Section 28 in Rajasthan Minor Mineral Concession Rules, 2017
28. Terms and Conditions of mining lease or quarry licence.
(1)Every mining lease or quarry licence shall be subject to the following conditions: -(i)No person shall undertake any mining operations of any minor mineral in any area within the state except under and in accordance with these rules;(ii)(a)The lessee or licencee shall pay contribution to the District Mineral Foundation Trust fund as Foundation Trust Rules, 2016, as amended from time to time;(b)The lessee or licencee of lease or licence granted after commencement of these rules, shall also pay premium amount as specified in rule 4, 5, 6 and 13; and(c)The lessee or licencee shall also pay surface rent of government land to the Revenue Department for surface area used by him for the purpose of mining, as per the rates prevalent in the area;(iii)The lessee or licencee shall pay all dues in the office of such officer, in such manner, at such place and time as may be specified by the Government;(iv)The lessee or licencee shall at his own expense erect and at all-time maintain and keep in repair boundary pillars and marks according to the plan and demarcation report in following manner: -(a)each corner of the lease or licence area shall have a boundary pillar (corner pillar);(b)there shall be erected intermediate boundary pillars between the corner pillars in such a way that each pillar is visible from the adjacent pillar located on either side of it;(c)the pillars shall be of square pyramid frustum shaped above the surface and cuboid shaped below the surface;(d)each pillar shall be of reinforced cement concrete;(e)the corner pillars shall have a base of 0.30m X 0.30m and height of 1.30m of which 0.70m shall be above ground level and 0.60m below the ground;(f)the intermediate pillars shall have a base of 0.25m X 0.25m and height of 1.0m of which 0.70m shall be above ground level and 0.30m below the ground;(g)all the pillars shall be painted in yellow colour and the top ten centimeters in red colour by enamel paint and shall be grouted with cement concrete;(h)on all corner pillars, distance and bearing to the forward and backward pillars and latitude and longitude shall be marked;(i)each pillar shall have serial number in a clockwise direction and the number shall be engraved on the pillars;(j)the serial number of pillar shall be the number of the individual pillar as per the lease or licence;(k)the location and number of the pillars shall also be shown in the surface plan and other plans maintained by the lessee or licencee; and(l)in case of forest area within the lease or licence, the size and construction and colour of the boundary pillars shall be as per the norms specified by the Forest Department in this behalf;(v)The lessee or licencee shall not erect, set-up or place any building or thing and shall not carry on surface operations in or upon any public pleasure ground, burning or burial ground or place held sacred by any class of persons or any house or village site, public road or other place which the Government may determine as public ground or in such a manner as to injure or prejudicially affect any building, works, property or rights of other persons;(vi)The lessee or licencee shall not carry on his operations in a manner that would injure or prejudicially effect any buildings, works, property or rights of other persons and no land will be used by the lessee or licencee for surface operations which is already occupied by persons other than the Government for works or purposes not included in the mining lease;(vii)The lessee or licencee shall give notice of commencement of any mining operations to the authorities as per section 16 of the Mines Act, 1952 and also to the Mining Engineer or Assistant Mining Engineer concerned at least one month before the commencement of any mining operation;(viii)The lessee or lessees shall commence mining operations within six months from the date of commencement of the lease or licence and thereafter carry on such operations effectively in a proper skilful and workman like manner both as regards prevention of waste by removal of sufficient overburden, careful storage of waste and drainage and as regards removal of all valuable minerals within the mine. The lessee or licencee shall work in workman like manner for systematic, scientific and environment friendly mining so as to ensure systematic development, conservation of mineral deposits, protection of environment and safety of man and machinery.Explanation: - For the purpose of this clause, mining operations shall include the erection of machinery, laying of a tramway or construction of a road in connection with the working of the mine.