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Andhra Pradesh Minor Mineral Concession Rules, 1966

Published vide Notification G.O.Ms.No. 1172, Industries (B-1), 4th September, 1967) read with amendments as issued in G.O.Ms.No. 226, Ind. and Com. Department, dated 25.3.1977, published in A.P. Gazette No. 3, Part 1, Extraordinary, dated 31.2.1977

Last Updated 13th June, 2019 [ap128]

(a) "Assistant Director" means the Assistant Director of Mines and Geology in-charge of the district ;

(b) (i) "Deputy Director" means the Deputy Director of Mines and Geology incharge of the region ;

[(ii) "Joint Director" means the Joint Director of Mines and Geology.]

[(iii) "District Panchayat Officer" means the District Panchayat Officer is incharge of the District.]

(c) "Director" means the Director of Mines and Geology, Andhra Pradesh.

(d) "Form" means a form appended to these rules ;

(e) "Notification" means a notification published in the Andhra Pradesh Gazette ;

(f) "Ordinary sand or clay" means:-

(i) the ordinary sand used for building or other similar purposes, but not used for industrial purposes, such as refractory, ceramic, glass staring and metallurgical industries ; and

(ii) the ordinary clay used for small scale manufacture of bricks, tiles, pots and the like but not used for large scale manufacturing purposes, such as, for the manufacture of ceramics or cement.

(ii) No quarry lease shall be granted in respect of areas covering any tank or river bed, irrigation or drainage channel and of lands under the control of the Public Works Department, a municipality, or a local authority except after consultation with the Executive Engineer of the Division or the River Conservator, or the Commissioner of the Municipality or the Block Development Officer of the Panchayat Samithi or the concerned Executive Officer appointed under Section 30 of the Andhra Pradesh Gram Panchayats Act, 1964, as the case may be.

[(iii) In respect of minor minerals except [***] those mentioned in sub-rule (5) of Rule 12 which are worked to meet the immediate or timely requirements, the Assistant Director may permit to carry on quarrying operations on payment of seigniorage fee in advance.]

(iv) Permit granted under sub-rule (iii) shall in no case be for more than [sixty days]

[***]

(b) Where any such notification has been issued the period specified in notification has not expired, shall be deemed to be premature and shall not be entertained ; and the application fee thereon, if any paid, shall be refunded.]

(iii) To separate the Reaches or Mandals if any, which fall within the Scheduled Areas cannot be offered to non-tribals.]

(iv) To club all or few of such remainng Reaches and Mandals, in a district and notify them as a single item for a district as whole as the District Level Committee deem fit.

(ii) Each bid document can be obtained by paying Rs. 1000/- in the form of Demand Draft drawn in favour of Assistant Director of Mines & Geology concerned. For each additional Reach/Mandal an amount of Rs. 500/- shall be paid in similar manner. The said amount shall be credited towards user charge head of account within 7 days.

(iii) Any person, who intends to participate in the public auction shall simultaneously submit the sealed tender for any Reach or Mandal separately in Form 'S-4' in a Sealed Cover superscribing: -

(a) Notification Number;

(b) Name of the Tenderer;

(c) The Reach/Mandal quoted.

(iv) Every such Sealed Tender shall be accompanied by an application in prescribed Form 'S2' along with the enclosure as required thereunder.

(v) The amounts offered by way of sealed tender shall not be less than the minimum bid amount. Even if the less amounts are mentioned in the sealed tender, it will be read as equivalent to minimum bid amount.

(vi) Soon after the receipt of the Sealed Tenders from the Tenderers, necessary entry should be made in the register by the Assistant Director of Mines & Geology concerned while issuing acknowledgement to the Tenderer. Such Sealed Tenders, so received shall be kept under the safe custody of Assistant Director of Mines & Geology. He has to ensure that all such Sealed Tenders and registers are kept safe under his personal custody duly observing all the possible safety measures.

(vii) Every tenderer shall be eligible to participate in the auction after obtaining Hall tickets From Assistant Director of Mines & Geology.

(viii) The tenderer shall present by himself or through his authorized agent in the auction hall at the time of opening of the sealed tender. There shall be open auction and the bidding from different tenderers / bidders shall continue till the highest bid has been arrived at. The Sealed Tenders shall be opened after the bidding is over for each Reach or Mandal.

(ix) 25% of the upset price should be fixed as Earnest Money Deposit in case of those participating in the auction. This amount shall be remitted through Demand Draft drawn in favour of Assistant Director of Mines & Geology concerned.

(x) The Earnest Money Deposit is ordinarily, for a Reach/Mandal for which he has applied for. However, he can opt for all Reaches/Mandals, simultaneously to participate, with the same Earnest Money Deposit. The applicability of Earnest Money Deposit for more than one Reach / Mandal as per the option of the applicant at the time of filing of applications is allowed. The moment he is the 1st or 2nd or 3rd bidder for a particular Reach/Mandal he ceases to participate for the next Reach/Mandal since the validity of the Earnest Money Deposit gets exhausted. In order to participate for more than one Reach/Mandal with one Earnest Money Deposit the applicant shall pay the highest Earnest Money Deposit amount as applicable to a Reach/Mandal. With low amount of Earnest Money Deposit, he will not be allowed to participate for the next Reach/Mandal for which the Earnest Money Deposit is more than what is paid by the applicant. One is entitled to Knock down one area only on one Earnest Money Deposit. Persons who intend to acquire rights for more than one Reach/Mandal shall pay separate Earnest Money Deposits for each area.

(xi) It shall be at the discretion of the Auctioning Authority to accept or reject the tender or bid for the reasons to be recorded.

(xii) A Tender once submitted shall not be withdrawn before the bid is concluded.

(xiii) The Assistant Director of Mines & Geology concerned shall announce the names of person or persons who had submitted Sealed Tender and the Hall Ticket holders before commencement of the bidding for all Reaches/Mandals.

(xiv) The proceedings for the disposal of Reach or Mandal for quarrying sand shall be concluded on tenders or bids as the case may be by the Auctioning Authority. The tenders shall be opened only when it is ensured by the Auctioning Authority that there is no further bidding for the Reach or Mandal. The Auctioning Authority shall knock down the highest tender or bid provided he is satisfied with the same. In case the highest bid amount and one or more tendered amount remaining the same, of the Reach or Mandal shall be knocked down by drawing lots immediately.

