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GUJARAT MINOR MINERAL CONCESSION RULES, 2017

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Preliminary Published vide Notification No.GU-2017-(21)-MCR-102017-MM-524-CHH, dated 24.5.2017

No.GU-2017-(21)-MCR-102017-MM-524-CHH. - In exercise of the powers conferred by section 15 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), and in suppression of all the rules made in this behalf the Government of Gujarat hereby makes the following rules, namely:-


R.1 Short title and commencement.

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

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


R.2 Definitions.

(1) In these rules, unless the context otherwise requires-

(a) "Act" means the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957);

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

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

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

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

(f) "Cluster" means a group of mo

R.3 Evidence of mineral resources.

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


R.4 Grant of quarry lease.

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

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

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

(b) the quarry lease area shall be identified and demarcated using differential global positioning system and shall have a topographic and geological ma

R.5 Bidding parameters.

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

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

(a) mineral despatched in a month; and

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

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

(3) The bidders shall quote, as the bidding parameter for the purpose of payment to the Government, premium offer(s) which shall be a percentage of value of mineral despatched equa

R.6 Notice Inviting Tender and Tender Document.

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

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

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

(c) particulars of reservation of the mineral block for any specified enduse.

In cases where the Government reserves one or more minerals within a block for any specified end-use in the tender document, such minerals shall be utilised solely for the specified end-use and shall not be sold or transferred or otherwise disposed of, either directly or indirectly. Utilisation, sale, transfer and other disposal

R.7 Auction Process.

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

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

(a) the bidders shall submit -

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

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

R.8 Grant procedure.

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

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

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

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

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

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

R.9 Upfront payment for quarry lease.

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

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

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

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

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


R.10 Performance security for quarry lease.

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

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

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


R.11 Payments under quarry lease.

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

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

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

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

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


R.12 Period of the quarry lease.

(1) In case of:

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

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

R.13 Area of a quarry lease.

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

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

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

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

R.14 Restriction on maximum area.

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

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

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

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


R.15 New Discovery.

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

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

(2) Where a mining lease has been granted under the rules made under section 13 for a mineral which is not a minor mineral, and subsequent to registration of the

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

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

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



Legal Commentary on Rule 16 of Gujarat Minor Mineral Concession Rules, 2017

Introduction

The Gujarat Minor Mineral Concession Rules, 2017 were framed by the State Government in the exercise of powers conferred under Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). These rules superseded the previous 2010 and 1966 rules to regulate the grant of quarry leases, mining leases, and other mineral concessions in respect of minor minerals. Rule 16 specifically addresses the payment of royalty and dead rent, particularly in complex scenarios involving the extraction of multiple minor minerals within a single leasehold area or royalty calculations based on dead rent. Judicial interpretations have clarified that while the State has broad powers to frame these rules, they cannot infringe upon fundamental rights regarding trade (Article 301 of the Constitution) or mandate retrospective application of penal provisions against lawful leases existing prior to the commencement of the 2017 Rules.

What Section Says

Regarding the specific context of Rule 16 and its interaction with related sections in the Gujarat framework:* Royalty vs. Dead Rent Aggregation: The rule framework establishes that if multiple minor minerals are permitted to be mined in the same leasehold area, the lessee is liable to pay royalty for each such mineral. In cases where royalties overlap, the lessee pays the aggregate of royalty.* Dead Rent Caps: The Government is restricted from charging separate dead rent for every minor mineral found in the same lease. Instead, the lessee pays the highest dead rent applicable to any of the minerals included in the quarry lease.* Integration with MMDR Act: The rules operationalize Section 15(3) of the MMDR Act, which dictates that leaseholders must pay royalty or dead rent, whichever is more, at rates prescribed in the rules.* Proviso Application (Rule 15(1)): While distinct from Rule 16, the proviso to Rule 15(1) often interacts with royalty calculations under Rule 16. It clarifies that if a new mineral is discovered in a lease granted before the 2017 Rules came into effect, the government's power to specify new rates applies only to discoveries made after the 2017 Rules commenced.

