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State of Gujarat - Section

Section 12 in Gujarat Minor Mineral Concession Rules, 2017

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 the condition that all the terms and conditions of the lease have been complied with.
(2)The Government shall issue a written intimation to all existing quarry lease holders regarding the extension of lease period pursuant to sub-rule (1). The quarry lease holder shall, within thirty days of receipt of such intimation, complete all formalities with respect to such extension including payment of stamp duty for the extended period of quarry lease deed, if applicable.
(3)On and from the date of commencement of these rules, all quarry leases shall be granted for a period of:
(a)five years in case of minor minerals specified in Part A-I of Schedule III; and
(b)thirty years in case of minor minerals specified in Part A-II or Part B of Schedule III.
(4)Upon expiry of the period of the lease specified in sub-rule (1) or sub-rule (2), the lease shall be put up for auction as per the procedure specified in Chapter II :Provided that any holder of a quarry lease granted, where the mineral is used for captive purpose, shall have the right of first refusal at the time of auction held for such quarry lease after the expiry of the quarry lease period, in the following manner:
(a)to be eligible to exercise the right of first refusal, the lessee shall comply with the conditions of the quarry lease till its expiry;
(b)prior to publication of the notice inviting tender, the Government shall provide a written notice to the lessee requiring the lessee to specify its willingness or non-willingness to exercise the right of first refusal in writing, within a period of thirty days of receipt of such notice;
(c)the notice inviting tender shall specify that the lessee holding the lease prior to expiry of the quarry lease has the right of first refusal and shall also specify his willingness or non-willingness specified pursuant to clause (b), if any;
(d)upon conclusion of the Second Round of Auction as specified in sub rule (2) of rule 7, the Government shall issue a written notice to the lessee seeking written confirmation of his willingness to exercise the right of first refusal within a period of seven days of conclusion of the Second Round of Auction;
(e)the notice given under clause (d) shall be acknowledged by the lessee;
(f)the lessee shall, within a period of fifteen days of receipt of the notice issued under clause (d), exercise the right of first refusal in writing to the Government, failing which it shall be construed that the lessee is not desirous of exercising the right of first refusal and the preferred bidder shall be entitled to a quarry lease in the manner provided in rule 7; and
(g)if the lessee exercises the right of first refusal in terms of clause (f) and matches the highest final premium offer, the lessee shall be deemed to be the preferred bidder in place of the earlier preferred bidder declared after the Second Round of Auction and shall be entitled to the quarry lease in the manner provided in rule 8.
Explanation. - For the purposes of the proviso, the term "captive purpose" shall mean the use of more than fifty per cent of the entire quantity of mineral extracted from the quarry lease in a manufacturing unit owned by the lessee.