, [32][for minor minerals except sand, granite useful for cutting and polishing and also the minerals specified under items 1 (a) and (b) under Schedule I to Rule 10] the [33][Deputy Director] shall dispose of the applications in order of preference specified below.

(i)       Applications of Government Department and Government Corporations and Companies;

(ii)      Applications of Labour Contract Co-operative Societies;

(iii)     Applications of unemployed persons who possess any recognised qualification in Geology, Geophysics, or Mining Engineering or any other allied subjects;

(iv)    Other applications;

Provided that in cases falling under any of the categories (i) to (iii) above, the grant of lease shall be subject to the conditions that lessee shall work the quarry directly and shall not hand it over to any other party for working.

Provided further that the [34][Deputy Director] may refuse to accord preference to the application of a Labour Contract Co-operative Society, if he finds that the particular Society does not work properly in the interest of the workers concerned.

Provided also that whenever more than one application falling under any of the categories (i) to (iii) above are received for grant of a quarry lease and have to be considered under the order of preference prescribed above, 19[Deputy Director] shall refer matter to Government with his recommendation for a direction.

Provided also that whenever more than one application falling under category (iv) above are received for grant of a quarry lease and have to be considered in the order of preference specified above, such preference shall be given to the applications according to the date of their receipt, unless the Government, for special reasons, otherwise direct and in case of applications received on the same day, the [35][Deputy Director] after taking into consideration the particulars furnished in the applications, may grant the lease to any deserving applicant; or he may, with the previous approval of the Director, grant a quarry lease to an applicant whose application was received later in preference to an earlier application for any special reason to be recorded in writing.

[36][(2-A) Notwithstanding the order of preference contained in sub-rule (2), the land holders (Pattadar) owning land not exceeding 2.024 Hectares or 5 Acres shall be given preference for grant of small scale quarry lease in their patta lands.]

[37][(3) The quarry lease applications for minor minerals under item-I of Schedule-I to Rule 10 shall be disposed of by the Deputy Director in the order specified below:

(1)     Applications of Societies of Professional/local) Traditional stone cutters (waddaras).

(2)     Crusher Owners who do not have quarries.

(3)     Unemployed youth holding Geology degree, and Businessmen who propose to set up crushers.

(4)     Others.

[38][Provided that the Deputy Director may with the prior approval of the Government grant a quarry lease overlooking the above priorities for any special reasons to be recorded in writing.

Provided further that whenever more than one application falling under category (1) above are received for grant of quarry lease and have to be considered, the Deputy Director shall refer the matter to the Government with his recommendations for a direction.]

Provided also that whenever more than one application falling under any of the categories (2) to (4) above are received for grant of quarry lease and have to be considered in the order of preference specified above, such preference shall be given to the applications falling in the same category, according to the date of their receipt and in case of applications of the same category received on the same day, the Deputy Director after taking into consideration the particulars furnished in the applications with the prior approval of the Director, may grant the lease to any deserving applicant. Further, he may with the prior approval of the Director, grant a quarry lease to the applicant whose application was received later in preference to the earlier application for reasons to be recorded in writing.]

[39][(3-A) Notwithstanding the order of preference contained in sub-rule (3) above the pattadars or their consent holders shall be given preference for grant of quarry leases in respect of the pattalands.] (4) In case where the quarry lease holders fail to apply for renewal of the lease of the areas within ninety days before the expiry of the lease held by them, as required under sub-rule (2) of Rule 13, fresh application for grant of quarry lease, in respect of those areas, will be entertained thirty days before the expiry of the lease:

[40][(5) (a) (i) A Prospecting Licence or Quarry Lease for granite useful for cutting and polishing shall be granted by the Director on an application made to the Assistant Director of Mines and Geology concerned in Form - N/P and each such application for grant of P.L. or Q.L. shall be accompanied by a sketch drawn to the Scale demarcating the boundaries for easy identification on the ground duly signed by the applicant and by a qualified Surveyor and by a treasury or bank challan for Rs. 5,000/- (rupees five thousand) towards non-refundable application fee and a deposit of Rs. 10,000/- (rupees ten thousand) for every hectare or part-thereof in the form of crossed Demand Draft obtained in favour of the assistant Director Mines and Geology of the district concerned in whose jurisdiction the area falls. The application fee and deposit are subject to revision from time to time, the deposit is refundable to the unsuccessful applicants. In respect of applications in whose favour the P.L. is granted the deposit amount shall be adjusted towards security deposit and the balance, if any, shall be refunded. In respect of applicants in whose favour the Q.L. is granted, the same shall be adjusted towards advanced dead rent.

