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DRAFT RMMCR 2015

Suggestions are solicited


Dear sir,

Department of Mines and Geology, Government of Rajasthan is in the


process of preparing new Rajasthan Minor Mineral Concession Rules, 2015. For
this purpose the DRAFT RMMCR, 2015 is uploaded on Department's web site.
You are requested to go through the draft and send your valuable comments /
suggestions with reasonable justification upto 15th June, 2015 either by e-mail to
smeminor@dmg-raj.org / minor.cell@dmg-raj.org or send hard copy in
Directorate's Minor cell.

with regards,

Superintending Mining Engineer (Hq. III)

THE RAJASTHAN MINOR MINERAL CONCESSION RULES, 2015


CHAPTER

SUBJECT

RULE

CHAPTER - I

Preliminary

1-3

CHAPTER - II

General restrictions, exemptions and essential


documents

4-8

CHAPTER - III

Grant of Prospecting Licence

9-23

CHAPTER - IV

Grant of Mining Lease

24-48

CHAPTER V

Grant of Quarry Licence

49-61

CHAPTER - VI

Grant of Permit

62-65

CHAPTER - VII

Grant of Royalty / Excess Royalty Collection


Contract by auction or tender

66-76

CHAPTER - VIII Systematic, Scientific and Environment


Friendly Mining

77-88

CHAPTER - IX

Assessment of Royalty

89-92

CHAPTER - X

Delegation of Powers, Appeal and Revision

93-99

CHAPTER - XI

Offences Penalties and Prosecutions

100-106

CHAPTER - XII

Miscellaneous

107-133

CHAPTER I
Preliminary
1

Short title, extent and commencement:(1) These rules may be called The Rajasthan Minor Mineral Concession Rules, 2015;
(2) They shall extend to the whole of the State of Rajasthan including the areas in which Bapi
and proprietary rights are claimed;
(3) They shall come into force on the date of their publication in the Rajasthan Gazette.

Repeal and Savings:The Rajasthan Minor Mineral Concession Rules, 1986 are hereby repealed;
Provided that anything done or any action taken under the provisions of the rules so repealed shall
be deemed to have been done or taken under the provisions of these rules.

Definitions:(A) In these rules, unless the context otherwise requires:(1) Act means the Mines and Minerals (Development & Regulation) Act, 1957 (Central
Act 67 of 1957);
(2) Additional Director Mines means Additional Director Mines of the Department of
Mines & Geology, Rajasthan and also includes Additional Director Mines
(Environment & Development), Additional Director Mines (Vigilance) and
Additional Director Mines (Head Quarter) having jurisdiction over the area concerned
as may be fixed by the Government from time to time;
(3) Appellate Authority means the Government or any other authority vested with such
powers under these rules or any other authority empowered by the Government to
perform such functions;
(4) Assessee means a person holding any mineral concession or a permit and includes
any other person who is possessing, trading, processing or using minor mineral or
minerals save as exempted under rule 7;
(5) Assessing Authority means Additional Director Mines / Superintending Mining
Engineer / Mining Engineer / Assistant Mining Engineer / any other officer authorised
by State Government from time to time;
(6) Assessment Year means the period beginning from the first day of April and ending
on the thirty first day of March of the following year or part thereof;
(7) Assistant Mining Engineer means Assistant Mining Engineer of the Department of
Mines & Geology, Rajasthan and also includes Assistant Mining Engineer (Vigilance)
having jurisdiction over the area concerned as may be fixed by the Government from
time to time;
(8) Boundary Pillar means reinforced cement concrete pillar / cemented pillar of size
having a base of 0.3m x 0.3 m and height 1.30 m of which 0.7 m shall be above
ground level and 0.6m below the ground, painted in yellow colour and marked with
lease / licence / prospecting licence number and pillar number in black paint;
(9) Brick earth means earth used for making bricks, kavelus, earthen pots and used for
other identical purposes;
(10) "Brick Earth Permit" means a permit granted for specific area and period for
excavation and removal of brick earth for making bricks for a particular brick kiln /
Awa Kajawa Bhatta;
(11) Competent Authority means the Government or any other authority authorised by
the Government / Director to exercise the provisions of these rules;
(12) Dead Rent means the minimum guaranteed amount payable for Mining Lease
which is calculated on annual basis as per the Schedule II appended and revised as per
provisions of these rules;
(13) Dealer means any person who carries on the business of buying, selling, storing,
distributing or processing of mineral/s, directly or otherwise for cash or for deferred
payment or for commission, remuneration or other valuable consideration or use
mineral/s and / or its ingredients as a raw material;

(14) Department means the Department of Mines and Geology, Government of


Rajasthan;
(15) Director means Director of Department of Mines & Geology, Rajasthan;
(16) "District Mineral Foundation (DMF)" means a trust, as a non-profit body established
in districts affected by mining operations;
(17) e-tender or "e-auction" means the use of information and communication
technology for conducting the procurement of goods / works / services or for tender /
auction for grant of Mining Lease / Quarry Licence / Royalty Collection Contract /
Excess Royalty Collection Contract or for disposal of any seized mineral, tools,
equipment, vehicle or other machinery etc;
(18) Excavation means digging and / or collecting of mineral/s from any land;
(19) Excess Royalty Collection Contract means a contract given to collect royalty in
excess of annual dead rent and other charges as may be specified in the contract, for
specified mineral/s and for specified area, on behalf of the Government from the
holder/s of Mining Lease/s, where under the contractor shall pay a fixed amount
annually to the Government as per terms of the contract;
(20) "Family means husband, wife and their dependent children;
(21) Final mine closure plan means a plan for the purpose of decommissioning,
reclamation and rehabilitation in the mine or part thereof after cessation of mining and
mineral processing operations that has been prepared in the manner specified and in
the standard format as per the guidelines issued by the Indian Bureau of Mines or
State Government;
(22) Financial Assurance means the surety furnished by the holder of a Mining Lease /
Quarry Licence to the competent authority so as to indemnify the authorities against
the reclamation and rehabilitation cost;
(23) Forms means forms appended to these rules;
(24) Government means the State Government of Rajasthan;
(25) Illegal mining means any prospecting or mining operations undertaken by any
person in any area without holding any mineral concession, permit or any other
permission granted / permitted under these rules or without any lawful authority as the
case may be;
Explanation For the purpose of this clause
(a) violation of any rules, during prospecting or mining operations in any area with
holding of mineral concession, permit or any other permission granted under
these rules shall not be considered as illegal mining;
(b) any area granted under a mineral concession, permit or any other permission
granted under these rules as the case may be, shall be considered as an area
held with lawful authority by the holder of such lease, licence or permit while
determining the extent of illegal mining;
(26) Mine Closure means steps taken for reclamation, rehabilitation in respect of a mine
or part thereof commencing from cessation of mining or processing operations in a
mine or part thereof;
(27) Mines Foreman Gr. I and Mines Foreman Gr. II means Mines Foreman Gr. I / Gr. II
of the Department of Mines & Geology, Rajasthan having jurisdiction fixed by the
Additional Director Mines / Superintending Mining Engineer / Mining Engineer /
Assistant Mining Engineer concerned from time to time;
(28) Mining Approach Road means a stretch of road existing in the mining area
constructed mainly for development and transportation of mineral declared by the
Director from time to time;
(29) Mining Engineer means Mining Engineer of the Department of Mines and Geology,
Rajasthan and also includes Mining Engineer (Vigilance) and Mining Engineer
(Writs) having jurisdiction over the area concerned as may be fixed by the
Government from time to time;
(30) "Mining Plan" means a plan prepared under these rules and duly approved by the
competent authority for the development of minor mineral deposits in the area
concerned and includes simplified mining scheme;

(B)

(31) Ordinary sand or earth means sand or earth used for filling or levelling purposes in
embankment or construction of dams, canals, roads, railways etc.;
(32) Progressive mine closure plan means a plan, for the purpose of providing
protective, reclamation and rehabilitation measures in a mine or part thereof that has
been prepared in the manner specified and in the standard format as per the guidelines
issued by the Indian Bureau of Mines or State Government;
(33) Quarry Licence means a licence granted under these rules;
(34) Rawanna means the rawanna in Form 20 including e-rawanna duly issued by the
Department / generated online for dispatch of mineral from a specified area granted
under any mineral concession;
(35) Royalty means the charge payable to the Government in respect of mineral
consumed or removed from any land granted under these rules as prescribed in
Schedule I;
(36) Royalty Collection Contract means a contract to collect royalty with or without
permit fees and any other charges, as the case may be, on behalf of the Government
for specified mineral/s dispatched from Quarry Licence / permit area specified in the
contract;
(37) Royalty Receipt means the royalty receipt issued for collection of royalty and / or
permit fee for mineral/s dispatched from area granted under these rules by the
Department at Check Post / Naka or by the contractor in case of a Royalty Collection
Contract or Excess Royalty Collection Contract and shall be in Form 37 or Form 38
as the case may be and duly authenticated by the Department;
(38) Schedule means the Schedule appended to these rules;
(39) Scheduled Areas means Scheduled area of Rajasthan as referred to in clause (i) of
Article 244 of the Constitution of India;
(40) Scheduled Bank means a Bank as defined in clause(e) of section 2 of the Reserve
Bank of India Act, 1934 (Central Act No. 2 of 1934);
(41) Short Term Permit means a permit granted under these rules for excavation and
removal of a specified quantity of mineral from a specified area within a specified
period;
(42) State means the Rajasthan State;
(43) "State Mineral Exploration Trust (SMET)" means a trust, as a non-profit body for the
purpose of regional and detailed exploration;
(44) Superintending Mining Engineer means Superintending Mining Engineer of the
Department of Mines & Geology, Rajasthan and also includes Superintending Mining
Engineer (Vigilance) having jurisdiction over the area concerned as may be fixed by
the Government from time to time;
(45) Surveyor / Senior Surveyor means Surveyor / Senior Surveyor of the Department of
Mines and Geology, Rajasthan having jurisdiction fixed by the Additional Director
Mines / Superintending Mining Engineer / Mining Engineer / Assistant Mining
Engineer concerned from time to time;
(46) Tenant means the Tenant as defined in the Rajasthan Tenancy Act; 1955 (Rajasthan
Act 3 of 1955) and includes agricultural worker and village artisan;
(47) Transit Pass means a pass in Form 48 including e-transit pass duly issued by the
Department / generated online to the lessee/contractor/permit holder/ mineral dealer
for lawful transportation of royalty paid mineral(s).
Words and expressions used but not defined in these rules shall have the meaning
respectively assigned to them in the Act and the Mineral Concession Rules, 1960 made by
the Central Government under section 13 of the Act, provided that word Mineral wherever
used in these rules shall mean Minor Mineral.

CHAPTER II
General Restrictions, Exemptions and Essential Documents
4.

Mining operations to be in accordance with these rules:No person shall undertake any mining operations in any area within the State of any mineral to
which these rules are applicable except under and in accordance with these rules.

Restriction on the grant of Mining Lease / Quarry Licence:No Mining Lease/Quarry Licence shall be granted:(1) except in accordance with the provisions of these rules;
(2) to a person who is not a citizen of India unless prior approval of the Government of India
has been obtained;
(3) unless existence of minerals is proved;
(4) in respect of any area which is not compact or contiguous;
(5) in the forest area without obtaining clearance from the Government of India in accordance
with the Forest (Conservation) Act, 1980 and the rules made there under;
(6) in the Schedule Area without obtaining prior recommendation of the Panchayati Raj
Institutions at appropriate level as prescribed under Rajasthan Panchayati Raj (Modification
of provisions in their Application to the Schedule Areas) Act, 1999 (Act No. 16 of 1999);
(7) in respect of lands notified by the Government as reserved for use of the Government or
local authorities for any public or special purposes without obtaining prior permission from
the concerned competent authority;
Provided that where leases have already been granted in such areas, no prior permission
shall be required for grant of gap areas;
(8) to a person against whom or any member of his / her family or to a partnership firm or a
private limited company against whom or any partner of the firm or any director of the
private limited company as the case may be, or any member of his / her family or against a
firm of which he / she or any member of his / her family is or was a partner, the dues of the
Department are outstanding;
Provided that where an injunction order has been issued by a court of law or any other
competent authority staying the recovery of such dues, the non-payment thereof shall not be
treated as disqualification for the purpose of grant;
(9) in Government land, where department reserves the area under rule 126.

6.

Restriction for transportation of mineral across State border:(1) No movement of mineral Bajri shall be allowed across the border of the State;
(2) No movement of following minerals in raw form shall be allowed across the border of the
State:(i)
Quartz;
(ii) Felspar;
(iii) Masonary Stone;
(3) In case any vehicle found transporting the mineral(s) mentioned in sub rule (1) and (2) even
with valid rawanna / permit it shall be treated as violation of rules and penal provisions as
specified in rule 100(4) shall apply, besides lease shall be liable to cancellation.

7.

Exemptions:(1) Notwithstanding anything contained in these rules no rent, royalty or fee shall be charged
for:(i)
excavation of ordinary clay including brick making clay, bajri, sand and masonary
stone from areas, which are not working pits of a holder of mineral concession, by a
tenant for bonafide purpose of construction or repairs of:(a) Irrigation tanks, channels and drains;
(b) Wells;
(c) Compound walls for fields; or
(d) Residential house including compound walls and cattle sheds in rural areas;

(2)

(3)

Provided that:(a) Such excavation and removal of aforesaid mineral shall be on the basis of the
permits issued by the Panchayat or Patwari of the village, where the tenant
resides. The permit shall contain the details of the total quantity of mineral,
period, its area of excavation and removal and name and address of the tenant;
(b) Nothing in this sub-rule shall abridge the rights of cultivators under section 36
of the Rajasthan Tenancy Act, 1955;
(ii) excavation of clay used by the potters for earthenware pots and kawelus, whose
turnover during a year does not exceed two lakh Rupees;
(iii) excavation and use of clay or earth in construction of buildings except earth used for
brick making;
(iv) search for and obtaining the samples of minerals on the surface by chipping of
outcrops without involving any disturbance of the soil by way of bore hole, pit, trench
or otherwise;
(v) cutting and filling / leveling of any land to make it suitable for colonisation work;
(vi) channelisation of any river system for protection works from any incidence of
inundation or flooding, provided the mineral extracted in the process is used at the
same place for creation of safety embankments and is not disposed off outside such
area;
(vii) excavation of masonary stone, murrum and bajri from areas which are not the
working pits of a holder of mineral concession by any person or institution, for
construction of public utility buildings such as schools and hospitals in the rural areas
from donation or contribution;
Provided that such excavation and removal of aforesaid minerals, shall be under a
permit granted by the Mining Engineer or Assistant Mining Engineer, having
jurisdiction over the area and only after a certificate from the Sarpanch / Pradhan in
this behalf has been produced;
(viii) excavation of ordinary sand / ordinary earth from the borrow land and used in the
construction of road / rail embankment, dams etc. in Government works;
Provided that such excavation and removal of aforesaid minerals, shall be under a
permit granted by the Mining Engineer or Assistant Mining Engineer, having
jurisdiction over the area.
Notwithstanding anything contained in these rules, digging or extraction of brick earth used
for making bricks / pottery, gypsum used for spreading in alkaline agriculture fields or
making plaster of paris, ordinary earth / ordinary sand / murrum used for filling / levelling /
embankment / roads / railways by the contractors of works department upto depth of 2
meters shall not be treated as mining operations;
Provided that such operations shall be carried out under special permit issued by Mining
Engineer / Assistant Mining Engineer under rule 63.
The Government may, by notification in the Official Gazette, exempt any person or class of
persons from the purview of these rules, provided that the mineral is stored/carried for the
purpose of scientific test.

Essential documents to be enclosed alongwith an application:No application, for grant/transfer of Mining Lease/licence or for issue of permit / contract, as the
case may be, shall be accepted unless the following documents are enclosed:(1) a self attested copy of PAN card and in case of a partnership firm or association of persons
or a private limited company, self attested copies of PAN card of all partners / members /
directors and copy of PAN card of firm / association of person / company as the case may
be;
(2) any two self attested copies of driving licence, passport, voter identification card, aadhar
card, bank passbook showing photo identity and address proof of the applicant or in case of
a partnership firm / association of persons / a private limited company, of all partners /
members / directors;
(3) a self attested copy of partnership deed and copy of firm registration certificate in case of
partnership firm, a self attested copy of memorandum and articles of association and

(4)
(5)

(6)

(7)

certificate of incorporation in case of private limited company, issued under Indian


Partnership Act, 1932 or Companies Act, 2013 and a self attested copy of document of
Association of Persons in case of Association of Persons;
if applicant is a company, an attested copy of resolution passed by the board of directors in
favour of a person who is authorised to sign the application;
if applicant is a firm / association of persons and application is not signed by all partners of
the firm / members of association of persons as the case may be, an attested copy of power
of attorney in favour of a person, executed by the partners of firm or members of association
of persons, who is authorised to sign the application;
a valid no dues certificate from the concerned Mining Engineer / Assistant Mining Engineer
if the applicant or his family members holds or has held any mineral concession or RCC /
ERCC in the State;
Provided that in case the applicant is a association of person or partnership firm or a private
limited company, such certificate shall also be furnished by all members of association of
person or all partners of the partnership firm or all directors of the private limited company,
as the case may be. In case of limited company / Government undertaking a no dues
certificate is to be submitted by the company / undertaking as the case may be;
Provided further that a properly sworn affidavit stating that no dues are outstanding against
him/her or his/her family members shall suffice subject to the condition that the certificate
required as above shall be furnished within 30 days in case of lease / licence / permit and 10
days in case of RCC / ERCC from the date of application, failing which the application shall
be deemed to have been rejected in case of lease / licence / permit and shall become invalid
in case of contract;
Provided further also that where any injuction has been issued by court of law or any other
competent authority staying the recovery of any such mining dues, non-payment thereof
shall not be treated as a disqualification for the purpose of granting the said concession /
contract;
Provided also that no dues certificate shall not be required where the applicant / partners of a
firm / directors of the private limited company / members of association of persons / limited
company / Government undertaking have furnished an affidavit to the satisfaction of the
Government, stating that he / she / it or his / her family member does not or did not hold any
mineral concession or RCC / ERCC in the State;
an affidavit giving particulars of areas already held by the applicant under mineral
concession including the area held in joint interest with other persons, area applied but not
granted and granted but not executed / registered.

CHAPTER -III
Grant of Prospecting Licence
9.

Restrictions for grant of Prospecting Licence:No Prospecting Licence shall be granted:(1) as mentioned in rule 5 (except sub rule 3 of rule 5);
(2) except for minerals marble, granite and minerals specified in Group B of Schedule Fourth
appended to these rules and any other mineral notified by the Government;
(3) where existence of mineral has already been proved by Department or otherwise.

10.

Period for which Prospecting Licence may be granted:The period for which a Prospecting Licence may be granted shall be two year.

11.

Area of Prospecting Licence:Prospecting Licence shall be granted for minimum area of 5.00 hectare for marble and granite and
20 hectare for other minerals but not exceeding 50.00 hectare;
Provided that no person shall acquire one or more Prospecting Licences in respect of any mineral
or associated minerals for area exceeding 100.00 hectare in the entire state.

12.

Application for grant of Prospecting Licence:(1) An application for the grant of a Prospecting Licence shall be submitted online to the
department through web portal in Form 1;
(2) Every application for grant of a Prospecting Licence shall be accompanied by:(i)
a non refundable fee of Rs. 10,000/- or as prescribed by Government from time to
time deposited through e-payment;
(ii) relevant scanned documents as mentioned in rule 8;
(iii) a signed scanned copy of plan to the scale of the area alongwith description
mentioning latitude and longitude of fixed reference point or of all the corner pillars
of the applied area. The latitude and longitude shall be taken in WGS 84 Datum only;
(iv) revenue details of the applied area with khasra / aaraji number, type of land and the
exact area of the khasra / aaraji falling in the applied area alongwith the scanned
superimposed map;
(v) a scanned copy of an affidavit stating that the applicant shall obtain consent of the
land owner before starting prospecting work where the land is not owned by him;
(3) Every application submitted under sub-rule (1) shall be acknowledged online in Form 2 on
the date of its receipt;
(4) Application duly signed with all original documents as mentioned in sub rule (2) shall be
submitted to the concerned Mining Engineer / Assistant Mining Engineer, within a period of
15 days from the date of its online submission and same shall be got verified by the
applicant in Form 2 from the concerned office. Failure to submit original application /
documents shall lead to deemed rejection of the application.

13.

Preferential right for grant of Prospecting Licence:Where two or more persons have applied for a Prospecting Licence in respect of the same land,
applicant whose application was received earlier shall have a preferential right for the grant of the
Licence over an applicant whose application was received later;
Provided that the competent authority may prefer an application received later from a Government
company or Corporation owned by the Government over any other application received earlier for
the same area;
Provided further that where two or more applications are received on the same day, the
Prospecting Licence shall be granted in the following order of priority:(1) A Government Company or Corporation owned by the Government;
(2) A person who intends to set-up a mineral based industry in the State;
(3) Unemployed Mining Engineer or Geologist;
(4) Other applicant;

Provided also that where applications received are from the same category of persons, the
competent authority after taking into consideration the following grounds, Prospecting Licence
shall be granted to one of the applicants:(1) any special knowledge or experience in mining operations possessed by the applicant;
(2) the financial resources of the applicant;
(3) the nature and quality of technical staff employed or to be employed by the applicant.
14.

Disposal of application for grant of Prospecting Licence:(1) An application for grant of Prospecting Licence shall be disposed of by the competent
authority;
Provided that where the applications for the grant of Prospecting Licence and applications
for grant of Mining Lease in respect of the same area are received on same date or on
different dates within a period of 30 days, the applications for the grant of Mining Lease
shall, if there is an evidence to show that the area has been prospected earlier or the
existence of mineral contents therein has been established otherwise, be disposed off before
the applications for the grant of Prospecting Licence are considered;
(2) Where the application for Prospecting Licence is not complete in all material particulars, a
30 day notice shall be given by the concerned Mining Engineer / Assistant Mining Engineer,
requiring the applicant to complete the application, failing which the application shall be
rejected by the competent authority.

15.

Security deposit:The grantee shall submit security deposit in the form of fixed deposit receipt of nationalised bank /
scheduled bank / national saving certificate or any other form of securities which may be notified
by the Government pledged in favour of the concerned Mining Engineer / Assistant Mining
Engineer a sum of Rs. 15,000/- for 5.00 hectare and thereafter Rs. 2,500/- for every additional area
of one hectare or part thereof for mineral marble and granite and Rs. 10,000/- for 20.00 hectare and
thereafter Rs. 200/- for every additional area of one hectare or part thereof for other minerals, for
the due observance of the terms and conditions of the licence, before execution of the deed of
Prospecting Licence.

16.

Performance Guarantee:The grantee shall submit performance guarantee in the form of fixed deposit receipt of nationalised
bank / scheduled bank / national saving certificate or any other form of securities which may be
notified by the Government pledged in favour of the concerned Mining Engineer / Assistant
Mining Engineer equivalent to 25% of prospecting fee for the due performance of the Prospecting
Licence before execution of the deed of Prospecting Licence. The performance guarantee shall be
adjusted against Departmental dues of the licencee on expiry or cancellation of the licence,
otherwise it shall be refunded after expiry.

17.

Prospecting Fee :Where on any application for a Prospecting Licence an order has been made for the grant of such
licence, the licencee shall pay prospecting fee of Rs. 5,000/- per hectare per year or part thereof for
mineral marble and granite and Rs. 1,000/- per hectare per year or part thereof for other minerals
before execution of the licence.

18.