(xv) The Auctioning authority concerned shall have the power to reject the highest tender or bid on substantial grounds to be recorded in writing at the time of auction and accept another next tender or bid.

(ii) is having mineral revenue dues to the Government as on the date of filing of the application for issue of Hall tickets.

(i) The auction conducting authority may knock down the bid by drawing lots among the applicants in the Auction Hall. For all practical purposes, the bid knocked in favour of a bidder / tenderer in lots will be treated as highest bidder for that Reach / Mandal.

(ii) Similarly, 2nd and 3rd bidders will also be selected by way of lots and all the provisions are applicable to them as if they are 2nd and 3rd highest bidders to that area.

(b) In respect of the Reaches identified to the boatsmen cooperative societies, the society shall pay the second year amount along with 20% enhancement in not more than four equal quarterly instalments and each instalment shall be paid 15 days before commencement of each quarter.

(c) The condonation of delay as stipulated under clauses (a) and (b) above does not entitle the lessee for extension of lease period.

(b) The minimum penalty for each truck carrying sand without valid permit issued by the concerned authority must be Rs. 10,000/- (Rupees ten thousand only) for each truck of 10 tonnes capacity and Rs. 5,000/- (Rupees five thousand only) in respect of Tractor. In case of repeated violations, vehicle will be confiscated by the officer not below in rank to the Assistant Director of Mines & Geology. The powers delegated to various officers under the existing provisions of Andhra Pradesh Minor Mineral Concession Rules, 1966 shall be extended to sand cases also.

(c) The Way bill for transporting sand shall be in the "Form S-5". The way bills will be issued proportionate to the knocked down bid amount by calculating Seigniorage Fee as specified in the Schedule-1 of Rule 10 of Andhra Pradesh Minor Mineral Concession Rules, 1966. The bidder is liable to pay Seigniorage fee additionally and obtain permits for the quantities exceeding the proportionate bid amount.

(d) The Municipalities concerned who are the approving authorities for Housing Plans or Shopping/Commercial Complexes are empowered to recover the component of Seigniorage Fee on sand at the rates specified under Schedule- 1 of Rule 10 of Andhra Pradesh Minor Mineral Concession Rules, 1966 with one-time penalty in case of procurement of sand by any builder without any valid permit in respect of constructions which are of the value of above Rs. 1.00 Crore. Any person aggrieved by the said deduction/orders passed by the Municipalities of Grade-I, II, III appeal lies to the Director of Mines & Geology and in respect of Special Grade, Selection Grade Municipalities and Municipal Corporations appeal lies to Government and the procedure as envisaged in subrule (7) of Rule 9-H shall apply.

(e) The bidders shall not use poclains or any other machinery for the purpose of digging/loading since as per the WALTA Act, 2002, the sand mining is restricted to one Metre only and use of machinery leads to extraction of sand beyond one metre.

(iv) The authorised agent shall submit monthly return in Form C-1 to the Assistant Director, Deputy Director concerned and the Director for every month before 5th of the succeeding Month.]

(d) to regulate the quarrying operations by issuing temporary permits for any minor mineral during the transmission period whenever there is a proposal to change the policy by the Government for the grant of the leases.]

(i) Applications of Government Department and Government Corporations and Companies ;

(ii) Applications of Labour Contract Co-operative Societies ;

(iii) Applications of unemployed persons who possess any recognised qualification in Geology, Geophysics, or Mining Engineering or any other allied subjects ;

(iv) Other applications ;

(1) Applications of Societies of Professional/(local) Traditional stone cutters (waddaras).

(2) Crusher owners who do not have quarries.

(3) Unemployed youth holding Geology degree, and businessmen who propose to set up crushers.

(4) Others:

(ii) in any Government or Patta Lands where the [granite and marble] is required to be removed for any purpose other than mining, the Assistant Director Mines and Geology may grant the Temporary Permit duly verifying the site and the purpose for which temporary permit is sought on payment of the required Seigniorage fee.

[(iii) A quarry lease for [granite useful for cutting and polishing and marble] shall be granted by the Director of Mines & Geology on an application made to the Assistant Director of Mines & Geology concerned in Form 'P' without obtaining any prospecting licence subject to the condition that the applicant gives an undertaking for submitting the scheme of prospecting in the first year, submission of mining plan within (2) years from the date of execution of the quarry lease deed, failing which the lease will be cancelled without giving any opportunity.]

[(iv) Processing fee of mining plan : Every Mining Plan submitted for Granite useful for cutting and polishing/Marble for approval of Director of Mines and Geology or the Officer nominated, shall be accompanied by a treasury or Bank challan for Rs. 1,000/- (Rupees One thousand only) towards non-refundable processing fee for every mining plan submitted under rules 12 and 17 of the Granite Conservation and Development Rules, 1999 and under rules 16 and 17 of the Marble Development and Conservation Rules, 2002.]

(b) The application for grant of P.L. or Q.L. for [granite and marble] shall be disposed off by the Director in the order of their receipt. Whenever, more than one application is received on the same day, the Director shall grant licence or lease to the deserving applicant on merits to be recorded in writing:

[(c) On receipt of an application for the grant of a Q.L., the Director shall take decision to grant precise area for the said purpose and communicate such decision to the applicant alongwith a copy of the surveyed sketch showing the area on which the mining plan has to be prepared. On receipt of the communication from the Director of the precise area to be granted, the applicant shall prepare and submit a Mining Plan, Environmental Clearances (EC) issued by the competent authority' and Consent for Establishment (CFE) issued by the competent authority of APPCB within 1 (one) year for proposed lease area upto 25.00 Hects and within 2 (two) years for proposed lease area above 25.00 Hects or within such other period not exceeding one year as may be allowed by the Director provided the grantee applies for extension of time alongwith AMP and acknowledgement in token of filing application for grant of Environmental Clearance before the competent authority, before 30 days from the date of expiry of the period stipulated for submission of AMP, EC and CFE. The Director may consider the application for grant of extension of time for submission of EC and CFE, if the applicant applies after 30 days from the date of expiry of the period stipulated, but before the date of expiry of the period stipulated for submission of AMP, EC and CFE, if the applicant satisfies the Director that the applicant had sufficient cause for not making application within the specified time.

(d) The Director shall reject the application for P.L. or Q.L. in the event of any default on the part of applicant, in attending the inspection and survey or submission of valid mineral revenue clearance certificate or any other material papers required by the Director.

