(1)Reserve Price for new contracts to be granted for first time or to be granted with revised area shall be evaluated by the concerned Assistant Mining Engineer/Mining Engineer keeping in view the following points:-(a)Physical quantities of mineral produced and dispatched from the area;(b)Last year's collection of royalty from that area;(c)Expected increase in revenue in the proposed contract period due to increased demand of mineral; and(d)Any other relevant matter about the area.(2)The approval of reserve price for new contract up to Rs. 1.00 Crore shall be given by the concerned Additional Director (Mines) and above Rs. 1.00 Crore by the Director.(3)For existing contracts the reserve price for next contract shall be 10% higher then existing annual contract amount and in this respect no approval shall be required.Provided that the total area of two or more existing contracts for the same mineral may be combined into one contract area and in such case the reserve price shall be 10% higher than the total existing annual contract amount of all the contracts to be amalgamated.(4)In case if it is necessary to revise the existing reserve price of any contract for future contract, it shall be done with the prior approval of the concerned Additional Director Mines up to Rs.1 Crore and from Director for more than Rs.1 Crore.(5)In case of mining lease [reserve price shall be fixed by Superintending Mining Engineer which shall not be less than the amount equal to existing dead rent for the area to be allotted.]]