Execution of the Prospecting Licence:(1) Where the Prospecting Licence has been granted under these rules, the grantee shall deposit
prospecting fee, security, performance guarantee and requisite non judicial stamp papers
within 45 days from the date of receipt of order of grant for execution of licence;
(2) The licence shall be executed in Form 3 within 3 months from the date of receipt of order of
grant and the concerned Mining Engineer shall execute the licence on behalf of Governor of
Rajasthan as required under Article 299 of the Constitution of India;
(3) Where the grantee fails to comply with the provisions of sub-rule (1) above within a period
of 45 days from the date of receipt of the order of grant or he fails to execute the licence
within 3 months from the date of receipt of order of grant or within such period as the

(4)

competent authority may allow in this behalf, the same shall be revoked by competent
authority with forfeiture of any amount deposited by the grantee;
The date of the commencement of the period for which a Prospecting Licence is granted
shall be the date on which the licence is executed under sub-rule (1).

19.

Registers:(1) A register of applications for grant of Prospecting Licence shall be maintained by the
Assistant Mining Engineer / Mining Engineer in Form 4;
(2) A register of Prospecting Licences granted shall be maintained by the Assistant Mining
Engineer / Mining Engineer in Form 5.

20.

Conditions of Prospecting Licence:The following conditions shall be the part of Prospecting Licence, namely:(1) The licencee may win and carry away mineral for the purpose of testing and to search for
market, a quantity upto 250 tonnes on payment of royalty as per schedule I;
Provided that concerned Superintending Mining Engineer may grant permission to carry
away quantity of mineral in excess of 250 tonnes but not exceeding 1000 tonnes on payment
of royalty;
(2) The licencee shall not remove / dispatch or utilize the mineral from the area specified under
Prospecting Licence without valid rawanna;
(3) Save in the case of land in respect of which the licence is granted, licencee shall within three
months after the determination of the licence or the date of abandonment of the prospecting
operations, whichever is earlier, securely plug all bores and fill up or fence all excavations in
the land covered by the licence;
(4) The licencee shall report to the concerned Assistant Mining Engineer / Mining Engineer, the
discovery of any mineral not specified in the licence within a period of 30 days from the
date of such discovery. Consequent upon such reporting, such newly discovered mineral
shall be deemed to have been included in the Prospecting Licence;
(5) The licencee shall not pay a wage less than the minimum wages prescribed by the Central or
the State Government from time to time under the Minimum Wages Act, 1948;
(6) The licencee of granite / marble shall observe the provisions of the Granite Conservation
and Development Rules, 1999 / Marble Development and Conservation Rules, 2002;
(7) The licencee shall also observe the provisions of the Mines Act, 1952 (35 of 1952);
(8) The licencee shall take immediate measures for the plantation of trees in the sanctioned area
or nearby area approved by Assistant Mining Engineer / Mining Engineer not less than twice
the number of trees felled as a result of prospecting operations and look after them during
subsistence of the licence;
(9) The licencee shall pay to the occupier of surface of the land such compensation as may
become payable as per law in force;
(10) A Prospecting Licence may contain other conditions as the Government may think fit,
namely:(i)
Compensation for damage to land in respect of which the licence has been granted;
(ii) Indemnity to the Government, against the claim of a third party for any damage,
injury or disturbance caused to him, by the licencee;
(iii) Restriction regarding felling of trees on unoccupied and unreserved Government land
and other environmental conditions as may be decided from time to time;
(iv) Restriction on prospecting operations in any area prohibited by any competent
authority due to environmental or any other reasons as may be decided from time to
time;
(v) Conditions regarding entry on occupied land;
(vi) Facilities to be given by the licencee for working other minerals in the licenced area
or in adjacent areas;
(11) Every holder of a Prospecting Licence shall submit to the Government or any other officer
authorised in this behalf, within a period of 60 days, from the date of execution of deed of
Prospecting Licence, a scheme of prospecting indicating the manner in which he proposes to
carry out the prospecting operations. The licencee shall carry out the prospecting operations

10

(12)

(13)

(14)

(15)

in accordance with the scheme submitted by him or as directed by the Government or any
officer authorised in this behalf;
Every licencee shall maintain a correct and faithful account of all the expenses incurred by
him on prospecting operations and also the quantity and other particulars of all minerals
obtained during such operations and their dispatch;
The licencee shall:(i)
allow any officer authorised by the Central Government or the State Government in
this behalf to examine at any time accounts maintained under sub-rule (12) and
furnish to the Central Government or to the State Government such information and
returns as it or any officer authorised in this behalf may require;
(ii) allow any officer, authorised by the Central Government or the State Government in
this behalf, to inspect any prospecting operation carried out by him;
The licencee shall submit prospecting report of the work done in Form 6 stating the number
of persons engaged and disclosing in full the geological, geophysical or other valuable data
collected by him during the period to the concerned Mining Engineer / Assistant Mining
Engineer. The report shall be submitted within three months from the expiry of the licence
otherwise security shall be forfeited;
In case of any breach on the part of the licencee of any covenant or condition contained in
the licence deed or the rules made by the Central / State Government, the competent
authority may determine the licence and take possession of the said land and forfeit the
security deposited. Such action shall not be taken unless the licencee has failed to remedy the
breach after serving a 15 day notice.

21.

Restriction on Transfer of Prospecting Licence:The licencee shall not without the previous consent in writing of the competent authority:(1) Assign, sublet, mortgage or in any other manner transfer the Prospecting Licence or any
right, title or interest therein;
(2) Enter into or make any arrangement, contract or understanding whereby the licencee will or
may be directly or indirectly financed to a substantial extent by or under which the
licencees operations or undertakings will or may be substantially controlled by any person
or body of persons other than licencee.

22.

Application for Transfer of Prospecting Licence:Every application for transfer of Prospecting Licence shall be accompanied by:(1) a non refundable fee of Rs. 10000/- ;
(2) transfer premium equivalent to the prospecting fee of one year;
Provided that in case licencee withdraws transfer application, the premium amount
deposited shall be forfeited;
(3) documents as mentioned in rule 8;
(4) an affidavit by the transferee stating that he shall be abide by all terms and conditions of
Prospecting Licence and shall deposit any dues pertaining to the period prior to transfer of
Prospecting Licence;
(5) an affidavit by the transferor and transferee stating the amount of transaction agreed between
them for transfer of Prospecting Licence in lieu of investment incurred by the transferor;
(6) Where the transfer application for Prospecting Licence is not complete in all material
particulars or is not accompanied by the required documents or any additional information /
documents as specified by Government from time to time, a 30 day notice shall be given by
the concerned Mining Engineer / Assistant Mining Engineer or competent authority
requiring the applicant to complete the application or provide documents, as the case may
be, failing which the transfer application shall be rejected by the competent authority.

23.

Disposal of Application for Transfer of Prospecting Licence:(1) The competent authority may transfer the Prospecting Licence to a person;
Provided that transfer of Prospecting Licence may be permitted once, but it shall not be
considered as a matter of right and the competent authority may refuse such transfer for the
reasons to be recorded and communicated to the licencee;

11

(2)

Where order for transfer has been issued, a transfer licence deed in Form 7 shall be executed
within three months from the date of receipt of order or within such period as the competent
authority may allow in this behalf;
Provided that transfer of licence shall be effective from the day of execution of transfer
licence deed;
.

12

CHAPTER - IV
Grant of Mining Lease
24.

Restrictions for grant of Mining Lease:No Mining Lease shall be granted:(1) in Government land, where department reserves the area for prospecting and wherein, if
sufficient mineral is available, delineation shall be done and applications shall be invited by
the Department;
(2) for mineral bajri (river bed) having an area less than 5.00 hectares.

25.

Area of Mining Lease:(1) No person shall acquire in respect of any mineral or prescribed group of associated minerals
as prescribed in Schedule III, one or more Mining Leases covering total area of more than
10 Sq. Kms;
Provided that if the area of existing held leases is more than 10 Sq. Kms., the same shall be
reduced to 10 sq. Kms. at the time of extention of period of Mining Lease;
Provided further that the above provision shall not be applicable for Mining Leases of
mineral bajri;
Explanation: For the purpose of determining the total area covered under one or more
mineral concession, the area granted to a person or as a member of a
cooperative society / Association of Person or a partner of a firm or director
of a private limited company shall be added, so that the held area by such
person under mineral concession/s, jointly or individually shall not in any
case exceed the total area.
(2) The size for grant of Mining Lease shall be:S.No. Name of Mineral
Size
(i)
Marble
4.00 hectare
(ii)
Granite
3.00 hectare
(iii)
Bajri (river bed)
Minimum 5.00 hectare
(iv)
Minerals specified in Group B of Minimum 4.00 hectare
Schedule IV
(v)
All minerals other than above
1.00 hectare
Note:- The above size is not applicable for extension of period of existing Mining Leases,
on any area added in existing lease and gap area granted by open auction / tender;
Provided that, in case of Marble and Granite Director may change the size of the lease / plot
area for the reasons to be recorded in writing;
Provided further also that where the khatedari land available is less than the above
mentioned size and government land is not available adjoining to the khatedari land, the
Mining Lease may be granted after prior approval of the Director subject to the condition
that the minimum area shall not be less than:(i)
1.00 hectare in case of marble and granite; and
(ii) 2.00 hectare in case of minerals specified in Group B of Schedule IV;
(3) In Government Land where the free area available for grant is less than 2 hectare in case of
marble / minerals specified in Group B of Schedule IV, 1.5 hectare in case of granite and 1
hectare for other minerals except bajri (river bed) and surrounded by three or more Mining
Leases or by forest boundary or any other reserved land, such gap area shall be granted by
Mining Engineer with the prior approval of Director by auction / tender to any one of the
surrounding lessees and the same shall be added in his lease;
Provided that where the gap area is more than 2.00 hectare in case of marble / minerals
specified in Group B of Schedule IV and 1.5 hectare in case of Granite, such gap area shall
be granted by Mining Engineer with the prior approval of Director by open auction / tender;
(4) Khatedari land available free for grant adjoining to existing lease except bajri (river bed)
having area less than size as mentioned in sub rule (2) and lessee holds khatedari right / have
consent of khatedar, such area may be added in existing lease with prior approval of
Director;

13

26.

Length and breadth of area under a Mining Lease:As far as possible area applied under Mining Lease shall be square or rectangular in shape and
length shall not exceed four times of its width.

27.

Boundaries below the surface:Except where Government specifically provides, boundaries of the area covered by a Mining
Lease shall run vertically downwards below the surface towards the centre of the earth.

28.

Period of lease:(1) All mining leases except leases for mineral bajri (river bed) shall be granted for a period of
50 years;
(2) Mining leases of mineral bajri (river bed) shall be granted for a period of 5 years;
Provided that the State Government may extend the period of Mining Lease for a period of
one year or till the new lease comes into force whichever is earlier on payment of
proportionate amount of premium deposited at the time of initial grant;
(3) All mining leases except leases for mineral bajri (river bed) granted before the
commencement of these rules shall be deemed to have been granted for a period of 50 years;
(4) Period of lease granted may be extended upto the period for which the mines remain close
due to any court / tribunal order or any order of department;
(5) Notwithstanding anything contained in the instrument of mining lease, the period of mining
leases except mineral bajri (river bed), on submission of application by lessee in Form 16
may further be progressively extended for 20 years or less to a period falling short of 70 or
90 years as the case may be subject to the condition that :(i)
the application shall be submitted before the expiry of the lease period but not before
18 months prior to the expiry;
Provided that where lease period has already been expired and lessee has submitted
renewal application, such renewal application shall be treated as application for
extension of lease period;
(ii) there is sufficient mineral deposit in the lease area;
(iii) all the terms and conditions of the lease have been complied with;
(iv) the area held by the lessee does not exceed 10 sq. Kms;
Provided that such application shall be disposed off by the competent authority preferably
within three months and if the application is not disposed off till the expiry of the lease
period, the period of lease shall be deemed to have been extended till the disposal of
application.

29.

Preferential rights for the grant of Mining Lease:(1) Where a Prospecting Licence has been granted, the licencee shall have a preferential right
for obtaining a Mining Lease in respect of that land over any other person if he applies for a
Mining Lease within three months of expiry of the Prospecting Licence, as per provisions of
rule 31(1)(iv), if the State Government or officer authorised in this behalf, is satisfied that
the licencee:(i)
has undertaken prospecting operations to establish mineral resources in such land;
(ii) has not committed any breach of the terms and conditions of the Prospecting Licence;
(iii) is otherwise a fit person for being granted the Mining Lease;
(2) Where two or more persons have applied for a Mining Lease in respect of the same land,
applicant whose application was received earlier shall have a preferential right for the grant
of the lease over an applicant whose application was received later;
Provided that the competent authority may prefer an application received later from a
Government company or Corporation owned by the Government over any other application
received earlier for the same area;
Provided further that where the Government land is reserved under Rule 126 and availability
of mineral have been proved, the plots for Mining Lease shall be delineated and allotted by
way of auction or tender;
(3) Where two or more applications are received on the same day, the Mining Lease shall be
granted in the following order of priority:-

14

(i)
A Government Company or Corporation owned by the Government;
(ii) A person who intends to set-up a mineral based industry in the State;
(iii) Unemployed Mining Engineer or Geologist;
(iv) Other applicant;
Provided that where applications received are from the same category of persons, the
competent authority after taking into consideration the following grounds, Mining Lease
shall be granted to one of the applicants:(i)
any special knowledge or experience in mining operations possessed by the applicant;
(ii) the financial resources of the applicant;
(iii) the nature and quality of technical staff employed or to be employed by the applicant.
30.

Procedure for inviting applications for grant of Mining Lease by way of delineation:(1) In Government land, where department reserves the area for prospecting and wherein,
sufficient mineral deposit is available, leases shall be granted after the area is first
delineated, plots suitably numbered and a notification inviting application is published in
two daily news papers, at least one of which is State level and other having wide publicity in
the area where leases are being allotted. The notification shall be published at least 30 days
before the intended date of inviting applications and shall contain the date or the period
within which applications shall be received.
(2) Out of these delineated plots the committee comprising of concerned (i) Superintending
Mining Engineer (ii) Mining Engineer / Assistant Mining Engineer and (iii) Accounts
Personnel nominated by concerned Additional Director (Mines) zone shall reserve 50% of
plots for allotment only by auction / tender and the remaining 50% for allotment by way of
lottery to following categories of persons as per percentage mentioned against each
category:(i)
except for mineral marble, granite, Minerals specified in Group B of Schedule IV and
bajri:S.No.
Category
Percentage

(ii)

(a)

Persons belonging to Scheduled Castes;

16%

(b)

Persons belonging to Scheduled Tribes;

12%

(c)

Persons belonging to Other Backward Class;

19%

(d)

Persons differently abled

3%

(e)

General category (other than 1 to 4)

50%

Provided that in case of plots of masonary stone delineated in notified scheduled


areas, 1/3rd of total plots shall be reserved for persons belonging to domicile schedule
tribe category, 50% of remaining plots shall be allotted by way of auction / tender and
50% shall be allotted by way of lottery to the persons belonging to the category as
mentioned above.
Provided further that where more than one application is received for the plots
reserved for domicile schedule tribe category, the allotment shall be made by way of
lottery among them.
for minerals used as blocks and sawn as slabs and tiles:S.No.
Category
Percentage
(a)

Persons who have installed processing unit of


concerned mineral and have invested atleast Rs.
1.00 crore in the State. The applicant shall submit
satisfactory proof of his capability in this regard
alongwith the application form.

15

25%

(iii)

(b)

Persons who undertake to invest a minimum of Rs.


10.00 crores for mechanization of mines and/ or
installation of export oriented unit / processing
plant(s) in the State and undertake to export at least
50% of the total product. The applicant shall submit
satisfactory proof of his capability in this regard
alongwith the application form.

10%

(c)

Schedule Caste

10%

(d)

Schedule Tribe

7%

(e)

Other Backward Class

10%

(f)

Persons differently abled

3%

(g)

General category (other than a to f)

35%

for minerals specified in Group B of Schedule IV (except mineral SMS grade


dolomite):S.No.
Category
Percentage
(a)

15%

(c)

Persons who have installed processing plant of the


concerned mineral in the State and mineral is being
used in own / subsidiary industry with common
share holding. The applicant shall submit
satisfactory proof of his capability in this regard
along with the application form.
Persons who undertake to install mineral based
industry in the State and mineral shall be used in
own / subsidiary industry with common share
holding. The applicant shall submit satisfactory
proof of his capability in this regard alongwith the
application.
Schedule Caste

(d)

Schedule Tribe

7%

(e)

Other Backward Class

10%

(f)

Persons differently abled

3%

(g)

General category (other than a to f)

20%

(b)

(iv)

35%

10%

Explanation:- "Own industry" means an industry of which the applicant is the owner
or in which he holds not less than 50 percent of controlling interest.
Provided that the person belonging to SC/ST/OBC shall submit certificate of
SC/ST/OBC issued by competent authority;
Provided further that the person differently abled shall submit certificate of disability
issued by a Government Medical Officer;
Explanation:- A person applying under differently abled category shall be eligible if
he has minimum of 40% disability.
Plots for mineral bajri (river bed) and SMS grade dolomite shall only be allotted by
auction / tender;
Provided that in notified scheduled areas where registered society of domicile
schedule tribe submit tender in prescribed format for allotment of mining lease of

16

(3)

(i)

(ii)

(iii)

(iv)

31.

mineral bajri (river bed) at least 7 days before the date of receiving tender / bid, such
society shall get preference for allotment of mining lease and in such case no further
tender / bid shall be received on due date.
Provided further that where more than one tender is received from such society, the
allotment shall be made to highest valid tenderer.
Provided also that where no tender is received from such society, the bid / tender shall
be received on due date as per schedule.
Reserve price (minimum premium) shall be fixed by the Additional Director (Mines)
zone, which shall not be less than the amount equal to the existing dead rent for the
area to be allotted. Earnest money shall be 10% of reserve price;
The highest premium shall be determined by auction or tender and same shall be paid
one time. Such premium shall not be adjusted against dead rent and dead rent shall be
charged separately;
Particulars, terms and conditions of the Mining Lease for auction / tender, as approved
by the Director shall be affixed on the notice board in the office of Superintending
Mining Engineer, Mining Engineer / Assistant Mining Engineer concerned and shall
also be read out to the intending bidders at the time of auction and shall be made
available to intending bidders / tenderers on payment of Rs.10/- and for acceptance of
the same, a copy alongwith his / her signatures or thumb impressions shall be enclosed
with application;
Intending bidder / tenderer shall submit his application as per the time schedule given
in the notification.

Application for grant of Mining Lease:(1) Every application for grant of Mining Lease shall be submitted to the Mining Engineer /
Assistant Mining Engineer concerned through departmental web portal in prescribed
following forms:(i)
In case of auction - Form 8
(ii)
In case of tender - Form 9
(iii)
In case of lottery - Form 10
(iv)
other than above - Form 11
(2) Every application submitted shall be accompanied by:(i)
a non refundable fee of Rs. 10000/- for marble & granite and Rs. 5000/- for other
minerals or as prescribed by Government from time to time;
(ii)
relevant scanned documents as mentioned in rule 8;
(iii) a signed scanned copy of plan to the scale of the area alongwith description
mentioning latitude and longitude of fixed reference point or of all the corner pillars
of the applied area. The latitude and longitude shall be taken in WGS 84 Datum
only;
Provided that plan and description report shall not be required for delineated plots;
(iv) revenue details of the applied area with khasra / aaraji number, type of land and the
exact area of the khasra / aaraji falling in the applied area alongwith the scanned
superimposed map;
Provided that in case of delineated plots no such revenue details shall be required;
(v)
an scanned affidavit in case of Mining Lease for marble / granite stating that
applicant shall deploy the mine machinery prescribed in Annexure - I / Annexure-II
respectively appended to these rules within a period of one year of registration of
lease deed;
(vi) a scanned statement in writing that the applicant has, where the land is not owned by
him, obtained surface rights over the area or has obtained consent of the owner for
starting mining operations:
Provided that no such statement shall be necessary where the land is owned by the
Government;
Provided further that such consent of the owner for starting mining operations in the
area or part thereof may be furnished after execution of the lease deed but before
entry into the said area;

17

(3)
(4)

(5)

Provided also that no further consent would be required in case of extension of


mining lease period as per rule 28(5), where consent has already been obtained
during the grant of lease.
(vi) In case of plots reserved for SC/ST/OBC/differently abled person, a scanned copy of
valid certificate of that category issued by competent authority;
Every application submitted under sub-rule (1) shall be acknowledged online in Form 12 on
the date of its receipt;
Application duly signed with all original documents as mentioned in sub rule (2) shall be
submitted to the concerned Mining Engineer / Assistant Mining Engineer, within a period of
15 days from the date of its online submission and same shall be got verified by the
applicant in Form 12 from the concerned office. Failure to submit original application /
documents shall lead to deemed rejection of the application;
If any document other than (ii) to (vi) of sub-rule (2) is required or there is any deficiency,
30 day notice shall be served by concerned Mining Engineer / Assistant Mining Engineer,
requiring the applicant to complete the application, failing which the application shall be
rejected by the competent authority.

32.

Disposal of applications for Grant of Mining Lease other than delineated plots:(1) Applied area shall not be allowed to revised by the applicant but in case if part of applied
area is not available for grant and remaining free area is more than 50% of applied area, the
applicant may revise the applied area upto the minimum size mentioned in rule 25(2) of
these rules towards free area;
Provided that revised area shall be accepted only if applicant retains original free area in
revised map;
(2) If applied area found free for grant, the concerned Mining Engineer / Assistant Mining
Engineer shall issue a letter for demarcation of the applied area. Thereafter on the deposition
of the demarcation charges, the area shall be demarcated in the presence of the halka patwari
and applicant;
Note:- If applied area is adjoining to any sanctioned lease, the demarcation of applied
area shall be done after intimating the adjoining lessee(s).
(3) After demarcation, if the area is found suitable for grant then competent authority shall issue
a Letter of Intent (LoI) to submit following documents:(i)
mining plan, progressive mine closure plan and an undertaking to deposit financial
assurance within a period of 6 months or such other period as may be allowed by
competent authority;
(ii) environment clearance, if required, within a period of twelve months;
Provided that the above period may be extended by the competent authority subject to
payment of late fees at the rate of 6% of annual dead rent for every month or part
thereof of such extended period;
(4) In case LoI holder complies with the conditions of LoI within the stipulated time period or
extended time period, the area shall be granted as per provisions of these rules by the
competent authority;
(5) In case LoI holder fails to comply any of the condition of LoI within the stipulated time
period or extended time period, the application shall be rejected after providing the
opportunity of being heard with forfeiture of any amount deposited.

33.

Disposal of applications for Grant of Mining Lease in case of auction / tender:


(1) (i)
Superintending Mining Engineer or an officer nominated by the Director in this behalf
shall be the presiding officer in case of auction / tender for grant of Mining Lease;
(ii) Tenders / bids shall be received in the office of the Superintending Mining Engineer
and tenders shall be opened in the presence of tenderers or their representative who are
present, by following committee, consisting of:(a) Superintending Mining Engineer concerned
Presiding Officer;
(b) Mining Engineer / Assistant Mining Engineer concerned;

18

(2)

(3)

(4)

(5)
(6)

34.