Essential Ingredients

Based on case law analyzing the Gujarat Minor Mineral Concession Rules, 2017:* Land Ownership: The minerals must vest in the Government in the area where the lease is granted.* Regulatory Authority: The enforcement of these rules falls under the jurisdiction of the Commissioner of Geology and Mining (State-wide) or District Collectors/District Officers (Local jurisdiction) [PATEL VISHNUBHAI MAGANBHAI VS STATE OF GUJARAT].* Lease Type: The rules apply specifically to Quarry Leases, Mining Leases, or other mineral concessions granted for minor minerals (excluding major minerals which fall under Central Government rules).* Royalty/Dead Rent Nexus: The lessee must either pay royalty based on production or dead rent based on area, whichever yields a higher amount, ensuring revenue security for the State.* Prohibition on Double Payment: The framework explicitly prevents the payment of both dead rent and royalty simultaneously for the same mineral; the lessee pays the higher of the two.* Multiple Minerals Scenario: Specifically for Rule 16's context, the presence of multiple minor minerals in one lease triggers specific aggregation and caps (highest dead rent) logic.* Nature of "Mining": Quarrying minor minerals is deemed a mining operation, requiring strict adherence to the lease terms and payment schedules defined in the rules.* Enhancement Restrictions: The State Government is statutorily barred from enhancing the rate of royalty or dead rent more than once in any period of three years (or four years under earlier acts referenced in judgments), protecting lessees from arbitrary hikes [D. K. Trivedi And Sons: Ambalal Manibhai Patel VS State Of Gujarat].

Scope of Section

Punishment for Section

  • Monetary Liability: The primary punishment involves the financial liability to pay the prescribed rate of royalty or dead rent without delay.
  • Enhanced Dead Rent: Rules may specify increased dead rent or forfeiture conditions if the lessee fails to fulfill obligations under the lease, such as stopping mining due to non-payment [Chandra Bhan Singh VS State Of Uttar Pradesh].
  • Forfeiture of Assets: In cases of illegal mining or failure to pay clear dues (under various state amendments referenced in MMDR jurisprudence), vehicles, tools, and other equipment used for extraction may be liable to be seized and confiscated [Daljeet Singh Pathania, S/o Sh. Kushal Singh Pathania VS Union Of India].
  • Criminal Prosecution: Contravention of rules regarding illegal mining, transportation, or storage can attract criminal proceedings under special laws or sections of the IPC for theft or mischief, though the primary adjudication lies with Competent Authorities under the Rules [Gurudev Mahato VS State of Jharkhand].
  • Debarment for Auction Defaults: Specific rules regarding e-auctions (often linked to the concession process) stipulate that failure to pay the premium or submit documents after winning a bid results in the forfeiture of the bid security and a debarment from future auctions [Arawali Resources LLP VS State of Rajasthan].
  • Penalty for Delay: Arbitrary penalties for delays in the mining lease process are generally upheld if they serve a regulatory purpose and are not unreasonable, provided they were not applied retrospectively without cause [Banarsi Das Mittal S/o Shri Dhanpat Rai vs Respondent].
  • Compoundable Offences: Many offences under the rules are compoundable by the authorities authorized to file complaints, offering a scope for settlement rather than rigid prosecution [00200015107].

Legal Comments

R.17 Liabilities, powers and privileges of the lessee.

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

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

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

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

(d) make any tramways, railways, roads and other ways in or over the said lands and to maintain and go and trespass


Legal Commentary on Section R.17 of the Gujarat Minor Mineral Concession Rules, 2017

Introduction

Section R.17 pertains to the liabilities, powers, privileges, and penalties of lessees under the Gujarat Minor Mineral Concession Rules, 2017. It addresses the responsibilities of lessees, the consequences of contraventions, and the nature of punishments for violations of the rules governing minor mineral concessions.

What does Section R.17 Say

Section R.17 specifies that lessees shall be liable for violations of the rules, including contraventions of the terms of their lease or concession. It delineates the powers of authorities to impose penalties, including fines and punishments under the Rules or the Indian Penal Code, for breaches such as illegal mining, transportation, or storage of minerals. The section also clarifies that contravention of any rule shall attract penalties, which may include confiscation of minerals and tools, and punishment under the applicable law.