(e) Execution of Licence or lease deed:- The licence or lease deed shall be executed within sixty days from the date of grant or within such further period as the Director may allow in this behalf provided the grantee applies for extension of time within fifteen days from the date of expiry of period stipulated for execution. Such, extension may be granted by the Director not exceeding two times, and each time not exceeding 30 days.

(f) Period and Extent to be granted for P.L. or Q.L.: -

[(i) A prospecting licence for granite and marble shall be granted for a period not exceeding two years. The area covered by prospecting licence for granite shall not be less than one hectare, but not exceeding fifty hectares. The area covered by prospecting licence for marble shall not be less than four hectares with a restriction that the dimension of any one side of such area shall not be less than two hundred meters but not exceeding fifty hectares.

(iii) The Director Mines and Geology if he is satisfied on the basis of production level, Geological or Topographical condition may for reasons to be recorded in writing, grant or renew a licence or lease over an area more than the maximum area or less than the minimum area specified under this rule.

(g) Prospecting fee, Seigniorage fee or Dead Rent: -

[(i)(a) Every prospecting licence holder shall pay prospecting fee of rupees fifteen thousand and rupees twenty thousand for colour granite and black granite respectively and rupees ten thousand for marble per hectare per annum.]

(b) The licensee may win and carry for purposes of testing and marketability a [maximum quantity of 100 Cub. Meters or the quantity permitted by the Director of Mines & Geology based on progress of prospecting work] per year [irrespective of Colour or Black Granite or marble] on payment of Seigniorage fee for the time being specified under Schedule I of Rule 10 of the APMMC Rules, 1966.

(ii) Every quarry lease holder shall pay seigniorage fee or dead rent whichever is higher, as per Schedules I and II of Rule 10 of APMMC Rules, 1966.

(iii) The licensee or lessee shall pay the prospecting fee or dead rent at the time of execution of licence or lease deed respectively and for the subsequent years one month in advance every year along with land assessment and cess on land assessment.

(h) Conditions of licence or lease: -

[(i) The licensee or lessee for granite or marble shall observe the provisions of Granite Conservation and Development Rules, 1999 or the provisions of Marble Development and Conservation Rules, 2002, as the case may be;]

(ii) The licensee or lessee shall deposit in any Government Treasury and file challans with the Assistant Director concerned for all sums payable to the Government under the terms of licence or lease or permit.

(iii) The lessee shall pay the seigniorage fee as per the rates prescribed from time to time in Schedule-I in advance for the quantity intended to be despatched and submit the original challans to the Assistant Director of Mines and Geology concerned and then only despatch the material. The lessee shall furnish the details of [granite and marble] despatches with block numbers, quality, quantity and place of consignment to the Assistant Director of Mines and Geology concerned immediately soon after the despatch of material. However, the lessee is required to obtain the transit forms in advance for transportation of [granite and marble] and shall render the account of the Assistant Director concerned once in a month. No second consignment of way bill shall be issued unless the lessee has rendered the account of the previous account of consignment of way bill:

(iv) The Deputy Director of the region shall be the competent authority to assess and fix in consultation with the concerned department, any compensation payable by the licence or lessee for any loss, injury or damage done to the person concerned or to his property.

(v) The licensee or lessee shall erect and maintain at its own expenses boundary pillars of substantial material standing not less than one metre above the surface of the ground at each corner or angle on the line of the boundary of the area under licence or lease and at intervals of not more than 183 metres along with the boundary delineated in the plan attached to the area under the licence or lease.

(vi) The licensee or lessee shall without delay send to the Assistant Director concerned a report of any accident involving death or injury to any person which may occur in and around the licence or lease area and shall observe all the rules for the time being in force regarding the working of licence or lease.

(vii) Lapsing of Licence or Lease:-

(a) Where the licensee shall not commence prospecting operations within a period of six months from the date of execution of licence or is discontinued for continuous period of six months after commencement of such prospecting operations, the Director shall by an order declare the P.L. as lapsed and communicate the declaration to the licensee.

(b) Where the mining operations are not conducted within a period of two years from the date of execution of the lease or is discontinued for a continuous period of two years, after commencement of such mining operation, the Director shall by an order declare the lease as lapsed and communicate the declaration to the lessee :

(viii) The licensee or lessee shall not assign, sub-let, transfer or otherwise dispose of the under licence or lease without obtaining the previous sanction in writing of the Director. The transfer application shall be made to the Assistant Director of the District concerned in Form R along with non-refundable application fee of Rs. 5,000 (Rupees Five Thousand only). The licence or lease deed shall be executed as per the provision under clause (e):

[(Viii a):- The holder of a Lease, with the prior approval of the Director of Mines & Geology, may be permitted to transfer such Lease for captive purpose in favour of the existing mineral based industry or to a new mineral based industry with a condition that no permits will be issued till Commercial Operation Date (CoD) is declared by the competent authority for mineral processing and value addition.

(Viii e):—In the case of Lase held by the Central/State Public Sector Units, they may be permitted to sublet the Lease granted to them in favour of Joint Venture Companies/firms formed by them after intimating the Director of Mines & Geology.]

[(viii f):- The holder of a Mineral Concession for Minor Minerals shall intimate to the Director of Mines and Geology through the Assistant Director of Mines and Geology concerned within 60 days of any change that may take place in its name, nationality or other particulars with relevant copies of certificates issued by the competent authority approving the changes. Subject to condition that, the shareholding pattern shall not be changed.

(ix) The licensee or lessee shall obtain the permission of the Assistant Director concerned before he would erect on the area under licence or lease any building or structure for prospecting or quarrying purpose, if the area belongs to Government.

(x) If, in the course of prospecting or quarrying any mineral not specified in the licence or lease is discovered, the licensee or lessee shall at once report such discovery to the Assistant Director concerned to enable him to obtain the order of the Director for prospecting/quarrying of the same.

(xi) Renewal of Q.L.

[(i) If the lessee to whom a quarry lease is granted has complied with all the conditions of the lease and filed an application for grant of renewal of lease in Form Q, to the Assistant Director of Mines and Geology before twelve months of the expiry of the lease and accompanied by a treasury or bank challan for Rs. 10,000/- (Rupees ten Thousand only) towards nonrefundable application fee, the Director of Mines and Geology, shall initially renew for a period not exceeding 20 years. In case of subsequent renewals, the Director of Mines and Geology, with Prior permission of the State Government, shall grant such renewals, not exceeding 10 years at a time, till the mineral is exhausted, subject to adherence to and non-violation of rules during the operation of mining lease.]