(c) Accounts personnel nominated by the Additional Director (Mines) zone;


(iii) The Committee referred in sub-rule (b) shall select highest bidder among the valid
tenders / bids as provisionally selected tenderer / bidder;
Provided that where highest bid is offered by more than one bidder/ tenderer, it shall
be decided by auction among them;
(iv) No tender / bid below the reserve price shall be accepted by the Committee;
(v) Earnest money of tenderers / bidders other than provisionally selected tenderer /
bidder shall be refunded after declaration of result by the Committee;
(vi) The provisionally selected tenderer / bidder shall deposit 25% of the tender / bid
amount within three working days of opening of tender / auction, failing which earnest
money shall be forfeited and application shall be rejected;
(vii) All applications other than the applicant who is selected for grant of Mining Lease
shall be deemed to have been rejected and application fee in respect of such
applications shall be forfeited;
(viii) If the provisionally selected tenderer / bidder deposit 25% of the tender / bid amount
within the stipulated time, the concerned Mining Engineer / Assistant Mining
Engineer shall issue a letter for demarcation of the applied area, after deposition of the
demarcation charges by the applicant the area shall be demarcated in the presence of
the halka patwari;
Note: If applied area is adjoining to any sanctioned lease, the demarcation of applied area
shall be done after intimating the adjoining lessee(s);
After demarcation, if area is found suitable for grant than competent authority shall issue a
Letter of Intent (LoI) to submit following documents:(i)
approved mining plan, progressive mine closure plan and financial assurance within a
period of 6 months or such other period as may be allowed by competent authority;
(ii) environment clearance, if required, within a period of twelve months;
Provided also that the above period may be extended by the competent authority
subject to payment of late fees at the rate of 6% of annual dead rent for every month or
part thereof for such extended period;
In case LoI holder complies with the conditions of LoI within the stipulated time period or
time period extended by competent authority, the area shall be granted as per provisions of
these rules by competent authority;
In case LoI holder fails to comply any of the condition of LoI within the stipulated time
period or time period extended by competent authority, the application shall be rejected after
providing an opportunity of being heard with forfeiture of any amount deposited;
Grantee shall deposit remaining 75% of the bid / tender amount within 45 days from the date
of communication of sanction order;
In case Grantee does not deposit remaining 75% of the bid / tender amount within the time
specified in sub rule (5) or within time period extended by competent authority, subject to
the payment of penalty as 9% of dead rent for every month or part thereof, the sanction order
shall be revoked with forfeiture of any amount deposited.

Disposal of applications for Grant of Mining Lease in case of Lottery:(1)


(i) Superintending Mining Engineer or an officer nominated by the Director in this behalf
shall be the presiding officer in case of lottery for grant of Mining Lease;
(ii) Application for lottery shall be received in the office of the concern Mining Engineer /
Assistant Mining Engineer and lottery shall be opened in the presence of applicants or
there representative who are present, by following committee, consisting of:(a) Superintending Mining Engineer concerned
Presiding Officer;
(b) Mining Engineer / Assistant Mining Engineer concerned;
(c) Accounts personnel nominated by the Additional Director (Mines) zone;
(iii) Where two or more applications are received for a particular Plot of Mining Lease,
lottery shall be drawn for selecting one of them in the presence of the above
committee;

19

(iv)

(2)

(3)

(4)

All applications of the applicants other than the applicant who is selected for grant of
Mining Lease shall be deemed to have been rejected and application fee in respect of
such applications shall be forfeited;
(v) The concerned Mining Engineer / Assistant Mining Engineer shall issue a letter to the
provisionally selected applicant for demarcation of the applied area, after deposition
of the demarcation charges by the provisionally selected applicant, the area shall be
demarcated in the presence of the halka patwari;
Note: If applied area is adjoining to any sanctioned lease, the demarcation of applied area
shall be done after intimating the adjoining lessee(s);
After demarcation, if area is found suitable for grant then competent authority shall issue a
Letter of Intent (LoI) to the selected applicant to submit following documents:(i)
mining plan, progressive mine closure plan and financial assurance within a period of
6 months or such other period as may be allowed by competent authority;
(ii) environment clearance, if required, within a period of twelve months;
Provided also that the above period may be extended by the competent authority,
subject to payment of late fees at the rate of 6% of annual dead rent for every month or
part thereof for such extended period;
In case LoI holder complies with the conditions of LoI within the stipulated time period or
time period extended by competent authority, the area shall be granted as per provisions of
these rules by competent authority;
In case LoI holder fails to comply any of the condition of LoI within the stipulated time
period or time period extended by competent authority, the application shall be rejected after
providing an opportunity of being heard with forfeiture of any amount deposited.

35

Status of pending applications of 31 new minor minerals declared by Government of


India:Notwithstanding anything contained in these rules, all pending applications of various minerals
under subsection 2(b) & (c) of section 10A of Mines and Minerals (Development and
Regulation) Amendment Act, 2015 and which have been declared as minor mineral by
Government of India vide notification dated 10th February, 2015 shall be considered as if
received under these rules and shall be processed for grant of mining lease.

36.

Security deposits:(1) The grantee / lessee shall submit security deposit in the form of fixed deposit receipt of
nationalised bank / scheduled bank / national saving certificate or any other form of
securities which may be notified by the Government, pledged in favour of the concerned
Mining Engineer / Assistant Mining Engineer a sum equal to one fourth of the annual dead
rent, for the due performance of the terms and conditions of the lease agreement, before
execution of lease deed;
(2) Whenever the dead rent of a Mining Lease is enhanced as per provisions of these rules, the
lessee shall deposit a further sum so as to make the total security deposit equal to one fourth
of the enhanced dead rent within 60 days of such enhancement.

37.

Performance Guarantee:The grantee shall submit performance guarantee in the form of fixed deposit receipt of nationalised
bank / scheduled bank / national saving certificate or any other form of securities which may be
notified by the Government, pledged in favour of the concerned Mining Engineer / Assistant
Mining Engineer equivalent to 25% of existing dead rent for the due performance of the lease
before execution of the lease deed. At the time of enhancement of dead rent, the performance
guarantee shall also stand revised proportionately and lessee shall submit the difference of
performance guarantee within a period of 60 days. The performance guarantee shall be adjusted
against departmental dues of the lessee on expiry or cancellation of the lease, if any; otherwise it
shall be refunded to him after expiry of the lease;
Provided that existing Mining Lease holders shall deposit performance guaranttee equivalent to
25% of the dead rent to the Mining Engineer / Assistant Mining Engineer concerned within six
months from the date of commencement of these rules.

20

38.

Execution of Lease:(1) Where the lease has been granted under these rules the grantee shall deposit map fees of Rs.
1000/-, security, performance guarantee, annual dead rent and requisite non judicial stamp
papers within 45 days from the date of receipt of order of grant for execution of lease deed;
(2) The lease dead shall be executed in Form 13 within 3 months from the date of receipt of
order of grant and the concerned Mining Engineer shall sign the agreement on behalf of
Governor of Rajasthan as required under Article 299 of the Constitution of India;
(3) The lease deed shall be got registered by the grantee and returned in original to the Mining
Engineer / Assistant Mining Engineer after registration within a period of 2 months from the
date of receipt of the lease deed from the Mining Engineer / Assistant Mining Engineer;
(4) Where the grantee fails to comply with the provisions of sub-rule (1) above within a period
of 45 days from the date of receipt of the order of grant or he fails to execute the lease deed
within 3 months from the date of receipt of order of grant or fails to return the registered
lease deed within a period of 2 months from the date of handing over the original lease deed
for registration, the sanction order shall be revoked by competent authority with forfeiture of
any amount deposited by the grantee;
Provided that if the grantee fails to complete the formalities mentioned in sub-rule (1) within
prescribed time or fails to get the lease deed executed as per sub rule (2) or submit registered
lease deed within prescribed time as per sub rule (3) and applies for time extension before
revocation of the order of grant, the competent authority may allow such period subject to
maximum of one year for completion of formalities and execution of the lease deed upon
payment of late fee @ 10% of annual dead rent for every month of delay or part thereof;
Provided further that where execution of lease deed is not done or registered deed is not
submitted within prescribed period and grantee is not responsible for the delay, but applies
for extension of time, the competent authority may allow such period subject to maximum
of one year for completion of formalities and execution of the lease deed without payment of
late fee;
Provided further that where period of delay for execution of lease deed exceeds one year due
to any reason and revocation order has not been issued, the Director may allow further
period for completion of formalities and execution of the lease deed upon an application
made by the grantee and payment of late fee @ 15% of annual dead rent for every month of
delay or part thereof;
(5) Notwithstanding anything contained in sub-rule (4), where the execution / registration of
lease deed could not be performed due to any reason with no fault of the grantee, sanction
issued may be revoked by the competent authority after taking approval of the Director. In
such case any amount deposited by grantee shall be refunded.

39.

Register of Mining Lease applications and Mining Leases:(1) A register of Mining Lease applications shall be maintained in the office of the Mining
Engineer /Assistant Mining Engineer concerned in Form 14;
(2) A register of Mining Lease shall be maintained in the office of the Mining
Engineer/Assistant Mining Engineer concerned in Form15.

40.

Conditions:The following conditions shall be the part of lease agreement, namely:(1) (i) The holder of a Mining Lease granted before 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 from and /
or consumed within the leased area after such commencement at the rates for the time
being specified in Schedule I in respect of that mineral;
(ii) The holder of a Mining Lease granted on or after the commencement of these rules shall
pay royalty in respect of any mineral removed by him from and / or consumed within the
leased area at the rate for the time being specified in the Schedule I in respect of that
mineral;

21

(2)

(3) (i)

(ii)
(iii)

(4)

(5)

(6)

(7)

(8)

(9)
(10)

(11)(i)

(ii)

The lessee shall pay yearly dead rent as may be fixed by the Government in advance and
if the lease permits the working of more than one mineral, the higher dead rent shall be
charged as per Schedule II but separate dead rent shall not be charged in respect of each
mineral;
Provided that lessee shall be liable to pay either such royalty or dead rent in respect of
that area, whichever is higher;
The lessee shall, in addition to royalty, pay to the District Mineral Foundation (DMF)
and State Mineral Exploration Trust (SMET) as specified by Government from time to
time;
The lessee shall also pay surface rent to Revenue Department for surface area used by
him for the purpose of mining, as per the rates prevalent in the area;
The Government shall be entitled to charge certain amount per year or part thereof for
the ecological restoration of mines and quarries from the lessee and this shall be the part
of agreement. The amount may be fixed and revised by Government from time to time
and may vary from place to place;
The lessee shall pay all dues in the office of such officer, in such manner and at such
place as may be mentioned in the lease agreement or as notified by the Government from
time to time;
The lessee 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 annexed to the
lease deed;
The lessee 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 prejudicial affect any building, works, property or rights of other persons;
The lessee shall give notice of opening of mines to concerned Mining Engineer /
Assistant Mining Engineer, District Collector and Director Mines Safety as per Section
16 of Mines Act 1952;
The lessee shall commence mining operations within six months from the date of
execution of the lease and thereafter carry on such operations effectively in a manner
which will ensure safety of laborers, conservation of mineral, removal of over burden,
careful storage, removal and drainage of waste and removal of all valuable minerals from
the mines in accordance with lease;
The lessee shall work in accordance with the provisions of chapter VIII regarding
Systematic, Scientific and Environment Friendly Mining under these rules;
Subject to the provision of sub-rule (6), the lessee may erect on the area granted to him,
any building required for bonafied 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 the provisions of this sub rule shall not be applicable for Mining Lease of
mineral Bajri (river bed);
The lessee shall keep correct and regular accounts of all minerals excavated from the
mines, the quantity lying in stock at the mines, the quantity dispatched and utilised
therefrom and also the number of persons employed in Form 17. It shall contain
particulars regarding the quantity of mineral sold / utilized, its value and name of persons
or firms to whom sold. The accounts shall be produced before the assessing authority on
such date as may be fixed by it in this behalf for the purpose of assessment. The lessee
shall maintain upto date plans of the mines and shall also allow any officer of the
Department as may be authorised by the Director in this behalf to examine such accounts
and plans at any time and shall furnish him other information as he may require;
The lessee shall furnish monthly returns to the assessing authority in the Form 18 by the
15th of the following month and annual returns in Form 19 within one month from the
date of expiry of the assessment year;

22

Provided that if the lessee does not submit monthly returns within the time prescribed
above, same may be submitted on payment of late fee @ Rs. 500/- per day of delay,
subject to maximum of annual dead rent;
(iii) The lessee shall not remove, dispatch or utilize the mineral from the mines without valid
rawanna, issued by department in Form 20;
(iv) The lessee shall not dispatch the mineral bajri across the State border. Similarly the
lessee shall not dispatch the mineral masonary stone, quartz and felspar in raw form
across the State border;
(12)
The lessee shall abide by all existing Acts and Rules enforced by the Government of
India or the State Government and all such other Acts or Rules as may be enforced from
time to time in respect of working of the mines and other matters affecting safety, health,
environment and convenience of the lessees employees or of the public;
(13)
The lessee shall allow existing and future mineral concession holders or permit holders
of any land which is comprised in or is reached by the land held by the lessee, reasonable
facilities for access thereto;
(14)
The lessee shall allow any officer of the Department or any other officer authorised by
the Central or State Government in this behalf to enter upon the premises comprised in
the lease for the purpose of inspecting the same and abide by instruction issued by him
from time to time regarding safety, conservation and development of minerals and the
related matters;
(15)
The lessee shall make reasonable satisfaction and 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;
(16)
The lessee shall forthwith report to the Director / Additional Director Mines /
Superintending Mining Engineer / Mining Engineer / Assistant Mining Engineer
concerned any accident which may occur at or in the said premises;
(17)
The lessee shall report to the Director / Additional Director Mines / Superintending
Mining Engineer / Mining Engineer / Assistant Mining Engineer the discovery of any
mineral not specified in the lease within thirty days of such discovery;
(18)
If any minor mineral not specified in the lease is discovered in the leased area, the lessee
shall not win and dispose of such mineral unless such mineral is included in the lease or a
separate lease is obtained for such mineral. In such case the dead rent shall be charged
for the mineral whose dead rent is higher as specified in Schedule II;
Provided that in case lessee fails to apply for such a lease within 6 months from the
discovery of mineral (since date of intimation of lessee or date of inspection of concerned
Mining Engineer / Assistant Mining Engineer / Geologist), the competent authority may
grant separate mining lease to any other person;
(19)
If the lessee intimates his intention not to work the newly discovered mineral(s) or fails
to report to work the newly discovered mineral(s) within a period of three months from
the date of discovery of new mineral then it shall be open to the competent authority to
grant a lease for the working of the same to any other person, provided such working
does not obstruct or interfere with the working of existing lease;
(20)
The lease shall be cancelled by the competent authority if the lessee ceases to work the
mine for a continues period of six months without obtaining sanction of the concerned
Mining Engineer/ Assistant Mining Engineer;
(21)
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
presumption 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;
(22)
The lessee / lessees shall not work or carry on or allowed to be worked or carried on at
any point within a distance of 45 meters from any railway line except with the previous
written permission of the Railway Administration concerned or from any highway roads,

23

(23)

(24)

(25)

(26)
(27)

(28)
(29)

(30)

(31)

(32)
(33)
(34)
(35)

reservoir, canal or other public works 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 Government in this behalf and otherwise then in accordance with such
instructions, restrictions and conditions either general or special as may be attached to
such permissions. The said distance of 45 meters shall be measured in the case of
highway 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;
Provided that in case of mining approach road / village road, the safe distance
prohibiting mining activity shall be taken as 10 meter from the center of the road on both
sides;
Explanation: for the purpose of this sub-rule:(i)
The expression Railway, Administration shall have the same meaning as defined
in the Indian Railway Act, 1890 by sub-section (4) of section 3 of that Act;
(ii) Public Road shall mean a road which has been constructed or artificially
surfaced as distinct from a track resulting from repeated use;
If whole lease or part of the lease area is declared as a protected area under the Ancient
Monuments Preservation Act, 1904 the lessee shall have to deliver the possession of such
area back to the State Government without claiming any compensation for the area;
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;
The lessee shall abstain from entering upon the surface of any occupied Government land
or of any private land comprised within the leased area without obtaining previous
consent of the occupant in writing;
The competent authority may with the prior approval of the Government impose such
special conditions(s) as deemed necessary, in the interest of mineral development;
In case of Mining Lease of mineral bajri (river bed), the lessee shall abstain from mining
beyond depth of three meters from the surface and below the water level of river / nallah
and shall work in such a manner that natural flow path of river / nallah is not altered;
Machinery having boom height more than 3 meters shall not be allowed in extraction of bajri
(river bed);
In case of Mining Leases of mineral bajri, the lease holder shall have no claims
whatsoever under any circumstances for non-operation due to floods or heavy rains or
any other situation during the period of extraction;
In case where land is not owned by lessee, the lessee shall obtain surface rights or
consent of the owner before starting mining operations in the area or part thereof;
Provided that no further consent would be required in case of extension of lease period,
where consent has already been obtained;
The holder of Mining Lease of mineral marble / granite shall deploy the mine machinery
prescribed in Annexure-1 / Annexure-2 appended to these rules respectively, within a
period of one year of registration of lease deed;
Provided that competent authority may allow a further period of 6 months on payment of
penalty equal to fifty percent of annual dead rent;
Provided further that if mine machinery has not been deployed within the above period
the lease shall be cancelled after giving 15 days notice;
In the schedule area, the lessee shall give preference in employment, to the tribals and to
the persons who become displaced because of the taking up of mining operations;
Except with the prior approval of the State Government, the lessee shall not employ in
connection with the mining operations any person who is not an Indian National;
The lessee shall not pay a wage less than the minimum wages prescribed by the Central
or the State Government from time to time under the Minimum Wages Act, 1948;
In sand stone bearing areas, lessee shall undertake wet drilling to control the
pneumoconiosis and silicosis and shall carry out regular health check up of mining labour;

24

(36)

In case of partnership firm or private limited company, the lessee shall inform any
change of partners/Directors as the case may be, within three months of such change to
the concerned authorities;
(37)(i) In case of any breach on the part of the lessee of any covenant or condition contained in
the lease, the competent authority with prior approval from next higher authority may
determine the lease and take possession of the said premises and forfeit the security
money or in the alternative may impose penalty as specified in Schedule V. Such action
shall not be taken unless the lessee has failed to remedy the breach after serving of 15
days notice;
(ii) The Government or 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, 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 violoation of the terms and conditions or
misbehavior by lessee may also be punished by debarring him for a period upto five
years for any future allottment of mineral concession / contract;
(38)(i) As soon as the lease is determined the lessee shall deliver up the said 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 Mining
Engineer / Assistant Mining Engineer having jurisdiction over the area or to any person
authorised by him;
(ii) The mineral left on expiry of lease period or on determination of lease or on surrender of
lease shall be removed by the lessee within 15 days from the date of expiry or surrender
or receipt of the order of determination of lease;
Provided that in case of Mining Lease of mineral bajri (river bed), the lessee shall not
have any right to remove any stock of bajri after the expiry of lease period or receipt of
the order of determination of lease;
Provided that if the mineral is not removed within the aforesaid period of 15 days the
mineral shall belong to the State and the Mining Engineer / Assistant Mining Engineer of
the area may dispose it of either by public auction, by beat of drum or by direct sale at
the rate prevalent in the adjacent area;
(iii) If on expiry or earlier determination of lease or after the date from which any surrender
of a part or parts of the said lease under the provisions contained in rule 46, there remain
in or upon the said land or the surrendered part or parts thereof, as the case may be, any
engine, machinery, plant, structures, railways or other works, erections and conveniences
or other property which are not required by the lessee in connection with his / their
operations in those parts of the said lands, they shall become the property of the
Government and may be sold or disposed off after a period of three months from the date
of expiry or surrender of part or whole of the lease in such manner as the Government
may deem fit without liability to pay any compensation;
(39)
The Government may by six month prior notice in writing determine the lease if the
Government considers that the mineral under the lease is required for establishing an
industry beneficial to the public;
Provided that no such notice shall be necessary in the event of war or national
emergency;
(40)
The Mining Engineer / Assistant Mining Engineer concerned may, by an order in writing
prohibit further mining in whole or part of the leased 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;
41.

Currency of lease:The currency of lease shall be from the date of registration of the lease agreement unless otherwise
stated.

25

42.

Restriction on Transfer of Mining Lease:(1) The lessee shall not without the previous consent in writing of the competent authority:(i)
assign, sublet, mortgage or in any other manner transfer the Mining Lease or any
right, title or interest therein;
(ii) enter into or make any arrangement, contract or understanding whereby the lessee will
or may be directly or indirectly financed to a substantial extent by or under which the
lessees operations or undertakings will or may be substantially controlled by any
person or body of persons other than lessee;
Provided that where the mortgagee is a State institution or a bank or a State
corporation, it shall not be necessary for the lessee to obtain the previous consent of
the competent authority. However lessee shall inform the concerned Mining Engineer
/ Assistant Mining Engineer about any mortgage in favour of any State institution,
bank or State corporation within a period of one month from the date of mortgage or
assignment;
Provided further that the lessee of masonary stone may, with the prior permission of
concerned Mining Engineer / Assistant Mining Engineer and on payment of a non
refundable fee of Rs. 10000/- subject to such conditions as he may specify therein,
allow any Government contractor for the contracts of construction of National / Mega
Highway to install and operate stone gitti crusher till the completion of construction
work;
Provided also that such permission shall be given by ME / AME after obtaining
registered consent of the lessee and also on the condition that the crusher owner shall
use masonary stone produced from the concerned lease area only;
Provided further also that wherever required, permission of Revenue and other
Departments may also be taken by the lessee or contractor as the case may be;
(2) Mining Lease granted to a person/s under any category by way of delineation shall only be
transferred to person/s of respective category only subject to the condition that the lease has
remained in force for at least two years from the date of grant;
(3) Mining Lease of mineral bajri (river bed) shall be non-transferable.

43.

Application for Transfer of Mining Lease:Every application for transfer of Mining Lease shall be submitted to concerned Mining Engineer /
Assistant Mining Engineer in alongwith:(1) a non refundable fee of Rs. 10000/- for marble & granite and Rs. 5000/- for other minerals;
(2) transfer premium equivalent to:(i)
in case the lease is transferred for the first time an amount equal to the dead rent;
(ii) in case the lease is transferred for the second time or subsequently, an amount equal to
twice the amount of yearly dead rent;
Provided that in case applicant withdraws transfer application, premium amount deposited,
shall be forfeited;
(3) a valid no dues certificate of transferor, transferee and their family members from the
concerned Mining Engineer / Assistant Mining Engineer if they holds or has held any
mineral concession or RCC / ERCC in the State;
Provided that in case the transferor and transferee is a association of person or a partnership
firm or a private limited company, such certificate shall also be furnished by all members of
association of person or all partners of the partnership firm or all directors of the private
limited company, as the case may be. In case of limited company / Government undertaking
a no dues certificate is to be submitted by the company / undertaking as the case may be;
Provided further that a properly sworn affidavit stating that no dues are outstanding against
transferor and transferee or his / her family members shall suffice subject to the condition
that the certificate required as above is furnished within 30 days from the date of
application, failing which the application shall be deemed to have been rejected;
Provided also that no dues certificate shall not be required where transferee has furnished an
affidavit to the satisfaction of the Government, stating that he / she / it or his / her family
member does not or did not hold any mineral concession or RCC / ERCC in the State;

26

(4)

(5)

(6)
(7)

an affidavit giving particulars of mineral-wise areas already held under Mining Lease /
Prospecting Licence by the transferor and transferee or with any person having joint interest
or already granted but not executed or registered or applied but not granted;
an affidavit by the transferee stating that he shall be abide by all terms and conditions of
Mining Lease and shall deposit any dues pertaining to the period prior to transfer of Mining
Lease;
an affidavit by the transferor and transferee stating the amount of transaction agreed
between them for transfer of lease in lieu of investment incurred by the transferor;
Where the transfer application for Mining Lease is not complete in all material particulars
or is not accompanied by the required documents or any additional information / documents
as specified by Government from time to time, a 30 day notice shall be given by the
concerned Mining Engineer / Assistant Mining Engineer or competent authority requiring
the applicant to complete the application or provide documents, as the case may be, failing
which the transfer application shall be rejected by the competent authority;

44.

Disposal of Application for Transfer of Mining Lease:(1) The competent authority may transfer the Mining Lease to a person;
Provided that transfer of Mining Lease shall not be considered as a matter of right and the
competent authority may refuse such transfer for the reasons to be recorded and
communicated to the lessee;
(2) Where order for transfer has been issued, a transfer lease deed in Form 21 shall be executed
within three months from the date of order or within such period as the competent authority
may allow in this behalf;
Provided that transfer of lease shall be effective from the day of execution of transfer lease
deed;
(3) Transfer lease deed shall be registered within 2 months from the execution of transfer deed
and returned to concerned Mining Engineer / Assistant Mining Engineer;
Provided that if transfer deed has not been executed or registered within the stipulated time,
the order for transfer shall be revoked with forfeiture of application fee and premium.

