Department of Mines & Geology

GOVERNMENT OF KARNATAKA

KARNATAKA MINOR MINERAL CONCESSION RULES 1994

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CONCESSION RULES

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CHAPTER III

GRANT OF QUARRYING LEASE FOR SPECIFIED MINOR MINERALS

9. Application for grant or renewal of a quarrying lease

10. Exemption of security deposit

11. Grant or renewal of quarrying lease

12. Priorities

13. Register of application and quarrying lease

14. Disposal of applications for grant or renewal of lease

15. Maximum area of quarrying lease to be granted

16. Periods for which quarrying lease may be granted or renewed

17. Survey and demarcation of the area granted

18. Execution of quarrying lease

19. Surrender of lease

20. Rights of the lessee

9. Application for grant or renewal of a quarrying lease:-

     (1) Every application for grant of a lease to quarry specified minor minerals in the land belonging to the State Government <1>which has not been notified under rule 8B shall be made in FORM-AQL to the Director and shall be accompanied by a security deposit in the form of treasury challan for a sum calculated at the rate of rupees five thousand per acre and an application fee of rupees two  thousand in the  form of a treasury challan under the specified  Head of account together with other documents <2>together with a certificate issued by the  Competent Authority for having cleared the arrears if any in respect of any lease held by him as on the date of making application  as specified in FORM-AQL. 

     (2) An application for renewal of a quarrying lease to quarry specified minor mineral belonging to the State Government shall  be in FORM-R and shall be made to the Director at least <7>twelve months before the expiry of the lease.  The application shall be accompanied by a fee of rupees two thousand in the form of a treasury challan under the specified Head of account together with the difference of amount of security deposit, if any, to be paid by the lessee at the prevailing rates in the form of treasury challan   together with other document <2>together with a certificate issued by the  Competent Authority for having cleared the arrears if any in respect of any lease held by him as on the date of making application and documents.  

      <2>“(2A), If an application for renewal of a quarrying lease made within the time referred to in sub-rule (2) is not disposed of by the State Government before the date of expiry of the lease, the period of that lease shall be deemed to have been extended by a further period till the State Government passes orders thereon”.        

       (3)  Application received under sub-rules (1) and (2) shall be acknowledged in FORM-A. The acknowledgment shall be sent to the applicant by  Registered post.

11  Grant or renewal of quarrying lease:-  

     (1) There shall be a Committee to make recommendations for grant or renewal of   a quarrying lease under this rule.

           The committee shall consist of the following members;

a)  The Secretary to Government, Commerce and Industries Department who shall   be  the Chairman;

b)  The Secretary to Government, Finance Department: <3> or his nominee not below   the rank of the Deputy Secretary to Government.

c)   The Secretary to Government, Revenue Department; <3> or his nominee not  below  the rank of the Deputy Secretary to Government.              

      The Secretary to Government, Forest, Ecology and Environment  Department;<3> or his nominee not below  the rank of the Deputy Secretary to Government.

d)  The Director, Department of Mines and Geology, who  shall be the Member   Secretary;   

<3>  1A ) Three members shall form the quorum for a meeting of the committee.

    (2)  The Director shall, on receipt of the application under rule 9 scrutinies all such application and submit with his remarks to the committee.  

    (3) On receipt of applications from the Director, the committee shall  having regard to the priorities under rule 12, and the guidelines issued by the State Government, if any, consider such applications and make recommendations to the Director.   

<2>" Provided that the Committee shall not consider such applications in respect of any area, which is notified  under rule 8B after the receipt of the application on or before the date of consideration and all such application shall be liable to be return to the applicants and security deposit and fee paid, if any, may be refunded. 

    (4) The Director may, having regard to recommendations of the committee, order for grant or renewal of a quarrying lease or reject the application.   

    (5)  Where the quarrying lease is granted or renewed under sub-rule(4),the Director shall notify in FORM-GL the grant or renewal of the lease and in the case of rejection of application, such rejection together with reasons therefore shall be intimated to the applicant. 

12. Priorities:-

     (1) Selection from amongst the applicants for grant of quarrying lease under this chapter shall normally be made in the following order of preference, namely:- 

       (i)   A Corporation or undertaking owned or controlled by the State or Central Government and  Joint Sector projects with such Government Corporations or Undertakings; 

      (ii)   Persons who have already established hundred per cent export oriented units for cutting and polishing of granites in the State;   

      (iii)  Persons who have already established a small scale Industrial unit for cutting and polishing of granites in the State; 

       (iv)   Persons who hold a valid licence for establishment of a granite cutting and polishing unit within the State for the purpose of hundred per cent export and persons who hold a permanent Registration Certificate

13. Register of application and Quarrying Lease:-

(1) The Director shall cause to be maintained the following Registers, namely:-

(a) Register of applications for quarrying leases in FORM-QLA.