(ii) In any Government or Patta Lands where the Granite is required to be removed for any purpose other than mining, the Assistant Director Mines and Geology may grant the temporary Permit duly verifying the site and the purpose for which temporary permit is sought on payment of the required Seigniorage fee.

(b) The application for grant of P.L. or Q.L. for granite shall be disposed off by the Director in the order of their receipt. Whenever, more than one application is received on the same day, the Director shall grant licence or lease to the deserving applicant on merits to be recorded in writing;

Provided that the Director may grant a P.L. or Q.L. to an applicant whose application is received later, in preference to earlier application with the prior approval of the Government for any special reasons to be recorded in writing.

Provided further that where a P.L. has been granted in respect of any land, the Licencee shall have a preferential right for obtaining a quarry lease in respect of the land over any other person in case he has undertaken prospecting operations to establish mineral resources and submitted a Prospecting report in such land and such right can be exercised only once over the entire prospected area.

(c) On receipt of an application for the grant of a Q.L., the Director, shall take decision to grant precise area for the said purpose and communicate such decision to the applicant along with a copy of the surveyed sketch showing the area on which the mining plan has to be prepared, on receipt of communication from the Director of the precise area to be granted, the applicant shall prepare and submit a mining plan within six months or such other period as may be allowed by the Director. The applicant shall then submit the mining plan duly approved by the Director or by any officer duly authorised in this behalf.

(d) The Director shall reject the application for P.L. or Q.L. in the event of any default on the part of applicant, in attending the inspection and survey or submission of valid mineral revenue clearance certificate or any other material papers required by the Director.

(e) [41][x x x]

(f) Period and Extent to be granted for P.L. or Q. L.

(i)       A.P.L. for granite shall be granted for a period not exceeding two years. The area covered by a P.L. shall not be less than one hectare but not exceeding 50 hectares.

(ii)      Period and extent to be granted/or Q.L. The maximum period for which a Q.L. may be granted shall not exceed 30 years. Provided that the minimum period for which any such granite quarry lease may be granted shall not be less than 20 years. The area covered by a lease shall not exceed 50 hectares and minimum area shall not be less than one hectare.

(iii)     the Director Mines and Geology if he is satisfied on the basis of production level, Geological or Topographical condition may for reasons to be recorded in writing, grant or renew a licence or lease over an area more than the maximum area or less than the minimum area specified under this rule.

(g) Prospecting fee, Seigniorage fee or Dead Rent-

(i)       (a) livery P.L. holder shall pay prospecting fee of Rs. 15,000/-and Rs. 20,000/-for Colour and Black Granite respectively per hectare per annum.

(b) The licencee may win and carry for purposes of testing and marketability a maximum quantity of 100 Cub. meters per year irrespective of colour or Black Granite on payment of seigniorage fee for the time being specified under schedule I of Rule 10 of the APMMC Rules, 1966.

(ii)      Every quarry lease holder shall pay seigniorage fee or dead rent whichever is higher, as per Schedules I and II of Rule 10 of APMMC Rules, 1966.

(iii)     The licencee or lessee shall pay the prospecting fee or dead rent at the time of execution of licence or lease dead respectively and for the subsequent years one month in advance every year along with land assessment and cess on land assessment.

(h) Conditions of licence or lease.

(i)       The Licencee or lessee shall observe the provisions of the Granite Conservation and Development Rules, 1999.

(ii)      The licencee or lessee shall deposit in any Government treasury and file challans with the Asst. Director concerned for all sums payable to the Government under the terms of licence or lease or permit.

(iii)     The lessee shall pay the seigniorage fee as per the rates prescribed from time to time in Schedule-I, in advance for the quantity intended to be despatched and submit the original challans to the Asst. Director of Mines and Geology concerned and, then only despatch the material. The lessee shall furnish the details of granite despatches with block numbers, quality, quantity and place of consignment to the Asst. Director of Mines and Geology concerned immediately soon after the despatch of material. However, the lessee is required to obtain the transit forms in advance for transportation of granite and shall render the account to the Asst. Director concerned once in a month. No second consignment of way bill shall be issued unless the lessee has rendered the account of the previous account of consignment of way bill.

Provided that any misuse of the transit forms despatch of any granite without paying Seigniorage fee and not accompained by the transit forms issued by the assistant Director, the lessee liable to pay five times of the normal seigniorage fee as penalty for first time offence and ten times penalty for the second time offence in addition to the Normal seigniorage fee. Any subsequent offence shall result in termination of the Lease.

(iv)    The Deputy Director of the region shall be the competent authority to assess and fix in consultation with the concerned department, any compensation payable by the licencee or lessee for any loss, injury or damage done to the person concerned or to his property.

