(1) Priority in granting mining lease shall be given to the following:-
(a) first priority shall be given to all agencies concerned with the implementation of infrastructure projects in the department of Multi-Purpose Projects and Power and National Highway Authority of India and other departments like Himachal Pradesh Public Works Department, Irrigation and Public Health Department etc. and projects of State importance and their authorised agents or contractors to whom works have been awarded on the recommendation of concerned Department;
(b) second priority shall be given to discoverer of new mineral; and
(c) third priority shall be given to a person who intends to set up a mineral based industry in the State:
Provided that where two or more persons of the same category have applied for a mining lease in respect of the same land, the applicant whose application is received earlier shall have a preferential right for the grant of the lease over an applicant whose application is received later:
Provided further that where such applications are received on the same day, the Government after taking into consideration the following factors, may grant mining lease to such one of the applicants as it may deem fit:-
(a) experience of the applicant in mining;
(b) financial soundness, stability and special knowledge in the field of geology and mining of the applicant;
(c) special knowledge of geology and mining of the technical staff already employed or to be employed for the work;
(d) clearance of Government dues and royalties where the applicant or his/her family member has been engaged in the mining business previously; and
(e) satisfactory performance of the applicant where he has been engaged in the mining industry previously.
(2) The Government may for special reasons to be recorded in writing, grant a mining lease to an applicant whose application is received later in preference to an applicant whose application is received earlier.
(3) The State Government may, for reasons to be recorded in writing and communicated to the applicant, refuse to grant or renew a mining lease over the whole or over a part of the area applied for.
(4) A priority register of mining lease application(s) shall be maintained.
(5) The Applicant, for reasons to be recorded in writing can withdraw the priority at any stage.