45.

Change of partners / Directors:(1)


In case of partnership firm, the lessee shall inform regarding any change of partners within
three months of such change to the concerned authorities alongwith premium equal to dead
rent subject to maximum Rs. 2,00,000/-.
Provided that where partnership changes due to the death of any partner, no premium shall
be charged.
(2)
In case of private limited company, the lessee shall inform regarding any change of
directors within three months of such change to the concerned authorities.

46.

Surrender / Part surrender of Mining Lease area:(1) The lessee may surrender the lease at any time by giving an application in writing to Mining
Engineer / Assistant Mining Engineer concerned, alongwith a non refundable fee of Rs.
1,000/-, no dues of the lease and compliance report of final mine closure plan, in such case
surrender of lease shall be accepted with immediate effect. If there are dues against the
lessee, the surrender of the lease shall be accepted with effect from six months from the date
of application;
Provided that surrender of lease shall be accepted with immediate effect if the dues related
to the lease is not more than performance guarantee deposited;
Provided further that mine closure plan shall not be required, in case mining is not done in
the surrender area;
Provided also that if closure plan is not found to be implemented, financial assurance shall
be forfeited and contributed towards DMF;
(2) The lessee may surrender a part of the lease area subject to maximum 3 times during the
currency of lease by submitting an application to the Mining Engineer / Assistant Mining
Engineer, along with a non refundable fee of Rs. 1,000/-, plan and description report
showing retained and part surrender area, no dues certificate of the lease and compliance

27

(3)

(4)

report of final mine closure plan related to area being surrendered. Part surrender of the area
may be accepted by the competent authority subject to the following conditions:(i)
As far as possible the retained area shall be rectangular;
(ii) Retained area shall not be less than minimum size mentioned in rule 25(2);
(iii) In case the lessee applies for part surrender in more than one blocks retained area in
any block shall not be less than minimum size mentioned in rule 25(2);
Provided that in case of Mining Lease for mineral bajri, part surrender of lease area
shall not be accepted;
In case of part surrender of the lease, the lessee shall submit mine plan along with
progressive closure plan of retained area within three months from the date of order;
Provided that mine closure plan shall not be required, in case mining is not done in the
surrender area;
In case of part surrender, the dead rent of retained area shall be proportionately reduced;
Provided that the dead rent of retained area calculated as per Schedule II is more than the
existing dead rent, existing dead rent shall not be reduced.

47.

Revision of Dead Rent:(1)


The dead rent shall stand revised after every five years from the date of initial grant of the
Mining Lease in accordance with the following formula:[Revised dead rent = Existing dead rent + 50% of Existing dead rent];
Provided that the rates specified in Schedule II shall, however, not be applicable at the time
of revision of dead rent;
(2)
Notwithstanding anything contained in the instrument of the lease or any law or rules in
force at such commencement, mining leases of minerals granted under Mineral Concession
Rules, 1960 and which have been declared as minor minerals by Government of India vide
notification dated 10.02.2015, dead rent of such leases shall stand revised on existing dead
rent as per sub rule (1) w.e.f. 01.09.2017;
Provided that mining leases of such minerals which have not completed four years from the
date of initial grant, dead rent of such leases on 10th February 2015 shall be the dead rent at
the beginning of the fifth year as per third schedule of MMDR Act, 1957 and shall stand
revised on such existing dead rent as per sub rule (1) w.e.f. 01.09.2017.

48.

Enhancement of rate of royalty and dead rent:The State Government may, by notification in the Official Gazette, amend the Schedule I and II so
as to enhance the rate at which royalty and dead rent shall be payable in respect of any mineral in
accordance with the provisions of these rules with effect from such date as may be specified;
Provided that no enhancement in the rate of royalty and dead rent shall be made before a period of
three years from such previous enhancement.

28

CHAPTER - V
Grant of Quarry Licence
49.

Restriction on grant of Quarry Licence:(1) No Quarry Licence shall be granted as mentioned in rule 5;
(2) No new quarry boundary shall be delineated;
(3) No new Quarry Licence shall be granted in khatedari land;
(4) No Quarry Licence shall be granted in existing quarry boundary to the person other than the
category for which plots were initially reserved and has not been allotted since delineation;
Provided that if no application is received from the concerned category, for next notification
plots shall be treated as dereserved.

50.

Application for grant of Quarry Licence in existing boundaries:(1) Every application for grant of Quarry Licence by way of lottery shall be submitted online to
the department through web portal in Form 22;
(2) Every application made under sub rule (1) above shall be accompanied by:(i) a non refundable fee of Rs. 2000/- or as prescribed by Government from time to time;
(ii) relevant scanned documents as mentioned in rule 8;
(iii) a scanned copy of relevant certificate of the category to which applicant belongs issued
by competent authority;
(3) Every application submitted under sub-rule (1) shall be acknowledged online in Form 23 on
the date of its receipt;
(4) Application duly signed with all original documents as mentioned in sub rule (2) shall be
submitted to the concerned Mining Engineer / Assistant Mining Engineer, within a period of
15 days from the date of its online submission, failure to which the application shall be
deemed to have been rejected. Submission of documents shall be verified on Form 23 by the
concerned office.

51.

Procedure for grant of Quarry Licence by Lottery.(1) A notification inviting applications for grant of plots by way of lottery shall be published in
two daily news papers, at least one of which is State level and other having wide publicity in
the area where plots are being allotted. The notification shall be published at least 15 days
before the intended date of inviting applications and shall contain the date or the period
within which applications shall be received;
(2) Where two or more applications are received for a particular plot of Quarry Licence, lottery
shall be drawn for selecting one of them in the presence of at least three members of the
following committee:(i)
Superintending Mining Engineer concerned;
(ii)
MLA of the area;
(iii)
Collector or his nominee not below the rank of SDO;
(iv)
Mining Engineer / Assistant Mining Engineer concerned; and
(v)
Accounts personnel nominated by the Additional Director (Mines) zone;
(3) All applications of the applicants other than the applicant who is selected for grant of Quarry
Licence shall be deemed to have been rejected and application fee in respect of such
applications shall be forfeited;
(4) The concerned Mining Engineer / Assistant Mining Engineer shall issue a letter to the
provisionally selected applicant for demarcation of the applied area, after deposition of the
demarcation charges, the area shall be demarcated and applicant shall erect boundary pillars;
Note:-If applied area is adjoining to any sanctioned lease / licence, the demarcation of
applied area shall be done after intimating the adjoining leasee / licencee(s);
(5) After demarcation if area is found suitable for grant then Mining Engineer / Assistant
Mining Engineer concern shall issue a Letter Of Intent (LOI) to the selected applicant to
submit following documents:(i)
approved simplified mining scheme, annual licence fee, security deposit, performance
guarantee and financial assurance within a period of 6 months or such other period as
may be allowed by Mining Engineer / Assistant Mining Engineer concern;

29

(ii)

(6)

(7)
(8)

environment clearance, if required, within a period of twelve months;


Provided also that the above period may be extended by the Mining Engineer /
Assistant Mining Engineer concern, subject to payment of late fees at the rate of 6% of
annual licence fee for every month or part thereof for such extended period;
In case LOI holder complies with the conditions of LOI within the stipulated time period or
time period extended by Mining Engineer / Assistant Mining Engineer concern, Quarry
Licence shall be granted in Form 24;
Provided that if the applicant fails to comply with the provisions of sub rule (3) and (4)
within the stipulated time period or time period extended by Mining Engineer / Assistant
Mining Engineer concern, the application shall be rejected with forfeiture of any amount
deposited;
A register of Quarry Licence application shall be maintained in the office of the concerned
Mining Engineer / Assistant Mining Engineer in the Form 25;
A register of Quarry Licences shall be maintained in the office of the concerned Mining
Engineer/ Assistance Mining Engineer in the Form 26.

52.

Period of licence:(1) All Quarry Licence shall be granted for a period of 30 years;
Provided that the ending period of Quarry Licence shall be 31st of March;
Provided further that quarry holders who amalgamate their licences to make an area
minimum 1.00 hectare, period of such amalgamated licence shall be increased to 50 years;
(2) All quarry licences granted before the commencement of these rules shall be deemed to have
been granted for a period of 30 years;
(3) Period of licence granted may be extended upto the period for which the quarry remains
close due to any court / tribunal order or any order of department;
(4) Notwithstanding anything contained in the Quarry Licnece, the period of Quarry Licence, on
submission of application by licencee in Form 27 may further be extended for 30 years or
less to a period falling short of 60 or 90 years respectively subject to the condition that :(i)
the application shall be submitted within 18 months but before six months of the
expiry of the licence period;
(ii) there is sufficient mineral deposit in the quarry area;
(iii) all the terms and conditions of the licence have been complied with;
(iv) the area held by the licencee does not exceed 10 sq. Kms;
Provided that such application shall be disposed off by the Mining Engineer / Assistant
Mining Engineer concern before the expiry of the licence period.

53.

Licence fee, security etc. for Quarry Licence:(1) The licence fee for a Quarry Licence shall be between Rs. 2,000/- to Rs. 5,00,000/- per
annum as may be fixed by the Mining Engineer / Assistant Mining Engineer from time to
time. The licence fee shall be paid annually in advance;
Provided that if the period of licence is less than one year at the time of initial grant as
mentioned in first proviso of rule 52(1), proportionate amount of licence fee for the calendar
months during which the licence remained in force shall be charged in the first year;
Provided further that such annual licence fee shall be revised after every period of 3 years;
(2) The licencee shall submit security deposit in the form of fixed deposit receipt of nationalised
bank / scheduled bank / national saving certificate or any other form of securities which may
be notified by the Government pledged in favour of the concerned Mining Engineer /
Assistant Mining Engineer a sum equal to one fourth of the annual licence fee, for the due
performance of the terms and conditions of the licence;
Provided that whenever the licence fee is enhanced as per provisions of these rules, the
licencee shall deposit a further sum so as to make the total security deposit equal to one
fourth of the enhanced licence fee within 60 days of such enhancement;
(3) The licencee shall submit performance guarantee in the form of fixed deposit receipt of
nationalised bank / scheduled bank / national saving certificate or any other form of
guarantee which may be notified by the Government pledged in favour of the concerned
Mining Engineer / Assistant Mining Engineer equivalent to 25% of existing licence fee for

30

the due performance of the licence. At the time of enhancement of licence fee, the
performance guarantee shall also stand revised proportionately and licencee shall submit the
difference of performance guarantee within a period of 60 days. The performance guarantee
shall be adjusted against departmental dues of the licencee on expiry or cancellation of the
licence, if any; otherwise it shall be refunded to him after expiry of the licence;
Provided further that existing Quarry Licence holders shall deposit performance guarantee
equivalent to 25% of the annual licence fee to the Mining Engineer / Assistant Mining
Engineer concerned within six months from the date of commencement of these rules.
54.

Conditions of Quarry Licence:The following conditions shall be the part of Licence, namely:(1)
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 I and as amended from time to
time;
(2) (i) The licencee shall, in addition to royalty, pay to the District Mineral Foundation (DMF)
and State Mineral Exploration Trust (SMET) as may be specified by Government from
time to time at Departmental 'Naka' or to the Royalty Collection Contractor as the case
may be;
(ii) The Government shall be entitled to charge certain amount per year or part thereof for
the ecological restoration of quarry from the licencee and this shall be the part of licence.
The amount may be fixed and revised by Government from time to time and may vary
from place to place;
(3) The licencee shall have the liberty at all times during the period of the licence in respect of
the plot / 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 / stock subject to the
following conditions:(i)
The licencee or his agent, contractor assignee, transporter etc. shall pay royalty on the
quantity of the said mineral dispatched from the said quarry at the rate specified in the
Schedule I to the Government or any Royalty Collection Contractor appointed by the
Government or competent authority in this behalf;
(ii) The licencee shall pay annual licence fee in advance to the Government on or before
1st day of April. If the licence fee is not paid on the due date, the same shall be
recoverable along with a penalty equivalent to 10% of the licence fee upto a period of
3 months from the due date of payment. Failing which licence may be terminated
after giving a 15 day notice;
(iii) The licencee shall deposit a sum equal to 25% of the annual licence fee as security
and 25% of the annual licence fee as performance guarantee for the observance of the
terms and conditions of the licence;
(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
Government from time to time;
(v) The licencee shall give notice of opening of quarry to concerned Mining Engineer /
Assistant Mining Engineer, District Collector and Director Mines Safety as per
Section 16 of Mines Act 1952;
(vi) The licencee shall start work in the quarry within six month of the grant of licence and
shall thereafter continue to work effectively in a proper skillful and workman like
manner, both as regards conservation of mineral and as regards removal of all
valuable minerals from the mines;
(vii) The licencee shall maintain and at all times keep in repair boundary pillars at the
corners of the Quarry Licence area according to the demarcation;
(viii) The licencee shall allow any officer of the department or any other officer authorised
by the Central or State Government in this behalf to enter upon the premises
comprised in the quarry for the purpose of inspecting the same and working of quarry,
safely and systematic development, abide by instructions issued by them from time to

31

(2)

(3)

(4)

(5)

(6)

(7)

(8)
(9)

time regarding the safety, conservation and development of minerals and the related
matters;
(ix) The licencee shall make reasonable satisfaction and 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
all such damage, injury or disturbances and all costs and expenses in connection
therewith;
(x) The licencee shall without any delay report to the Director / Additional Director
mines / Superintending Mining Engineer / Mining Engineer / Assistant Mining
Engineer concerned, any accident which may occur at or in the said premises and also
the discovery on or within any of the lands or mines demised by the licence of any
mineral not specified in the licence;
The mineral left on the expiry of licence period or cancellation of licence shall be removed
by the licencee within 15 days of the expiry of licence or receipt of the order of cancellation
of licence;
The licencee may apply for surrender of the Quarry Licence at any time by giving an
application in writing to Mining Engineer / Assistant Mining Engineer at least 15 days
before the intended date of surrender. The Mining Engineer / Assistant Mining Engineer
shall accept the surrender if the licencee has carried out the protective, reclamation and
rehabilitation work in accordance with the approved / certified mine closure plan / scheme
but it shall not be necessary if no mining operation was carried out. The amount of licence
fee for the balance period of the licence shall not be refunded but the security amount and
performance guarantee deposited by the licencee shall be refunded if no dues are
outstanding;
Provided that if closure plan is not found to be implemented, financial assurance shall be
forfeited and contributed towards DMF.
The State Government may by a notification in the official Gazette amend from time to time
the schedule I so as to enhance or reduce the rate at which royalty shall be payable in respect
of any mineral;
Provided that any enhancement in the rate of royalty for a mineral shall not be made before a
period of 3 years of any such previous enhancement;
The licencee shall confine his workings within the limits of the plot / area allotted to him
and shall not undertake mining outside his plot / area. In case the licencee is found working
outside the boundary of his allotted plot / area, the licence may be cancelled by the Mining
Engineer / Assistant Mining Engineer;
Provided that no such action shall be taken against the licencee without giving him an
opportunity of being heard by giving 15 days notice;
The licencee shall not obstruct approach to the adjoining mineral concession / permit
holders. In case of any dispute about the approach road, directions of the Mining Engineer /
Assistant Mining Engineer shall be final and binding;
The licencee shall not work and carry on or allowed to be worked or carried on at any point
within a distance of 45 meters from any national and State highway, railway line and any
public place etc. The said distance of 45 meters shall be measured from the outer toe of the
road. In case of roads other than national and State highways, the safe distance of 15 meter
from the center of the road on both sides shall be maintained by the licencee;
Provided that in case of mining road, safe distance maintained by the licencee shall be 10
meter from the center of the road on both the sides;
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;
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. He
shall also furnish a list of labours, along with their addresses, employed by him in the
preceding quarter to the Mining Engineer / Assistant Mining Engineer and concerned district
level officer of the Labour Department, Government of Rajasthan within 7 days at the end of
each quarter;

32

(10) If any minor mineral not specified in the licence is discovered in the licence area, the
licencee shall not win and dispose off such mineral unless such mineral is included in the
licence;
(11) The licencee shall not pay a wage less than the minimum wages prescribed by the Central or
the State Government from time to time under the Minimum Wages Act, 1948;
(12) In sand stone bearing areas licencee shall undertake wet drilling to control the
pneumoconiosis and silicosis and carry out regular health check up of mining labour.
(13) In case of partnership firm or private limited company, the licencee shall inform any change
of partners/Directors as the case may be, within three months of such change to the
concerned authorities;
(14) The Mining Engineer / Assistant Mining Engineer concerned may, by an order in writing
prohibit further mining in whole or part of the quarry, if in his opinion such operation is
likely to cause premature collapse of any part of the workings or otherwise endanger the
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.
55.

Cancellation of licence:(1) The licencee shall abide by all terms and conditions of licence;
Provided that the Mining Engineer / Assistant Mining Engineer of the area may issue
directions in respect of Mining methods, removal and disposal or over burden, stacking of
minerals, payment of royalties and other connected matters;
(2) If the licencee commits breach of any terms of licence or any provision of the rules or fails
to comply with the directions given by the Mining Engineer / Assistant Mining Engineer
within the period specified by him the Mining Engineer / Assistant Mining Engineer
concern may after giving 15 days notice to remedy the breach or to comply the directions,
impose penalty not exceeding Rs. 10000/- or in the alternative may cancel the licence with
forfeiture of security deposits and licence fee for the remaining period of the licence.

56.

Restriction on Transfer of Quarry Licence:(1) The licencee shall not without the previous consent in writing of the Mining Engineer /
Assistant Mining Engineer concern:(i)
assign, sublet, mortgage or in any other manner transfer the Quarry Licence or any
right, title or interest therein ; or
(ii) enter into or make any arrangement, contract or understanding whereby the licencee
will or may be directly or indirectly financed to a substantial extent by or under which
the lessees operations or undertakings will or may be substantially controlled by any
person or body of persons other than licencee;
Provided that where the mortgagee is a State institution or a bank or a State
corporation, it shall not be necessary for the licencee to obtain the previous consent of
the Mining Engineer / Assistant Mining Engineer concern. However licencee shall
inform the concerned Mining Engineer / Assistant Mining Engineer about any
mortgage in favour of any State institution, bank or State corporation within a period
of one month from the date of mortgage or assignment;
(2) Quarry Licence granted to a person/s under any category by way of delineation shall be
transferred to person/s of respective category only.

57.

Application for Transfer of Quarry Licence:Every application for transfer of Quarry Licence shall be accompanied by:(i)
a non refundable fee of Rs. 2000/- ;
(ii) a transfer premium equivalent to :(a) in case licence is transferred for the first time an amount equal to the annual licence
fee;
(b) in case the licence is transferred for the second time or subsequently, an amount equal
to twice the amount of annual licence fee;
Provided that if applicant withdraws transfer application, premium amount deposited shall
be forfeited;
(iii) documents as per clause sub rule (3) to (6) of rule 43;

33

(iv)

Where the transfer application for Quarry Licence is not complete in all material particulars
or is not accompanied by the required documents or any additional information / documents
as specified by Government from time to time, a 30 day notice shall be given by the
concerned Mining Engineer / Assistant Mining Engineer requiring the applicant to complete
the application or provide documents, as the case may be, failing which the transfer
application shall be rejected.

58. Disposal of Application for Transfer of Quarry Licence :(1) The Mining Engineer / Assistant Mining Engineer concern may transfer the Quarry Licence
to a person;
Provided that transfer of Quarry Licence shall not be considered as a matter of right and the
Mining Engineer / Assistant Mining Engineer concern may refuse such transfer for the
reasons to be recorded and communicated to the applicant;
(2) Where order for transfer has been issued, an entry to this effect shall be made in the licence
and Quarry Licence register;
Provided that transfer of licence shall be effective from the date of entry in the Quarry
Licence.
59.

Change of partners / directors:(1)


In case of partnership firm, the licencee shall inform regarding any change of partners
within three months of such change to the concerned authorities alongwith premium equal
to annual licence fee;
Provide that where partnership changes due to the death of any partner, no premium shall be
charged.
(2)
In case of private limited company, the licencee shall inform regarding any change of
directors within three months of such change to the concerned authorities.

60.

Provisions for grant of Quarry Licence of mineral marble in existing boundaries.Notwithstanding anything contained in these rules, for grant of Quarry Licence for mineral marble
the provisions of rule 30(2)(ii) and 40(31) shall apply.

61.

Conversion of quarry Licence into Mining Lease:(1) Notwithstanding anything contained in these rules, for the purpose of safe, scientific mining
and mineral conservation, the holder of quarry licence may apply in Form 28 for conversion
of his quarry licence into Mining Lease in to concerned Mining Engineer / Assistant Mining
Engineer subject to condition that the area of such quarry licence is not less than the 1.00
hectare;
(2) Every application submitted in sub rule (1) shall be disposed off by the competent authority
and a lease deed in Form 13 shall be executed within 3 months from date of communication
of such order;
(3) Dead rent of such lease converted from Quarry Licence shall be as per schedule II appended
to these rules;
Provided that in case where existing rent of the converted Quarry Licence is more than the
dead rent as specified in schedule II, existing rent shall be the dead rent of such lease
converted from Quarry Licence;
(4) Period of such converted lease shall be as per rule 28.

34

Chapter VI
Grant of Permit
62.

Short term permit:(1)


Short term permits may be granted for excavation and use of mineral masonary stone,
murram, ordinary earth to a person for executing Government / Semi-Government / Local
Body / Private Organisation's works;
Provided that Short Term Permit for minerals and for purposes other than mentioned above
may be granted with the prior approval of Director subject to such conditions as he may
specify therein;
(2)
Where any mineral is encountered in the process of construction of any building or a
development project and has to be extracted in the process of execution of such project, such
person may be granted a short term permit for its disposal outside the project area;
(3)
Every application for grant of Short Term Permit under sub rule (1) shall be submitted to
Mining Engineer / Assistant Mining Engineer mentioning quantity of minerals and period
for which permit is desired, along with an affidavit and following documents :(i)
a copy of work order / concessionary agreement;
(ii) a copy of G-Schedule / bill of quantities;
(iii) a plan and description of the area from where mineral will be excavated;
(iv) revenue record of the area;
(v) consent of the khatedar in case land does not belong to the applicant;
(4) On receipt of application under sub rule (1) and (2) Mining Engineer / Assistant Mining
Engineer may grant short term permit to a person on payment of permit fees, payable
separately for each mineral, at the following rates:S.No. Quantity of mineral
Rate per tonne
(i)
upto 10 tonnes
20/(ii)
exceeding 10 and upto 20 tonnes
30/(iii)
exceeding 20 and upto 50 tonnes
50/(iv)
exceeding 50 and upto 100 tonnes
100/(v)
exceeding 100 tonnes
Rs. 100/- + Rs. 50/- for every
additional 100 tonnes or part thereof
(5) Royalty on minerals shall be charged as per Schedule I;
(6)
The Short Term Permit holder shall, in addition to royalty and permit fees, pay to the
District Mineral Foundation (DMF) and State Mineral Exploration Trust (SMET), as may be
specified by Government from time to time;
(7) The period of Short Term Permit shall be co-terminus with work order;
(8) Short Term Permit holder shall not excavate minerals in excess of quantities mentioned in
permit, any excess quantity excavated shall be charged at the rate of two times of the royalty
mentioned in Schedule I;
Provided further that any quantity of mineral carried away by the permit holder after the
expiry of time period specified in the work order shall be treated as illegal and shall be
charged at the rate of 15 times of the royalty mentioned in Schedule I;
(9) The Mining Engineer / Assistant Mining Engineer may refuse to grant a short permit for any
mineral in any area recording reasons and same shall be communicated in writing to the
applicant;
(10) Government / Semi-Government / Local Body contractors shall pay royalty for mineral
consumed under permit issued or otherwise in the following manner:(i)
Royalty deduction from running bills - The contractor shall apply as per sub rule (2)
alongwith permit fees, contribution towards DMF and SMET in advance;
(ii) Royalty deposition in advance - The contractor shall apply as per sub rule (2)
alongwith permit fees, royalty, contribution towards DMF and SMET in advance;
(iii) For royalty paid material - The contractor shall apply for such permission to the
concern Mining Engineer / Assistant Mining Engineer along with Bill of quantity / GSchedule and an affidavit stating that the entire material consumed shall be royalty
paid;
Provided that contractor may opt the combination of (i) and / or (ii) and / or (iii);

35

Provided further that for options (i) to (iii), at the time of submission of the final bill to the
concerned department the contractor shall submit the record for the assessment and get a nodues certificate from the concerned Mining Engineer / Assistant Mining Engineer. If any
amount remains due, Mining Engineer / Assistant Mining Engineer may ask concern
department to deduct the remaining amount before payment of the final bill;
(iv) Royalty deduction from running bills without assessment - The contractor shall apply
for such permission to the concern Mining Engineer / Assistant Mining Engineer
along with Bill of quantity / G-Schedule and an affidavit stating that the material used
shall not be procured illegally, the deduction of the royalty from the running bill shall
be done in the following manner :(a) Construction / widening of roads and building construction - 3% of bill amount;
(b) Repairing and other works
- 1.5% of bill amount;
(11) For the construction / repair / renewal of National/Mega Highways / Four / Six lane roads,
laying and repair of Railway Tracks, contractors shall apply as per sub rule (2) and royalty
and other payments shall be paid as per sub rule (10)(ii) and if the mineral / minerals to be
obtained from existing leases, separate paid rawanna for the aforesaid purpose shall be
issued by the concerned Assistant Mining Engineer / Mining Engineer to the lessee. Royalty
/ Excess royalty and / or permit fee received from such works shall not be adjusted against
the contract amount. In such case, contractor may apply for special permit as per rule 63.
(12) Concerned Mining Engineer / Assistant Mining Engineer may, on a requisition from District
Collector / SDM of the district / sub division concerned, grant permit for extraction of minor
minerals from such area which has not been granted on mineral concession to such
Government department or any other Government agency requiring mineral for execution of
works relating to emergent flood protection works or any other natural calamity or other
pressing circumstances for safety of human & cattle life under emergency condition.
Provided that the Government may decide the terms and conditions of grant of such permits
under emergency situations in advance or post-facto.
63.