(v)      The licencee or lessee shall errect and maintain at its own expenses boundary pillars of substantial material standing not less than one metre above the surface of the ground at each corner or angle on the line of the boundary of the area under licence or lease and at intervals of not more than 183 metres along with the boundary delineated in the plan attached to the area under the licence or lease.

(vi)    The licencee or lessee shall without delay send to the Assistant Director concerned a report of any accident involving death or injury to any person which may occur in and around the licence or lease area and shall observe all the rules for the time being in force regarding the working of licence or lease.

(vii)   Lapsing of Licence or Lease.

(a)      Where the licencee shall not commence prospecting operations within a period of six months from the date of execution of licence or is discontinued for continuous period of six months after commencement of such prospecting operations, the Director shall by an order declare the P.L. as lapsed and communicate the declaration to the licencee.

(b)      Where the mining operations are not conducted within a period of two years from the date of execution of the lease or is discontinued for a continuous period of two years, after commencement of such mining operation, the Director shall by an order declare the lease as lapsed and communicate the declaration to the lessee.

Provided that where the licencee or lessee submits an application to the Director within a period of one month from the date of receipt of such order and on being satisfied about the adequacy and genuineness of the reasons for the non-commencement of prospecting or quarrying operations or discontinuance thereof, the Director may recommend to the Government for revival of the licence or lease.

Provided further that such application shall be accompanied by payment of a fee of Rs. 2,500/- (Rupees two thousand and five hundred) to the State Government.

(viii)  the licencee or lessee sha'll not assign, sub-let, transfer or otherwise dispose of the under licence or lease without obtaining the previous sanction in writing of the Director. The transfer application shall be made to the Assistant Director of the District concerned in Form R along with non-refudable application fee of Rs. 5.000/- (Rupees five thousand only). The licence or lease deed shall be executed as per the provision under Clause (c). Provided that such sanction shall be accorded that there is no speculation involved in the transfer of licence or lease.

Provided further that the transferor and the transferee shall not be in arrears of any mineral revenu to the Government.

(ix)    The licencee or lessee shall obtain the permission of the Assistant Director concerned before he would erect on the area under licence or lease any building or structure for prospecting or quarrying purpose, if the area belongs to Government.

(x)      If, in the course of prospecting or quarrying any mineral not specified in the licence or lease is discovered, the licencee or lessee shall at once report such discovery to the Assistant Director concerned to enable him to obtain the order of the Director for prospecting/quarrying of the same.

(xi)    Renewal of Q.L..

(i)       If the lessee to whom a quarry lease has been granted has duly observed all the conditions of the lease and filed an application for renewal in Form-Q, to the Assistant Director before twelve months of the expiry of the lease and accompanied by a treasury or bank challan for Rs. 5,000/- (Rupees five thousand only) towards nonrefundable application fee, the Director shall grant renewal for a period not exceeding 20 years subject to adherence to and non-violation of rules during the period of occupation by the lessee.

(ii)      The renewal of quarry lease application shall be disposed of by the Director before the expiry of lease.

Provided that where the renewal of quarry lease application is not disposed of before the expiry of lease, it is deemed to have been extended till the application is disposed of by the Director.

(iii)     The Director may condone the delay in filing an application for renewal of quarry lease made after the time limit prescribed under sub-rule (1) above.

(xii)   In case of any breach on the part of licencee or lessee of any covenant or conditions contained in the grant, the Director may giving an opportunity to the defaulter, determine the licence or lease and take possession of the premises under licence or lease and forfeit the security deposit.

(xiii)  On determination of the licence or lease for violaton of the conditions, all sums, paid by the licencee or lessee by way of deposits shall be forfeited and adjusted towards the amount if any to be realised.

(xiv)  The Director may in consultation with the Government determine the licence or lease, if it is considered necessary to do so in public interest after giving two calendar months notice in writing.

(xv)   Any granite extracted under quarry lease and not removed by the lessee within 30 days or the determination of the lease, or the extended period given by the Director, shall be the property of the Government and the Assistant Director may disposed of the same in public auction.

(xvi)  Granite waste which cannot be sold as granite shall be sold as road metal or otherwise with the permission of the Director.

The rate of Seigniorage fee for such mineral shall be as per Schedule-I under Rule 10 of the APMMC Rules, 1966.

Note. In respect of matters for which no special provision is made in this sub-rule for granite, the provisions contained in other rules shall apply.]

(6)   Notwithstanding anything contained in sub-rules (2) to (4) a quarry lease shall be granted in favour of Co-operative Societies consisting exclusively of Adivasis/Tribals or individual Adivasis/Tribals in the notified Tribal Areas.