(ix)The lessee or licencee shall allow reasonable facilities for access to mineral concession holder of any land which is comprised in or is reached by the land held by the lessee or licencee:Provided that no substantial hindrance or interference shall be caused by such holders of licences or leases to the operations of the lessee or licencee and fair compensation (as may be mutually agreed upon or in the event of disagreement as may be decided by the Government) shall be paid by them to the lessee or licencee for any loss or damage sustained by the lessee or licencee by reason of the exercise of this liberty.Provided further that in case of licence, the directions of the Mining Engineer or Assistant Mining Engineer concerned shall be final and binding regarding any dispute about the approach road;(x)The lessee or licencee shall allow any officer authorised by the Central or State Government to enter upon any building, excavation or land comprised in the lease or licence for the purpose of inspecting the same and shall abide by the instructions issued by him;(xi)The lessee or licencee shall pay such compensation as may be assessed by lawful authority in accordance with the law or rules or order in force on the subject for all damages, injuries or disturbances which may be done by him and shall indemnify and keep indemnified fully and completely, the Government against such damages, injury or disturbance and all cost and expenses in connection therewith;(xii)The lessee or licencee shall strengthen and support to the satisfaction of the railway administration concerned or the Government, as the case may be, any part of the mine which, in his opinion, requires such strengthening or support for the safety of any railway, reservoir, canal, road and any other public works or structures;(xiii)The lessee or licencee shall forthwith report to the Mining Engineer or Assistant Mining Engineer concerned any accident which occurs at or in the said premises;(xiv)The lessee or licencee shall report to the Mining Engineer or Assistant Mining Engineer concerned the discovery of any mineral not specified in the lease or licence within thirty days of such discovery. If lessee or licencee does not apply for inclusion of such mineral, lease or licence may be terminated and new lease or licence shall be granted through e-auction.(xv)The lessee or licencee shall not win and disposed off any minor mineral not specified in the lease or licence unless it is included in the lease or licence or a separate lease or licence is obtained. In such case the dead rent shall be charged for the mineral whose dead rent is higher as specified in Schedule III and royalty shall be payable for each mineral separately. If lessee or licencee does not apply for inclusion of such mineral, lease or licence may be terminated and new lease or licence shall be granted through e-auction:Provided that newly discovered mineral, in the lease or licence granted otherwise than through auction, shall be included subject to payment of one time premium equal to [existing dead rent or dead rent of mineral to be included, whichever is higher or annual licence fee as the case may be.] [Substituted 'annual dead rent or licence fee' Notification No. G.S.R. 62, dated 30.8.2017 (w.e.f. 28.2.2017).]Provided further that newly discovered mineral, in the lease licence granted through auction, shall be included subject to payment of premium amount as mentioned in sub-rule (5) rule 13;(xvi)The lessee or licencee shall not carry on, or allow to be carried on, any mining operations at any point within a distance of forty five meters from any railway line, except under and in accordance with the written permission of the railway administration concerned or under or beneath any ropeway or ropeway trestle or station, except under and in accordance with the written permission of the authority owning the ropeway or from any public roads (excluding mines approach road or village roads), reservoir, canal or other public place or buildings, pillars of railway and road bridge or inhabited site except with the previous permission of the Collector or any other officer authorised by the State or Central Government and otherwise then in accordance with such instructions, restrictions and conditions either general or specific as may be attached to such permissions. The said distance of forty five meters shall be measured in the case of public roads (excluding mines approach road or village roads), railway, reservoir or canal horizontally from the outer toe of the bank or the outer edge of the cutting, as the case may be and in case of a building, horizontally from the plinth thereof;(xvii)The lessee or licencee shall not, in the case of mines approach road or village roads (including any track shown in the revenue record as village road), allow any working to be carried on within a distance of ten meters of the outer edge of the cutting except with the previous permission of the Collector or any other officer duly authorized by the State or Central Government in this behalf and otherwise than in accordance with such directions, restrictions and additions, either general or specific, which may be attached to such permission;(xviii)The lessee or licencee shall not pay a wage less than the minimum wages prescribed by the Central or the State Government under the Minimum Wages Act, 1948;(xix)The lessee or licencee shall intimate to the Mining Engineer or Assistant Mining Engineer concerned about any change of, -(a)one form of business organization to another form of business organization i.e. proprietorship, partnership, limited