(ii) The renewal of quarry lease application shall be disposed of by the Director before the expiry of lease :

Provided that where the renewal of quarry lease application is not disposed of before the expiry of lease, it is deemed to have been extended till the application is disposed of by the Director.

(iii) The Director may condone the delay in filing an application for renewal of quarry lease made after the time limit prescribed under sub-rule (1) above.

(xii) In case of any breach on the part of licensee or lessee of any covenant or conditions contained in the grant, the Director may after giving an opportunity to the defaulter, determine the licence or lease and take possession of the premises under licence or lease and forfeit the security deposit.

(xiii) On determination of the licence or lease for violation of the conditions, all sums, paid by the licensee or lessee by way of deposits shall be forfeited and adjusted towards the amount if any to be realised.

(xiv) The Director may in consultation with the Government determine the licence or lease, if it is considered necessary to do so in public interest after giving two calendar months notice in writing.

(xv) Any [granite and marble] extracted under quarry lease and not removed by the lessee within 30 days or the determination of the lease, or the extended period given by the Director, shall be the property of the Government and the Assistant Director may disposed of the same in public auction.

(xvi) Granite waste which cannot be sold as granite shall be sold as road metal or otherwise with the permission of the Director. The rate of Seigniorage fee for such mineral shall be as per Schedule-I under Rule 10 of the APMMC Rules, 1966.

Note: - In respect of matters for which no special provision is made in this sub-rule for granite, the provisions contained in other rules shall apply.

(a) The leasehold area to be surrendered has been properly surveyed and the retained area is continguous ;

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

(c) Surrender of the area by the lessee has not already been permitted earlier.]

(i) pits shall be a distance of at least twice the height of the bund from the toe of the bund, and they shall not be of such depth as would expose porus starta and at any rate more than one metre;

(ii) earth shall not be carted along tank bund unless the bund is a road or car track ;

(iii) bunds shall not be cut to enable carts to pass ;

(iv) silt removed shall not be stocked on tank beds, bunds or slopes of bunds ; and

(v) cart shall not touch any portion of the revetment sluice or any other masonary works of the tank and cause damage to them.

(i) whenever the depth of the quarry measured from its highest to its lowest point reaches six metres ;

(ii) whenever the number of persons employed in the quarry on any day is more than 50 ; and

(iii) at such times as the Assistant Director may direct.

(i) [***]

(ii) [***]

(iii) The lessee shall pay annually the land assessment, if any, of the area under lease or permit ;

[(iv) The lessee shall pay the advance dead rent at the time of execution of the lease deed and the annual dead rent for the subsequent years, one month in advance every year and all other sums payable to the Government in any Government Treasury and file the challans to the Assistant Director concerned ;]

(v) The Deputy Director, shall be the competent authority to assess and fix, in consultation with the concerned departments, any compensation payable by the lessee for any loss, injury or damage done to the person concerned or to his property.

(vi) The lessee shall, [***] effect and maintain at his own expense, boundary pillars of substantial material, standing not less than one metre above the surface of the ground at each corner or angle in the line of the boundary of the area under lease or permit and at intervals of not more than 183 metres along with the boundary, delineated in the plan attached to the area under lease or permit ;

(vii) The lessee shall commence quarrying operations within two months from the date of the grant and shall thereafter carry on such operations effectively in a proper, skillful and workman like manner, as regards prevention of waste within the quarry and shall not work it in such a manner as may prove dangerous to human life or cattle and shall, if so directed by the Assistant Director, cause such quarry or any part thereof to be securely fenced to the satisfaction of the Assistant Director.

(viii) The lessee shall without delay send to the Assistant Director a report of any accident involving the death or injury to any person which may occur in or around the quarry and shall observe all rules for the time being in force regulating the working of quarries;

(ix) The lessee shall not assign, sublet, transfer or otherwise dispose of the area under lease or permit without obtaining the previous sanction in writing of the Deputy Director ; [A quarry lease granted in public auction for sand is not open for transfer ;]

[(ix a) : The holder of a lease, with the prior approval of the Deputy Director of Mines & Geology concerned, may be permitted to transfer such lease for captive purpose in favour of the existing mineral based industry or to a new mineral based industry with a condition that no permits will be issued till Commercial Operation Date (CoD) is declared by the competent authority for mineral processing and value addition.

(ix e) :—In the case of lease held by the Central/State Public Sector Units, they may be permitted to sublet the lease granted to them in favour of Joint Venture Company firm formed by them after intimating the Deputy Director of Mines Sc Geology concerned.]

[(viii f):- The holder of a Mineral Concession for Minor Minerals shall intimate to the Director of Mines and Geology through the Assistant Director of Mines and Geology concerned within 60 days of any change that may take place in its name, nationality or other particulars with relevant copies of certificates issued by the competent authority approving the changes. Subject to condition that, the shareholding pattern shall not be changed.

(x) The lessee shall not cut or injure any trees in the area under lease or permit ;

(xi) The lessee shall obtain the permission of the Assistant Director before he would erect on the area under lease or permit any building for quarrying purposes if the area belonged to the Government ;

(xii) If, in the course of quarrying, any mineral not specified in the lease is discovered, the lessee shall at once report such discovery to the Assistant Director to enable him to obtain orders of the Government regarding the working of the same ;

(xiii) If the lessee stops to work the quarry without the prior sanction of the Assistant Director for a continuous period of six months, the lease granted for quarrying shall be liable to be cancelled;

[(xiv) If the lessee to whom a quarry lease is granted has duly observed all the conditions of the lease and file an application under Rule 9(i) to the Deputy Director (through Assistant Director) [***] the Deputy Director may grant renewal for not more than two times to the period of the quarry lease. The renewals are further subject to the following criteria:-

(a) Systematic development of the quarry/quarries.

(b) Development of good communication facilities and their maintenance.

(c) Investment on transport.

(d) Training of skilled labour and commitments on labour retention and inducement.

(e) Preliminary work and investment for establishment of a processing (dressing or upgrading) plant utilising the product from the quarry/quarries in question.

(f) Establishment of market for the product, either in raw from or in processed or semi-processed form.

(a) Establishment of processing plant, either individually or in joint partnership with others.

(b) Development of market in the country or abroad.

(c) Any long term contracts with established industries for supply of quarry product.

