ORDER :

The issue with regard to modalities that would govern the auction of the Category 'C' mines which have been ordered to be cancelled by our judgment and order dated 18th April, 2013 passed in Writ Petition (Civil) No. 562 of 2009 [Samaj Parivartana Samudaya and others versus State of Karnataka and others] and other connected matters is being dealt with by the present order.

2. Shri Nilaya Mitash, IAS, Secretary, Commerce and Industries Department (Mines), Government of Karnataka, Bangalore is personally present in Court at the request of the Court. From the materials on record and the statement made by Shri Nilaya Mitash, Secretary, Commerce and Industries Department (Mines), Government of Karnataka, it appears that 15 of the Category 'C' mines are ready for auction. We, therefore, direct that the auction of the aforesaid mines, details of which are indicated herein below will commence immediately and stand concluded within outer limit of 32 weeks, preferably within 26 weeks with effect from today.    

3. The modalities which would govern the auction would be as follows:

1. The lease boundary of each of the mining lease will be as approved by this Court by judgment and order dated 18th April, 2013.

2. Only the end-users engaged in production of sponge iron and/or pig iron and/or steel and/or pellets will be eligible to take part in the auction. The end-users will include Public Sector Undertakings;

3. The reserve price under Rule 8(1) Mineral (Auction) Rules, 2015 will be specified in the tender documents at 35%.

4. The permissible annual production will be as prescribed under the approved R&R Plan prepared until such time that the same is modified by this Court.

5. The successful bidder/lessee will be required to produce and dispatch every year at least 50% of the permissible annual production as prescribed under the approved R&R Plan. Whenever the dispatch in a year is below the guaranteed dispatch as indicated above in that case irrespective of the quantity actually dispatched the total amount payable during the year will be based on the guaranteed dispatch. In addition, the lessee may also be required to surrender the lease. This condition will not be applicable during the initial period of 18 months provided to the successful bidder/lessee to obtain the statutory approvals;

6. The successful bidder/lessee will be required to implement the prescriptions/provisions of the approved R&R Plan in accordance with the guidelines approved by this Court. The cost incurred for this will be reimbursed by the State Government to the successful bidder/lessee after recovering the same from the erstwhile lessee;

7. Consortium of end-users will not be eligible to participate in the auction;

8. The existing statutory approvals/clearances in favour of the lessee of the erstwhile Category 'C' mining leases will be transferred in favour of the new lessees. The concerned authority will take expeditious action for the grant of the statutory approvals such as the environmental clearance and approval/TWP under the Forest (Conservation) Act, 1980;

9. The State of Karnataka will be at liberty to reduce the reserve price for the mining leases for which no bid above the reserve price is received;

10. The sale proceeds of the auction, for the prese