Special permit
(1) For construction and development work:(i)
The Mining Engineer or Assistant Mining Engineer may grant special permit to a
person for dispatch of over burden used for construction purpose, ordinary earth or
murram used for embankment, leveling, filling etc. lying inside or outside any lease
area or Quarry Licence area on payment of royalty, contribution towards DMF and
SMET. Such special permit shall be granted for a maximum period of one year for the
quantity as desired by the applicant. Royalty, so deposited, shall not be adjusted
against the dead rent payable by lessee;
Provided that where over burden is lying within the lease area permit may be granted
to the lease holder or the person submitting consent of lessee;
Provided further that mineral so dispatched shall be accompanied with valid ravanna /
transit pass;
(ii) Every application for special permit shall be accompanied by sketch map showing
approximate location of over burden dump, quantity applied for and period required
for dispatch;
Provided that the Mining Engineer or Assistant Mining Engineer after inspection,
verifying quantum of over burden and mineralogical examination, if required, and
ascertaining that misuse of mineral shall not be done, may grant permit, after
depositing royalty in advance, mentioning therein quantity of mineral and period of
permit;
(iii) Permit holder shall not dispatch minerals in excess of quantity mentioned in permit,
any excess quantity so dispatched shall be charged at the rate of two times of the
royalty mentioned in Schedule I.
(iv) The Mining Engineer / Assistant Mining Engineer may refuse to grant a special
permit recording reasons and same shall be communicated in writing to the applicant;
(v) The special permit holder shall be responsible for submission of his record within 15
days of the expiry of special permit.

36

(2)

(3)

For removal of sand accumulated due to flood and overflow


(i)
Notwithstanding anything contained in these rules the Mining Engineer or Assistant
Mining Engineer may grant special permit for removal of sand accumulated due to
flood and over flow to tenant on payment of a fee as laid down in rule 62(4) and such
person may remove and take away sand on payment of advance royalty, contribution
towards DMF and SMET from the area specified in the permit. The conditions under
which the special permit holder shall work and safety precautions which he must take
shall be as specified in the permit;
Provided that the dimension of the area for which a special permit may be granted
shall not exceed one hectare;
(ii) Every application for special permit shall be accompanied by the description of the
land giving location of the area from where removal of sand shall be made and
estimated quantity of sand for which permit is required;
(iii) Concerned Mining Engineer / Assistant Mining Engineer shall make an enquiry, if
necessary, on the following points whether:(a) the sand have been accumulated on the applied land due to floods and
overflow;
(b) the name of the applicant / applicants is / are recorded as khatedar on the
applied areas;
(c) the quantity of sand, applied by the applicants, is available in the applied area;
(iv) Special permit shall be granted for quantities not exceeding 5000 tonnes;
(v) Period for which a special permit may be granted shall not exceed one year;
(vi) Special Permit holder shall not remove sand in excess of quantities mentioned in
permit, any excess quantity removed shall be treated as illegal and shall be charged at
the rate of 15 times of the royalty mentioned in Schedule I;
(vii) The Mining Engineer / Assistant Mining Engineer may refuse to grant a special
permit recording reasons and same shall be communicated in writing to the applicant;
(viii) The special permit holder shall be responsible for submission of his record within 15
days of the expiry of special permit.
For spreading of gypsum in alkaline agriculture fields or for making plaster of paris:(i)
Notwithstanding anything contained in these rules the Mining Engineer or Assistant
Mining Engineer may grant special permit for removal of mineral Gypsum for
spreading in alkaline agriculture fields or for making plaster of paris in own industry,
to a person on payment of a fee as laid down in sub-rule(4) of rule 62 and such person
may remove and take away mineral on payment of advance royalty, contribution
towards DMF and SMET from the area specified in the permit. The conditions under
which the special permit holder shall work and safety precautions which he must take
shall be as specified in the permit;
Provided that:(a) availability of Gypsum is confined only upto 2 meter from the surface;
(b) the dimension of the area for which a special permit may be granted shall not
exceed one hectare;
(c) in case of private land special permit may be granted to the Khatedar of the
land or to a person having prior consent of the Khatedar of the land;
(ii) Every application for special permit shall be accompanied with description of the land
giving location of the area from where removal of gypsum shall be made and
estimated quantity for which permit is required;
(iii) Concerned Mining Engineer / Assistant Mining Engineer along with Senior Geologist
/ Geologist shall make an enquiry, on the following points before issue of such special
permit:(a) Whether the gypsum is confined upto 2 meter from the surface;
(b) Whether the quantity of gypsum, applied by the applicant, is as per deposit
available;
(iv) Special permit shall be granted for quantities not exceeding 5000 tonnes;
(v) Where two or more applications for special permit are received on the same day, the
permit shall be given to the person, who offers higher premium. The concerned

37

Mining Engineer / Assistant Mining Engineer shall issue a letter to all applicants for
submitting their bids. All applicants shall give their bid through sealed cover, and the
committee constituted in rule 34(1)(ii) shall select the highest tenderer and the permit
shall be issued by concerned Mining Engineer / Assistant Mining Engineer to the
highest bidder;
(vi) Period for which a special permit may be granted shall not exceed six months;
(vii) Applicant shall deposit security amount Rs. 50,000/- in the form of fixed deposit
receipt of any nationalised / scheduled bank or national saving certificates or any
other form of securities which may be notified by Government pledged in favour of
Mining Engineer/Assistant Mining Engineer before grant of such special permit.
(viii) Special Permit holder shall not remove minerals in excess of quantities mentioned in
permit, any excess quantity removed shall be treated as illegal and shall be charged at
the rate of 15 times of the royalty mentioned in Schedule I;
(ix) The Mining Engineer / Assistant Mining Engineer may refuse to grant a special
permit recording reasons and same shall be communicated in writing to the applicant;
(x)
The special permit holder shall be responsible for submission of his record within 15
days of the expiry of special permit.
64.

Conditions:Any short term permit/special permit granted under these rules may contain conditions as the
authorised officer granting the permit may deem necessary in regard to the following:(1) Restriction of surface operations in any area, prohibited by any authority;
(2) Entering and working in any reserved or protected forest;
(3) Reporting all accidents;
(4) Indemnity to Government against claim of third parties;
(5) Transfer of permit shall not be allowed;
(6) Any breach of terms and conditions of the permit, the permit may be cancelled by Mining
Engineer / Assistant Mining Engineer after giving a 15 day notice with forfeiture of the
security, if any;
Provided that if the permit holder contravenes any term and condition of the permit and after
giving a 15 day notice, permit holder complies the breaches after notice period but before
cancellation of the permit, in such cases, 10% of security amount for every breach shall be
forfeited;
Provided further that after cancellation of the permit, quarried materials lying on the area,
shall become absolute property of the Government.

65.
(1)

Brick Earth Permit


Restrictions(i)
No permit in khatedari land shall be granted to a person other than khatedar or without
written consent of the khatedar duly attested by Notary Public / Oath Commissioner;
(ii) Area of permit shall not be less than 0.5 hectare.
Application for grant of brick earth permit:(i)
The application for grant of permit shall be submitted online through departmental web
portal to the Mining Engineer/ Assistant Mining Engineer concerned in Form 29;
(ii) Every application made under sub-rule (1) shall be accompanied by:(a) a non refundable application fee of Rs.1,000/- in case of chimney bhatta and Rs. 500/for awa kajawa bhatta or as prescribed by Government from time to time;
(b) a scanned copy of khasra map and revenue record showing location of permit area
from where brick earth will be excavated duly verified by the Patwari concerned;
(c) a scanned copy of khasra map and revenue record showing existing / proposed
location of brick kiln;
(d) a scanned copy of an affidavit from the applicant that no dues of the department are
outstanding against him or any member of his family and also against a firm /
company to which he / she is or was a partner / director;
(e) a scanned copy of notarised consent from the land owner where land is not owned by
the applicant for excavation of brick earth;

(2)

38

(f)

(3)

(4)

(5)

(6)

a scanned copy of an affidavit from the applicant that he shall get land conversion
from the Revenue Department for making brick kiln;
(g) a scanned copy of agreement between applicant and Brick kiln owner, in case brick
kiln is not owned by the applicant;
(h) annual permit fees of Rs. 10,000/- for chimney bhatta and Rs. 3,000/- for awa kajawa
bhatta;
(i)
security amount Rs. 10,000/- for chimney bhatta holder and Rs. 5,000/- for awa
kajawa bhatta in the form of fixed deposit receipt of any nationalised / scheduled
bank or national saving certificates or any other form of securities which may be
notified by Government pledged in favour of Mining Engineer/Assistant Mining
Engineer.
Procedure for grant of brick earth permit:(i) Mining Engineer / Assistant Mining Engineer shall issue permit in Form 30 after field
verification;
(ii) In case, permit holder wants to include nearby areas / khasra in permit, it shall be included
after deposition of fee Rs. 2,000/- by concerned Assistant Mining Engineer / Mining
Engineer.
Refusal of brick earth permit.The Mining Engineer / Assistant Mining Engineer may refuse to grant permit or include additional
area in the existing permit, mentioning the reasons with forfeiture of application fee;
Provided that such action shall not be taken unless the applicant fails to complies the deficiencies
after serving a 15 day notice.
Period of brick earth permit.(i)
Permit shall be granted for a period of minimum one year and maximum five years;
(ii) Period of Permit shall end on 30th of September.
Conditions of the brick earth permit.(i)
The permit holder shall deposit annual permit fees in advance every year;
(ii) The permit holder shall excavate brick earth from sanctioned permit area and transport such
mineral to that brick kiln for which permit have been issued;
(iii) Royalty as per schedule I alongwith contribution towards DMF and SMET shall be collected
at check post / naka from vehicles carrying finished (Pakki) bricks;
Explanation: The weight of brick earth used for making 1,000 bricks of size 9" X 4" X 3"
shall be taken as 3.5 tonnes.
(iv) The owner of every brick kiln shall obtain a separate permit for each brick kiln. Brick earth
excavated under the permit issued for one brick kiln shall not be used for another brick kiln;
(v) Where the quality of brick earth in area granted under permit is not suitable for making
bricks or mineral is exhausted, in such case surrender of permit may be accepted by
concerned Mining Engineer / Assistant Mining Engineer;
(vi) The permit holder shall have the liberty at all times during the period of the permit in respect
of the plot / land for which permit 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 subject to the following conditions:(a) The permit holder shall allow any officer of the department or any other officer
authorised by the Central or State Government in this behalf to enter upon the
premises comprised in the area for the purpose of inspecting the same and working of
quarry, safely and systematic development, abide by instructions issued by them from
time to time regarding the conservation and development of minerals and the related
matters;
(b) The permit holder shall make reasonable satisfaction and pay such compensations
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 all such damages, injury or disturbances and all costs and expenses in
connection therewith;
(c) The permit holder shall without any delay report to the Director, / Additional Director
Mines / Mining Engineer / Assistant Mining Engineer any accident which may occur

39

(7)

at or in the said premises and also the discovery on or within any of the lands or mines
demised by the permit of any mineral not specified in the permit;
(vii) The permit holder shall confine his working within the limits of the permit area and upto
depth of 2 meters from the surface;
(viii) The permit holder shall not obstruct approach to the adjoining leases / licences / permits. In
case of any dispute about the approach road, directions of the Mining Engineer / Assistant
Mining Engineer shall be final and binding;
(ix) Any breach of terms and conditions of the permit, the permit may be cancelled by Mining
Engineer / Assistant Mining Engineer after giving a 15 day notice with forfeiture of the
security;
Provided that if the permit holder contravenes any term and condition of the permit and after
giving a 15 day notice, permit holder complies the breaches after notice period but before
cancellation of the permit, in such cases, 10% of security amount for every breach shall be
forfeited;
(x) Transfer of permit shall not be allowed.
Existing permit granted under Brick Earth Policy, 1994:All existing permits granted under the provisions of brick earth policy 1994, shall be deemed to
have been granted under these rules.

40

CHAPTER - VII
Grant of Royalty / Excess Royalty Collection Contract
by auction or tender
66.

Grant of Royalty Collection Contract / Excess Royalty Collection Contract:(1) No Royalty Collection Contract / Excess Royalty Collection Contract with or without
collection of permit fee / other charges shall be granted to a person who is not a citizen of
India unless prior approval of the Government of India has been obtained;
(2) Royalty Collection Contract / Excess Royalty Collection Contract with or without collection
of permit fee / other charges may be granted by auction, tender, e-auction or e-tender only in
respect of such area and mineral(s) as the Director may by a general or special order, direct
to an Indian citizen;
(3) Royalty Collection Contract / Excess Royalty Collection Contract with or without collection
of permit fee / other charges may be granted by the competent authority for a maximum
period of three years or part thereof ending 31st March with an increase of 10% of yearly
amount after every year;
Provided that with the consent of contractor, the period of contract may be extended for a
period upto 90 days or till new contract comes into force, whichever is earlier with the prior
approval of the Director and a rider agreement shall be executed before expiry of the
original contract by the concern Mining Engineer;
Provided further that where it is necessary to do so, the period of contract may be further
extended by the Government and a rider agreement shall be executed before expiry of the
contract;
Provided also that the extension of contract period shall be subject to the condition that the
contractor shall pay 10% increased amount of the existing annual contract amount, for the
period of extension. The security amount and bank guarantee for extended period shall
remain the same as deposited by the contractor during the original contract period and shall
not be refunded or adjusted in the dues or installments of the contract till next contract
comes into force;
(4) The contract amount shall be determined and offered on annual basis by the contractor to the
Government in auction or e-auction or by tender or e-tender to be submitted for acceptance
by the authority competent to grant the contract;
Provided that in case of enhancement or reduction in the rate of royalty given in the
schedule I or permit fee / other charges, the Royalty Collection Contractor shall be liable to
pay an increased or reduced amount of contract, security amount and guarantee amount in
proportion to the enhancement or reduction for the remaining period of contract from the
date of such enhancement or reduction, as the case may be;
Provided further that on enhancement or reduction in the rate of royalty, the Excess Royalty
Collection Contractor shall be liable to pay an enhanced or reduced amount of contract,
security amount and guarantee amount calculated according to the following formula:Revised contract amount = [(Existing Contract amount + Total existing dead rent) x new
royalty rate / existing royalty rate - Total existing dead rent.];
(5) Contractors registered with the Department under rule 67 shall only be eligible to offer bid
in auction / e-auction or submit tender / e-tender for collection or royalty / excess royalty /
permit fee / other charges as follows;

Class of Contractor

Reserve price (in Rs)

A
Any amount
B
Upto 10 crore
C
Upto 1 crore
Provided that it shall be compulsory for the existing royalty and / or Excess Royalty
Collection Contractor to renew his registration, in case the same expires during the tenure of
such contract;

41

67.

Provided further that to participate in contract with reserve price upto 20.00 lacs no
registration is required.
Registration of Contractor:(1) Any person may apply in Form 31 through web portal of the department for registration and
its renewal as contractor to any zonal office of the Additional Director (Mines);
Provided that the registration shall be renewed by the same zonal officer by whom
registration certificate was issued;
(2) The competent authority for fresh registration or renewal shall be Zonal Additional Director
Mines;
(3) Every application made under sub-rule (1) for registration or its renewal shall be
accompanied by:(i)
a non- refundable application fee, a scanned self attested copy of net worth certificate
(issued by a Charted Accountant on the basis of his profit and loss account / turnover /
assessed income as per income tax returns etc. in Form 32) and a scanned copy of
fixed deposit receipt of a nationalised / scheduled bank or national saving certificate
as security amount (pledged in favour of Additional Director (Mines) zone concerned
and made from the account of contractor to be registered) as shown below:Class of
Application
Minimum Net worth
Security amount
Contractor
fees
certificate (Rs. in crore)
(Rs. in crore)
(in Rs.)
A
10,000
50.00
1.00
B

5,000

10.00

0.50

2,000

1.00

0.25

(ii)

a scanned copy of an affidavit stating details regarding mineral concession /


contract(s) held in the name of the applicant or his family members;
(iii) a scanned copy of an affidavit stating that no dues of the Department are outstanding
against any member of his family;
(iv) a scanned copy of statement mentioning full details of the assets and the properties
owned by the applicant along with net worth certificate;
(v) scanned copies of all relevant documents mentioned in chartered accountant
certificate to explain its title;
(4) Every application submitted under sub-rule (1) shall be acknowledged online in Form 33 on
the date of its receipt;
(5) Application duly signed with all original documents as mentioned in sub rule (3) shall be
submitted to the concerned Additional Director Mines, within a period of 7 days from the
date of its online submission, failure to which the application shall be deemed to have been
rejected;
(6) The application made under sub-rule (1) shall be disposed by the competent authority within
15 days from the date of receipt of application. The competent authority may refuse to issue
registration certificate to an applicant recording reasons and same shall be communicated in
writing to the applicant;
(7) The contractor shall be registered with the Department for maximum four financial years,
including the financial year of registration, ending on 31st March;
(8) The application for renewal of registration, as per sub-rule (1) shall be submitted to the
competent authority before the date of expiry of registration. If an application is complete in
all respect as per sub-rule (3) and past performance of the applicant as bidder / tenderer /
contractor is satisfactory, the competent authority may renew the registration for further
period of four years ending on 31st March;
(9) In case any information furnished by the applicant is found incorrect, at any time, the
competent authority may cancel the registration and forfeit the security amount after giving
15 days notice to the contractor;
(10) If the contractor is debarred from participating in future contracts or is blacklisted under
these rules, registration may be cancelled by the zonal Additional Director (Mines) by whom
registration certificate was issued and the security shall be forfeited, after giving 15 days
notice.

42

68.

Presiding Officer:(1) In case of auction irrespective of reserve price, the Superintending Mining Engineer
concerned or an officer nominated by the Director in this behalf shall be the presiding
officer for auction for royalty / excess royalty / permit fee / other charges collection contract
in his jurisdiction and he may reject or accept any bid without assigning any reason to the
bidders;
Provided that auction for Royalty Collection Contract / Excess Royalty Collection Contract
with or without collection of permit fee / other charges shall be held in the office of
Superintending Mining Engineer concerned or in the office as the Director may permit in
specific cases;
(2) In case of Tender:(i)
Tenders for grant of Royalty Collection Contract / Excess Royalty Collection
Contract with or without collection of permit fee / other charges having reserve price
upto Rs. 10.00 Crore shall be received in the office of Superintending Mining
Engineer, Mining Engineer / Assistant Mining Engineer concerned simultaneously.
Tenders received shall be opened in the office of Superintending Mining Engineer
concerned in the presence of following committee:(a) Superintending Mining Engineer Concerned (Presiding officer);
(b) Mining Engineer / Assistant Mining Engineer Concerned; and
(c) Accounts Personnel nominated by Additional Director (Mines) zone concerned;
Provided that in case where office of Superintending Mining Engineer, Mining
Engineer and Assistant Mining Engineer is situated in the same premises, tenders
shall be received only in the office of Superintending Mining Engineer concerned or
as per the direction of Director;
(ii) Tenders for grant of Royalty Collection Contract / Excess Royalty Collection
Contract with or without collection of permit fee / other charges having reserve price
more than Rs. 10.00 Crore and upto Rs 50.00 Crore shall be received in the office of
Additional Director Mines, Superintending Mining Engineer, Mining Engineer /
Assistant Mining Engineer concerned simultaneously. Tenders received shall be
opened in the office of Additional Director Mines concerned in the presence of
following committee:(a) Additional Director Mines concerned (Presiding officer);
(b) Superintending Mining Engineer concerned; and
(c) Accounts Personnel nominated by Additional Director (Mines) zone concerned;
Provided that in case where office of Additional Director Mines, Superintending
Mining Engineer, Mining Engineer and Assistant Mining Engineer are situated in the
same premises, tenders shall be received only in office of Additional Director Mines
concerned or as per the direction of Director;
(iii) Tenders for grant of Royalty Collection Contract / Excess Royalty Collection
Contract with or without collection of permit fee / other charges having reserve price
more than Rs. 50.00 Crore shall be received in the office of Additional Director mines
concerned and Directorate simultaneously. Tenders received shall be opened in the
Directorate in the chamber of Additional Director Mines in the presence of following
committee:(a) Additional Director Mines (Presiding officer);
(b) Superintending Mining Engineer concerned; and
(c) Financial Advisor / Accounts Officer / Any other accounts personnel
nominated by Director.

69.

Reserve Price:(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:(i)
Physical quantities of mineral produced and dispatched from the area;
(ii) Last years collection of royalty from that area;
(iii) Expected increase in revenue in the proposed contract period due to increased demand
of mineral; and

43

(2)
(3)

(4)

(iv) Any other relevant matter about the area;


The approval of reserve price for new contract upto Rs. 10.00 Crore shall be given by the
concerned Additional Director (Mines) zone and above Rs. 10.00 Crore by the Director;
The reserve price for next contract shall be previous contract amount;
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 the total existing
annual contract amount of all the contracts to be amalgamated with prior approval of the
Superintending Mining Engineer concerned;
Provided further that if no bid is received, no approval shall be required for the revised
reserve price upto the limit of 10% less of the previous contract amount;
In case, if it is necessary to revise the existing reserve price of any contract for future period,
prior approval shall be given by concerned Additional Director (Mines) zone upto Rs.10.00
Crore and by Director for more than Rs.10.00 Crore.

70.

