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State of Gujarat - Section

Section 8 in Gujarat Minor Mineral Concession Rules, 2017

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);
(d)furnishing financial assurance as specified in rule 644;
(e)obtaining all consents, approvals, permits, no-objections, access rights and the like as may be required under applicable laws for commencement of mining operations;
(f)payment of exploration charges, if any; and
(g)satisfying such other conditions as may be specified by the Government in the tender document:
Provided that a successful bidder may request the Government to extend the time period so prescribed by it in the tender document, by filing an application for extension prior to the expiry of the originally prescribed period. The application for extension shall provide bona-fide reasons for seeking an extension. The Government may, at its sole discretion and for reasons to be recorded in writing, grant an extension to the successful bidder and in case the Government does not grant an extension, the letter of intent shall automatically expire in accordance with the terms thereof.
(4)Upon fulfilment of the conditions specified in sub-rule (3), the successful bidder shall pay the second instalment being eighty per cent of the upfront payment within thirty days and upon such payment the Government shall issue a written order for grant of quarry lease. The Government shall have the right to appropriate the performance security provided by the successful bidder in the event that the successful bidder fails to pay the second instalment within the prescribed period of thirty days.
(5)The date on which a duly executed quarry lease deed in Form B is registered shall be the date of commencement of the quarry lease and the successful bidder shall ensure that it achieves registration of the quarry lease deed within thirty days from the date of its execution. The Government shall have the right to appropriate the performance security provided by the successful bidder in the event that the successful bidder fails to register the quarry lease within the prescribed period of thirty days and the order for grant of quarry lease shall, in such cases, become void.
(6)The quarry lease shall be for all minor minerals including overburden found in the area pursuant to exploration and prior to the auction and the final premium offer submitted by the successful bidder shall be applicable to all such minerals.