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Section 12: Performance security for mining lease

Jharkhand Minor Mineral (Auction) Rules, 2017State Rules of Jharkhand · 1957

(1) The successful bidder shall provide a performance security of an amount of 0.50% of the value of estimated resources and the performance security shall be adjusted every five years so that it continues to correspond to 0.50% of the reassessed value of estimated resources.

(2) The performance security provided through bank guarantee in the format as specified in Schedule II or through security deposit, may be invoked as per the provisions of –

(i) the Mine Development and Production Agreement and

(ii) the Mining Lease Deed.

13. Payments under mining lease— (1) The lessee shall pay royalties and dead rent to the State Government as specified in the Act and the rules made thereunder.

(2) The lessee shall pay the applicable amount quoted under rule 8 to the State Government on a monthly basis.

(3) The lessee shall contribute such amounts as may be required under the Act/Rule made thereunder to -

(a) the designated account of the District Mineral Foundation.

Jharkhand Gazette Ordinary Notification No.—24, dated—06 September,2017

(4) The lessee shall also pay such other amounts as may be required under any law for the time being in force to the concerned authorities.

14. Payment of Interest—The State Government shall charge simple interest at the rate of twenty four percent per annum on any payment due to State Government under these rules the payment of which is delayed beyond sixty days from the due date thereof.

15. Time Period—The time period for compliance of rules 10 to 14 of these rules shall be as specified in the tender document.

CHAPTER III GRANT OF COMPOSITE LICENCE

16. Prerequisites for auction of Composite Licence—

(1) The Director, Mines/Deputy Commissioner may initiate an auction process for grant of a Composite Licence with respect to an area within the State in accordance with the provisions of these rules and this Chapter for the mineral block prepared by the Director, Geology for grant of a Composite Licence.

(2) The Director, Mines /Deputy Commissioner shall, prior to issuance of the notice inviting tender with respect to auction, identify and demarcate the area where a Composite Licence is proposed to be granted through auction and the area so demarcated shall be classified into forests land, land owned by the State Government, and land not owned by State Government.

Where this provision sits

ActJharkhand Minor Mineral (Auction) Rules, 2017
Section12
Marginal notePerformance security for mining lease
JurisdictionState of Jharkhand
StatusIn force as published by the source

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