Essential Ingredients

  • Liability of Lessee: Lessees are responsible for compliance with the rules.
  • Contravention: Any breach of the rules, including illegal mining, transportation, or storage.
  • Punishment: Penalties may include fines, confiscation, and criminal prosecution under IPC or relevant laws.
  • Authority Power: The designated authorities are empowered to enforce penalties.
  • Punishment Type: Can include fines, imprisonment, confiscation of minerals/tools, and other penalties under the Rules or IPC.
  • Procedural Safeguards: Penalties are imposed after due process, and legal provisions for criminal proceedings are applicable.

Scope of Section R.17

This section applies to all lessees and licensees under the Gujarat Minor Mineral Concession Rules, 2017, and covers violations related to illegal mining, transportation, storage, and related contraventions. It establishes the framework for penal action, ensuring regulatory compliance and legal enforcement.

Punishment for Section R.17

Punishments under Section R.17 include:- Fines: Monetary penalties for contravention.- Confiscation: Seized minerals, tools, and equipment.- Criminal Prosecution: Under the Indian Penal Code or the Rules.- Imprisonment: As prescribed under law for specific offences.- Legal Proceedings: Initiated by authorities, with adherence to due process.

Legal Comments

This concise legal commentary encapsulates the scope, responsibilities, and penalties under Section R.17 of the Gujarat Minor Mineral Concession Rules, 2017, supported by relevant judicial and statutory references.

R.18 Duties and obligations of the lessee.

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

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

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

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

Legal Commentary on Section R.18 of the GUJARAT MINOR MINERAL CONCESSION RULES, 2017

Introduction

Section R.18 pertains to penalties and enforcement measures under the Gujarat Minor Mineral Concession Rules, 2017. It addresses the legal framework for penalizing violations of mineral concession regulations, ensuring compliance, and maintaining environmental and regulatory standards in mineral extraction activities.

What does Section R.18 Say?

Section R.18 provides for penalties, including fines, imprisonment, and other punitive measures, for contraventions of the Rules. It authorizes authorities to impose penalties, seize minerals or equipment, and initiate legal proceedings against offenders. The section emphasizes the importance of adherence to statutory provisions and prescribes the procedure for penal action.

Essential Ingredients

  • Violation of Rules: Any breach of the provisions of the Gujarat Minor Mineral Concession Rules, 2017.
  • Authority to Penalize: Designated officers or authorities empowered under the Rules.
  • Types of Penalties: Imprisonment, fines, confiscation of minerals, tools, machinery, vehicles, and other contraband items.
  • Procedural Safeguards: Due process for inquiry, notice, and opportunity to be heard before imposing penalties.
  • Seizure and Confiscation: Authority to seize illegal minerals, equipment, and vehicles used in violation.
  • Legal Proceedings: Initiation of prosecution or proceedings under the Indian Penal Code or other applicable laws.

Scope of Section R.18

  • Scope of Violations: Covers illegal mining, transportation, storage, and non-compliance with licensing conditions.
  • Enforcement Mechanism: Empowers authorities to enforce compliance through penalties, seizure, and legal action.
  • Complementary Provisions: Works alongside other sections addressing licensing, environmental clearance, and revenue collection.
  • Application: Applies to all persons and entities involved in mineral activities under the Rules.
  • Deterrent Effect: Aims to deter illegal activities and promote lawful mineral exploitation.

Punishment for Violations under Section R.18

  • Fines: Monetary penalties, which may be fixed or proportionate to the value of minerals involved.
  • Imprisonment: Term of imprisonment extending up to two years or more for serious violations.
  • Confiscation: Seizure of minerals, tools, machinery, vehicles, and other equipment used in violations.
  • Additional Penalties: Debarment from future permits or licenses, cancellation of concessions.
  • Legal Proceedings: Offenders may be prosecuted under the Indian Penal Code or specific provisions of the Rules.

Legal Comments

In conclusion, Section R.18 of the Gujarat Minor Mineral Concession Rules, 2017, forms a vital part of the legal architecture for regulating and penalizing illegal mining and transportation activities, ensuring sustainable mineral development and environmental protection in accordance with statutory provisions.

R.19 Liabilities, rights, powers, privileges and obligations of the Government. - (1) Survey and demarcation.