Rule - 13. Disposal of applications.

[42][(1) The applications for the grant of quarry leases for any minor minerals except Sand and 'Granite useful for cutting and polishing' shall be disposed of by the Deputy Director concerned. The Deputy Director concerned shall reject the applications in the event of default on the part of the applicants for not attending inspection or survey or non-submission of Mineral Revenue Clearance Certificate or any other material papers as required by Deputy Director. The lease deed shall be executed within ninety days from the date of grant or within such further period as the Director may allow in this behalf provided the grantee applies for extension of time within thirty days from the date of expiry of the period stipulated for execution. Such extensions can be granted by the Director not exceeding two times and such time not exceeding thirty days. If no lease deed is executed within the stipulated period or extended period due to any default on the part of the applicant the authority who is competent to grant quarry lease shall revoke the order granting lease.)

(2)   The application for the renewal of a quarry lease [43][shall be accompanied by a Treasury or Bank challan for rupees one thousand in token of remittance towards fee and] shall be made at least ninety days before the expiry of the period of lease to the [44][Deputy Director] and it shall be disposed of before the expiry of the lease period. If the application is not so disposed of within that period, it shall be deemed to have been not renewed.

[45][Provided that where an application for the grant of quarry lease is rejected or deemed to have been refused under these rules, the fee paid by the applicant under sub-rule (1) of Rule 12 shall be refunded to the applicant;

Provided further that where an application for grant of quarry lease is rejected on account of any lapse on the part of the applicant in supplying any material information, the fee paid by the applicant under sub-rule (1) of Rule 12 shall be forfeited to the Government.]

[46][Security Deposit. An applicant for a P.L. shall before the licence deed is executed, deposit a sum of Rs. 10,000/- (Rupees ten thousand only) for every hectare or part-thereof for which, the licence is granted.

An application for a quarry lease shall before the deed is executed, deposit as security for the due observance of terms and conditions of the lease, a sum, equivalent to one year dead rent.]

Rule - 14.

[47][ * * * ]

Rule - 15. Period of Lease.

[48][(1) Quarry lease may be granted by the Deputy Director for a period of five years in respect of minerals which can be extracted without much equipment or investment like sand, morrum, gravel, limeshell and limekankar, chalcedeny pebbles, shingle, Reh-Matti. In respect of the mienrals which require investment equipment to develop the quarry, such as Boulders. Building stone, limestone, Mosaic chips, fullers earth, shale, slate, marble, shabad slabs, napa slabs, bentonite, lime shell. Road-metal without crushing unit for a period of 10 years and in respect of minor minerals useful for road metal, ballast serving as a captive source for a crusher unit for a period of fifteen years.]

(2)   If the Government are satified that for the proper and systematic development of the quarry, a period longer than [49][5/10/15 years is necessary and that the applicant or lessee is capable, financially and technically, of developing the quarry on a large scale, a quarry lease may be granted for a longer period not exceeding twice the fixed period such lease may, however, be renewed from time to time.

Rule -16. [Restriction on determination of lease.

(1)     The lessee shall not abandon the lease except after a notice in writing of not less than six calendar months to the Deputy Director [50][Other than Granite and to the Director in case of Granite.]

(2)     Every application for surrender of part of the leasehold area in accordance with the provisions of sub-rule (1) shall be accompanied by [51][a deposit Rs. 500/-J for meeting the expenditure for the purpose of servey and emarcation of the area to be surrendered:

Provided that where a lessee applies for the surrender of the whole or part f the leasehold area on the ground that such area is barren or the deposits of minerals being since exhausted or depleted to such an extent that it is no longer economical to work such area, [52][the Deputy Director or the Director of Mines and Geology] shall permit the lessee, from the date of receipt of the application, to surrender that area if the following conditions are satisfied, namely.

(a)      The leasehold area to be surrendered has been properly surveyed and the retained area is contiguous ;

(b)      The lessee has paid all the dues payable to the Government udner the lease upto the date of application ;

(c)      Surrender of the area by the lessee has not already been permitted earlier.][53]

Rule -17. [Lapsing of leases.

(1)     Subject to the other conditions in this rule, where quarrying operations are not commenced within a period of six months from the date of execution of the lease or is discontinued for a continuous period of six months after commencement of such operations or the payments as required under clause (iv) of Rule 31 are not made, the Deputy Director shall, by an order, declare the quarry lease as lapsed and communicate the decision to the lessee.

(2)     Where the lessee is unable to commence the quarrying operations within a period of six months from the date of execution of the lease or discontinued quarrying operations for a period of six months for reasons beyond his control, he may submit an application to the Director explaining the reasons for the same atleast 30 days before the expiry of such period.