(b) Register of quarrying leases in FORM-QL with area sketches appended.

(2) Every such Register is open to inspection by any person on a written request and payment of rupees five hundred and at the discretion of the Director.

14. Disposal of application for grant or renewal of lease:-

(1) Application for grant or renewal of lease shall be disposed;

(i) in the case of an existing industry within a period of One hundred and eighty days from the date of receipt of application failing which the applicants shall be informed of the reasons for delay within fifteen days after the expiry of the disposal period.

(ii) in all other cases within a period of four months from the date of receipt of applications failing which the applicants shall be informed of the delay within fifteen days after the expiry of the disposal period.

15. Maximum area of Quarrying lease to be granted:-

(1) Total area of one or more quarry leases to quarry specified minor minerals shall not exceed;

(i) twentyfive acres in case of an existing hundred percent export oriented granite cutting and polishing unit in the State, falling under clause (ii) of sub-rule (1) of rule of 12,

(ii) twenty acres in case of other granite cutting and polishing units in the State, falling under clause

(iii) of sub-rule (1) of rule 12,

(iv) ten acres in all other cases, falling under clause (iv),(v),(vi) and (vii) of sub-rule (1) of rule 12.

(2) Nothing in Sub-rule (1) shall apply to State or Central Government undertakings and Joint Sector projects undertaken by the State or Central Government undertakings within the State.

(3) While determining the total area referred to in sub-rule (1), the area held under a quarrying lease by a person as a member or partner of a company or corporation or Firm or a Co-operative Society shall be deducted from the area referred to under sub-rule (1) so that the sum total of the area held by such person under quarrying leases whether as such member or partner or individually shall not, in any case exceed the total area specified under sub-rule (1).

 

16. Periods for which quarrying leases may be granted or renewed:-

(1) The period for which a quarrying lease may be granted   under this chapter shall not exceed <3>twenty  years in any case.

 (2)  A quarrying lease under this chapter may be renewed for two periods each not exceeding twenty years.

 17.  Survey and demarcation of the area granted:-

      (1)  After the grant of quarrying lease is notified under sub-rule (5) of rule 11 the Competent Authority shall make arrangements for survey and demarcation of the area subject to the grantee paying the expenses at the rate of Rupees five hundred per acre of land so granted *3  within one month from the date of receipt of notification by the grantee” 

   (2)   The boundaries of area covered by a  quarrying lease shall run vertically downwards below the surface towards the centre of the earth. 

18. Execution of quarrying lease:-

     (1)   When a quarrying lease is granted under rule 11, lease deed shall be got executed in FORM-E by the grantee within  three months of the order granting or renewing the lease or within such further period as the Competent Authority may allow in this behalf and if no such lease deed is executed within the aforesaid period, the order granting or renewing the lease shall be deemed to have been revoked.  

(2)   Before execution of a lease deed, the grantee shall pay in advance fifty percent of the total dead rent payable during the first year.  

     (3)   The grantee shall also submit a QUARRYING PLAN which shall incorporate geological map cum contour plan  of the area and a map showing the layout of the proposed quarry and the area identified for dumping waste rocks, if any, together with a brief report about the minor minerals occurring in the area and their probable reserves. 

      *a) In respect of quarrying lease consisting of an area of five acres and more; a quarrying plan, containing the particulars specified in clause (c) shall be submitted by the lessee within six months from the date of grant of lease.

      b) The quarrying plan so prepared shall be valid for working in the next five years or the duration of the quarrying lease whichever is less and modification or alternation in the quarrying plan with reason thereof shall be reported to the Competent authority.

      c) The quarrying plan shall contain the following particulars, namely:-

             i) Contour Plan showing the Geological map;

            ii) Quarry lease area map showing the layout of the proposed quarrying

                   and manner in which the quarrying is to be developed.

      iii) Identification of the area for dumping waste rocks and soil.

      iv) A brief report about the minerals occurring, probable reserves and the

                   recovery of the different sizes of the mineral.

      v) Impact of quarrying on Environment and measures proposed for

                  preservation of the Environment.   

     (4) As soon as the lease deed is executed the copy of the same shall be forwarded to the concerned Deputy Commissioner.

     (5) The lessee shall at his own expense erect and at all times maintain and keep in good condition marks and pillars necessary to indicate the boundaries of the area leased to him.

     (6)  If  any  mineral, major or minor, not specified in the lease is discovered in the leased area, the lessee shall report the discovery without undue delay to the concerned Competent Authority and to the officer in charge of the District and shall seek permission to quarry or dispose of such mineral.  