Security:(1) The Security deposit for the royalty and / or Excess Royalty Collection Contracts shall be
15% of the bid / tender amount. The earnest money deposited by the provisionally selected
bidder / tenderer shall be automatically converted into security amount of the contract on
provisional selection of the bidder / tenderer;
Provided that the excess amount of earnest money over and above 15% of the annual bid /
tender amount, if any, shall be adjusted in the monthly / quarterly installments as the case
may be;
(2) Provisionally selected bidder / tenderer may replace the security amount's demand drafts /
bankers cheque by fixed deposit receipts of any nationalised / scheduled bank drawn in
favour of the concerned Mining Engineer / Assistant Mining Engineer. Such fixed deposit
receipts shall be made from the bank account of the provisionally selected bidder / tenderer
and valid for a period of at least 4 years, before the execution of the contract. In such case
the earnest money shall be adjusted against monthly / quarterly installments of the contract
as the case may be;
(3) The security shall be refunded by the concerned Superintending Mining Engineer, within 30
days of the completion of the contract, if the contract is completed without any lapse on part
of the contractor;
(4) The contractor shall deposit difference amount of security within 30 days in proportion to
the enhancement of contract amount as per sub rule 4 of rule 66 or due to change in rate of
royalty or increase in permit fee / other charges etc.

71.

Guarantee:(1) The bidder / tenderer for the royalty and / or Excess Royalty Collection Contract in whose
favour contract has been sanctioned by the competent authority, shall submit guarantee for
due performance of the contract in the form of bank guarantee / fixed deposit receipt of any
nationalised / scheduled bank or National Saving Certificate valid for at least 4 years and
equal to 25% of annual contract amount in favour of the concerned Mining Engineer /
Assistant Mining Engineer before execution of the contract. Guarantee shall be adjusted
against Departmental dues of the contractor on expiry or cancellation of the contract, if any,
otherwise it may be refunded to him by the competent authority before the completion of
contract if all the installments has been deposited and there is no dues against contractor or
within 30 days of the completion of the contract;
(2) The contractor shall deposit difference amount of guarantee within 30 days in proportion to
the enhancement of contract amount as per sub rule 4 of rule 66 or due to change in rate of
royalty or increase in permit fee / other charges etc.

72.

Bid / Tender amount:(1) The bidder / tenderer for the royalty and / or Excess Royalty Collection Contracts in whose
favour contract has been sanctioned by the competent authority, shall deposit bid / tender
amount before execution of the contract as the case may be, as follows:(i)
If the yearly bid / tender amount does not exceed Rs.25 Lacs, 25% of the bid / tender
amount shall be deposited as first quarterly installment. Remaining quarterly

44

(2)
(3)

73.

installments shall be deposited in advance on the dates specified in the agreement. In


case, due date is a Government holiday then the due date shall be the next working
day;
(ii) If the yearly bid / tender amount exceed Rs.25 Lacs, it shall be recovered in equal
monthly installments but the first installment shall be deposited before execution of
the agreement. The remaining monthly installments shall be deposited in advance on
the dates specified in the agreement. In case, due date is Government holiday then the
due date shall be the next working day;
The monthly / quarterly installment shall be paid in advance on due date;
In case contractor fails to deposit monthly / quarterly installments on due date, the
concerned Mining Engineer / Assistant Mining Engineer may cancel the contract with
forfeiture of the security amount. Such action shall not be taken without giving a 15 days
show cause notice to the contractor.

Procedure for auction:The following shall be the procedure for holding auction of Royalty Collection Contract / Excess
Royalty Collection Contract with or without collection of permit fee / other charges under rule 66
of these rules:(1)
Notice for auction shall be published by the Superintending Mining Engineer concerned
or any other officer authorised by the Director, in one daily newspaper having wide
circulation in the State. The notice shall also be published in one newspaper having wide
circulation in the locality nearest to the area in question. Such notification shall be
published at least 15 days before the date of auction indicating the place, date and time
of auction;
Provided that in case, on the date of auction Government declares holiday then the
auction shall be conducted on the next working day;
(2)
A copy of such notification for wide publicity shall be displayed on Departmental
website as well as on the notice board of concerned Additional Director mines /
Superintending Mining Engineer / Mining Engineer / Assistant Mining Engineer Offices.
A copy of such notification shall also be sent to the Panchayat Samities or Municipal
Boards having jurisdiction over the area in question;
(3)
The terms and conditions as approved by the Director and particulars of the royalty and /
or Excess Royalty Collection Contract shall be affixed on the notice board in the Office
of Superintending Mining Engineer, Mining Engineer / Assistant Mining Engineer
concerned and shall also be read out to the intending bidders at the time of auction and
signed / Thumb impression shall be taken on the conditions read out.;
(4)
The intending bidder shall be allowed to participate in the auction for royalty and / or
Excess Royalty Collection Contract on submission of an application in Form 34,
alongwith following documents:(i)
a self attested copy of registration of contractor as provided in sub rule (6) of
rule 67 for Royalty Collection Contract / Excess Royalty Collection Contract;
(ii)
earnest money equal to 15% of reserve price in the form of demand draft or
banker's cheque drawn in favour of the Assistant Mining Engineer / Mining
Engineer concerned or in any other mode as notified by the Government from
time to time and shall deposit additional earnest money in proportion to bid
offered by him;
Provided that no interest shall be paid by the Government on the earnest money
deposited as above;
(iii)
Where the applicant fails to enclose the documents as applicable in clause (i) and
(ii) above and rule 8 along with form and does not sign or put thumb impression
as mentioned in sub-rule (3) in such case he / she shall not be allowed to
participate in the auction;
(5)
On completion of auction, the presiding officer shall declare the highest bidder as
provisionally selected bidder and the earnest money deposited by the bidders other than
the provisionally selected bidder shall be refunded immediately;

45

(6)

(7)
(8)
(9)

(10)

74.

The competent authority shall take decision for sanction or rejection of the provisionally
selected bid and no bid shall be regarded as accepted unless competent authority issues
sanction for the same;
The annual bid amount offered by the provisionally selected bidder shall be the annual
contract amount;
No bid for royalty and / or Excess Royalty Collection Contract below reserve price shall
be accepted by the presiding officer;
Misbehavior by any person during auction may be punished by his removal or if
necessary by debarring him for a period upto three years for any future auction / tender
under these rules at the discretion of presiding officer;
After provisional selection if any dues of the Department is found outstanding against
bidder / partners of the firm / directors of the company or family members of the bidder /
partners / directors, in such case his bid shall be rejected / sanction shall be revoked with
forfeiture of earnest money / security deposited as the case may be, by the competent
authority without further notice and the advance installment deposited, if any, shall be
adjusted against such dues.

Procedure for Tender:The following shall be the procedure for inviting tenders for Royalty Collection Contract / Excess
Royalty Collection Contract with or without collection of permit fee or other charges under rule 66
of these rules:(1) Notice for inviting tenders shall be published by the Superintending Mining Engineer
concerned or any other officer authorised by the Director, in one daily news paper having
wide circulation in the State. The notice shall also be published in one newspaper having
wide circulation in the locality nearest to the area in question. Such notification shall be
published at least 15 days before the date on which tenders are to be received indicating the
place / places, date and time;
Provided that where no tender is received or received below reserve price, the tender shall
be invited afresh and notification in such cases shall be published at least seven days before
the date on which tenders are to be received as mentioned above;
Provided further that in case, on the date of receiving tender Government declares holiday,
then the tender shall be received on the next working day;
(2) A copy of such notification for wide publicity shall be displayed on Departmental web site
as well as on the notice board of concerned Additional Director mines / Superintending
Mining Engineer / Mining Engineer / Assistant Mining Engineer offices. A copy of such
notification shall also be sent to the Panchayat Samities or Municipal Boards having
jurisdiction over the area in question;
(3) The terms and conditions as approved by the Director and particulars of the royalty and / or
Excess Royalty Collection Contract shall be affixed on the notice board in the office of
Superintending Mining Engineer, Mining Engineer / Assistant Mining Engineer concerned;
(4) Tender for royalty and / or Excess Royalty Collection Contract shall be submitted in Form
35 duly signed in sealed cover written with relevant details of the royalty and / or Excess
Royalty Collection Contract on the cover as the case may be;
(5) Tenders dropped on notified date, time and place/places in tender box shall only be
considered for provisional selection by tender opening committee and for award of contract
by competent authority;
(6) Every tender shall be accompanied by:(i)
an self attested copy of registration of contractor as provided in sub rule 6 of rule 67;
(ii) earnest money equal to 15% of tender amount in the form of demand draft or bankers
cheque drawn in favour of the Assistant Mining Engineer / Mining Engineer
concerned or in any other mode as notified by the Government from time to time;
Provided that no interest shall be paid by the Government on the earnest money
deposited as above;
(iii) Where the applicant fails to enclose all or any one of the documents as mentioned in
clause (i) and (ii) above and Rule 8 alongwith form, his / her tender shall be invalid;
Provided that in the interest of government revenue, if the tender opening committee
finds any technical deficiency other than clause (i) and (ii) in the tender form,

46

(7)
(8)
(9)
(10)
(11)
(12)
(13)

(14)

(15)

75

76

committee may provisionally select and allow to produce such documents within
three days of opening of tender. If tenderer fails to submit deficiencies pointed out by
the committee within three working days from the date of opening of the tender the
earnest money shall be forfeited;
Annual tender amount shall be written clearly in figures and words separately and in case of
any discrepancy, amount written in words shall be considered only;
The tenders shall be opened in the presence of tenderers / authorised person who are present
at the notified place, date and time;
The tender opening committee shall select the highest valid tenderer as provisionally
selected tenderer and presiding officer shall declare the same;
The tender amount mentioned by provisionally selected tenderer in the tender shall be the
annual contract amount;
The earnest money, deposited by the tenderers other than the provisionally selected tenderer
shall be refunded immediately after the declaration of the provisionally selected tenderer;
No tender for Royalty / Excess Royalty Collection Contract below reserve price shall be
selected by tender opening committee or accepted by the competent authority;
The competent authority shall take decision for sanction or rejection, of the provisionally
selected tender and no tender shall be regarded as accepted unless competent authority
issues sanction for the same;
Misbehavior by any person during tender may be punished by his removal or if necessary by
debarring him for a period upto three years for any future auction / tender under these rules
at the discretion of presiding officer;
Notwithstanding anything given above, the Director, may invite tenders in two separate
envelopes i.e. technical bid and financial bid;
Provided that the financial bids shall be opened only of those tenderers who are found
technically suitable.

Execution of contract:(1) Where the Royalty and / or Excess Royalty Collection Contract has been sanctioned, the
grantee shall submit guarantee and bid / tender amount as per rule 71 and 72 respectively
and execute the agreement in Form 36 within 15 days from the date of receipt of sanction
order;
(2) The terms and conditions included in the notification issued under rule 73 / 74 shall be a part
of the agreement;
(3) Where the bidder / tenderer fails to comply with the provisions of sub-rule (1), the order of
sanction shall be revoked and the amount deposited as security under rule 70 shall be
forfeited and fresh auction shall be conducted or tenders shall be invited as the case may be;
Provided that in case all requisite formalities have been completed by the bidder / tenderer
within prescribed time limit and agreement could not be executed with no fault of bidder /
tenderer in such case, sanctioning authority may extend the period for execution of
agreement with reasons to be recorded in writing;
Provided further that before revocation of sanction if the contractor complies the formalities
as mentioned in sub rule (1) and applies for execution of contract enclosing a Demand Draft
/ Bankers Cheque amounting 9% of yearly bid / tender amount for delay of every month or
part thereof as penalty, the period of execution can be extended by the sanctioning authority.
The delay shall be calculated after 15 days from receipt of sanction order;
(4) The contract agreement shall be signed by the concern Mining Engineer on behalf of the
Governor of Rajasthan as required under the provision of Article 299 of the Constitution of
India.
Conditions of Royalty Collection Contract and / or Excess Royalty Collection Contract:The following conditions shall be the part of contract agreement, namely:(1) The contractor shall make his own arrangements for collection of royalty and other
permissible charges;
(2) The royalty receipt shall be in Form 37 or 38 as the case may be, duly stamped and issued
by concerned Assistant Mining Engineer/Mining Engineer;

47

(3)

(4)

(5)

(6)

(7)

(8)

(9)
(10)

(11)

(12)
(13)
(14)

(15)

The contractor shall collect the royalty near Mining Leases / Quarry Licence area and if the
royalty is not collected near Mining Leases / Quarry Licence area then at any other place
near the leases / quarries but within the jurisdiction of contract area;
Provided that such places shall only be established after prior approval in writing from the
concerned Mining Engineer / Assistant Mining Engineer. Such permission shall be given by
the Mining Engineer / Assistant Mining Engineer on an application made by the contractor
with a payment of Rs. 1,000/- (non-refundable) for every place for which permission is
required. The Mining Engineer / Assistant Mining Engineer may refuse to grant permission
for reasons to be recorded for any particular place, applied by the contractor;
The contractor shall issue printed receipts in Form 37 or 38 for the amount of royalty /
excess royalty / permit fee / other charges collected for every dispatch of the said mineral
and shall fill all the columns of the receipt. The contractor shall, give first copy of receipt to
the incharge of the vehicle, submit second copy of the receipt to the concerned Mining
Engineer / Assistant Mining Engineer alongwith monthly statement and retain third copy
with him;
In case of Excess Royalty Collection Contract, the contractor shall collect amount only from
such vehicles having valid rawanna issued by the lessees. The contractor shall retain second
copy of the rawanna with him and return first copy after stamping to vehicle owner. The
contractor shall deposit second copy of rawanna with second copy of receipt issued by him
with monthly statement in Form 40 to the concerned Mining Engineer / Assistant Mining
Engineer;
The contractor shall not recover any royalty from the vehicles having royalty paid rawanna
issued against yearly dead rent;
Provided that after weighment, if any quantity of mineral is found in excess of weight
mentioned in such rawanna, contractor may recover the royalty of such difference weight;
In case the mineral specified in the contract is used by the State Government Departments
themselves under a valid short term permit / special permit granted by concerned Assistant
Mining Engineer / Mining Engineer, the contractor shall not charge any royalty from such
permit holders, if the mineral is excavated from lands other than working pits of a lessee or
licencee;
Separate short term permit / special permit under these rules shall be issued to the
contractors of the various Works Departments of the State or Central Government /
Autonomous bodies by the concerned Assistant Mining Engineer / Mining Engineer. The
royalty and / or permit fee received by the Department from such works shall not be
adjusted against the contract amount and the contractor shall not recover royalty and / or
permit fee from such short term permit holders;
The contractor shall not recover any royalty from permit holders, issued under these rules;
The royalty shall be collected on the dispatch of minor minerals from the area specified in
the contract and not on minor minerals brought from outside the contract area or from the
major mineral leases;
The contractor shall not recover royalty and / or permit fee for the minerals used in
construction / repair / renewal of Mega Highways / Four / Six lane roads, laying and repair
of Railway Tracks. For construction / repair of such works, a separate short term permit
shall be issued and if the mineral / minerals obtained from existing leases, separate paid
rawanna for the aforesaid purpose shall be issued by the concerned Assistant Mining
Engineer / Mining Engineer to the lessee. Royalty / Excess royalty and / or permit fee
received from such works shall not be adjusted against the contract amount;
No royalty shall be charged on the minor minerals removed from the areas which are not
working pits of a lessee or licencee as provided in rule 7 of these rules;
The contractor shall not recover any royalty and / or permit fee from the minerals used in
special works / schemes as specified by Government from time to time;
The contractor shall submit monthly statement of excess royalty collection and / or royalty
collection with or without permit fee / other charges in the Form 39 and 40 respectively
within 15 days from the month end;
If contractor recovers royalty and other charges in excess of the prescribed rates, the excess
amount so collected shall be recovered from the contractor and the contract shall be
terminated after giving 15 days notice and the contractor may be blacklisted or debarred for

48

(16)

(17)

(18)
(19)
(20)

(21)

(22)
(23)

further Royalty Collection Contract or Excess Royalty Collection Contract for a period of
next four years;
The contractor shall have no rights regarding leases / quarries in the contract area except
collection of royalty / permit fee / other charges mentioned in the contract for the actual
weight of the mineral transported at the prevailing rates for which contract has been awarded
on behalf of the Government;
Cancellation / surrender of leases / Quarry Licences or sanctioning of new leases / Quarry
Licences or revision of dead rent of existing leases or temporary / permanent closure of
leases / Quarry Licences by Government / Court or due to any other reason in the area
concerned shall not have any impact on yearly contract amount;
The Contractor shall pay the installment of contract money in advance according to the
stipulations laid down in the contract;
The contractor shall not transfer the contract as a whole or in part and shall also not grant
any sub-contract to or in the name of any other person;
Contractor shall issue Photo Identity Card duly singed and stamped by the concerned
Mining Engineer / Assistant Mining Engineer to all Nakedars or persons employed by him
for royalty collection. For this purpose the contractor shall submit list of Nakedars / persons
to be engaged for royalty collection along with Photo Identity Card and a fee of Rs.100/- for
each card to the concerned Mining Engineer / Assistant Mining Engineer. Such identity
cards shall be valid during the currency of the contract only. All the Nakedars / persons
collecting royalty shall keep the identity card with them during collection of royalty;
The Contractor shall abide by all the terms and conditions of the contract and any
amendments made under these rules, also follow all instructions issued by Government or
any Officer of the Department;
The contract may be terminated by the State Government if considered by it to be in public
interest, after giving 15 day notice;
In case of default in the due observance of the terms and conditions of the contract, the
contract may be terminated by the Assistant Mining Engineer / Mining Engineer after giving
15 day notice with forfeiture of security deposit or may impose penalty as per penalty
Schedule IV;

49

CHAPTER - VIII
Systematic, Scientific and Environment Friendly Mining
77

Mining operations to be in accordance with mining plan / simplified mining scheme:(1) Every holder of Mining Lease / Quarry Licence shall carry out mining operations in
accordance with the self certified mining plan / simplified mining scheme submitted in
accordance with system established by Government from time to time;
(2) If the mining operations are not carried out in accordance with the mining plan / simplified
mining scheme as referred to under sub-rule (1), Mining Engineer / Assistant Mining
Engineer concerned may pass an order for suspension of all or any of the mining operations
and permit continuance of only such operations as may be necessary to restore the
conditions in the quarry or mine as envisaged under the said mining plan / simplified mining
scheme.

78

Mining Plan / Simplified Mining Scheme as a pre-requisite to the grant of Mining Lease or
Quarry Licence:(1) No Mining Lease shall be granted unless a mining plan is submitted, duly certified by the
applicant;
(2) No Quarry Licence shall be granted unless a simplified mining scheme is submitted, duly
certified by the applicant.

79

Mining plan / Simplified Mining Scheme shall be prepared by a qualified person:(1) Mining plan / simplified mining scheme shall be prepared / reviewed by mining engineer /
geologist appointed by the lessee / licencee under these rules and having a degree in mining
engineering or a post-graduate degree in geology granted by a University established or
incorporated by or under a Central Act, a Provincial Act or a State Act, including any
institutions recognised by the University Grants Commission established under section 4 of
the University Grants Commission Act, 1956 or any equivalent qualification granted by any
University or institution in / outside India.
(2) If Mining plan / simplified mining scheme is prepared / reviewed by mining engineer /
geologist other than the person appointed by the lessee / licencee having qualification as per
sub rule (1), in such case, the implementation of the proposals as furnished in mining plan /
simplified mining scheme shall be the responsibility of the mining engineer / geologist of
that mine.
(3) A person qualified to prepare a mining plan / simplified mining scheme may also carry out
modification of the existing mining plan / scheme as and when required and shall submit
such modified plan / scheme as per rule 80.

80

Submission of mining plan / simplified mining scheme:A self certified mining plan / simplified mining scheme as the case may be, shall be submitted to
the concerned Mining Engineer / Assistant Mining Engineer and shall incorporate:(1) The plan of the precise area showing the nature and extent of the mineral deposit, spot or
spots where the excavation is to be done in the first year and its extent, a detailed crosssection and detailed plan of spots of excavation based on the prospecting data gathered by
the applicant and a tentative scheme of mining for the first five years of the lease / licence;
(2) Details of the geology and lithology of the precise area including mineral reserves of the
area;
(3) The extent of manual mining or mining by the use of machinery and mechanical devices on
the precise area;
(4) The plan of the precise area showing natural water courses, limits of reserved and other
forest areas and density of trees, if any, assessment of impact of mining activity on forest,
land surface and environment including air and water pollution, details of scheme for
restoration of the area by afforestation, land reclamation, use of pollution control devices
and of such other measures as may be directed by the Government from time to time;
(5) Annual programme and plan of excavation on the precise area from year to year for five
years;

50

(6)

Progressive mine closure plan if the mining plan is for the area exceeding one hectare except
for mineral marble and granite.

81

Mining plan / simplified mining scheme to be submitted by the existing lessee / licencee.Where the holder of existing Mining Lease / Quarry Licence has not submitted mining plan /
simplified mining scheme at the time of commencement of these rules, shall submit self certified
mine plan / simplified mining scheme alongwith a penalty of Rs. 5,000/- within a period of three
months from the date of commencement of these rules, to the concerned Mining Engineer /
Assistant Mining Engineer;
Provided that if a holder of a lease / licence has not been able to submit the mining plan or
simplified mining scheme within the time specified above, for reasons beyond his control, he may
apply for extension of time stating the reasons of delay. The Mining Engineer / Assistant Mining
Enginner may allow to extend the time subject to payment of penalty @ 10% of dead rent/rent per
month or part thereof.

82

Review of mining plan / simplified mining scheme:(1) Every approved / certified mining plan / simplified mining scheme shall be valid for the
entire duration of the lease / licence;
(2) The owner, agent, mining engineer or manager of every mine or quarry shall review the
approved / certified mining plan / scheme as referred to in sub-rule (1) and submit a self
certified scheme of mining for the next five years of the lease / licence to the concerned
Mining Engineer / Assistant Mining Engineer;
(3) The self certified scheme of mining shall be submitted to the concerned Mining Engineer /
Assistant Mining Engineer before the expiry of the five years' period, for which it submitted
on the last occasion;
Provided that the mining operations by the lessee / licencee shall not be carried out or
allowed to be carried out till the submission of self certified scheme of mining, if the same is
not submitted within aforesaid time.

83

Mine Closure Plan and Financial assurance:(1) Every Mining Lease /Quarry Licence shall have mine closure plan as a component of the
self certified mine plan / simplified mining scheme which shall be of two types:(i)
a progressive mine closure plan ; and
(ii) a final mine closure plan;
(2) Every lease / licence holder shall provide a financial assurance for guaranteeing that the
protective, reclamation and rehabilitation measures as envisaged in the certified mine closure
plan will be carried out. The amount of financial assurance shall be as follows:(i)
for Quarry Licences having area more than 0.3 hectare and all Mining Leases,
rupees fifteen thousand per hectare or part thereof used in mining and allied
activities. The above amount shall be enhanced with the increase in the area of
mining and allied activities;
(ii) in case of Quarry Licences having area below 0.3 hectare rupees five thousand;
Provided that the amount of financial assurance shall not be more than rupees 30 lacs;
(3) The financial assurance shall be submitted in the form of fix deposit receipt from any
nationalize bank / scheduled bank duly pledged in favour of concerned Mining Engineer /
Assistant Mining Engineer;
(4) The applicant shall have to submit the financial assurance to concern Mining Engineer /
Assistant Mining Engineer, before issue of sanction. In case of existing Mining Lease /
Quarry Licence, the lessee / licencee shall submit the financial assurance with penalty of Rs.
2000/- within three months of date of commencement of these rules;
(5) Release of financial assurance shall be effective upon the application given by the lessee /
licencee for the satisfactory compliance of the provisions contained in the mine closure plan
and certified by the Mining Engineer / Assistant Mining Engineer concerned;
Provided that the financial assurance shall be released by the order of Superintending
Mining Engineer concerned;
(6) If the Mining Engineer / Assistant Mining Engineer concerned has reasonable grounds for
believing that the protective, reclamation and rehabilitation measures as envisaged in the

51

(7)

(8)

certified mine closure plan in respect of which financial assurance was given has not been or
shall not be carried out in accordance with the mine closure plan, either fully or partially, the
Mining Engineer / Assistant Mining Engineer concerned shall give the lessee / licencee a
written notice of his intention to issue the orders for forfeiting the amount of financial
assurance along with interest accrued thereon atleast thirty days prior to the date of the order
to be issued;
Within thirty days of the receipt of notice referred to in sub-rule (6), if no satisfactory reply
has been received in writing from the lessee / licencee, the Mining Engineer / Assistant
Mining Engineer concerned shall pass an order for forfeiting the financial assurance amount
alongwith the interest accrued thereon;
Upon the issuance of order referred to in sub-rule (7), the Mining Engineer / Assistant
Mining Engineer concerned may realise the amount of financial assurance together with the
interest accrued thereon and it shall be contributed towards DMF for the purpose of
performing of protective, reclamation, rehabilitation measures and shall carry out those
measures.