(d) Setting up of an industry in the region either individually or in partnership with others.

Note: - (1) Adherence to and non-violation of rules during the term of occupation is a primary prerequisite in all cases of consideration of renewal.

(2) In case of. patta lands, renewals may be automatic.

(3) In case of leases for minor minerals useful for road metal ballast serving as a captive source for a crusher unit the renewal may be granted as long as crushing unit is in operation.]

(xv) If the seigniorage fee or dead rent payable by the lessee is not paid within three months next after the date fixed in the grant or otherwise for its payment, the Deputy Director or any Officer authorised by him, may after giving an opportunity to the defaulter, enter upon the area under lease or permit and distrain all or any of the mineral or the movable property belonging to him and standing on the land, and may order for the sale of the property distrained or so much of it as will suffice to cover the arrears due to the Government together with all costs and expenses occasioned by the non-payment thereof and may also determine the lease or permit ;

(xvi) In the case of any breach on the part of the lessee of any covenant or condition contained in the grant, the Deputy Director, may, after giving an opportunity to the defaulter, determine the lease [***] and take possession of the premises under lease [***] and forfeit the security deposit ;

(xvii) On the determination of a lease or permit for violation of condition (iii), (xv) or (xvi), all sums paid by the lessee by way of deposit shall be adjusted towards the amounts, if any, due to the Government and any further dues remaining unpaid shall become recoverable from the lessee.

(xviii) The Deputy Director may, in consultation with the Government determine the lease, if it is considered by him necessary to do so in the public interest after giving two calendar months notice in writing ;

[(xix) Any minor mineral extracted from the quarry and not removed by the lessee before the date of expiry of the determination of the lease or permit may be dispatched within 30 days or extended period granted by the Government from the date of such expiry or determination after paying dead rent and seigniorage fee and any other sums which may be due. If the lessee does not remove the extracted mineral from the leased area within the permitted and extended period mentioned above it shall be the property of the Government and the Assistant Director may sell it in public auction.]

[(xx) When the quarry lease is granted by public auction the lessee shall pay the quarrying fee or lease amount in the manner prescribed in these rules.]

[(xxi) (a) The lessee shall follow and effect the provisions of Labour Laws pertaining to the employment, payment of wages and other welfare measures to the Labour who are employed in quarries and mines.

(c) If the lessee violates the provisions as stipulated above, necessary action shall be taken for cancellation of the lease after obtaining the information from the concerned departments after giving an opportunity.]

Schedules I and II under Rule 10.

[Schedule-I]

Rates of Seigniorage Fee

[Schedule-II]

Rate of Deed Rent

(Per Hectare Per Annum)

[Schedule-III]

[Form-A-1]

[See Rule 10-B]

Schedule

Signature of the Auctioning Authority

Note: - The annexure containing the conditions, application proformas the details of leases in different sections etc., can be had from the Assistant Director of Mines and Geology .............

Annexure

(a) A notarised Affidavit in the prescribed form on Non-Judicial Stamp paper worth Rs. 25/-.

(b) Bank Draft/Banker's Cheque obtained from any Scheduled Bank for an amount equivalent to 10% of the minimum bid in favour of ..........................

(c) A mineral Revenue clearance certificate in Form H or an affidavit in lieu thereof in case the applicant does not have any mining lease, prospecting licence or quarry leases in the State.

(d) Receipt of application for issue of Hall Ticket, shall be closed three days before the commencement of the auction.

(b) Every sealed tender will be separately accompanied with filled in prescribed form (application for Hall Ticket) along with the enclosures as required under item (2) above.

(c) Soon after the receipt of sealed tenders from tenderers the necessary entry should be made in the Register by the officer concerned while issuing acknowledgment to the tenderers. Such Sealed Tender shall be kept under the safe custody of the Assistant Director. He has to ensure that all such sealed tenders and the Registers are kept safe under his personal custody duly observing all possible safety measures.

(d) Every tenderer shall be issued a Hall Ticket to participate in the auction without insisting any further payments as required under item (2) mentioned above by the officer concerned.

(a) persons aged below eighteen years.

(b) persons who have been debarred from obtaining quarry leases and mining leases.

(a) has been convicted for any penal offence or any offences under the Mines and Minerals (Regulation and Development) Act, 1957, or

(b) He is debtor to the Government of Andhra Pradesh in the Mines and Geology Department.

(a) A tender once submitted shall not be withdrawn before the bid is concluded.

(b) The Officer concerned shall announce at the commencement of the bidding the names of the persons who have submitted tenders and hall ticket holders for the particular sector.

(b) The confirmation orders will be issued by the Deputy Director concerned on making the deposit of 25% of knocked down amount as required under sub-rule (1) of Rule 10-E. The first successful tenderer/bidder on receipt of order of confirmation shall furnish security deposit of 2% of knocked down amount subject to the minimum of Rs. 1000/- and maximum of Rs. 25,000/- in the manner as prescribed in the confirmation order and execute agreement in Form 'M' with the Assistant Director within the time prescribed in the confirmation order on stamped paper as per the Registration and Stamps Act by duly furnishing three bank guarantees in favour of the Assistant Director concerned for an amount equivalent to 75% of the knocked down amount under each guarantee which are valid for six, nine and twelve months against the respective quarterly instalments payments. The respective Bank Guarantees shall be released by the Assistant Director on payment of quarterly instalments. The security deposit shall be released by the Assistant Director soon after the expire of lease period provided the Authorised Agent fulfilled all the lease deed conditions and other provisions of the Andhra Pradesh Minor Mineral Concession Rules, 1966.

(c) In the event of default by the Ist successful Tenderer/bidder for payment of 25% of the knocked down amounts required under sub-rule (1) or completion of formalities for executing the agreement as required under sub-rule (2) of Rule 10-E, the competent authority may issue conformation orders in favour of the second and the third highest tenderer/bidder in the descending order with due stipulations of the time limits for payment of 25% of the amount offered by the respective tenderer/bidder and discharging the other formalities for making agreement as required under sub-rule (2) of Rule 10-E. However, in case the second and third highest tenders/bidders also become defaulters, the other tenders/bidders who offered and participate over an above the minimum bid and who retained the deposit of 10% of the minimum bid with the auctioning authority after the auctions may be considered for issue of confirmation orders in the descending order by the competent Authority by duly stipulating the time limits for payment of 25% of the offered amount by the respective tenderer/bidder and discharging the other formalities for making agreement as required under sub-rule 2 of Rule 10-E.

