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Section 9: Recoupment

Reimbursement of Exploration Expenditure Rules, 2022Central Rules · 1957

(1) Notwithstanding the pendency of any claim in respect of any area, the State Government shall process for grant of mineral concessions in respect of such area in accordance with clause (d) of sub-section (2) of section 10A of the Act and the rules framed thereunder.

(2) In case of auction of composite licence or mining lease in respect of the area covered under clause

(b) of sub-section (2) of section 10 of the Act where—

(i) notice inviting tender is issued after the date of commencement of these rules; and

(ii) notice inviting tender has been issued but the last date of submission of bids is falling after the date of commencement of these rules, the following conditions shall be considered part of the auction conditions specified in the tender document, namely:—

(a) the preferred bidder shall deposit the amount reimbursed or to be reimbursed towards exploration expenditure along with the first instalment of upfront payment or, as the case may be, performance security to the State Government, if the amount has been finalised by the Technical-cum-Cost Committee of the National Mineral Exploration Trust; or

(b) the preferred bidder shall give an undertaking, in writing, to the State Government to deposit the amount to be reimbursed towards exploration expenditure with the State Government within one month of its finalisation by the Technical-cum-Cost Committee of the National Mineral Exploration Trust, if the amount is yet to be finalised;

(c) the preferred bidder shall also give an undertaking, in writing, to furnish such additional amount to be reimbursed towards exploration expenditure, which may be modified or amended by the Revisionary Authority; and

(3) In case of non-compliance of the conditions specified in sub-rule (2), the State Government shall take action for forfeiture of first instalment of upfront payment or performance security, as the case may be, and any other action in accordance with the Mineral (Auction) Rules, 2015:

18 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]

Provided that in respect of the atomic minerals where grade of such mineral is equal to or above the threshold value as specified by the Central Government in Schedule A of the Atomic Minerals Concession Rules, 2016, the conditions mentioned in sub-rule (2) shall be specified as pre-conditions for grant of mineral concession.

(4) On receipt of the amount reimbursed or to be reimbursed towards exploration expenditure from the preferred bidder as specified in sub-rule (2), the State Government shall deposit the same in the National Mineral Exploration Trust Fund, before signing the lease deed or within one month of its receipt, whichever is later.

(5) In case where auction has concluded or the last date of submission of bids is over before the date of commencement of these rules, the State Government shall deposit the amount reimbursed or to be reimbursed towards exploration expenditure under these rules in the National Mineral Exploration Trust Fund from the applicable amount (auction premium) deposited by the lessee under sub-rule (2) of rule 13 of the Mineral (Auction) Rules, 2015.

(6) The National Mineral Exploration Trust may request for additional grants from the Central Government in the Ministry of Mines for disbursal of reimbursement under these rules.

(7) The State Government shall hand over to the preferred bidder the reports along with other proofs of exploration like preserved core, litho graphs, core photographs, drill log-book and the like, if available or any geological study report of the area and other such documents submitted by the claimant.

Where this provision sits

ActReimbursement of Exploration Expenditure Rules, 2022
Section9
Marginal noteRecoupment
JurisdictionCentral
StatusIn force as published by the source

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