(3)     Every application under sub-rule (2) shall be accompanied by [54][a fee of Rs. 500/-].

(4)     The Director may on receipt of application made under sub-rule (2) and on being satisfied about the adequacy and genuineness of the reasons for the non-commencement of the quarrying operations or discontinuation thereon, pass an order extending or refusing to extend the period of the lease.

(5)     The Director may condone the delay in submission of the application under sub-rule (2) before the lapse of the lease.][55]

Rule -18. Default in payment of bid amount.

[56][If the lessee or the bidder makes default in payment of any money due from him under these rules within the stipulated period or neglects to furnish security deposit or to execute the lease deed when required, the Deputy Director may pass an order forfeiting all sums paid by him and cancel the quarry lease.]

Rule -[19.

The State Government may without prejudice to the provisions contained in the Act or any other rule in these rules, charge simple interest at the rate of twenty four percent, per annum on any amount payable under these rules or under the terms and conditions of any quarry lease from the sixteenth day of the expiry of the date fixed for payment of such amount and until payment of such sums is made.][57]

Rule -20. Rights under a Lease.

Subject to a contract to the contrary, a quarry lease granted under the rules shall confer on the lessee, the right to quarry, carry away, sell or dispose of the minor mineral or minerals specified in the lease deed and found upon under the lands specified therein.

Rule -21. Removal of sand from Port Limits.

[58][(1) Removal of sand may be allowed with the previous permission of the Conservator of Port under subsection (1) of Section 3 of the Indian Ports Act, 1908, from the ports under the administrative control of the State Government for scrubbing decks and ballast on small country crafts or for other marine purposes free of charge in case the sand removed is not exceeding half a tonne and in other cases, the prevailing rate of seigniorage fee for ordinary sand as specified in Schedule I under Rule 10 from time to time shall be levied on the quantity removed in excess over half a tonne. The seigniorage fees so collected shall be credited to the Andhra Pradesh Minor Port Fund or the Landing and Shipping Fund, as the permitted authority directs.]

(2)   quarrying and removal of sand for non-marine purposes shall, however, be subject to the previous permission of the Conservator and payment of the seigniorage fee.[59]

Rule -22. Availability of the areas for grant to be notified.

[60][ x x x] 

Rule -23. Removal of sand etc. form lands and Tanks in charge of the Government Departments.

(1)     Nothing in the foregoing rules shall apply to removal of sand, earth or silt for non-commercial purpose from the lands and tanks in charge of the Public Works Department and the Revenue Department.

(2)     Sand, earth or silt from the beds of tanks under the control of the Public Works Department or the Revenue Department, which are notified by the Assistant Director under this rule, may be allowed to be removed free of charge for bona fide domestic, agricultural or non-commercial purposes. Such removal shall be subject to the following restrictions, namely.

(i)       pits shall be at a distance of at least twice the height of the bund from the toe of the bund, and they shall not be of such depth as could expose porus starta and at any rate more than one metre;

(ii)      earth shall not be carted along tank bund unless the bund is a road r car track;

(iii)     bunds shall not be cut to enable carts to pass;

(iv)    silt removed shall not be stocked on tank beds, bunds or slopes of bunds; and

(v)      cart shall not touch any portion of the revetment sluice or any other masonary works of the tank and cause damage to them. (3) Before issuing the notification under sub-rule (2) in respect of the tanks in charge of the Public Works Department or the Revenue Department, the Assistant Director shall consult the Executive Engineer or the Collector of the revenue district concerned.

Rule -24. Removal of minor minerals from sources vested in Zilla Parishads, Municipalities, Panchayat Samithis & Gram Panchayats.

The Assistant Director may, subject to the provisions of Rule 12, grant lease for the removal of any minor mineral from any sources of water-supply vested in any Zilla Parishad, Municipality, Panchayat Samithi or Gram Panchayat, after consulting it.

Rule -[25. Quarrying or removal of sand in certain river Beds.

Whenever the Director or the Officer authorised by him decides to lease-out the right of quarrying for sand in sealed Tender-cum-Public Auction, in River Beds to which the 'Andhra Pradesh (Andhra Area) River Conservancy Act, 1884 applies he shall prior to the issue of notice under Rule 9-C consult the Conservator of Rivers.][61]

Rule -26. Penalty for unauthorised quarrying.

[62][(1)] If any person carries on quarrying operations or transports minor minerals in contravention of these rules, he shall be liable to pay as penalty such enhanced seigniorage fee together with assessments as may be imposed by an Officer nominated by the Director of Mines and Geology;

(2)   Whenever any person raises or transports minor minerals without any awful authority, such minerals may be seized by an Officer nominated by the Director of Mines and Geology in this behalf in addition to the imposition of the penalty under sub-rule (1).

