Section 30 in Maharashtra Minor Mineral Extraction (Development and Regulation)Rules, 2013
30. Financial assurance.
(1)Financial assurance has to be furnished by every leaseholder. The amount of financial assurance shall be rupees fifty thousand per hectare of the mining lease area put to use for mining and allied activities. However, the minimum amount of financial assurance to be furnished in any of the forms referred to in sub-rule (2) shall be rupees one lakh:Provided that, a leaseholder shall be required to enhance the amount of financial assurance with the increase in the area of mining and allied activities:Provided further that, where a leaseholder undertakes reclamation and rehabilitation measures as part of the progressive closure of mine, the amount so spent shall be reckoned as sum of the financial assurance already spent by the leaseholder and the total amount of financial assurance, to be furnished by the lessee, shall be reduced to that extent.(2)The financial assurance shall be submitted in one of the following forms to the officer authorised by the Government in this behalf, or any amendment to it :(a)Letter of Credit from any Scheduled Bank;(b)Performance or surety bond;(c)Trust Fund build up through annual contributions from the revenue generated by mine and based on expected amount sum required for abandonment of mine; or(d)any other form of security or any other guarantees acceptable to the officer.(3)The lessee shall submit the financial assurance to the officer authorised by the Government in this behalf, before executing the mining lease Deeds. In case of an existing mining lease, the lessee shall submit the financial assurance along with the Progressive Mine Closure Plan.(4)Release of financial assurance shall be effective upon the notice given by the lessee for the satisfactory compliance of the provisions contained in the Mine Closure Plan and certified by the officer authorised by the Government in this behalf.(5)If the officer authorised by the Government in this behalf, has reasonable grounds for believing that the protective, reclamation and rehabilitation measures as envisaged in the approved Mine Closure Plan in respect of which financial assurance was given has not been or will not be carried out in accordance with the Mine Closure Plan, either fully or partially, the officer authorised by the Government in this behalf, shall give the lessee a written notice of his intention to issue the orders for forfeiting the sum assured at least thirty days prior to the date of the order to be issued.(6)Within thirty days of the receipt of notice referred to in sub-rule (5), if no satisfactory reply has been received in writing from the lessee, the officer authorised by the Government in this behalf, shall pass an order for forfeiting the surety amount and a copy of such order shall be endorsed to the Government.(7)Upon the issuance of order by the officer authorised by the Government in this behalf, the Government may realize any letter of credit or bond or any other surety, guarantee provided or obtained as financial assurance for the purpose of performance of protective, reclamation, rehabilitation measures and shall carry out those measures, or appoint an agent to do so.