liability partnership, private limited company, public limited company or any form of business activities recognized by any law to another form of business organization;(b)change in partner of a partnership firm;(c)the transfer of shares in a company, resulting in the change of control of management or ownership right of the said company;(d)merger or amalgamation of one company into another company; and(e)change of a private limited company to limited company, as the case may be, within sixty days from the date of commencement of these rules or from the date of such change, whichever later:Provided that if the lessee or licencee fails to intimate the above mentioned change within the specified time, same may be submitted on payment of late fee at the rate of rupees five hundred per day of delay, subject to maximum of rupees two lacs;(xx)The lessee or licencee may, after paying the rents and royalties payable hereunder or under the lease deed or licence, on the expiry or termination of the lease or licence term or within three calendar months thereafter, take down and remove for its own benefit, all or any mineral excavated during the currency of the lease or licence, engines, machinery, plant, buildings structures, tramways, railways and other works, erections and conveniences which may have been erected, set up or placed by the lessee or licencee in or upon the leased or licenced lands and which the lessee or licencee is not bound to deliver to the Government or which the Government does not desire to purchase:Provided that the lessee of mineral bajri (river sand) shall not have any right to remove any stock of bajri after the expiry of the lease period or receipt of the order of determination of the lease.(xxi)If at the end of three calendar months after the expiry or termination of the lease or licence term there shall remain in or upon the leased or licenced land, any mineral, engines, machinery, plant, buildings structures, tramways, railways and other work, erections and conveniences or other property which are not required by the lessee or licencee in connection with operations in any other lands held by it under lease or licence, the same shall, if not removed by the lessee or licencee within one calendar month of being notified to do so by the Government, be deemed to become the property of the Government and may be sold or disposed off in such manner as the Government shall deem fit without liability to pay any compensation or to account to the lessee or licencee in respect thereof;(xxii)A mining lease or licence may contain such other conditions as the Government may deem necessary in regard to the following, namely: -(a)compensation for damage to land in respect of which the lease or licence has been granted;(b)restrictions regarding felling of trees on unoccupied and unreserved Government land;(c)the restriction of surface operations in any area prohibited by any authority;(d)the entering and working in a reserved or protected forest;(e)the securing of pits and shafts;(f)the power to take possession of the plant, machinery, premises and mines in the event of war or emergency; and(g)filing of civil suits or petitions relating to disputes arising out of the area under lease or licence;(xxiii)Subject to the conditions mentioned in this rule, the lessee or licencee shall, with respect to the land leased or licenced to him, have the right for the purpose of mining operations on that land, -(a)to work the mines;(b)to sink pits and shafts and construct roads;(c)to erect building, plant and machinery;(d)to quarry and obtain building and road materials and make bricks;(e)to use water;(f)to use land for stacking purpose; and(g)to do any other thing specified in the lease or licence;(xxiv)If the lessee or licencee holding a mining lease or licence, is convicted of illegal mining and there are no interim orders of any court of law suspending the operation of the order of such conviction in appeals pending against such conviction in any court of law, the Government may, without prejudice to any other proceedings that may be taken under the Act or the rules made thereunder, after giving such lessee or licencee an opportunity of being heard and for reasons to be recorded in writing and communicated to the lessee or licencee, terminate such mining lease or licence and forfeit whole or part of the security; and(xxv)The Mining Engineer or Assistant Mining Engineer concerned may, by an order in writing prohibit mining in whole or part of the lease or licence area, if in his opinion such operation is likely to cause premature collapse of any part of the workings or otherwise endanger the mine or quarry or the safety of persons employed therein, or there is danger as regards to outbreak of fire or flooding or such operations may cause damage to any property:Provided that Mining Engineer or Assistant Mining Engineer concerned shall obtain prior approval or post facto approval within fifteen days, depending upon emergency, from Superintending Mining Engineer concerned regarding instructions for prohibition of mining operation and mining in such area shall only be resumed with prior written approval of Superintending Mining Engineer concerned.