(1) In case the Government decide to grant the mineral concession in the form of Contract; it may grant the same for mining for a maximum period of ten years following a competitive biding process by way of auction or tender:
Provided that in the case of forest land, the period of contract may be extended upto a maximum period of fifteen years.
(2) No auction or tender or contract shall be considered as successful unless accepted by the Competent Authority. The amount of the successful bid/tender shall become the annual contract money payable by the Contractor to the Government for a period of two years and after completion of two years, the annual contract money determined at the time of initial grant shall be increased at the rate of 10% per annum in a compounding manner:
Provided that no auction or tender or contract, as the case may be, regarding exploitation of minor minerals in Scheduled area shall be considered by the Government for acceptance unless recommended by Gram Sabha.
(3) The amount to be paid annually by contractor under sub-rule (2) to the Government shall be payable in equal quarterly installments in advance.
(4) The Agreement deed shall be executed by the successful bidder or tender with the Director or any other authorized officer in the Form-„K‟ and the mining operations shall be carried out in accordance with the terms and conditions of the agreement deed.
(5) In the event of grant of contract, the party shall not be permitted to withdraw his bid or tender and in doing so the party will be liable to forfeiture of earnest money and security.
(6) The mechanical mining in river and stream bed shall be allowed only with the help of tyre mounted front end loader upto 80 Horse Power without backhoe with the permission of the Director. The contractor seeking such permission shall deposit a sum as specified in the First Schedule as security and the Director may permit the use of mechanical mining under following terms and conditions:-
(i) depth of the pit below the surface shall not exceed 1 meter from the adjoining ground in case of river/stream bed;
(ii) natural flow of the water shall not be disturbed;
(iii) the excavation of mineral shall be done by way of uniform stripping of mineral in a scientific manner;
(iv) any other condition imposed by the Competent Authority; and
(v) any violation of terms and conditions imposed while granting such permission shall result in cancelation of contract and forfeiture of security amount thereof:
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Provided that the contractor may use any type of excavator in hill slop mining.
(7) The contractor shall furnish returns relating to production and other matters in Form-„G‟
(8) No contract shall be granted to a person who does not hold the Certificate of Approval in Form-„B‟.