Section 64 in Gujarat Minor Mineral Concession Rules, 2017
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 format as provided in Form V or a non-interest bearing security deposit. The financial assurance should remain valid:(a)for an initial period of five years and thereafter for subsequent periods of five years or the remaining term of the quarry lease, whichever is lower, in case of minerals specified in Part A-II or Part B of Schedule III; or(b)for the entire duration of the quarry lease term, for minerals specified in Part A-I of Schedule III, as the case may be.(3)Release of financial assurance shall be effective upon the notice given by the lease holder for the satisfactory compliance of the provisions contained in the mine closure plan and certified by a committee comprising of three members, one each from the following departments, as nominated by the respective head of department: (a) Geologist (CGM); (b) Gujarat Pollution Control Board; and Roads and Buildings Department.(4)If the committee referred at sub-rule (3) has reasonable grounds for believing that the protective, reclamation and measures as envisaged in the approved mine closure plan in respect of which financial assurance was given have not been or will not be carried out in accordance with mine closure plan, either fully or partially, the committee shall give the lease holder a written notice of its intension to issue the orders for forfeiting the sum assured at least thirty days prior to the date of the order to be issued.(5)Within thirty days of the receipt of notice referred to in sub-rule (4) if no satisfactory reply has been received in writing from the lease holder, the committee referred at sub-rule (3) shall pass an order for forfeiting the surety amount (pursuant to security provided under sub-rule (2)) and a copy of such order shall be endorsed to the Government.(6)Upon the issuance of an order by the committee referred at sub-rule (3), the Government may realize/ invoke any security provided under sub-rule (2) for the purpose of performance of protective, reclamation, rehabilitation measures and shall carry out those measures, or appoint an agent to do so.