(2)Every mining lease shall be subject to the following additional conditions: -(i)The holder of a lease granted before or on or after the commencement of these rules, shall notwithstanding anything contained in the instrument of lease or any law or rules in force at such commencement, pay royalty in respect of any mineral removed by him and/ or consumed within the leased area at the rates specified in Schedule II;(ii)The lessee shall pay, for every year, such yearly dead rent in advance, as may be fixed by the Government and if the lease is granted for more than one mineral, the dead rent for the mineral which is higher as per Schedule III shall be charged, but separate dead rent shall not be charged in respect of each mineral:Provided that the lessee shall be liable to pay dead rent or royalty whichever is higher but not both.(iii)The lessee may erect on the area granted to him, any building required for bonafide purpose and such building shall be the property of the Government after the expiry of the lease or earlier determination or surrender of the lease:Provided that in case of mining lease of mineral bajri (river sand), the lessee shall not erect any building in the lease area;(iv)(a)The lessee shall keep accurate and faithful accounts of all minerals excavated from the mines, the quantity lying in stock at the mines, the quantity dispatched and utilised along with the number of persons employed in Form -13 and record of rawanna issued in rawanna register in Form -14. It shall contain particulars regarding the quantity of mineral sold or utilized, its value and name of person or firm to whom sold;(b)The lessee shall keep production of all the minerals within the limits of mine plan or permitted under applicable laws:Provided that if lessee has excavated [***] [Deleted 'and dispatched' Notification No. G.S.R. 62, dated 30.8.2017 (w.e.f. 28.2.2017).] mineral to the extent of ten percent over and above the quantity specified in the mine plan or permitted under applicable laws, only single time royalty and quantity more than ten percent but upto twenty five percent, two times of royalty on entire quantity over and above specified in the mine plan or permitted under applicable laws shall be recovered and any quantity more than twenty five percent, entire quantity over and above specified in the mine plan or permitted under applicable laws shall be treated as unauthorized excavation and lessee shall be liable to pay cost of such excess mineral which shall be computed as ten times of the royalty payable at the prevalent rate, without affecting the powers of taking action by the other departments;(c)The lessee shall maintain upto date plans of the mines and shall also allow any officer of the department authorised by the Director to examine or audit such accounts and plans at any time and shall furnish him other information as may be required;(d)The lessee shall furnish monthly online return in the Form -15 by the 15th day of the following month and online annual return in Form -16 within three month from the date of expiry of the financial year. The receipt of annual return shall be acknowledged in Form -17:Provided that if the lessee fails to submit online monthly returns or annual return within the specified time above, same may be submitted on payment of late fee at the rate of rupees five hundred per day of delay, subject to maximum of rupees fifty thousand;(e)The lessee shall not remove, dispatch or utilize the mineral from the mines without valid rawanna generated by the system or issued by the department in Form -18 or any other system notified by the Government; and(f)the lessee shall store and maintain proper accounts of unutilized or non-saleable sub-grade minerals stored within the lease area for future beneficiation;(v)The lessee shall comply with the provisions of the Act and rules made thereunder including the rules made under section 18;(vi)The Government or competent authority shall from time to time and at all times during the term of lease have the right (to be exercised by notice, in writing to the lessee) of pre-emption of the said minerals (and all products thereof) lying in or upon the said land hereby demised or elsewhere under the control of the lessee and the lessee shall deliver all minerals or products to the Government at current market rates in such quantities and in the manner and at the place specified in the notice exercising the said right;(vii)The lessee shall have to deliver the possession of area of the lease, where the lease is declared as a protected area under the Ancient Monuments Preservation Act, 1904 or any other law to the State Government without claiming any compensation;(viii)The lessee shall permit to the representative of the Government, to collect sample of all rocks found in mines or raised therefrom and all intermediate and finished products sold or intended to be sold by the lessee;(ix)The lessee shall be abstain from entering upon the surface of any occupied Government land or of any private land comprised within the leased area without obtaining prior consent of the occupant