     (7)  The lessee shall abide by such reasonable instructions and directions as may be issued by the Competent Authority from time to time regarding the conservation and development of minor  minerals. 

     (8)  The  lessee shall  abide by provisions of any law for the time being in force relating to working of minerals, ecology and environment  and matters affecting surface and ground water conditions, safety, health and convenience of the lessee's employees or of the public. 

     (9)  The lessee shall keep correct accounts showing the quantity and other particulars of all minor minerals produced  or obtained, in stock and despatched from the leased area and the number of persons employed therein and also compile survey plans of the quarry workings and shall furnish to the Competent  Authority or any officer of the Department of Mines and Geology authorised by the State Government or Director such information/reports and returns as the State Government or the Director may require from time to time. 

   (10)  The lessee shall submit to the Competent Authority or any other officer authorised by him or the State Government quarterly returns in FORM-Q before the eighth day of the succeeding month and annual returns in FORM-Y for each financial year before the tenth day of April of the succeeding year.  Such reports shall furnish specific information on the quantity of minor minerals and waste rocks produced, quantity sold or utilised, quantity in stock, royalty or dead rent paid and permits obtained. 

19. Surrender of lease;

(1) Lessee may surrender his lease granted under rule 11 or part of the leased area by giving a notice in writing of not less than three months to the Competent Authority and by delivering possession of the area leased.

(2) The Competent Authority may accept the surrendered area after due verification of the land and subject to the following conditions, namely:-

(a) the lease hold area to be surrendered has been properly surveyed and is contiguous; and

(b) the lessee has paid all the dues payable to the State Government under the lease upto the date of application.

(3) The Competent Authority shall dispose of the application under this rule within ninety days from the date of receipt of the application.

(4) The surrender shall take effect at the end of the said period of ninety days subject to the fulfillment of the conditions by the lessees and in other cases it shall take effect only when the Competent Authority accepts surrender and lessee delivers possession of the quarry or part of the quarry area to the Competent Authority.

(5) At the time of renewal of the quarrying lease, the lessee shall be entitled to surrender any part of the leased area.

<2>19-A (1)  Prohibition of Transfer of leases; The lessee shall not, 

(a)assign, sub-let, mortgage or in any other manner transfer

the quarrying lease or any right, title or interest therein, or

 

(b)            enter into any agreement, arrangement or understanding with any person whereby lessee is directly or indirectly  financed to a substantial extent by such person and quarrying  operation and other activities connected therewith are substantially controlled by such person; 

  Provided that nothing in this rule shall apply to mortgage made by a lessee in favour  of the Institutions specified in Schedule VI”.  (i) (a) “<2> or to transfer of lease held by the lessee to the company or firm in which he is one of the Directors or  partners, as the case may be”.  

  Provided further that such transfer of lease shall not be made without a written consent of the Competent Authority and such consent shall not be given unless:  

  (i) the lessee has furnished an affidavit along with his application, for transfer of the quarrying lease specifying therein the amount that he has already taken or proposed to take as consideration from the transferee; 

  (ii) the transfer of the quarrying lease is to be made to a company or firm directly under taking quarrying operation in which the lessee is one of the directors or partners as the case may be, in the said company or firm and the company or firm has filed an affidavit stating that they have filed an up to-date Income tax returns, paid the income tax assessed on them and paid the income tax on the basis of self assessment as provided in the Income Tax Act, 1961; and                

  (iii) A processing fee of rupees one thousand is paid in the form of a Demand Draft drawn in favour of the Director of Mines and Geology, Bangalore. 

            Provided also that the lessee shall not charge or accept from the transferee any premium, in addition to the sum spent by him in obtaining the lease, and for conducting all or any of the quarrying operation over the area leased to him”.           

      (2)   The Competent Authority may, by order, in writing determine any lease at any time, if, the lease, has, in the opinion of the Competent Authority, committed a breach of any of the provisions of sub-rule (1) or has transferred any lease or any right, title or interest therein without the previous consent in writing of the Competent Authority. 

      (3)   Where the Competent Authority has given consent for transfer of such lease, a transfer of lease deed in form “T” shall be executed within three months of the date of consent, or within such further period not exceeding three months as the Competent Authority allows thereon.”

20. Rights of the lessee:-

Subject to the conditions specified in these rules, lessee shall, for the purpose of quarrying operations have rights to ;

(1) Work the quarry well within the limits of the area granted and as per the sketch of the lease area appended to the lease deed;

(2) sink pits, shafts and open tunnels in a systematic manner;

(3) construct buildings of dimension not more than forty square meters only over non-mineral bearing area;

(4) use water subject to any law in force.

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