(d) The successful tenderer/bidder on executing the agreement in Form H shall pay the subsequent quarterly instalment atleast fifteen days before the end of the precedings quarter.

(e) The Director may condone the delay in payment of the amount, fulfilment of other formalities and making agreement under sub-rules (1) to (4) of Rule 10-E on valid grounds.

(f) If the successful tenderer/bidder fails to pay 25% of the knocked down amount within two working days or fails to furnish the bank guarantee of 75% of knocked down amount within the time specified in the confirmation order or fails to make agreement in Form 'M' after completing all the formalities or fails to pay the quarterly instalments within the prescribed time, the amounts so far paid by the successful tenderer/bidder by way of deposits and the amounts under bank guarantee, shall be forfeited to the Government by the confirming authority. If the second or the third highest tenderer/bidder fails to pay the amounts or complete the formalities as stipulated in the confirmation order, the confirming authority shall forfeit the amounts so far paid by way of deposits or otherwise including the bank guarantee to the Government. If the fourth or any subsequent bidder who has been issued confirmation order and made agreement in form - 'M' after completing the formalities fails to pay the second or any subsequent instalments in time the confirmation authorities shall forfeit the security deposits and the bank guarantee to the Government. Any forfeiture shall be done by the confirming authority after giving an opportunity.

(g) The deposits of second and the third highest tenderer/bidder shall be returned after the agreement is made in Form-M in case they are not found to be defaulters for the payment of 1/4th amount as required under sub-rule (1) and the completion of the formalities under sub-rule (2) of others shall be returned after three days of auction held on a written request by the participants for the same and the deposits of those who like to avail the opportunity of getting the lease in case the first, second and third highest tenderer/bidder become defaulters will be retained with the officer concerned and returned after the agreement is made.

.................... Sector

[Affidavit]

[Under conditions 2 of Annexure to Form A1 under Rule 10-B]

1. To pay the knocked down amount in four equal quarterly instalments.

2. To pay the sum equivalent to 25% of the knocked down amount within the immediate next two working days and to tender the same before the auctioning authority.

3. To furnish bank guarantee from any Scheduled Bank for the balance 75% of the knocked down amount and pay the security deposit of 2% of the knocked down amount subject to the minimum of Rs. 1000/- and maximum of Rs. 25,000/- and to execute the agreement with Assistant Director of Mines and Geology concerned in Form M on or before the date mentioned in confirmation orders. To pay the balance 75% of knocked down amount in three quarterly instalments each by atleast 15 days before the end of the preceedings quarter.

4. In case of negligence of my part to execute the lease deed in time and to pay the quarterly instalments as per Schedule, I accept for any action taken by concerned authority to cancel the Sealed Tender-cum-Public Auction or terminate the agreement as the case may be and to forfeit all sums paid along with the amount guarantee by the bank.

5. To abide by the additional conditions if any imposed by the authority competent to do so and

6. To abide by the decision of the Government of Andhra Pradesh in case of any doubt as to the application or interpretation of the versions of any of the conditions or provisions of Mines Act and the Rules made thereunder.

7. I declare that I hold/do not hold any licence or lease under any of the Mineral Concession Rules not in debt to the Department of Mines and Geology.

8. I declare to abide by the provisions of the Andhra Pradesh Minor Mineral Concession Rules, 1966.

Deponent

Attested

Applications For Issue of Hall Ticket

(Under Condition 2 of Annexure to Form 'A-I' under Rule 10-B)

1. Name and present address of the applicant (in block letters) :

2. Name and permanent address of the applicant (in block letters) :

Note: - In case of partnership firm the partnership bond should be produced for participating in the auction.

3. Age of the Applicant (persons of 18 years below not eligible) :

4. [Sector/Sectors] for which he intends to participate in the auctions :

5. Affidavit in the prescribed Form on a Nonjudicial stamped paper worth [Rs. 25/-] enclosed or not:

6. No. and date of Bank Draft/Banker's Cheque obtained from any Scheduled Bank for an amount equivalent to 10% of the minimum bid :

7. Particulars of leases if any held under different mineral Concessions :

8. Mineral Revenue Dues Clearance Certificate in Form 'H' enclosed or not :

9.(a) Has he been convicted for any penal offence or any offence under MM (R&D) Act, 1957 :

(b)Has he been debarred earlier in participating auctions or to obtain leases under different Mineral Concessions :

10. Whether agreed to pay a sum equivalent to 25% of the [knocked down amount] along with next two working days from the day of auctions and to furnish Bank Guarantee valid for one year for the remaining 75% of the amount within the prescribed time in the confirmation order.

[11. Sealed Tender enclosed or not]

Signature of the Applicant

Hall Ticket

(Under Condition 2 to the Annexure to Form A-1 under Rule 10-B)

Office of the
Assistant Director of Mines & Geology

Signature of the Issuing Authority.

[Form-AIII]

Tender Form

[See Rule 10-C]

1. Name in Block Letters :

2. Father's Name :

3. Present Address :

4. Permanent Address :

5. Occupation :

6. Details of Sector and Minerals specified as per notification :

7. Offered Amount

(a) In figures

(b) In words

Signature
(Name in Block Letters)

Note: - 1. This tender is to be submitted in a sealed cover in person or by Registered Post acknowledgement due through his power of Attorney holder and acknowledgement obtained.

2. Application with the enclosures as required under condition (2) under Annexure to Form A ; should accompany the sealed cover.

3. The competent authority shall not be responsible for the loss in the postal transit or the delay in receipt of the sealed covers.

Form B

Application Form

[See Rule 9]

[The Deputy Director,]
...................................

(1) Name of applicant.

(a) Profession.

(b) Residence.

(c) Permanent address.

(2) Description of the area applied or :

(a) Situation and boundaries.

(b) Revenue Survey Nos. or Block No. (in case of Reserve Forest).

(c) Area.

(3) Name of mineral to be quarried.

(4) Purpose for which it is to be used.

(5) Enclosures.

(i) A copy of the village map which is not in less scale than the village map showing the area applied for.

(ii) A mineral dues clearance certificate prescribed in Form 'H'. In case the applicant does not hold any licence for lease under any of the Mineral Concession Rules, he shall submit a declaration to this effect in the form of an affidavit.