Provided that in no case, the penalty shall exceed ten times the normal seigniorage fee and the lease or permit already granted may, at the discretion of the Deputy Director, be liable to be terminated or cancelled.

[63][(3)] (i) For the purpose of ascertaining the position of payment of Mineral Revenue due to the Government or for any other purpose under these rules, the person authorised under sub-rule (2) may 

(a)      enter and inspect any premises;

(b)      survey and take measurements;

(c)      weigh, measure or take measurements of stocks of minerals;

(d)      examine any document, book, register or record in the possession or power of any person having the control of, or connected with any mineral including the processed mineral and place marks of identification thereon and take extracts from or make copies of such document, book, register or record, and

(e)      order the production of any such document, book, register, record as is referred to in clause (d).

(ii) if no documentary proof is produce in token of having paid the mineral revenue due to the Government by any person who used or consumed or in possession of any mineral including the processed mineral, he shall not withstanding anything contained in sub-rule (1) be liable to pay five times or the normal Seigniorage Fee as penatly in addition to normal Seigniorage fee leviable under the rules.

[64][Explanation. It shall be competent to the officer nominated by the Director of Mines and Geology determine the question whether quarrying operation or transportation of minerals are carried or not within the meaning of this rule.]

Rule -27. Registered Holder or any lessee held responsible for proper working of the quarry.

In a case where the land is leased out, the lessee and where no lease is granted, the registered holder shall be responsible for the proper working of the quarry and shall be liable to the Government for his wrongful act of default.

Rule -28. Discovery of new minenal, fencing, accounting etc.

(1)     If any minor mineral not specified in the lease or the order sanctioning the permit is discovered in the area, under lease or permit, the lessee or the permit holder shall not win or dispose of such mineral without obtaining permission of the Assistant Director and without payment of such seigniorage fee as well as the acreage assessment as would be due if permission was granted in respect of such mineral.

(2)     The lessee [65][ * * *] shall at his own expense, erect boundary marks round the area shown in the plan annexed to the lease or mentioned in the order sanctioning the permit, as the case maybe, and maintain and keep such boundary marks in good repair.

(3)     The lessee or the person to whom a permit is given shall keep true accounts of the quantity and other particulars of all minor minerals obtained and despatched from the quarry in Form C.

(4)     Any officer authorised by the Deputy or Assistant Director in this behalf shall have access to such account for examination and inspection and the permit holder or the lessee shall furnish the officer with such information and returns as may be specified by him.

(5)     The lessee or the person to whom a permit is given shall strengthen and support any part of the quarry for the safety of any railway, reservoir, canal, road or any public work or structure to the satisfaction of the Railway Administration, local authority or the State Government, as the case may be, according to the requirements.

Rule -29. Recovery of arrears.

Any amount due to Government under these rules may be recovered as an arrear of land revenue.

Rule -30. Report to Chief Inspector of Mines.

The lessee or his agent or the manager of the quarry shall forward to the Chief Inspector of Mines, India, Dhanbad and the [66][Assistant Director concerned a report in Form F-1.

(i)       whenever the depth of the quarry measured from its highest to its lowest point reaches six metres;

(ii)      Whenever the number of persons employed in the quarry on any day is more than 50; and

(iii)     At such times as the Assistant Director may direct.

Rule -31. Conditions of permit or lease.

Every quarry lease shall, in addition to such conditions as maybe specifically stipulated in each case, be subject to the following conditions, viz.,

(i)       [67][* **]

(ii)      [68][* * *]

(iii)     The lessee, shall pay annually the land assessment, if any, of the area under lease or permit;

[69][(iv) The lessee shall pay the advance dead rent at the time of execution of the lease deed and the annual dead rent for the subsequent years one month in advance every year and all other sums payable to the Government in any Government Treasury and file the challans to the Assistant Director concerned.]

(v)   The Deputy Director, shall be the competent authority to assess and fix, in consultation with the concerned departments, any compensation payable by the lessee for any loss, injury or damage done to the person concerned or to his property;

(vi)   The lessee shall, [70][ * * * ] effect and maintain at his own expense, boundary pillars of substantial material, standing not less than one metre above the surface of the ground at each corner of angle in the line of the boundary of the area under lease or permit and at intervals of not more than 183 metres along with the boundary, delineated in the plan attached to the area under lease or permit;

(vii) The lessee shall commence quarrying operations within two months from the date of the grant and shall thereafter carry on such operations effectively in a proper, skilful and workmen like manner, as regards prevention of waste within the quarry and shall not work it in such a manner as may prove dangerous to human life or cattle and shall, if so directed by the Assistant Director, cause such quarry or any part thereof to be securely fenced to the satisfaction of the Assistant Director.