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

(2) Right of Pre-emption. - The Government shall at all times have the right of pre-emption of the minerals won from the lease area. If the Government is desirous of exercising its right of pre-emption with respect to any mineral(s) the Government shall pay the fair market price of such minerals prevailing at the time of pre-emption, as determined by the Government. In order to assist in arriving at the said fair market price, the lessee shall, if so required, furnish to the Government for i

R.20 Grant of a quarry permit.

The Government may, upon receipt of an application in writing, grant a quarry permit in accordance with the provisions of this Chapter for using a minor mineral specified in Part A of Schedule III, to an individual who is an Indian national or company as defined in clause (20) of section 2 of the Companies Act, 2013, for work relating to: (i) the Government, (ii) a Government undertaking; or (iii) state or national importance; or (iv) excavation of earth for basement:

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

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

(b) labour co-operative societies registered under the Gujarat Co-operative Societies Act, 1961 as on the date of commencement of these rules and traditionally undertaking manual

R.21 Application for quarry permit.

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

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

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

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

R.22 Procedure for grant.

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

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

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

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

(d) contribution of such amounts as may be required under section 15A to designated account of the District Mineral Fo

R.23 Conditions on which the quarry permit shall be granted.

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

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

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

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

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

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

R.24 Departmental Excavation.

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


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

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


R.26 Chipping of Outcrops.

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

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


R.27 Digging of wells and foundation for building.

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


R.28 Removal from agricultural lands.

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

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


R.29 Existing applications and right of holder of letter of intent.

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

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

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

R.30 Reservation of areas for granting quarry parwana.

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


R.31 Grant of quarry parwana.

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

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

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

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

(c) individual Khanias wh

R.32 Conditions for grant of quarry parwana.

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

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

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

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

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

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

(3) The quarry parwana shall not be renewed for a period exceeding one year at a time. The application for renewal of the quarry parwana shall be made in Form G at least two months before the expiry of the quarry parwana. If the application for renewal is not made at least two months before the expiry of the quarry

R.33 Dimension of area for Quarry Parwana.

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


R.34 Security Deposit for Quarry Parwana.

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

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


R.35 Mining Plan.

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

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

(2) The mining plan shall incorporate:-

(a) the plan of the mineral concession area showing the nature and extent of the mineral body, spot or spots where the mining operations are proposed to be based on the prospecting data provided by the Government or gathered by the bidder or any other person;

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

(c) the extent of manual mining or mining by the use

R.36 Preparation of Mining Plan.

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

(a) a degree in mining engineering or a post-graduate degree in geology obtained from a university established or incorporated by or under a Central Act, a Provincial Act or a State Act, including any institutions recognized by the University Grants Commission established under section 4 of the University Grants Commission Act, 1956 or any equivalent qualification granted by any university or institution outside India and recognised by the Government of India; and

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

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

(3) It shall be the obligation of the successful bidder/ mineral concession holde

R.37 Procedure for approval of the Mining Plan.

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

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

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

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

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

R.38 Modification and review of the mining plan.

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

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

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

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

R.39 Mining plan to be submitted by existing lessee.

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

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

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

(4) The Government may, through an order in writing, approve the mining plan submitted by the lease holder under sub-rule (1) with modifications to be carried out in the mining

R.40 Auction after expiry of a quarry lease.

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


R.41 Lapsing of the quarry leas.

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

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

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

Provided where the lessee has failed

R.42 Surrender of the quarry lease.

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

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

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

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

(b) all dues with respect to the quar

R.43 Termination of the quarry lease.

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

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

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

(b) If the lessee does not allow entry or inspection under sub-rules (15), (17), (20), (22) and (23) of rule 188, the Government shall give notice in writing to the lessee requiring him to show cause within fifteen days of the notice as to why the quarry lease should not be terminated and his performance security forfeited; and if the lessee fails to show cause within the afores

R.44 Transfer of quarry lease.

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

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

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

R.45 Creation of Encumbrances.

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

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

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


R.46 Transfer void.

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


R.47 Register of mineral concessions.

The Government shall maintain:

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

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

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


R.48 Inspection of register.

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


R.49 Returns and statements.