Yours faithfully,

Form-B-I

[***]

Form C

Quarterly Return for Lessee

[See Rule 28(3)]

(1) Location of the Quarry :

(i) Land Survey Nos. :

(ii) Village :

(iii) Taluq :

(iv) District :

(2) Name of Lessee :

(3) Name of mineral quarried :

(4) Quantity of mineral :

(i) Excavated :

(ii) Exported by Rail :

(iii) Sold locally :

(5) Average price of mineral :

(i) At the quarry site :

(ii) At the railway station :

(6) Average number of persons employed :

(i) At the quarry site :

Males :        Females :

(ii) At the railway station :

Males :        Females :

(7) Number of accidents :

(i) Serious :

(ii) Fatal :

Signature
Designation

[Form-C-I]

Monthly Return to be submitted by the Authorised Agent

[Sub-Rule (iv) of Rule 10-I]

Form-D

Register of Quarry Lease and Periodical Returns for Assistant Director

[See Rules 34/38]

Form-E

Form of Demand, Collection and Balance Statement in respect of Quarry Leases (Minor Minerals)

[See Rule 38]

Seigniorage Fee

Form-F

Form of Report

[See Rule 30]

1. Name and situation of the quarry.

2. Name of mineral worked.

3. Name and postal address of Owner.

4. Name and postal address of Manager.

5. Depth of the quarry measured from its highest to its lowest point.

6. Number of persons employed in the quarry.

7. Whether explosives are used in the quarry.

8. The general condition of the mines as to safety working

9. Whether underground workings have been made or are likely to be made.

10. The date on which the mine was opened (for new mines only.)

Form-G

[See Rule 8]

Form of lease (minor minerals) to private persons

2. These are included in the said demise and for the purposes thereof following liberties: -

(1) To get from the said demised pieces of land.

(2) For the purpose aforesaid to use any water in or under the said demised pieces of land and to divert the same and to make or construct any water courses or ponds so however that nothing shall be done in the exercise of this authority which shall interfere with the rights of any adjoining owners of the tenants or the lessors in respect of such water.

(3) Generally to do all things which shall be convenient or necessary for getting the ......... and material hereby authorised to be got and for removing and disposing thereof as aforesaid.

3. These are excepted and reserved to the lessor out of this demise:-

(1) All earth minerals and other substances not hereinbefore expressly authorised to be got from the demised pieces of land by the lessee.

(2) Liberty for the lessor or other persons authorised by him to search for work, get, carry away and dispose of the excepted minerals and other substances and for such purposes to have the right of ingress, egress and regress over the said demised pieces of land and to make erect and use all pits, machinery, buildings, roads and other necessary works and conveniences provided that the rights hereby reserved shall be exercised in such a way as to cause as little obstruction as possible to the lessee in the use and enjoyment of its rights hereunder and that reasonable compensation for damages caused by any such obstruction shall be paid to the lessee the amount thereof in case of difference to be settled by arbitration as hereinafter provided.

4. The said demised pieces of land shall be held by the lessee for the term of ...... years from the ....... day ....... 19 ..... to the ......... day of ......... 19 .......... determinable as hereinafter provided.

5. The lessee hereby agrees to pay during the said term the following [***] dead rent and seigniorage fee whichever is higher and also all cesses which may, from time to time, be imposed by the Government:-

(1) The yearly [***] dead rent of Rs. ....... in respect of the said demised pieces of land.

(2) A seigniorage fee of Rs. ...... in respect of the said demised pieces of land.

6. The lessor may, during the currency of the lease, vary the rate of [***] dead rent and the seigniorage [***].

7. It is hereby agreed and declared that in regard to the said [knock down amount] dead rent and seigniorage fee the following conditions shall be observed by the lessee.

(i) The said dead rent of Rs. ........ shall be paid without any deduction on the ........ day of ..... 19 ...... in every year in advance.

(ii) The said seigniorage fee of ....... per ...... shall be paid before the same is removed from the said demised pieces of land.

8. The lessee hereby covenants with the lessor as follows ;

(1) To pay the [knock down amount] dead rent and seigniorage fee on the days and in manner aforesaid.

(2) To bear, pay and discharge all existing and future rates, taxes, assessments, duties, impositions, outgoings and burdens whatsoever imposed or charged upon the demised pieces of land or the produce thereof or the bid amount, dead rent and seigniorage fee hereby reserved or upon the owner or occupier in respect thereof or payable by either in respect thereof except such charges or impositions as the lessee is or may hereinafter be by law exempted from.

[(2A) Should any rent seignorage fee or other sums due to the State Government under the terms and conditions of these presents be not paid by the lessee/lessees within the prescribed time, the same may be recovered together with simple interest due there on at the rate of twenty four per cent per annum on a certificate of such officer as may be specified by the State Government by general or special order in the same manner as on arrear of land revenue.]

(3) Before digging or opening any part of the said demised pieces of land for ....... carefully to remove the surface soil to a depth of at least ..... metres and lay aside and store the same in some convenient part of the said demised pieces of land until the land from which it has been removed is again restored to a state fit for cultivation as hereinafter provided.

(4) To effectually fence off the said demised pieces of land from the adjoining lands and to keep the fences in good repair and conditions.

(5) Not to assign, underlet or part with the possession of the demised land or any part thereof without the written consent of the lessor first obtained. [A quarry lease granted by sealed tender-cum-public auction for sand is not open for transfer.]

(6) After working out any party of the said demised pieces of land forthwith to level the same and replace the surface soil thereof and slope the edges, where necessary, so as to afford convenient connection with the adjoining land.

(7) That the lessee shall keep correct accounts, in such form as the Assistant Director of Mines and Geology concerned shall, from time to time, require and direct showing the quantities and other particulars of the said mineral obtained by the lessee from the said lands and also the number of persons employed in carrying on the said quarrying operations therein and shall, from time to time, when so directed by the Assistant Director of Mines and Geology concerned prepare and maintain complete and correct plans of all quarries and workings in the said lands and shall allow any officer thereunto, authorised by the lessor from time to time and at any time, to examine such accounts and any such plans and shall, when so required, supply and furnish to the lessor all such information and returns regarding all or any of the matters aforesaid as the lessor shall, from time to time, require and direct.

(8) That if in the course of quarrying any mineral not specified in the lease is discovered the lessee or registered holder shall at once report such discovery to the Assistant Director of Mines and Geology concerned who shall obtain orders of the Government regarding the working of the same.

