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Union of India - Section

Section 14 in The Mineral Concession Rules, 1960

14. Conditions of a prospecting license

.-(1) Every prospecting license granted under these rules, shall, in addition to any other conditions that may be specified therein, be subject to the following conditions, namely:-(i)the licensee shall pay such prospecting fee as may be fixed by the State Government, [being not less than rupee one and not more than rupees ten] [ Substituted by G.S.R. 21(E), dated 11.1.2002 (w.e.f. 11.1.2002).] per hectare of land covered by the license for each year or part of a year of the period for which the license is granted or renewed;(ii)[ the licensee may win and carry for purposes other than commercial purposes- [Substituted by G.S.R. 724(E), dated 27.9.1994. ](a)any quantity of such minerals within the limits specified under column 3 of Schedule III without any payment;(b)any quantity of such minerals not exceeding the limit specified under column 4 of Schedule III, on payment of royalty for the time being specified in the Second Schedule to the Act in respect of those minerals:Provided that if any quantity in excess of the quantities specified in sub-clause (b) is won and carried away, the State Government may recover the cost of the excess quantity of minerals won and carried away;(iii)with the written approval of the State Government, the licensee may carry away quantities of minerals in excess of the limits specified in Schedule III, on payment of royalty for the time being specified in the Second Schedule to the Act, for chemical, metallurgical, ore-dressing and other test purposes;](iv)save in the case of land in respect of which the licensee is granted a mining lease, he shall, within six months next after the determination of the license or the date of abandonment of the prospecting operations, whichever is earlier, securely plug all bores and fill up or fence all excavations in the land covered by the license;(v)[ the licensee shall report to the State Government the discovery of any mineral not specified in the license within a period of sixty days from the date of such discovery. Consequent upon such reporting, such newly discovered mineral shall be deemed to have been included in the prospecting license;] [Substituted by G.S.R. 724(E), dated 27.9.1994. ][* * *] [ Clause (vi) omitted by G.S.R. 724(E), dated 27.9.1994.](vii)the licensee shall not, except with the previous sanction of the State Government, transfer his license:[Provided that no prospecting license shall be transferred to any person who has not filed an affidavit stating that he has filed an up-to-date income-tax returns and paid the income-tax assessed on him and paid the income-tax on the basis of self-assessment as provided in the Income-tax Act, 1961 (43 of 1961), and except on payment to the State Government of a fee of five hundred rupees:Provided further that the State Government shall not grant its sanction for the transfer of prospecting license unless the transferee has accepted all the conditions and liabilities which the transferor has in respect of such prospecting license:Provided also that the State Government may, by order in writing after providing the licensee the opportunity of being heard, cancel such prospecting license at any time if the licensee has, in the opinion of the State Government, committed a breach of this clause or rule 15-A;] [Substituted by G.S.R. 31(E), dated 22.1.2001, for the proviso (w.e.f. 22.1.2001). Earlier, it was inserted by G.S.R. 56(E), dated 17.1.2000. ](viii)[ the licensee shall not pay a wage less than the minimum wage prescribed by the Central or the State Government from time to time under the Minimum Wages Act, 1948 (11 of 1948);] [ Inserted by G.S.R. 86(E), dated 10.2.1987. ](ix)the licensee shall observe the provisions of the Mines Act, 1952 [(35 of 1952) and the provisions of the Atomic Energy Act, 1962 (33 of 1962), in so far as the latter relate to atomic minerals included in Part B of the First Schedule to the Act;] [ Inserted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).](x)[ the licensee shall- [ Substituted by G.S.R. 449(E), dated 13.4.1988, for Clause (x). Earlier, it was inserted by G.S.R. 86(E), dated 10.2.1987.](a)take immediate measures for the planting in the same area or any other area selected by the Central or the State Government not less than twice the number of trees destroyed by reason of any prospecting operations;(b)look after them during subsistence of the license after which these shall be handed over to the State Forest Department or any other authority as may be nominated by the Central or State Government;(c)restore, to the extent possible, other flora destroyed by prospecting operations;](xi)[ the licensee shall pay to the occupier of surface of the land such compensation as may become payable under these rules; [ Inserted by G.S.R. 86(E), dated 10.2.1987.](xii)the licensee shall comply with the Mineral Conservation and Development Rules framed under section 18:][* * *] [ First proviso omitted by G.S.R. 724(E), dated 27.9.1994.][* * *] [ Second proviso omitted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).]
(2)A prospecting license may contain such other conditions relating to the following as the State Government may think fit to impose, namely:-
(i)compensation for damage to land in respect of which the license has been granted;
(ii)indemnity to Government against the claim of a third party for any damage, injury or disturbance caused to him by the licensee;
(iii)restrictions regarding felling of trees on an unoccupied and unreserved Government land;
(iv)restrictions on prospecting operations in any area prohibited by any competent authority;
(v)operations in a reserved or protected forest;
(vi)conditions regarding entry on occupied land;
(vii)facilities to be given by the licensee for working other minerals in the licensed area or adjacent areas;
(viii)[ filing of civil suits or petitions relating to disputes arising out of the area under prospecting license.] [ Added by G.S.R. 296, dated 18.3.1983.]
(3)[ The State Government may, either with the previous approval of the Central Government or at the instance of the Central Government, impose such further conditions as may be necessary in the interest of mineral development, including development of atomic minerals.] [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).]
(4)In the case of breach of any condition imposed on any holder of a prospecting license by or under this rule, the State Government may, by order in writing, cancel the license, and/or forfeit, in whole or part, the amount deposited by the licensee under rule 20:Provided that no such order shall be made without giving the licensee a reasonable opportunity of stating his case.