Section 27(1) in The Mineral Conservation and Development Rules, 2017
(1)A financial assurance shall be furnished by the holder of the mining lease, for due and proper implementation of the progressive mine closure plan contained in the mining plan or the final mine closure plan, as the case may be, which shall be an amount of three lakh rupees for Category 'A' mines and two lakh rupees for Category 'B' mines, per hectare of the mining lease area put to use for mining and allied activities: Provided that the minimum amount of financial assurance to be furnished under sub-rule (1), shall be ten lakh rupees for Category 'A' mines and five lakh rupees for Category 'B' mines:Provided further that the provisions of sub-rule (1) shall not be applicable for a mining lease granted through the auction or the mining lease granted under the provisions of clause (b) or clause (c) of sub-section (2) of section 10A, wherein the Mine Development and Production Agreement has been signed between the lessee and the State Government.
