(1) Subject to the conditions of this rule where mining operations are not commenced within a period of two years from the date of execution of the lease, or is discontinued for a continuous period of two years after commencement of such operations, the State Government shall, by an order, declare the mining lease as lapsed and communicate the declaration to the lessee.
(2) Where a lessee is unable to commence the mining operation within a period of two years from the date of execution of the mining lease, or discontinues mining operations for a period exceeding two years for reasons beyond his control, he may submit an application to the State Government, explaining the reasons for the same, at least three months before the expiry of such period ;
(3) Every application under sub-rule (2) shall be accompanied by a fee of Rs.200/-;
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1. Inserted by G.S.R.593(E), dated 26.7.2012.
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(4) The State Government may on receipt of an application made under sub-rule (2) and on being satisfied about the adequacy and genuineness of the reasons for the non-commencement of mining operations or discontinuance thereof, pass an order before the date on which the lease would have otherwise lapsed, extending or refusing to extend the period of the lease :
Provided that where the State Government on receipt of an application under sub-rule (2) does not pass an order before the expiry of the date on which the lease would have otherwise lapsed, the lease shall be deemed to have been extended until the order is passed by the State Government or until a period of two years, whichever is earlier.
Explanation 1: Where the non-commencement of the mining operations within a period of two years from the date of execution of mining lease is on account of –
(a) delay in acquisition of surface rights; or
(b) delay in getting the possession of the leased area; or
(c) delay in supply or installation of machinery; or
(d) delay in getting financial assistance from the banks, or any financial institutions; or
(e) ensuring supply of the mineral in an industry of which the lessee is the owner or in which he holds not less than 50% of the controlling interest;
and the lessee is able to furnish documentary evidence supported by a duly sworn affidavit, the State Government may consider if there are sufficient reasons for non-commencement of operations for a continuous period of more than two years.
Explanation 2: Where the discontinuance of mining operations for a continuous period of two years after the commencement of such operations is on account of –
(a) orders passed by any statutory or judicial authority; or
(b) operations becoming highly uneconomical; or
(c) strike or lock out;
and the lessee is able to furnish documentary evidence supported by a duly 34 sworn affidavit, the State Government may consider if there are sufficient reasons for discontinuance of operations for a continuous period of more than two years.
1 [Explanation 3: In case of mining lessee who has undertaken reconnaissance operations or in case of mining lessee whose capital investment in mine development is planned to be in excess of Rs. 200 crores and where the mine development is likely to take more than two years, the State Government shall consider it to be sufficient reason for non-commencement of mining operations for a continuous period of more than two years.]
28A.(1) Where a lessee is unable to commence the mining operations within a period of two years from the date of execution of the mining lease, or discontinues mining operations for a period of exceeding two years for reasons beyond his control, he may submit an application to the State Government explaining the reasons for the same at least within six months from the date of its lapse :
Provided that the lease has not been revived under this provision for more than twice during the entire period of the lease.
(2) Every application under sub-rule (1) shall be accompanied by a fee of Rs 500/-.
(3) The State Government on receipt of an application made under subrule (1) and on being satisfied about the adequacy and genuineness of the reasons for non-commencement of mining operations or discontinuance thereof taking into consideration the matters specified in the Explanation to rule 28, pass an order reviving the lease.