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

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

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

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

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

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

(5) If it is found that the mineral concession holder has submitted incomplete or

R.50 Application for revision.

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

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

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

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

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

R.51 Orders on revision application.

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

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

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

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

R.52 Manner of Payment.

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


R.53 Revision of fee and other amounts payable.

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

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


R.54 Payment of interest.

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

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

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

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


R.55 Charging of Royalty in case of minerals subjected to processing.

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

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


R.56 Rate of Royalty, dead rent and surface rent.

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

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

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

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

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

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

(a) fifty per cent of the estimated annual royalty payable for the first year of the lease which shall be a product of the: (i) royalty for the mineral(s) per metric tonne; and (ii) estimated quantity of mineral resources being auctioned expressed in metric tonne divided by the tenure of the lease; and

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


R.58 Sum Due to Be Recovered as Arrears of Land Revenue.

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


R.59 Environmental clearance.

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


R.60 Mine Closure plan.

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

(a) progressive mine closure plan; and

(b) final mine closure plan.


R.61 Submission of progressive mine closure plan.

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

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

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

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

(5) The lessee shall review the progressive mine closure plan eve

R.62 Submission of Final mine closure plan.

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

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

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

Provided that the aforesaid period of ninety days shall be applicable only if the final mine closure plan

R.63 Responsibilities of holder of mineral concession.

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

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


R.64 Financial assurance.

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

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

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

(2) The financial assurance shall be submitted by way of a bank guarantee in the

R.65 System of working.

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

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

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


R.66 Separate stacking of non - saleable mineral.

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

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

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


R.67 Employment of Qualified officers.

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

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

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

(ii) twelve mines/quarries where mining is carried out by any other means;

provided that all such mines/quarries are located within a radius of fifty kilometres.

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

Provided further that a whole-time geologi

R.68 Duties of qualified officer.

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

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

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

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

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

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

(f) calculate reserves and its grade;

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

(h) maintain

R.69 Environmental Safeguards to be implemented regarding mining operations.

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

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


R.70 Environment Impact Mitigating Measures.

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

(1) Removal and utilization of top soil:-

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

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

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

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

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

R.71 Open cast working.

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

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

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


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

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

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

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

R.73 Intimation of reopening of a mine.

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


R.74 Examination of mineral deposits and taking of samples.

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


R.75 Prohibition of deployment in certain cases.

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


R.76 Exercise of powers on behalf of the Government.

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


R.77 Power to rectify apparent mistakes.

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

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


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

Notwithstanding anything contained in these rules:

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

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

(3) the quantities of any mineral specified in Part B of the First Schedule to the Act recovered incidental to such mining operations shall be collected and stacked separately and a report to that effect shall be sent to the Director, Atom

R.79 Exploration Obligation.

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

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

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

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

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

R.80 Facilities for training of students.

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

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

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


R.81 Boundaries below the surface.

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


R.82 Power of the Government to give Direction.

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


R.83 Prohibition of Transport of Minerals Beyond Border.

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

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

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


R.84 Special Provisions for Mining of Ordinary Sand.

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


R.85 Preservation of cores etc.

(1) Every quarry lease holder and every agency authorised under the second proviso to sub-section (1) of section 4 shall:

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

(b) not destroy any cores or samples generated and preserved as per clause

(a) above without the prior permission in writing from the Director General, Geological Survey of India and the Government.

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

R.86 Provisions of these rules to be applicable to Government.

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


R.87 Refund.

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


R.88 Conflict.

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


R.89 Amalgamation of quarry leases.

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

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

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


R.90 Change of name, nationality etc. to be intimated.

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

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

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



Legal Commentary on Section R.90 of Gujarat Minor Mineral Concession Rules, 2017

Introduction

Section R.90 of the Gujarat Minor Mineral Concession Rules, 2017, pertains to the procedural obligation of mineral concession holders to inform the government about changes in their personal or mine-related details. This helps maintain updated records and ensures regulatory compliance.

What does Section R.90 Say

Section R.90 mandates that:- An applicant or holder of a mineral concession must intimate the government within sixty days of any change in their name, nationality, or the name of the mine or other particulars furnished initially .

