(1) The State Government may initiate an auction process for grant of a mining lease with respect to an area within the State if the mineral contents in such area has been established in accordance with the provisions of the Minerals (Evidence of Mineral Contents) Rules, 2015.
(2) The State Government shall, prior to issuance of the notice inviting tender with respect to mineral auction, identify and demarcate the area where a mining lease is proposed to be granted through auction by using total station and differential global positioning system and the area so demarcated shall be classified into forests land, land owned by the State Government and land not owned by the State Government.
(3) The extent of area so demarcated shall include area required for all the activities falling under the definition of ‘mine’ as defined in clause (j) of sub-section (1) of section 2 of the Mines Act 1952 (35 of 1952).