84

Mining operations:The mining operations shall be carried out in such a manner so as to ensure systematic
development, conservation of mineral deposits, protection of environment and safety of man and
machinery.

85

Separate stacking of non-saleable mineral:(1) The non-saleable mineral rejects at quarry or mine bottom shall regularly be collected and
transported to the surface and the quarry or mine floor kept reasonably clear of debris;
(2) Small lumps of mineral shall, as far as possible, be segregated from the dumps and stored
separately for future use;
(3) The ground selected for dumping of top soil, overburden, waste material or non-saleable
mineral shall be away from workings of quarry or mine.

86

Employment of qualified persons:(1) For the purpose of carrying out mining operations in accordance with these rules, every
holder of a Mining Lease / Quarry Licence shall employ:(i)
a whole-time mining engineer or the person possessing II Class Mine Manager's
Certificate of Competency issued by Director General of Mines Safety, where mining
operations are carried out by deployment of heavy mining machinery for deep hole
drilling, excavation, loading and transport, or where the average employment exceeds
one hundred per day or in case area of Mining Lease / Quarry Licence is 25 hectare or
more;
(ii) in case of any other mine, a person having diploma in mining with two year's
experience in mining operations or the person possessing foreman's certificate of
competency issued by the Director General of Mines Safety or Geologist;
Provided that in case where area of lease / licence is upto one hectare and mining is
carried out only by manual means, the person having qualification mentioned in
clause (i) or (ii) may work for a maximum of fifteen leases or fifty Quarry Licences,
provided that all such mines / quarries are located within a radius of hundred
kilometers;
Provided further that if any doubt arises about the lease / licence falling under clause
(i), (ii) above it shall be referred to officer authorised by the Government in this
regard for decision;
Explanation: The expression average employment means the average per day of the total
employment of the mine during the preceding quarter (obtained by dividing the number of
man-days worked by the number of working days);
(2) If the holder of a Mining Lease / Quarry Licence possesses qualification as mentioned in
sub-rule (1), he may appoint himself as the qualified person for the purpose of sub-rule (1);
(3) A mining engineer or geologist employed by the lessee / licencee shall possess the
qualifications specified below:-

52

(i)

(4)
(5)

Geologist: A postgraduate degree in Geology granted by a University established or


incorporated by or under a Central Act, a Provincial Act or a State Act, including any
institution recognised by the University Grants Commission established under section
4 of the University Grants Commission Act, 1956 or any equivalent qualification;
(ii) Mining Engineer: A degree in Mining Engineering granted by a University
established or incorporated by or under a Central Act, a Provincial Act or a State Act,
including any institution recognised by the University Grants Commission established
under section 4 of the University Grants Commission Act, 1956 or any equivalent
qualification;
(iii) Diploma in Mining Engineering: 3 years full time diploma certificate in mining
engineering awarded by the State Technical Education Boards or All India Council of
Technical Education;
The lessee / licencee shall intimate to the Mining Engineer / Assistant Mining Engineer, the
details of qualified person employed by him together with consent of such person;
Where due to reduction in average employment in the mine, any change required to be done
only with previous permission in writing to the officer authorised by the Government in this
regard and subject to such conditions as he may specify.

87

Duties of qualified person:(1) It shall be the duty of the qualified person employed as per rule 86 to take all necessary steps
to plan and conduct mining operations, so as to ensure conservation of minerals, systematic
development of the mineral deposits, protection of environment and safety of persons in and
around the Mining Lease / Quarry Licence area in accordance with these rules;
(2) He / She shall be responsible for the preparation and maintenance of plans, sections, reports
and schemes in accordance with these rules;
(3) He / She shall be responsible for carrying out the study of the associated rocks and minerals,
identifying them and stacking the various minerals produced separately;
(4) He / She shall carry out all such orders and directions as may be given in writing under these
rules by any authorised officer and shall forward a copy of such orders or directions to the
holder of Mining Lease / Quarry Licence;
(5) He / She shall ensure that there is a sufficient provision of proper materials, appliances and
facilities at all times at Mining Lease / Quarry Licence for the purpose of carrying out the
provisions of these rules and orders issued there under and where he is not the owner or
agent of the Mining Lease / Quarry Licence, he shall make requisition in writing to the
owner or agent for anything required for the aforesaid purpose. A copy of every such
requisition shall be recorded in bound paged book kept for the purpose;
(6) On receipt of a requisition under sub-rule (5), the owner or agent shall provide as soon as
possible the materials and facilities requisitioned by the qualified person.

88

Environmental Safeguard to be implemented by individual lessee / licencee:(1) Every Mining Lease or Quarry Licence holder shall:(i)
ensure that no natural watercourse /water resources is obstructed due to any mining
operation. Adequate measures shall be taken for protection of the older-streams, if
any, emanating / passing through the Mining Lease / Quarry Licence area during the
course of mining operation;
(ii) keep mine working restricted to above ground water level till approval of State
Ground Water Department is obtained;
(iii) temporarily store the top soil, at the place earmarked in mine plan / scheme;
(iv) dump over burden (OB) generated during the mining operations at earmarked dump
site/s in environment management plan / mine plan / scheme;
(v) take effective safeguard, such as regular water sprinkling in critical areas prone to air
pollution and having high levels of particulate matter such as around crushing and
screening plant, loading and unloading point and all transfer points. Extensive water
sprinkling shall be carried out on haul roads;
(vi) practice controlled blasting and implement mitigative measures for control of ground
vibrations and to arrest fly rocks and boulders. Blasting shall be done only by a person

53

(2)

(3)

holding blaster certificate from Director General of Mines Safety. Deep hole blasting
shall be carried out only after approval of Director General of Mines Safety;
(vii) take all mitigative measures during the mining operations to ensure that the buildings
/ structures in the nearby areas shall not be affected due to blasting;
(viii) use drills either operated with dust extractors or equipped with water injection system;
(ix) ensure that personnel working in dusty areas shall wear protective respiratory devices
and they shall also be provided with adequate training and information on safety,
environment and health aspects;
(x) undertake to ensure minimum losses to the agriculture crops and undertake to
contribute suitably for compensation to the loss / damage to the crops;
(xi) maintain the bench height and slope as per the Metalliferous Mines Regulation, 1961,
as amended from time to time;
(xii) keep vehicular emissions under control and regularly monitor the same. Measures
shall be taken for maintenance of vehicles used in mining operations and in
transportation of mineral(s);
(xiii) take measures for control of noise levels within permissible limit;
Failure to comply with any of the conditions mentioned in sub-rule (1) may result in
cancellation of lease / licence after giving 30 days notice to the lessee / licencee for
compliance;
Mine working shall be strictly as per the approved / certified mining plan / simplified
mining scheme / scheme of mining, as the case may be.

54

CHAPTER - IX
Assessment of Royalty
89

Assessment of royalty:(1) Assessment for determination of royalty payable by an assessee during the assessment year
or part period, shall be made by the assessing authority;
(2) For the purpose of assessment of royalty as mentioned in sub-rule (1) the assessee shall
submit monthly returns in Form 18 by 15th of the following month and annual returns in
Form 19 within one month from the date of expiry of the assessment year;
Provided that if the lessee does not submit monthly / annual returns within the time
prescribed above, same may be submitted on payment of late fee @ Rs. 500/- per day of
delay, subject to maximum of annual dead rent;
Provided further that where Excess Royalty Collection Contract remains in force for the
complete financial year, assessment of royalty shall be deemed to have been made as
submitted in Form 19;
Provided also that if assessing authority deem fit in the interest of Government, may assess
the royalty for the assessment year during which ERCC remains in force;
(3) For the purpose of assessment, the assessing authority may fix a date on which, the assessee
shall produce records such as production, dispatch / consumption, stock, ravanna, weight
slips, bills of sales, labour attendance and payments and any other records as may be
required;
(4) If the assessee fails to submit returns / records as required under sub-rule (2) and (3) or the
returns filed appear to be incorrect, the assessing authority may hold such inquiry as it may
deem fit and assess royalty for the assessment year to the best of its judgment;
Provided that the assessing authority shall give reasonable opportunity of being heard, to an
assessee before taking any action shall not be less than 15 days.

90

Reopening of cases of best judgment of assessment:Where an assessment has been made to the best of judgment of the assessing authority and the
assessee makes an application to the assessing authority within 30 days from the date of service of
notice of demand in consequence of assessment for the cancellation of the assessment on the
ground:(1) that assessee did not receive the summon or notice issued to him for the purpose of
assessment; or
(2) that assessee was prevented by sufficient cause for complying with any summon or notice;
The assessing authority shall if satisfied about the existence of such ground, cancel the assessment
and proceed to make a fresh assessment in accordance with the provisions of rule 91;
Provided that the assessing authority of it's own motion may also reopen the assessments made on
the basis of best judgment if it has sufficient reasons to do so.

91

Assessment of royalty incorrectly assessed:(1) If for any reason, the whole or any part of dispatches of mineral from the leased area or
consumption of mineral within the leased area, escaped royalty or was assessed at a low rate
in any year, the assessing authority may serve a notice upon the assessee in the Form 41 and
may proceed to reassess the correct amount of royalty;
Provided that nothing in this sub-rule shall be deemed to prevent the assessing authority
from making an assessment to the best of its judgment;
(2) No notice under sub-rule (1) above shall be issued in respect of dispatch and consumption of
mineral for any year after expiry of five years from the date of relevant assessment;
Provided that this rule shall not apply for any assessment or re-assessment made in
consequence of or to give effect to any finding or direction contained in an order of appeal
or revision or in an order of any competent court.

55

92

Time barred Assessments


Notwithstanding anything contained in these rules, if assessment which includes assessment by
way of best of judgment is not done by the assessing authority within one years of its becoming
due, it shall be deemed as time barred;
Provided that above provisions shall be applicable with effect from 1.4.2016.

56

CHAPTER - X
Delegation of Powers, Appeal and Revision
93

Delegation of Powers:The State Government may, by notification in the official Gazette direct that any power
exercisable by it under these rules may in relation to such matters and subject to such conditions, if
any, as may be specified in the notification be exercisable also by such officer or authority
subordinate to the State Government.

94

Settlement Committee:(1) A three tier settlement committee shall have quasi-judicial powers of hearing cases of
disputed related to revenue matters other than illegal mining (except against lessee / licencee
/ permit holder) / transportation / stock matters;
(2) The composition of the settlement committees shall be as follows :(i) Circle level committee Superintending Mining Engineer (Circle) and Superintending
Mining Engineer (Vigilance) concerned, both shall preside the committee and account
personnel posted at circle office / nominated by Superintending Mining Engineer (Circle)
shall act as reader of the committee. The committee shall have power to hear cases
involving amount upto 10 lacs;
(ii) Zone level committee Additional Director Mines (Zone) and Additional Director Mines
(Vigilance) both shall preside the committee and account personnel posted at zone office
/ nominated by Additional Director Mines (Zone) shall act as reader of the committee.
The committee shall have power to hear cases involving amount more than 10 lacs and
upto 50 lacs;
(iii) Directorate level committee - Additional Director Mines (HQ) and Financial Advisor
both shall preside the committee and account officer / assistant account officer posted at
Directorate shall act as reader of the committee. The committee shall have power to hear
cases involving amount more than 50 lacs;
(3) Jurisdiction of zone and circle level committees shall be coterminous with the Jurisdiction of
Additional Director Mines (zone) and Superintending Mining Engineer (Circle) concerned
respectively. Jurisdiction of Directorate level committee shall be State of Rajasthan;
(4) The committees shall have powers to take evidence, oath and proceedings as empowered in
Code of Civil Procedure, 1908 (Act No. 5 of 1908);
(5) The committee shall have powers to review and re-enquire the matters. The committee shall
have powers to grant stay on recovery of revenue for a maximum period of 60 days and may
further extend the stay for 30 days for which reasons to be recorded in writing. The
committee shall also have powers to order recovery of due amount, if any, in maximum four
installments. Committee shall have to decide the case within 90 days from the date of
presentation;
(6) The committees shall entertain a case within 60 days of passing of order of disputed demand.
The aggrieved party / person shall deposit in advance
(i) nonrefundable application fee of Rs. 2500/(ii) 20% of the disputed amount in case of illegal mining against lessee / licencee / permit
holder
(iii) in other cases 50% of the disputed amount

95

Appeal:(1) Any person aggrieved by any order of the Superintending Mining Engineer, Mining
Engineer or Assistant Mining Engineer passed under these rules shall have the right of
appeal to the Director / Additional Director (Mines) zone;
(2) Any person aggrieved by any order passed in appeal under sub-rule (1) or any other order
passed by the Director / Additional Director (Mines) zone under these rules shall have the
right of appeal to the Government;

57

(3)

Any person aggrieved by any order of the Director / Additional Director (Mines) zone /
Settlement Committee by virtue of the powers delegated or otherwise exercised under these
rules shall have the right of appeal to the Government.

96

Form of Appeal and Fees:Every application for appeal shall be made in Form 42 in duplicate and shall be accompanied by a
fee of Rs. 5000/- in the form of challan / demand draft / e-payment in favour of Additional
Director (Mines) zone.

97

Limitation:An appeal under rule 95 shall be filed within three months of the date of communication of the
order appealed against;
Provided that an appeal may be admitted after the said period if the appellant satisfies the appellate
authority that he has sufficient cause for not filing the appeal within the said period.

98

Revision:(1) The State Government in respect of any order, whether in appeal or otherwise passed under
these rules by the Director / Additional Director (Mines) zone may on an application by an
aggrieved party made within 3 months of communication of such order in this behalf or of
its own motion call for and examine the connected records for the purpose of satisfying
itself as to the correctness, legality or propriety of the order passed by any officer authorised
by the Government and may confirm, modify or rescind such order;
Provided that an application for revision may be admitted by the Government after the said
period of 3 months if the Government is satisfied that the applicant had sufficient cause for
not filing the revision application in time;
(2) Every application for revision shall be made in Form 43 in duplicate and shall be
accompanied by a treasury Challan / demand draft / e-payment of Rs. 5000/- deposited as
fee in the Government Treasury under the relevant head of Account.

99

Procedure of appeal and revision:(1) On receipt of appeal under rule 96 or revision under rule 98, copy of appeal / revision as the
case may be, shall be sent to the officer whose order is the subject of appeal / revision or
other authority and to all the impleaded parties calling upon them to make such comments as
they may like to make within three months from the date of issue of communication;
(2) Comments received from any party under sub rule (1) above shall be sent to the other parties
for making such further comments as they may like to make within one month from the date
of issue of such communication;
(3) The appeal / revision, communications containing comments referred in sub rule (1) and (2)
shall constitute the record of the case;
(4) After considering the record referred in sub rule (3), the appellate / revisional authority may
confirm, modify or set aside the order or pass such other order in relation thereto as it may
deem just and proper;
(5) Pending the final disposal of appeal / revision, the appellate / revisional authority may, for
sufficient cause, stay the execution of the order against which appeal / revision has been
made.

58

CHAPTER - XI
Offences Penalties and Prosecutions
100

Illegal mining, transporation and storage of minerals:(1) No person shall undertake any prospecting or mining operations in contravention of rule 4;
(2) The lessee or any other person permitted under these rules shall not dispatch mineral from
the mines (except from the Quarry Licence area) without valid rawanna / Transit pass;
(3) No person shall transport / store or cause to be transported / stored any mineral otherwise
than in accordance with the provisions of these rules;
(4) Whoever contravenes the provisions of sub-rule (1) to (3) shall be punished with
imprisonment for a term which may extend to five years, or with fine which may extend to
five lakh rupees, or with both;
Provided that the Additional Director Mines / Superintending Mining Engineer / Mining
Engineer / Assistant Mining Engineer / Mines Forman Gr-I, Mines Foreman Gr-II/ Senior
Surveyor/ Surveyor or any other officer / official authorised by the Government / Director /
Additional Director Mines in this behalf may either before or after the institution of the
prosecution compound the offence committed in contravention of the sub-rule (1) to (3) on
payment of cost of mineral and compound fee as mentioned below:S.No.
Vehicle / Equipment
Compound Fee per unit
(i)
Tractor trolley
Rs.25,000/(ii)
Half Body Truck
Rs.50,000/(iii)
Full Body Truck, Dumpers, Trolla, Wire saw, Rs. 1,00,000/crane, excavator, loader, power hammer,
compressor, drilling machine, crusher etc.
Provided that the amount of compound fee in cases other than specified as above shall not
be less than Rs. 25,000/- and shall be in addition to the cost of mineral;
(5) Where any person trespasses on any land in contravention of the provisions of sub-rule (1)
such trespasser may be served with an order of eviction by the Additional Director Mines,
Superintending Mining Engineer, Mining Engineer or Assistant Mining Engineer / District
Collector / Sub-Divisional Officer / Tehsildar / Revenue Intelligence Officer of State
Directorate of Revenue Intelligence (SDRI) / Mines Forman Gr-I / Mines Foreman Gr-II /
Senior Surveyor / Surveyor or any other officer / official authorised by the Government /
Director / Additional Director Mines in this behalf;
(6) Whenever any person, without a lawful authority, raises any mineral from any land other
than any mineral concession or any other permission and for that purpose bring on the land
any tool, equipment, vehicle or other thing, such tool, equipment, vehicle etc alongwith
mineral if any may be seized by the authorities mentioned in sub-rule (5);
Provided that the seized vehicle / equipment / mineral may be released after recovering cost
of mineral alongwith rent, royalty or the tax chargeable on the land occupied which will be
computed as 15 times of the royalty payable at the prevalent rate, alongwith compounding
fee as per sub-rule (4);
Provided further that where mineral so raised has already been dispatched or consumed, the
authorities mentioned in sub-rule (5) shall recover rent, royalty or the tax chargeable on the
land occupied which will be computed as 15 times of the royalty payable at the prevalent
rate, alongwith compounding fee as per sub-rule (4);
Provided also that every officer seizing any property or mineral under this rule shall give a
receipt of the property so seized to the person from whose possession the property or
mineral is seized and the property so seized may be handed over to the police station / police
chauki;
Provided further also that if the property so seized is not handed over to the police station /
police chauki then person seizing the property shall make a report of such seizure to his
superior officer and to the Magistrate having jurisdiction over the area to try offence;
(7) All property seized under this rule shall be liable to be confiscated by an order of Magistrate
trying the offence if the rent, royalty, tax and / or cost of the mineral as mentioned above are
not paid by the trespasser within a period of 3 months from the date of commission of such
offence or when the recoveries are not affected by that time;

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Provided that on payment of these dues within the said period of 3 months all properties
seized shall be ordered to be released and shall be handed over to the trespasser or the owner
of the property.
101

Contravention of certain conditions of lease:Any lessee or his transferee or his assignee, who commits a breach of any of the conditions of the
lease as the case may be mentioned in sub-rule (11) or (14) of rule 40 shall be punished with
imprisonment for a term which may extend to one year or with fine which may extend to Rs.
5,000/- or fine which may extend to five hundred rupees for every day during which such
contravention continues after conviction for the first such contravention.

102

Offence cognizable only on written complaint:No court shall take cognizance of any offence punishable under these rules except upon a
complaint in writing made by the authorities mentioned in sub rule (5) of rule 100;
Provided that Mines Forman Grade-I / Grade-II or Sr. Surveyor / Surveyor shall obtain prior
approval of the Mining Engineer / Assistant Mining Engineer before filing any complaint.

103

Role of police:The authorities empowered to take action under rule 100 and rule 121 may request in writing for
the help of the local police, and the police authorities shall render such assistance, as may be
necessary to enable the officers to exercise the powers conferred on them by these rules to stop
illegal mining and the illegal movement of minerals. In case of theft of mineral, FIR shall be
lodged in the respective police station under relevant section of Indian Penal Code.

104

Investigation of offences:(1) Subject to such conditions as may be specified, authorities as mentioned in sub rule (5) of
rule 100 shall investigate all or any of the offences punishable under these rules;
(2) Every officer so authorised shall in the conduct of such investigations, exercise the powers
conferred by the Code of Criminal Procedure, upon an officer in-charge of a police station
for the investigation of a cognizable offence.

105

Power to take evidence on oath:The assessing authority or investigating officer as mentioned in sub rule (5) of rule 100 and the
appellate authority shall for the purpose of these rules have the same powers as are vested in a
court under the Code of Civil Procedure when trying a suit in respect of the following matters
namely:(i)
Enforcing the attendance of any person and examining him on oath or affirmation;
(ii) Compelling production of documents; and
(iii) Issuing commission for examination of witnesses and any proceedings before the appellate
authority, the assessing authority and investigating officer shall be deemed to be a "Judicial
Proceedings" within the meaning of Section 193, 196 and 228 of the Indian Penal Code.

106

Powers of entry, inspection of records and seizure of books of accounts of a Dealer /


Assessee:(1) An assessing authority or investigating officer not below the rank of Assistant Mining
Engineer or Revenue Intelligence Officer of the State Directorate of Revenue Intelligence or
any other officer / official authorised by the Government or Director in this behalf may for
the purposes of these rules, require any dealer / assessee to produce before him the accounts,
registers and other documents and to furnish any other information relating to mining
operations or business;
(2) All accounts, registers and other documents pertaining to the business of a dealer / assessee,
the minerals in his possession or in the possession of his agent or broker for the time being
on his behalf and their office, godown, factory, vehicle or any other place where the
business is done or accounts are kept shall be open for inspection and examination of any
such authority at all reasonable time;
(3) If any such authority has reason to suspect that any dealer / assessee is attempting to evade
payment of royalty or other dues under these rules, he may, for the reasons to be recorded in

60

writing, seize such accounts, registers or other documents of the dealer / assessee as he may
consider necessary and shall give receipt to the dealer / assessee or any other person from
whose custody such accounts, registers and documents are seized. The accounts, registers
and documents so seized shall be retained by such officer only for their examination or for
any inquiry or proceedings under these rules or for prosecution;
Provided that the accounts, registers and documents so seized shall not be retained by such
officer beyond a period of 3 months from the date of seizure without the written order of the
Director for reasons to be recorded in writing;
Provided further that before returning the accounts, registers and documents, such officer
may require that the dealer / assessee shall give a written undertaking that the accounts,
registers and documents, shall be presented whenever required by authorities mentioned in
sub rule (1) for proceedings under these rules and that such undertaking shall be supported
by a security of Rs. 10,000/- in form of NSC or FDR pledged in favour of concerned
authority;
(4) For the purpose of sub-rule (2) and (3), any such authority shall have powers to enter and
search at all reasonable times any offices, godown, factory or vehicle or any other place of
business or any building or place where any such authority, has reason to believe that the
dealer / assessee keeps or for the time being keeping any minerals accounts, registers or
other documents pertaining to his business or mining operations and also to search the body
of any other person found in such office, godown, factory, vehicle, building or place about
whom any such authority has reason to suspect that he may have in his personal possession
any such minerals, books of accounts registers or documents;
(5) Such authority may, when it is not practicable to seize any books or accounts, registers,
documents or mineral, serve upon the dealer / assessee or the person who is in immediate
possession or control thereof, an order that he shall not remove, part with or otherwise deal
with them except with the previous permission of such authority or person who may take
such steps in accordance with rules, as may be necessary for ensuring compliance of this
sub-rule;
(6) The power conferred by sub-rule (4) and (5) shall include the power to break open any box
or receptacle in which any mineral, accounts, registers or documents of dealer / assessee
may be contained or to break open the door of any premises where any such mineral,
accounts registers or documents may be kept or to place marks of identification on his books
of accounts, registers or documents for to make or cause to be made extracts or copies
thereof;
Provided that the power to break open the door shall be exercised only after the dealer /
assessee or any other person in occupation of the premises, if he is present therein, fails or
refuses to open the door on being called upon to do so;
(7) Any such authority shall have power to seize any mineral, the removal or sale of which is
liable to payment of royalty or cost and which are found in possession of a dealer / assessee
or in the possession of his agent or broker or of any other person for the time being on his
behalf or in any office, godown, factory, vehicle or any other place of business or building
of the dealer / assessee or of the agent, the broker or of any other person holding the said
mineral on his behalf but not accounted for by the dealer / assessee in his accounts, registers
and other documents maintained in the course of his business or any mining operations;
Provided that list of minerals / documents seized under this sub-rule shall be prepared by
such authority and signed by two respectable witnesses;
(8) Such authority may after giving an opportunity of being heard and holding such further
inquiry as he may consider fit, realize from the dealer / assessee, for the possession of
mineral not accounted for, the cost of mineral inclusive of royalty which will be computed
as 15 times the royalty payable at the prevalent rates;
(9) Such authority may release the mineral or documents seized under these rules on payment of
cost of mineral or on furnishing such security in the form of Bank Guarantee for a minimum
period of six months equivalent to the cost of mineral for payment thereof as he may
consider necessary;
(10) Any such authority may require any person:-

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(i)

Who transports or holds in custody for delivery to or on behalf of any dealer /


assessee, any mineral, to give any information likely to be in his possession in respect
of such mineral or to permit inspection thereof as the case may be;
(ii) Who maintains or has in his possession any accounts, books or documents relating to
the business / mining operations, to produce such accounts, books or documents for
inspection;
(11) The provisions of Code of Criminal Procedure relating to searches shall apply, so far as may
be, to the searches made under these rules.