Essential Ingredients

  • Notification requirement: The concession holder must notify the government.
  • Time frame: The notification must be made within sixty days.
  • Scope of changes: Includes changes in name, nationality, mine name, or other particulars.
  • Parties involved: Applies to both applicants and existing concession holders .

Scope of Section R.90

  • The section covers all mineral concession holders in Gujarat who have previously furnished details to the government.
  • It ensures transparency and up-to-date records for effective regulation.
  • It indirectly aids in enforcement and monitoring of mineral extraction activities.
  • The scope extends to changes in personal details and mine particulars, but does not specify penalties or consequences for non-compliance within this section .

Punishment for Section R.90

  • The section itself does not specify any punishment or penalty for failure to comply.
  • Penalties for related violations, such as non-removal of minerals or non-payment of dues, are addressed under other sections or rules, e.g., Section 18 .

Legal Comments

  • "Notification" - Mandatory obligation for concession holders to inform the government of changes within 60 days - .
  • "Time limit" - Clear sixty-day period for reporting changes, emphasizing timely compliance - .
  • "Particulars" - Broad scope covering name, nationality, mine name, and other details furnished initially - .
  • "Applicability" - Applies to both applicants and existing concession holders to ensure ongoing compliance - .
  • "Regulatory purpose" - Facilitates updated records, aiding government oversight and enforcement - .
  • "Absence of explicit penalties" - No direct penalty specified, suggesting compliance is essential to avoid administrative issues or future penalties under other provisions - .
  • "Legal compliance" - Aligns with principles of transparency and accountability in mineral regulation - .
  • "Enforcement mechanism" - Likely enforced through administrative measures or penalties under other sections for non-compliance - .
  • "Procedural clarity" - Provides clear procedural obligation, reducing ambiguity for concession holders - .
  • "Integration with other rules" - Complements other provisions requiring record maintenance, such as Rule 87 (refunds) and Rule 88 (conflicts) - .
  • "Legal certainty" - Ensures that changes in key details are officially communicated, reducing disputes - .
  • "Administrative efficiency" - Streamlines record-keeping and updates, facilitating effective governance - .
  • "Implication for illegal mining" - Proper record updates may assist in identifying illegal or unauthorized mining activities - .
  • "Scope for future amendments" - The section's simplicity allows for potential future amendments to specify penalties or procedural details - .
  • "Consistency with other mineral laws" - Similar reporting obligations are found in other mineral concession rules, maintaining consistency - .

Note: The analysis is based on the available sources, emphasizing the procedural and regulatory aspects of Section R.90, with no specific penalties detailed within this section itself.

R.91 Penalty.

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


R.92 Repeal and saving.

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

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


Sch.1 Evidence of Mineral Resources

(See rules 3, 4(1), 4(2), 6(1)(b) and 6(2))

1. Existence of mineral resources will have to be established in an area for the purpose of auction of a quarry lease by carrying out exploration as per the suggested geological parameters and exploration norms given in Part-I of this Schedule.

2. Existence of mineral resources for auction of Quarry Lease:

(1) Part-A of Schedule-III minerals: - An area shall be considered to have evidence of the existence of mineral resources for grant of a quarry lease over an area if, in respect of such area:

(a) existence of mineral resources has been established after carrying out exploration upto General Exploration (G2) over the area to establish Indicated Mineral Resource (332) as per suggested geological parameters and exploration n

Sch.2 Eligibility Conditions

(See rule 4(1))

1. The bidder shall be an individual who is an Indian national or company as defined in clause (20) of section 2 of the Companies Act, 2013.

2. The bidder shall satisfy such conditions as may be prescribed by the Government in the tender document.

3. The bidder, including an individual, must have a net worth which is equal to or more than one per cent. of the value of estimated resources, as may be specified by the Government in the tender document.

Explanation:

(1) In case a bidder is a subsidiary of another company incorporated in India, the net worth of such holding company may also be considered:

Provided that, in such case, the bidder must continue to be a subsidiary of such holding company until such time the bidder meets the aforementioned net worth threshold.

