(1) The manner and terms and conditions for auction of a mining lease specified in Chapter II of these rules shall be applicable for auction of mining lease of a block identified pursuant to the prospecting operations undertaken under an exploration licence, subject to the conditions specified in this rule.
(2) The State Government shall initiate the auction process for grant of mining lease under section 10B read with section 11 within six months from the date of receipt of the geological report from the exploration licencee in respect of the area where existence of mineral content is established as specified in rule 5 of the Mineral (Evidence of Mineral Contents) Rules, 2015 and shall select the preferred bidder for grant of such mining leases within one year from the date of receipt of the geological report:
Provided that in respect of any mineral specified in the Part D of the First Schedule to the Act, the auction process for grant of mining lease shall be conducted by the Central Government under section 11D and rule 9B.
(3) In case the preferred bidder is not selected within the period so specified in sub-rule (2), the State Government shall pay to the exploration licencee an amount equivalent to one per cent. of the expenditure incurred towards reconnaissance or prospecting operations or ten lakh rupees per month, whichever is higher, till selection of the preferred bidder for the mining lease or till annulment of second attempt of auction due to insufficient number of bidders and such payment made to exploration licencee will be adjusted with the amount payable to him out of auction premium to be deposited by the holder of mining lease.
22 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
Explanation.— For purposes of this sub-rule, the amount payable shall be determined on the basis of account submitted by the exploration licencee of the expenditure incurred towards reconnaissance or prospecting operations duly certified by a chartered accountant.
(4) In case of termination, lapse or surrender of mining lease or termination or lapse of letter of intent for mining lease granted pursuant to exploration licence, the State Government shall give an opportunity to the exploration licencee to obtain mining lease in such area at the same auction premium discovered in the auction of the mining lease.
(5) In case of refusal of the exploration licencee to obtain mining lease under sub-rule (5), the State Government or the Central Government, as the case may be, shall initiate auction process and select preferred bidder for such area within the period specified in sub-rule (2) and in case the preferred bidder is not selected within the said period, the State Government or the Central Government, as the case may be, shall pay to the exploration licence holder in accordance with sub-rule (3).
(6) The exploration licencee shall not be prohibited from participating in the auction for the mining lease auctioned pursuant to the prospecting operations undertaken by him subject to fulfillment of the eligibility conditions under rule 6.
(7) The tender document for auction of mining lease shall, in addition to the details specified in sub-rule (2) of rule 9, shall contain the following, namely:—
(a) raw data and bore-hole cores generated by such agency during prospecting operations and periodic report submitted by such agency in respect of the block shall be made available for inspection to bidders in the auction;
(b) the ownership structure or shareholding details of the exploration licencee.
(8) A bidder participating in auction for mining lease shall declare to the State Government or the Central Government, as the case may be, if he is related party of the exploration licencee pursuant to whose prospecting operations the mining lease is being auctioned.
(9) The State Government or the Central Government, as the case may be, shall intimate other bidders in auction regarding participation of exploration licencee or his related party in the auction.
(10) In case the exploration licencee or his related party participate as bidder in the auction of mining lease being auctioned pursuant to his prospecting operations, then, in the second round of online electronic auction, name of licencee or his related party and his final price offer (including revised final price offers during bidding) shall remain visible to all the qualified bidders.”.
10. In the said rules, after rule 23, the following rule shall be inserted, namely:— “24. Participation in auction for mining lease or composite licence by an agency covered under proviso to subsection of (1) of section 4.— (1) The manner and terms and conditions for auction of a mining lease or composite licence specified in Chapter II and Chapter III, respectively of these rules shall be applicable for auction of a block identified pursuant to the prospecting operations undertaken by an agency covered under proviso to sub-section of (1) of section 4, subject to the conditions specified in this rule.
(2) An agency covered under proviso to sub-section of (1) of section 4 who has undertaken exploration of a mineral specified in the Part D of the First Schedule of the Act or the Seventh Schedule of the Act shall not be prohibited from participating in the auction for the mining lease or composite licence auctioned pursuant to the prospecting operations undertaken by such agency for such mineral subject to fulfillment of the eligibility conditions under rule 6.
(3) The tender document for auction of mining lease or composite licence shall, in addition to the details specified in sub-rule (2) of rule 9, shall contain the following, namely:—
(a) raw data and bore-hole cores generated by such agency during prospecting operations and periodic report submitted by such agency in respect of the block shall be made available for inspection to bidders in the auction;
(b) the ownership structure or shareholding details of such agency.
[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 23
(4) A bidder participating in auction for mining lease or composite licence shall declare to the State Government or the Central Government, as the case may be, if he has explored the block pursuant to whose prospecting operations the mining lease ore composite licence is being auctioned or is related party of such agency.
(5) The State Government or the Central Government, as the case may be, shall intimate other bidders in auction regarding participation of such agency or his related party in the auction.
(6) In case such agency or his related party participate as bidder in the auction of mining lease being auctioned pursuant to his prospecting operations, then, in the second round of online electronic auction, name of such agency or his related party and his final price offer (including revised final price offers during bidding) shall remain visible to all the qualified bidders.”.
11. In the said rules, in Schedule I, after para 2 and before the Explanation, the following para shall be inserted, namely:— “3. In the auction of exploration licence, the applicant shall have a net worth of more than or equal to twentyfive crore rupee.”.
12. In the said rules, in Schedule IV, for the words, brackets and figures, “FORMAT FOR PERFORMANCE SECURITY FOR COMPOSITE LICENCE [see rule 19(4)]”, the following shall be substituted, namely:— “FORMAT FOR PERFORMANCE SECURITY FOR COMPOSITE LICENCE AND EXPLORATION LICENCE [see rule 19(4) and rule 19H(2)]”.
13. In the said rules, after Schedule IV, the following Schedule shall be inserted, namely:— “SCHEDULE V [see rule 19A(2)] FORMAT FOR SUBMITTING PROPOSAL FOR AUCTION OF AN AREA FOR GRANT OF EXPLORATION LICENCE To, The Director, Mining and Geology Department, Government of ___ [mention name of State Government] Madam/ Sir, Under the provision of sub-rule (2) of rule 19A of the Mineral (Auction) Rules, 2015, I/we am/are submitting the following details and other particulars of the area for consideration of the State Government to auction exploration licence in respect of the area. It is submitted that I/we intend to participate in auction of exploration licence in respect of the said area.
1. Name and Address of the Applicant
(a) Name:
(b) Postal address:
(c) Telephone Number (Office):
(d) Fax number (Office):
(e) Mobile No.:
(f) Telephone Number (Residence):
(g) E-Mail address:
2. Location Details of the Area Proposed for Auction
(a) State
(b) District (s)
(c) Nearby Village(s)
(d) Survey of India (SOI) Toposheet (s) No.
(e) Area in sq. km
(f) Boundary coordinates of the proposed block (in Decimal degree) 24 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
3. Mineral Potential of the Area
(a) Name of Mineral(s) identified/ expected in the area/ block
(b) Basis on which mineral potential in the area has been identified
(c) List of documents and references relied upon in support of item (b) above.
4. Documents to be enclosed with the application i) Location of the proposed block demarcated on Survey of India (SOI) Toposheet No.
ii) Documents mentioned in item 3(c) above.
Place:
Date: Signature of Applicant”.
[F. No. M.VI-1/3/2023-Mines VI] Dr. VEENA KUMARI DERMAL, Jt. Secy.
Note:— The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 406(E), dated the 20th May, 2015 and lastly amended, vide number G.S.R. 648(E), dated the 1 st September, 2023.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.
2024-01-21T20:30:11+0530 MANOJ KUMAR VERMA