in writing;(x)The competent authority may with the prior approval of the Government impose such special conditions as deemed necessary, in the interest of mineral development;(xi)In case of mining lease of mineral bajri (river sand) or area where letter of intent holder has been permitted for extraction of bajri (river sand), the lessee or letter of intent holder shall, -(a)abstain from mining beyond a depth of three meters from the surface or below the water level of river or nallah whichever is less and shall work in such a manner that natural flow path of river or nallah is not altered;(b)have no claims whatsoever under any circumstances for non-operation due to floods or heavy rains or any other situation during the lease period;(c)carry out mining operations after leaving a buffer zone of three meters from the river bank;(d)make their own arrangement for installation of computerised weigh bridge and CCTV camera on check post; and(e)not extract bajri within five hundred meters from any crucial hydraulic structure such as pumping station, water intake and bridge;(xii)The existing lessees on the day of commencement these rules, shall obtain surface rights or consent of the landowner on mutually agreed before starting mining operation in the area or part thereof where land is not owned by lessee:Provided that no fresh consent of the owner of the land would be required where such consent has already been obtained.(xiii)The lessee shall, in the matter of employment, give preference to the tribal's and to the persons who become displaced because of the taking up of mining operations;(xiv)The lessee shall permit students of mining and geological institutions approved by the Government to acquire practical training of the mines and plants operated by him and provide all necessary facilities required for the training;(xv)The lessee or lessees shall, when mandated by the Government, provide and at all times keep at or near the pit head or each of the pit heads or in nearby cluster area at which the minerals shall be brought to bank, a properly constructed and efficient computerized weighing machine and shall weigh or cause to be weighed thereon all the said minerals, from time to time, brought to bank, sold, exported and converted and also the converted products. The lessee shall at the close of each day cause the total weights, ascertained by such means of the said minerals raised, sold, exported and converted during the previous twenty four hours, to be entered in the books of accounts maintained by the lessee. The lessee shall at all times during the term of the lease, permit the Government to employ any person or persons to be present at the weighing of the said minerals as aforesaid and to keep accounts thereof and to check the accounts kept by the lessee:Provided that the Government may instruct the lessee to weigh the mineral at the designated weigh bridge and the lessee shall get the vehicles weighted at such weigh bridge and such weighment shall be taken into accounts.(xvi)The lessee shall at any time or times during the term of the lease, allow any person or persons appointed in that behalf by the Government to examine and test every computerized weighing machine to be provided and kept as aforesaid and the weights used therewith in order to ascertain whether the same respectively are correct and in good repair and order. If upon any such examination or testing, any such weighing machine or weights shall be found incorrect or out of repair or order, the Government may require that the same be adjusted, repaired and put in order by and at the expense of the lessee. If such requisition is not complied with within thirty days after the same has been made, the Government may cause such weighing machine or weights to be adjusted, repaired and put in order at the expense of the lessee. If upon any such examination or testing as aforesaid, any error is discovered in any weighing machine or weights to the prejudice of the Government, such error shall be regarded as having existed for three calendar months prior to the discovery thereof or from the last occasion of so examining and testing the same weighing machine and weights, in case such occasion is within the said period of three months, and the lessee shall pay the royalty accounted for accordingly;(xvii)(a)In case of any breach on the part of the lessee of any covenant or condition contained in the lease, the competent authority may determine the lease with prior approval of next higher authority and take possession of the said premises and forfeit the security deposit or in the alternative may impose penalty as specified in Schedule IV:Provided that decision on termination of lease on breaches other than dues shall be taken by the Director on the recommendation of a committee comprising Additional Director Mines (HQ), Deputy Legal Remembrance and Superintending Mining Engineer (HQ), concerned.Provided further that decision of termination of lease shall be taken only if the lessee has failed to remedy the breach, after serving of a thirty days' notice; and(b)The competent authority may also at any time after serving the aforesaid notice enter upon the said premises and seize all or any of the minerals or movable property therein and may carry away or order the sale of the property so seized or so much of it as will suffice for the satisfaction of the rent or royalty due and all cost and expenses occasioned by the non-payment thereof:Provided that non-compliance with or violation of the terms and conditions or misbehavior by the lessee may also be punished by debarring him for a period upto five years for any future allotment of mineral concession or contract.