(2) In case of a company, the net

Sch.3 Minor Minerals

Categorization of Minor Minerals for conditions relating to grant of Mineral Concessions

(See rules 9(1), 9(2), 10(1), 10(2), 12(1), 12(3), 14, 188(15), 188(22), 188(27), 20, 388(1), 388(2), 388(3), 433(1), 444(4), 577, 611, 644(2), 677(1) and 79(1))

Part A

Sch.4 Royalty Rate / Dead Rent

(See rules 322(5), 566(1) and 566(2)]

Table A

Rate of Royalty

Sr. No.

Name of minor minerals

(See rule 76)

Designated Officer

Applicability

Rule Number

FORM.A Format of Performance Security/ Bank Guarantee

(See rules 2(1)(d), 2(1)(r), 100 and 29(4))

[Reference number of the bank]

[date]

To

[The Commissioner,

Office of Geology and Mining,

Block Number 1,

7th Floor, Udhyog

FORM.B Format of Quarry Lease Deed

(See rule 8(5))

This quarry lease deed for grant of a quarry lease ("Lease") is made by and between the following parties:

1. The Governor of the State of Gujarat (hereinafter referred to as the "Government", which expression shall, where the context so admits, be deemed to include his successors in office and assigns) of the one part;

And

2. [Name of the Lessee], a company incorporated in India under the Companies Act, 2013 with corporate identity number [CIN], whose registered office is at [address of registered office], India and principal place of business is at [address of principal place of business, if different from registered office] (hereinafter referred to as the "Lessee", which expression shall where the context so admits, be deemed to include its successor

FORM.C Notice of Intimation of Opening/reopening of Mine

(See rule 18(1) and 733]

Important

 

To

FORM.D Application for Grant of a Quarry Permit

(See rule 21(1))

Received at..............................................

(Placed) on ................................. 20..

Signature of Receiving Officer

Dated the....................

To

The .......................................

The .......................................



Recent Photograph of Appl

FORM.E Format of Quarry Permit

(See rule 22(1))

Quarry permit No ...............................................

.................................. Office

Date ............................

Whereas Shri ............................ applied for grant of quarry permit for excavation and removal of metric tonnes of............................. (minor mineral) from Sr. No. .................................. of Village .................................... Taluka ............................... District.................. under rule 211 of the Gujarat Minor Mineral Concession Rules, 2017 and has paid an application fee of rupees ............................ together with a royalty payment of Rs ..........................., permit premium payment of Rs ..........................., security deposit payment of Rs

FORM.F Format of Quarry Lease Deed

(See rule 29(6))

Block Notification No. and Date:

 

Tender Document No. and Date:

FORM.G Application for Grant/renewal of a Quarry Parwana

(See rules 311(1) and 322(3))

Received at..............................................

(Placed) on ................................. 20..

Signature of Receiving Officer

Dated the....................

To

The .......................................

(See rule 322(1))

Quarry Parwana No.

Name and Address of the Parwana holder

The above mentioned Shri__________________ is granted this Parwana on the following conditions to carry out quarrying operations of __________________________

[Name of the Minerals]

and to extract and remove the same from the land admeasuring__________________ square metres from survey number ___________ in village ____________ Taluka_______________ District_____________ the of Rs ....................... (rupees five hundred for an area up to 1000 sq. mts and rupees one thousand for an area above 1000 sq mtrs. in Government treasury at___________ by Challan No _______________ Date________________ .

Plan

Boundaries.- The four boundaries of aforesaid land are under.-

On the North

On the South

FORM.I Application for Prospecting Permit

(See rule 366(4))

Received at..............................................

(Placed) On ................................. 20..

Signature of Receiving Officer

Dated the....................

To

The .......................................

Sir,

(1) I/We submit an application for a prospecting permit for (name of mineral) for the area described below.

(2) The required particulars are given below.

i. Name of applicant stating whether he is an individual or it is a company............................

ii. Nationality of the individual or place of registration or incorporation of company..........................

iii. Profession or nature of business of the applicant.......................................................

FORM.J Format of Prospecting Permit

(See rule 36(4))

Prospecting permit No ...............................................

.................................. Office

Date ....................................

Whereas Shri ............................ applied for grant of prospecting permit for............................. (minor mineral) from Sr. No. .................................. of Village .................................... Taluka ............................... District.................. under sub-rule (4) of rule 366 of the Gujarat Minor Mineral Concession Rules, 2017 ("Rules") and the permission is hereby granted to the above applicant to carry on prospecting operations for ..................... (minor mineral) from the aforesaid area more fully described below on the following conditions.