(viii) The lessee shall without delay send to the Assistant Director a report of any accident involving the death or injury to any person which may occur in or around the quarry and shall observe all rules for the time being in force regulating the working of quarries:

(ix)   The lessee shall not assign, sub-let, transfer or otherwise dispose of the area under lease or permit without obtaining the previous sanction in writing of the Deputy Director; [71][A quarry lease granted in public auction for sand is not open for transfer]

(x)   The lessee shall not cut or injure any trees in the area under lease or permit;

(xi)   The lessee shall obtain the permission of the Assistant Director before he would erect on the area under lease or permit any building for quarring purposes if the area belonged to the Government;

(xii) If, in the course of quarrying, any mineral not specified in the lease is discovered, the lessee shall at once report such discovery to the Assistant Director to enable him to obtain orders of the Government regarding the working of the same;

(xiii) If the lessee stops to work the quarry without the prior sanction of the Assistant Director for a continuous period of six months, the lease granted for quarrying shall be liabe to be cancelled;

[72](xiv) If the lessee to whom a quarry lease is granted has duly observed all the conditions of the lease and file an application under Rule 9(i) to the Deputy Director (through Assistant Director) 4 [73][ * * * ] the Deputy Director may grant renewal for not more than two times to the period of the quarry lease. The renewals are further subject to the following criteria.

First Renewal:

(a)      Systematic development of the quarry/quarries.

(b)      Development of good communication facilities and their maintenance.

(c)      Investment on transport.

(d)      Training of skilled labour and commitments on labour retention and inducement.

(e)      Preliminary work and investment for establishment of a processing (dressing or upgrading) plant utilising the product from the quarry/ quarries in question.

(f)       Establishment of market for the product, either in raw form or in processed or Semi-processed form.

Second Renewal:

(a)      Establishment of processing plant, either individually or in joint partnership with others.

(b)      Development of market in the country or abroad.

(c)      Any long term contracts with established industries for supply of quarry product.

(d)      Setting up of an industry in the region, either individually or in partnership with others.

Note. (1) Adherence to and non-violation of rules during the term of occupation is a primary pre-requisite in all cases of consideration of renewal.

(2) In case of patta lands, renewals may be automatic.

(3) In case of leases for minor minerals useful for road metal ballast serving as a captive source for a crusher unit the renewal may be granted as long as crushing unit is in operatin.

(xv) If the seigniorage fee or dead rent payable by the lessee is not paid within three months next after the date fixed in the grant or otherwise for its payment, the Deputy Director or any Officer authorised by him, may after giving an opportunity to the defaulter, enter upon the area under lease or permit and distrain all or any of the mineral or the movable property belonging to him and standing on the land, and may order for the-sale of the property distrained or so much of it as will suffice to cover the arrears -due to the Government together with all costs and expenses occasioned by the non-payment thereof and may also determine the lease or permit;

(xvi) In the case of any breach on the part of the lessee of any covenant or condition contained in the grant, the Deputy Director, may, after giving an opportunity to the defaulter, determine the lease [74][ * * * ] and take possession of the premises under lease [75][ * * * ] and forfeit the security deposit.

(xvii) On the determination of a lease or permit for violation of conditions (iii), (xv) or (xvi), all sums paid by the lessee by way of deposit shall be adjusted towards the amounts, if any, due to the Government and any further dues remaining unpaid shall become recoverable from the lessee.

(xviii) The Deputy Director may, in consultation with the Government determine the lease, if it is considered by him necessary to do so in the public interest after giving two calender month's notice in writing;

[76][(xix) Any minor mineral extracted from the quarry and not removed by the lessee before the date of expiry of the determination of the lease or permit may be despatched within 30 days or extended period granted by the Government from the date of such expiry or determination after paying dead rent and seigniorage fee and any other sums which may be due. If the lessee does not remove the extracted mineral from the leased area within the permitted and extended period mentioned above it shall be the property of the Government and the Assistant Director may sell it in public auction.]

[77][(xx) When the quarry lease is granted by public auction the lessee shall pay the quarrying fee or lease amount in the manner prescribed in these rules.]

Rule -32. Special conditions in the lease.

The grant may include any special conditions for working in forest areas and the lessee shall not interfere with exploitation of the forest produce in the area or with the rightful exercise of any other rights other than the exploitation of the minor minerals for which the grant is made to him.

Rule -33. Head of Account to which amount should be remitted.