(xviii)The lessee shall deliver up the lease premises and all mines (if any) dug therein in a proper and workable state (save in respect of any working as to which the Government might have sanctioned abandonment) to the concerned authority as soon as the lease is determined; and(xx)The Government may determine the lease, if it considers that the mineral under the lease is required for establishing an industry beneficial to the public by delivering a six month prior notice in writing:Provided that no such notice shall be necessary in the event of war or national emergency.(3)Every quarry licence shall be subject to the following additional conditions, -(i)The licencee or his agent, contractor, assignee, transporter etc. shall pay in addition to the annual licence fee, royalty at departmental 'Naka' or to the royalty collection contractor, as the case may be, at the rate specified in the Schedule II;(ii)The licencee shall pay annual licence fee in advance to the Government on or before 1st day of April. If the annual licence fee is not paid on the due date, the same shall be recoverable along with a penalty equivalent to ten percent of the annual licence fee upto a period of three months from the due date of payment. Failing which licence may be terminated after giving a thirty day's notice;(iii)The licencee shall deposit a sum equal to one fourth of the annual licence fee as security deposit and the annual licence fee as performance security for the due observance of the terms and conditions of the licence. The existing licencee shall also have to deposit a sum equal to annual licence fee as performance security to the Mining Engineer or Assistant Mining Engineer concerned within six months from the date of commencement of these rules;(iv)The licencee shall pay such amount per year or part thereof to the Government for removal of dump from the quarry at such rate and at such time as may be fixed by the Government;(v)The licencee shall have the liberty at all times during the period of the licence in respect of the plot or land for which licence is sanctioned to enter upon the area and to mine, bore, dig, drill, win, work, stock, dress, process, convert, carry away and dispose of the said mineral or to install, erect, maintain, construct and use cutting, processing unit or stock;(vi)The licencee shall confine workings within the limits of the plot or area allotted to him. In case the licencee is found working outside the boundary of his allotted plot or area, the licence may be cancelled by the Mining Engineer or Assistant Mining Engineer concerned:Provided that no such action shall be taken against the licencee without giving him an opportunity of being heard by giving a thirty day's notice.(vii)The licencee shall take all necessary measures to ensure health and safety of labours employed in the quarry and shall comply with all the provisions of law time being in force;(viii)The licencee shall maintain and keep ready for inspection, daily attendance register of labours employed in the quarry, in the performa as prescribed in the Mines Rules, 1955. The licencee shall also furnish a list of labours, along with their addresses, employed by him in the preceding quarter to the Mining Engineer or Assistant Mining Engineer concerned and district level officer of the Labour Department, Government of Rajasthan within seven days from the end of each quarter;(ix)The Mining Engineer or Assistant Mining Engineer concerned may issue directions in respect of mining methods, removal and disposal of over burden, stacking of minerals, payment of royalties and other connected matters; and(x)If the licencee commits breach of any terms of the licence or any provision of the rules or fails to comply with the directions given by the Mining Engineer or Assistant Mining Engineer concerned within the period specified by him, the Mining Engineer or Assistant Mining Engineer concerned may after giving thirty day's notice to remedy the breach or to comply the directions, may impose penalty upto rupees ten thousand or may cancel the licence after obtaining prior approval from Superintending Mining Engineer concerned and forfeit the security deposits and licence fee:Provided that decision of termination of licence on breaches other than dues shall be taken by the Director on the recommendation of a committee comprising Additional Director Mines (HQ), Deputy Legal Remembrance and Superintending Mining Engineer (HQ), concerned.Provided further that decision of termination of licence shall be taken only if the licencee has failed to remedy the breach, after serving of a thirty days' notice.