FORM.K Application for Surrender of Quarry Lease

(See rule 422(1))

1. Name of lease holder

2. Name and designation of authorised person (if applicable)

3. Address of lease holder

4. Order No. of lease

5. Date of registration of quarry lease deed

6. Period of lease

7. Details of Area

Details of area to be surrendered with map and measurement:

District

(See rule 444(2))

To

[Address]

I/We request for seeking transfer of quarry lease.

S. No.

Item Detail

(See rule 444(4))

The Transfer Deed (Deed) is made on this [day] day of [month], [year] between:

1. (Name of the person with address and occupation) (hereinafter referred to as the "Transferor" which expression shall where the context so admits be deemed to include his heirs, executors, administrators, representatives and permitted assigns); or

(Name of Company), a company registered under the (Act under which incorporated) and having its registered office at [address] (hereinafter referred to as the "Transferor" which expression shall where the context so admits be deemed to include its successors and permitted assigns) of the first part;

And

2. (Name of person with the address and occupation) (hereinafter referred to as the "Transferee" which expression shall where the context so admits be deemed to include his heirs, executors, administrators, representativ

FORM.N Register of Quarry Leases

(See rule 47(1))

Sr. No.

Name and Address of lessee

Village

FORM.O Register of Quarry Permit

(See rule 477(2))

Name and address of permit holder

Date of application

(See rule 477(3))

Name and address of parwana holder

Date of application

(See rule 49(1))

Mine Code:- Ql

(To be submitted before the tenth of month following the month of report)

To,

The District Collector,

Office of the Commissioner Geology and Mining,

Dist. .....................

Part - I (General and Labour)

1. Name of the Mineral(s):

2. Name and Address of lessee:

Email Address:

Mobile Number:

3. Name of Mine:

4. Registration Number of the Mine:

5. Location of the quarry:

Survey Number:

Village:

Taluka:

District:

Pin

FORM.R Annual Return for the Year Ending 31st March 20 ...

(Quarry Lease)

(See rule 49(1))

To,

(1) The Commissioner,

Office of Geology and Mining,

Block Number 1,

7th Floor, Udhyog Bhavan,

Gandhinagar-382011

(2) The District Geologist

Collector Office,

Concern District

Part-I (General)

1. Details of the Mine :-

FORM.S Monthly Return for the Month of.....(Quarry Permit)

(See rule 49(2))

Mine Code:- Qp

(To be submitted before the tenth of month following the month of report)

To,

The District Collector,

Office of District Collector,

Concern District

Part - I (General and Labour)

1. Name of the Mineral:

2. Name and address of permit holder:

3. Location of the quarry.

Village:

Post Office:

Taluka:

District:

4. Number of Days mine worked:

5. Quantity for which Permit is granted:

6. (i) Average Daily Employment of Labour/Wages Paid :

FORM.T Monthly Return for the Month of.....(Quarry Parwana)

(See rule 49(3))

Mine Code:- Qpw

(To be submitted before the tenth of month following the month of report)

To,

The District Collector,

Office of District Collector,

Concern District

Part - I (General and Labour)

1. Name of the Mineral:

2. Name and address of parwana holder:

3. Location of the quarry.

Village:

Post Office:

Taluka:

District:

Survey No.:

Plot No.:

4. Number of Days mine worked:

Part-II (Production, Despatches and Stocks)

(Unit of quanti

FORM.U Format of Revision Application or Passing of order

(See Rule 50(1) and 50(2))

To

[Address]

I/We submit the following application for revision of the order / passing of an order which has not been passed within the required time period.

S. No.

Item Detail

(See rule 2(1)(d), 2(1)(j), 8(3), 29(3) and 644(2)]

[Reference number of the bank]

[date]

To

[[District Geologist/ District Assistant Geologist] / Officer authorised by the Commissioner of Geology and Mining, Gujarat]

Block Number 1,

FORM.W Notice of Temporary Discontinuance of mine

(See rule 722(2) and 722(3))

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