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CHAPTER - XII
Miscellaneous
107

Application of these rules:These rules shall apply to all existing Leases / Quarry Licences / Permits / Royalty Collection
Contract / Excess Royalty Collection Contract with or without collection of permit fee / other
charges, granted or renewed before the commencement of these rules;
Provided that all pending renewal applications applied before commencement of these rules, shall
be deemed to have been rejected except for those applications which have been applied for renewal
for more than 50 years from initial grant. Such applications shall be disposed off after the applicant
applies for extension under these rules.

108

Register to be open for inspection:All registers maintained in the office of the Mining Engineer / Assistant Mining Engineer under
these rules shall be open for inspection by any person who holds or intends to acquire a mineral
concession under these rules on payment of a fee of Rs. 100/- for each inspection.

109. Demarcation Charges:Charges for demarcation shall be Rs. 1500/- per hectare or part thereof subject to maximum Rs.
25000/-;
Provided that re-verification of boundary pillars may be carried out on the request of the
concession holder but the expenses of the re-verification shall be twice the amount of demarcation
charges mentioned above.
110

Procedure for e-auction / e-tender :Director shall issue detailed guidelines regarding the procedure for e-auction / e-tender of Mining
Lease / Quarry Licence / RCC / ERCC etc. The guidelines so issued shall not be inconsistent with
the provisions of the rules.

111

Rectification of mistakes:Any clerical or arithmetical mistake in any order passed by Government or any other officer under
these rules and any error arising therein from accidental slip or omission may be corrected by the
Government or officer as the case may be;
Provided that no order prejudicial to any person shall be passed unless he has been given a
reasonable opportunity for stating his case.

112

Rate of Interest:Interest at the rate of 15% shall be charged on all dues in respect of dead rent, royalty, annual
Quarry Licence fee, Royalty Collection Contract or Excess Royalty Collection Contract amounts
from the due date.

113

Dues may be recovered as arrears of Land Revenue:Notwithstanding anything contained in these rules, Government may recover any dues in respect
of dead rent, royalty, licence fee, Royalty Collection Contract amount, Excess Royalty Collection
Contract amount, contribution towards DMF and SMET, cost of mineral, penalties and any other
dues under these rules together with interest if applicable as arrears of Land Revenue under the law
in force relating to such recovery.

114

Guidelines for registration of dealer:(1) Any person except dealing in granite, marble, sandstone, limestone (dimensional) and bajri
who wants to dispatch royalty paid mineral(s) may get his place / places of business
registered separately under these rules by submitting an application in Form 44 alongwith
proof of deposit of 100/- non-refundable fee to the respective Mining Engineer or Assistant
Mining Engineer, having jurisdiction over the place of business;
Provided that if any person establishes mineral based Industry within the State and
registered with Industries Department of the State, shall be exempted for submitting an

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(2)

(3)

(4)

application in Form 41 for registration and fee as prescribed above. He shall intimate the
concerned Mining Engineer / Assistant Mining Engineer that he is already registered with
Industries Department and submit attested copy of Certificate of such Registration within
specified period and Mines Department shall enroll the person as a Registered Dealer on the
basis of such Registration Certificate.
On receipt of an application under sub-rule (1), the Mining Engineer or Assistant Mining
Engineer shall acknowledge the receipt of the application on the same day and register the
person as a Dealer within three days from the date of receipt of the application and issue
Registration Certificate in Form 45;
If the person is not registered within three days from the date of receipt of the application, he
shall deemed to have been registered as a Dealer after the period of three days from the date
of submitting the application;
The Mining Engineer / Assistant Mining Engineer shall maintain a register in his office in
Form 46, wherein he shall make necessary entries about the dealer and it's registration.

115

Procedure for Issue of Transit Pass:(l)


The dealer desiring Transit pass shall submit an application before the Mining Engineer or
Assistant Mining Engineer concerned in Form 47 duly specifying all the particulars
prescribed therein;
(2) The application for transit pass shall be accompanied by a copy of the relevant documents
and particulars of royalty payment on such mineral;
(3) On receipt of an application of the dealer under sub-rule (1), the Mining Engineer or
Assistant Mining Engineer concerned may issue Transit Pass in Form 48 for specified
period; on the basis of records including royalty receipts / rawanna / transit pass submitted
by the applicant and subject to such terms and conditions as deemed necessary or may
refuse to issue such Transit Pass for reasons to be recorded in writing and communicated to
the applicant;
Provided that if the Mining Engineer or Assistant Mining Engineer deems fit in the interest
of Government, may verify the record and stock before issuing the transit pass;
(4) The Mining Engineer / Assistant Mining Engineer shall maintain register of 'Issue of Transit
Pass' in Form 49. The Transit Passes issued to a dealer for the quantity, shall not exceed the
quantity for which valid royalty receipts has been submitted;
(5) Rawanna / royalty receipts/transit pass submitted by dealer, in lieu of Transit Passes shall be
stamped as "Cancelled, Transit Pass issued" by Mining Engineer or Assistant Mining
Engineer.

116

Acquisition of Bapi and Proprietary rights:The Government shall not recognize any Bapi or proprietary right in or on any land wherein such a
right is claimed by any person over any mineral bearing land, quarry or mine unless declared so by
a court of competent jurisdiction. The Government may acquire such Bapi or proprietary rights so
declared after payment of reasonable compensation in accordance with the provisions of law for
the time being in force.

117

Relaxation of Rules:The Government may relax any provision of these rules for reasons to be recorded in writing in the
interest of the State, safety, mineral conservation and development except awarding any mineral
concession.

118

Grant of mineral concession by adopting procedure different from the given in the Rules:Notwithstanding anything contained in these rules, Government may, by notification in Official
Gazette and at least one daily news paper having wide circulation in the State as well as one news
paper having wide circulation in the locality nearest to the area in question adopt any method or
procedure different from that provided in the rules for leasing out mineral deposit in the interest of
mineral development.

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119

Special mode of recovery:(1) Notwithstanding anything contained in these rules or contract to the contrary, the assessing
authority may at anytime, by notice in writing (a copy of which shall also be sent to the
assessee at his last known address) require any person from whom any amount is due or may
become due to an assessee who has failed to pay any rent, royalty, contribution towards
DMF and SMET, penalty, interest or any sum due to the Government to pay such amount
limiting to total dues on demand by the assessing authority;
(2) The assessing authority issuing a notice under sub-rule (1) may at any time amends or
revoke such notice or extend the period for making any payment in pursuance of the notice;
(3) Any person making any payment in compliance of a notice issued under sub-rule (1) shall
be deemed to have made the payment under the authority of the assessee and the treasury
receipt for payment shall constitute a good and sufficient discharge of the liability of such
person to the assessee to the extent of the amount specified in such receipt;
(4) Any person discharging any liability to the assessee after service of the notice upon him
under sub-rule (1) shall be personally liable to the State Government to the extent of the
discharge of the liability to the assessee in respect of any other sum due from the assessee to
the Government;
(5) Any amount which a person is required to pay or for which he is personally liable to pay to
the State Government under sub-rule (1) shall if such amount remains unpaid, be
recoverable as an arrears of land revenue from such person.

120

Refund:(1) The assessing authority after approval of competent authority shall, on an application made
in this behalf and after satisfying the correctness of the claim made by the applicant, refund
to an assessee any amount paid by him in excess of the amount due from him under these
rules, either by cash payment or by adjustment of such excess against the amount due from
the assessee in respect of any other period;
Provided that no claim for refund shall be allowed unless it is made within two years from
the date on which the order of assessment was made or within 12 months of the final order
passed in appeal whichever may be the later;
(2) Any sum refundable under sub-rule (1) if not refunded within sixty days from the date of
receipt of the application and shall carry simple interest @ 6% per annum after expiry of
aforesaid period of sixty days.

121

Establishment of check posts / barriers and inspection of minerals in transit and weighment:(1) To prevent or check the evasion of royalty, Mining Engineer / Assistant Mining Engineer
may direct to establish check post / barrier at such place and for such period as may be
specified in the order;
(2) The Director, Additional Director Mines, Superintending Mining Engineer, Mining
Engineer, Assistant Mining Engineer, Mines Foreman Gr I, Mines Foreman Gr II, Senior
Surveyor, Surveyor, Field Assistant, Nakedar or any other officer / official authorised by the
State Government / Director / Additional Director Mines may check a vehicle carrying the
mineral at any place and the owner or the person in charge of the vehicle shall furnish a
valid rawanna or transit pass or royalty receipt duly authenticated by the Department in the
prescribed form and any other documents / particulars as demanded by the officer;
(3) At every check post / barrier set up under sub-rule (1) or at any other place when so required
by the officer incharge of the check post or officers / officials empowered in sub rule (2), the
driver or any other person incharge of the vehicle shall stop the same, get the minerals
contained therein weighed, shall pay weighing charges as fixed by the Government from
time to time and shall keep the vehicle stationed so long as may reasonably be necessary and
allow officer in charge of the check post or such other officer as aforesaid to examine the
minerals in transit and also inspect all records relating to the minerals in possession of such
driver or other person. The driver or other person shall, if so required by the officer in
charge of the check post or any other officer so empowered give his name and address as
also that of the owner of the vehicle and the name and address of the consignor and the
consignee. After checking the minerals and vehicle the officer incharge of the check post or

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(4)

(5)

(6)

(7)

122

such other officer as aforesaid shall put his signature on the rawanna / transit pass / royalty
receipt so as to avoid any further checking at another check post;
Every owner or person incharge of a vehicle shall carry with him a valid rawanna or transit
pass or royalty receipt duly authenticated by the Department in respect of the mineral carried
and shall produce the same before any officer incharge of a check post or other officer /
official empowered under sub-rule (2);
Explanation:- Minerals shall not cease to be minerals by reason of being subjected to any
process like crushing, breaking, drying, pulverizing, calcinising or any
other procedure intended to make the mineral fit or suitable for sale or
consumption;
If the officer incharge of the check post or any other officer / official empowered under subrule (2) above has a reason to believe that royalty is likely to be evaded in respect of any
mineral liable to assessment for royalty, such officer may require the owner or person
incharge of the vehicle to pay cost of the mineral inclusive of royalty (which will be
computed as 15 times the royalty payable at the prevalent rates) along with compounding
fee as specified in rule 100(4);
Provided that where on weighment or by measurement at the check post it is found that the
entire quantity of mineral is not covered by the rawanna, the amount of royalty on such
difference, shall be recovered by the officer incharge of the check-post;
(i)
The officer incharge of the check post or the officer / official empowered under subrule (2) shall have the power to seize and confiscate mineral alongwith vehicle which
is not covered by a valid rawanna or transit pass or royalty receipt duly authenticated
by the Department, if the owner or person incharge of the vehicle refused to make
payment as required under sub-rule (5), the seized vehicle alongwith mineral shall be
handed over to incharge of nearest Police Station / Police Chauki / departmental
check post;
(ii) The officer incharge of the check post or any officer / official empowered in this
behalf shall give a receipt of such mineral alongwith vehicle seized by him to the
person from whose possession or control it is seized in the Form 50;
(iii) The officer incharge of the check post or any officer / official empowered under subrule (2) may direct the person incharge of the vehicle to carry the vehicle alongwith
mineral, so seized, to the nearest Police Station / Police Chauki / departmental check
post;
Whenever an order of confiscation in respect of mineral alongwith vehicle seized under subrule (6) is made by an officer / official empowered by the Government in this behalf such
officer shall give an option to the owner or incharge of the vehicle to pay an amount as per
sub-rule (5) in view of such confiscation. In case of failure of the owner or person incharge
of the vehicle to avail such option the confiscated material may be disposed of by the
confiscating officer or any other officer authorised in this behalf by public auction by beat of
drum or he may sell in directly at the rate prevalent in the adjacent area;
Provided that no such mineral alongwith vehicle confiscated under sub-rule (6) shall be
disposed of by the confiscating officer or any other officer authorised in this behalf before
48 hours of such confiscation and till that time option shall remain with the owner or person
incharge of the vehicle to carry the mineral after paying an amount as per sub rule (5).

Power to summon:(1) The assessing authority for the observance of these rules and for reasons to be recorded may
summon any person using and or dealing in the mineral in the State and may demand
necessary information and sources from where the mineral has been procured and the
assessing authority may also depute any officer / official by a general or special order in
writing to collect such information and thereafter assess the royalty or the cost of mineral
recoverable as the case may be;
(2) Any person who is engaged in dealing of minerals shall maintain a correct account of
mineral purchased, stocked and sold by him and these records shall be produced for
inspection, if required by assessing authority or a person authorised by assessing authority in
this behalf;

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Provided that if such dealer fails to produce record of mineral purchased by him, the
assessing authority may enter into any place where the mineral is stored and measure or
count it and assess cost of mineral which shall be recovered from the dealer.
123

Stoppage of mining operations:The Director, Additional Director Mines, Superintending Mining Engineer, Mining Engineer,
Assistant Mining Engineer may prohibit mining and seize minerals, equipment, tools and vehicle
in case the mining operations are being carried out not in accordance with the terms and conditions
of the mineral concession or permit granted under these rules or without any mineral concession or
permit irrespective of that such minerals, tools, equipment and vehicles are lying at site or are in
transit.

124

Service of Notice:(1) Every notice under these rules required to be given to the holder of mineral concession,
permit, ERCC, RCC etc. shall be given in writing in person or by registered post / speed
post / e-mail addressed to him at the latest address intimated;
(2) The service of such notice on any member of the family, his agent or any other person
purporting to be his agent or any other person maintaining his books of accounts or issuing
rawanna or filing monthly statistical returns shall be deemed to be proper and valid service
upon the holder of mineral concession/permit/ ERCC/RCC etc. and shall not be questioned
or challenged by him. An endorsement by postal employee / departmental official that the
holder of mineral concession/permit/ ERCC/ RCC etc. or any of the aforesaid persons
refused to take the delivery or non-availability of the person at the last known address may
be deemed to be prima facie proof of service.

125

Mining operations to be under lease, licence or permit:Any Prospecting Licence, Mining Lease, Quarry Licence, permit granted, extended or acquired in
contravention of these rules shall be treated as null and void;
Provided that order of any authority in this regard below the rank of Director shall be declared null
and void by the Director;
Provided further that order of Director / Government shall be declared null and void by the
Government.

126

Reservation of area for prospecting or mining operations by the Government:(1) Where the Government proposes to undertake prospecting or mining operations of any
mineral, it shall issue a notification reserving the area, in at least one daily news paper
having wide circulation in the State. The notification shall give date of notification from
which area is to be reserved, details of area and the period for which such operations are
proposed to be undertaken;
(2) Where the area is reserved under sub rule (1), all applications pending on the date of
reservation shall deemed to have been rejected.

127

Status of the grant on the death of applicant for mineral concession / contract / permit:(1) Where an applicant for grant of mineral concession / contract / permit as the case may be
dies before the issue of order for grant, the application for the grant of a mineral concession /
contract / permit shall be deemed to have been made by his legal representative;
(2) In the case where applicant in respect of whom an order of grant of mineral concession /
contract has been issued, but who dies before the execution of deed or dies before issuance
of Quarry Licence the order shall be deemed to have been issued in the name of the legal
representative of the deceased.

128

Mutation of mineral concession / contract / permit on the death of mineral concession holder
/ contractor / permit holder:(1) Where a holder of mineral concession / contract / permit, dies during currency of the mineral
concession / contract / permit, it shall be mutated in favour of his / her legal heir / heirs;
(2) An application for mutation shall be submitted along with a fee of Rs. 10/-, death certificate
of the deceased, affidavit of legal heirs, affidavit of other legal heirs in favour of applicant

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(3)
(4)
(5)

(6)

for relinquishment of their rights if any, within 6 months from the date of death. The
applicant shall also submit a self attested photo copy of PAN card and self attested photo
copy of any of the driving licence / passport / voter identification card / aadhar card / bank
pass book / latest electricity bill / latest water bill for the photo identity and address proof
along with the application;
Provided that in case of dispute regarding legal heirs, Mining Engineer / Assistant Mining
Engineer may ask the applicant to submit succession certificate issued by competent court;
Such application for mutation shall be disposed of by the competent authority preferably
within a period of 3 months;
Mutation deed shall be executed in Form 51 within a period of three month from the issue of
order of mutation or within such period as the competent authority may allow in this behalf;
In case application for mutation of mineral concession / contract / permit is not submitted
within prescribed time of 6 months from date of death of concessioner / contractor / permit
holder, the mineral concession / contract / permit shall be deemed to have been cancelled
and memo shall be issued in this behalf for taking possession of the area;
In case where order for mutation has been passed but legal heir fails to execute mutation
deed within prescribed time, order of mutation shall be revoked and possession of the area
shall be taken.

129 Amalgamation of Mining Leases / Quarry Licences:The Additional Director (Mines) zone concerned may, in the interest of mineral development and
with reasons to be recorded in writing, permit amalgamation of two or more adjoining leases /
Quarry Licences held by a lessee / licencee;
Provided that the period and dead rent of the amalgamated lease / licence shall be co-terminus with
the lease / licence whose period expires last.
130. Availability of the area for re-grant:(1) Any area which was previously held under a Prospecting Licence/ Mining Lease/ Quarry
Licence or in respect of which sanction has been issued but revoked or areas reserved under
rule 126 shall not be available for re-grant unless a 30 days notification in this respect is
published by the Superintending Mining Engineer concerned in daily newspaper widely
circulated in Rajasthan and shall be displayed on the Departmental Website;
Provided that the area which was previously held under prospecting licence / mining lease or
in respect of which the order granting a licence / lease has been revoked shall deemed to
have been available for re-grant from the date of notification of these rules;
Provided further that in case of Khatedari land declaring the area free for grant shall not be
necessary;
(2) Any application received on such areas which are to be declared free as per Sub-rule (1)
shall be cancelled treating as premature.
131.

Payment of compensation to owner of surface rights etc.


(1)
The holder of a prospecting licence or mining lease shall be liable to pay to the occupier
of the surface of the land over which he holds the reconnaissance permit or prospecting
licence or mining lease as the case may be, such annual compensation as may be
determined by an officer appointed by the State Government by notification in this
behalf in the manner provided in sub-rules (2) to (4).
(2)
In the case of agricultural land, the amount of annual compensation shall be worked out
on the basis of the average annual net income from the cultivation of similar land for the
previous three years.
(3)
In the case of non-agricultural land, the amount of annual compensation shall be worked
out on the basis of average annual letting value of similar land for the previous three
years.
(4)
The annual compensation referred to in sub-rule (1) shall be payable on or before such
date as may be specified by the State Government in this behalf.

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132.

Assessment of compensation for damage.


(1)
After the termination of a reconnaissance permit or a prospecting licence or a mining
lease, the State Government shall assess the damage, if any, done to the land by the
reconnaissance or prospecting or mining operations and shall determine the amount of
compensation payable by the permit holder or licensee or the lessee as the case may be to
the occupier of the surface land;
(2)
Every such assessment shall be made within a period of one year from the date of
termination of the reconnaissance permit or prospecting licence or mining lease and shall
be carried out by an officer appointed by the State Government by notification in this
behalf.

133.

State Mineral Exploration Trust (SMET)


(1)
Constitution of Trust A trust to be known as State Mineral Exploration Trust shall be
set up by the State Government.
(2)
The objectives of the Trust will be
(i)
To utilize the funds accumulated in the State Mineral Exploration Trust Fund for
carrying out regional and detailed exploration for minerals in any part of
Rajasthan.
(ii)
While choosing areas and minerals for regional and detailed exploration, the
Trust shall give priority to the exploration of strategic and critical minerals.
(iii)
The exploration activities of the Trust shall be taken up to a level where the grant
of mineral concessions in respect of such minerals is possible through the
procedures laid down in the rules.
(iv)
The Trust fund may also be used for taking up any such study as may be
required for exploitation of any mineral resources discovered. Such studies could
cover areas of mine development, sustainable mining, adoption of advanced
scientific and technological practices as well as mineral extraction metallurgy.
(v)
The Trust fund may also be used for funding special studies and projects
designed to identify, explore, extract, beneficiate and refine deep-seated or
concealed mineral deposits.
(vi)
The Trust fund may be used for any other purposes that the Trustees may decide
to be desirable or expedient in the interest of development and exploitation of
Rajasthans mineral resources.
(3)
Contributions to the Trust Fund
(i)
Every holder of mining lease, quarry licence or a permit which is in the stage of
production through mining, shall pay a sum equivalent to 2% of the royalty paid
in terms of the Schedule I along with the periodical payments of royalty to the
concerned State Governments.
(ii)
The State Government shall, within 10 days from the end of every month,
transfer the amounts so collected to the credit of the Bank Account of the State
Mineral Exploration Trust Fund.
(iii)
Contributions to SMET may also be made through grants and aid by the
government, and such other sources as may be approved by the State
Government.
(4)
Exploration Agencies to be engaged by the Trust.
(i)
The State Mineral Exploration Trust may engage any exploration agency of the
State Government and assign any specific project to be carried out through such
agency. The expenditure on exploration to such agencies may be decided on the
basis of negotiated rates.
(ii)
The Trust may also empanel qualified exploration agencies by soliciting
expressions of interest. The Trust may prepare more than one panel in case
different kinds of expertise are felt essential.
(5)
Expenditure from the Trust Fund - The funds available with the State Exploration Trust
Fund can be used for all or any of the following purposes:
(i)
Expenditure on approved projects.

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(ii)

(6)

(7)

Grants to State Government for undertaking specific projects in line with the
objectives of the Trust.
(iii)
Grants for capacity building in exploration and other areas required for meeting
the objectives of the Trust.
(iv)
Sponsoring research at academic institutions in areas falling within the purview
of the Trust.
(v)
Administrative expenditure of the Trust.
Accounts and Audit.
(i)
The accounts of the Trust shall be maintained in consultation with the Auditor
General (AG).
(ii)
The accounts of the Trust shall be audited annually by the Auditor General
(AG).
(iii)
The Trust shall submit an annual report and the audited report to the State
Government.
Administrative Support.
The Administrative Support required for operating the Trust shall be provided by the
Department of Mines.
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