Any stocks of minor minerals excavated by the lessee or the person who worked the quarry under a lease or permit under these rules and left lying on the areas after the expiry of the lease or permit shall be the property of the Government and the Assistant Director may sell it in public auction. The amount so collected as cost of cesses, if any, shall be credited to the following Head of Account:

Rule -[34. Despatch permit.

[79][(1) No minor mineral shall be despatched from any of the leased area without a valid permit issued by the Assistant Director concerned or an office authorised by him in this behalf. Contravention of this rule shall result in forfeiture of Security Deposit and levy of normal seigniorage fee along with five times penalty by the said Assistant Director or the officer authorised by him.

(2)   The application for the despatch permit under sub-rule (1) shall be made by the lessee to the Assistant Director concerned in Form-K by duly enclosing challans towards advance payment of seigniorage fee for the proposed quantity to be despatched atleast ten days before the proposed date of despatch of the mineral. The permit shall be issued by the competent authority in Form L:][80]

[81][ * * * ]

Rule -35. Appeal.

An appeal against any order passed by the Assistant Director or Deputy Director, "[Joint Director] under these rules shall lie to the Director within a period of two months from the date of communication of such order to the party aggrieved and an appeal against an order of the Director [82][ * * * ] shall be to the Government in like manner.

Rule -35-A. Revision.

The Government may either sua motu at any time or on an application made within ninety days, call for an examine the record relating to any order passed or proceeding taken by the Director, [83][Joint Director], Deputy Director or Assistant Director under these rules for the purpose of satisfying themselves as to the legality or propriety of such order or as to the regularity of such proceedings and pass such order in reference thereto as they think fit.

Provided that no order adversely affecting any person shall be passed under this rule unless such person has been given an opportunity of making his representation.

[84][Explanation. For purposes of this rule where a Deputy Director has failed to dispose of an application for the grant or renewal of a quarry lease within the period specified in respect thereof under these rules, the Deputy Director shall be deemed to have made an order refusing the grant or renewal of such lease on the date on which such period expires.]

Rule -35-B. [Fees.

Every appeal under Rule 35 or application for revision under Rule 35-A shall be accompanied by a treasury receipt showing that [85][a fee of rupees five hundred-if it is an appeal or a fee of rupees one thousand if it is an appeal for revisional, has been paid into a Government Treasury or in any Branch of the State Bank of Hyderabad doing the treasury business, to the credit of the State Government under the following Head of account.

128. Mines and Minerals - M.H. 10 Minerals Concession Fees, Rents and Royalties-S.H. (03)-Miscellaneous Revenues.][86]

Rule -35-C. [[Application for Appeal/Revision.

(1)     Any appeal against any order passed by the Assistant Director or the Deputy Director or Joint Director filed before the Director under Rule 35 or revision against any order passed by the Director, Joint Director, Deputy Director or Assistant Director filed before the Government under Rule 35-A of these Rules, shall be made in triplicate in Form-J within the period specified in Rule 35 or 35-A of these Rules, along with the Treasury receipt showing that the fees specified in Rule 35-B of these rules has been paid into a Government Treasury or in any Branch of State Bank of India/Hyderabad conducting the Treasury Business to the credit of the head of account as specified therein.

Provided that any such application may be entertained after the said period of two months/ninety days specified in Rule 35-A, if the applicant satisfies the Director/State Government that he had sufficient cause for not making the application within the specified time.][87]

(2)     Where the fee under sub-rule (1) has been deposited, but no application for appeal/revision has been made, the fee shall be refunded to the person concerned on an application made by him in this behalf to the Director/State Government.

(3)     In every application made under sub-rule (1) the person to whom a quarry lease was granted in respect of the same area or part thereof, shall be impleaded as a party.

(4)     Along with the application under sub-rule (1) the applicant shall submit as many copies as there are parties impleaded under sub-rule (3).

(5)     On receipt of the application the Director/State Government shall send a copy of the application to each of the parties impleaded under sub-rule (3) specifying a date on or before which he may make his representation, if any, against the appeal/revision application filed under sub-rule (1).][88]

Rule -36. Particulars of quarry leases.

The Assistant Director shall furnish by the fifth of every month in Form 'D' the full particulars of all the quarry leases granted in the preceding month indicating the situation, survey number and extent, the mineral and the period for which it was granted, with names and addresses of lessees to the Director of Mines and Geology and shall thereafter provide, from time to time, as and when arising, the particulars of quarry leases termianted, relinquished or expired. He shall also furnish to the Director the particulars as to the mineral receipts in respect of all quarries granted under these rules every half year in Form 'E'.

Rule -37. Saving.

Nothing in these rules shall apply to search for minerals at the surface not involving any substantial distrubance of the soil.