(1) The amount of performance security shall be as follows, namely:—
(a) one crore rupees for area less than or equal to five hundred square kilometers; and
(b) two crore rupee for area more than five hundred square kilometers but less than or equal to one thousand square kilometers.
(2) The performance security shall be provided through bank guarantee in the format as specified in Schedule IV or through security deposit, which may be appropriated in the following events, namely:—
(a) non-adherence to scheme of reconnaissance or prospecting, as the case may be;
(b) disclosure of exploration data to an unauthorized entity;
(c) non-disclosure of entire exploration data, reports or any other information related to exploration to State Government or any other Government organisation authorised to receive such information under the law;
(d) serious discrepancy in exploration data, reports or any other information related to exploration to State Government or any other Government organisation authorised to receive such information under the law; or
(e) contravention of the provision of these rules and the exploration licence deed.
(3) The percentage of performance security to be appropriated in the events specified in sub-rule (2) shall be specified in the tender document or decided by the State Government as it deem fit.
(4) In case of appropriation of performance security, the exploration licencee shall replenish or top-up the performance security within thirty days of such appropriation to keep the amount of performance security maintained at the amount specified under sub-rule (1).
(5) The State Government on being satisfied that the holder of exploration licence has completed prospecting operations but is unable to establish the existence of mineral contents even after making all possible efforts in accordance with the Minerals (Evidence of Mineral Contents) Rules, 2015, shall return performance security.