(9) That the lessor's agents, servants and workmen shall be at liberty at all reasonable times during the said term, to inspect and examine the works carried on by the lessee under the liberties hereinbefore granted and the lessee shall and will, from time to time, and at all times during the said term hereby granted conform to observe all orders and regulations which the lessor or his authorised agent as the result of such inspection may from time to time see fit to impose to keep the lands in good and substantial repair, order and condition or in the interest of public health and safety.

(10) The lessee shall without delay send to the Assistant Director of Mines and Geology a report of any accident involving the death or injury to any person which may occur in or about the quarry and shall observe all rules for the time being in force regulating the working of quarries.

(11) That the lessee shall not without the express sanction in writing of the said Assistant Director of Mines and Geology cut down or injure any timber or trees on the said lands but he may clear away brushwood or undergrowth which interferes with any operations authorised by these presents on payment of due compensation for cutting or injuring trees growth in the said lands to the departments concerned.

(12) That wherever necessary, pay to the person concerned, compensation for any loss or damage which may be caused by the lessee to the surface of the demised pieces of land or to anything growing or situated therein in exercise of the rights granted and shall not commence operations until such compensation has been paid. The lessee shall further always keep the lessor indemnified against any claim by any person for any loss or injury caused to him or to his property by lessee. The Deputy Director shall be the competent authority to assess and fix any compensation payable by the lessee for any loss or injury done to him or his property.

(13) That if required by the Assistant Director of Mines and Geology, erect and maintain at his own expense, boundary pillars of subsistant material standing not less than three feet above the surface of the ground at each corner or angle in the line of the boundary of the area leased to him and at intervals of not more than three metres along the boundary, as delineated in the plan attached to the lease deed.

(14) If any mineral not specified in the lease deed or agreement is discovered, the lessee or the registered holder shall not win or dispose of such mineral without obtaining the permission of 1[the Director of Mines and Geology] and without payment of the seigniorage fee and the acreage assessment. If lessee or the registered holder fails to intimate [the Director of Mines and Geology] the discovery of such new minerals and obtain his permission within a period of thirty days from the date of the working of the mineral is begun, the Director of Mines and Geology or Deputy Director of Mines and Geology may levy enhanced seigniorage fee and acreage assessment.

(15) The lessee or the registered holder shall strengthen and support to the satisfaction of any Railway Administration concerned or the State Government as the case may be, any part of the quarry which in the opinion of the Railway Administration or as the case may be, the State Government requires such strengthening or support for the safety of any railway, reservoir, canal, road or any other public works or structures.

(16) That this lease may be terminated in respect of the whole or any part of the premises by six months notice in writing on either side.

(17) That on such determination the lessee shall have no right to compensation of any kind.

(18) That the [knock-down amount]/dead rent and seigniorage fee payable under these presents shall be recoverable under the provisions of the Revenue Recovery Act, 1864 thereof.

(19) That the determination of the tenancy to deliver up the demised land in such condition as shall be in accordance with the provisions of these presents save that lessee shall if so required by the lessor restore in manner provided by the foregoing covenant in that behalf the surface or any part of the land which has been occupied by the lessee for the purpose of the works hereby authorised and has not been so restored.

[(20) In respect of granite and marble, the lessee shall comply with the provisions of Granite Conservation and Development Rules, 1999 and the Marble Development and Conservation Rules, 2002, respectively.]

[(21) (a) The lessee shall follow and effect the provisions of Labour Laws pertaining to the employment, payment of wages and other welfare measures to the Labour who are employed in quarries and mines.

9. The lessor hereby covenants with the lessee that on the lessee paying the [knock down amount] dead rent and seigniorage fee hereby reserved and that on observing and performing the several covenants and stipulations herein the lessee shall peaceably hold and enjoy the demised pieces of land and the liberties and powers hereby demised and granted during the said term without any interruption by the lessor or any person rightfully claiming under or in trust for him.

[(9A). Government reserves the right, -

(ii) to prohibit quarrying operations in part or the whole of the area under lease with recorded reasons.]

10. It is hereby expressly agreed as follows:-

(1) If any part of the [knock-down amount] dead rent and seigniorage fee hereby reserved shall be unpaid for thirty days after becoming payable (whether formally demanded or if the lessee while the demised pieces of land or any part thereof remain vested in him shall become insolvent or if any covenant on the lessee's part herein contained shall not be performed or observed them and in any of the said case it shall be lawful for the lessor at any time thereafter to declare to whole or any part of the said security deposit of Rs. ....... to be forfeited and also to reenter upon the demised pieces of land or any part thereof in the name of the whole and thereupon this demise shall absolutely determine but without prejudice to the right of action of the lessor in respect of any reach or non-observance of the lessee's covenants herein contained.

(2) [The expiry or determination of the lease, the lessee shall be at liberty to remove, carry and dispose of all the stocks of the mineral extracted and all engines, machinery, articles and other things whatsoever (not being building or bricks or stones) within one month or extended period granted by the Government after paying dead rent and seigniorage fee and other sums which may be due and performing and observing the covenants on his part hereinbefore reserved and contained and also making good any damages done by such removal but not building which shall be erected on the said demised places of land by the lessee and left thereon at the determination of the lease and shall be the absolute property of the lessor who shall not pay any price for the same.]

(3) If the lessee shall have paid the [knock-down amount] dead rent and seigniorage fee and duly observed and performed the covenants and conditions on his part herein contained the said deposit of Rs. ....... shall be returned to him at the expiration of the said term of ...... years.

(4) If any question of difference or dispute shall arise between the parties hereto or any persons claiming under them respectively concerning the [knock-down amount] dead rent and seigniorage fee hereby reserved or touching the construction of any clause herein contained or the rights, duties or liabilities of the parties hereunder or in any other way touching or arising out of these presents the same shall be referred to the Director of Mines and Geology whose decision thereon shall be final and binding on the parties thereto.

The Schedule

[Form-G1]

[See Rule 9-I(2)]

Form of Sand Lease Agreement to Private Persons

2. These are included in the said demise and for the purposes thereof following liberties:-

I. To get from the said demised pieces of land.

II. For the purpose aforesaid to use any water in or under the said demised pieces of land and to divert the same and to make or construct any water courses or ponds so however that nothing shall be done in the exercise of this authority which shall interfere with the rights of any adjoining owners or tenants or the lessors in respect of such water.

III. Generally to do all things which shall be convenient or necessary for getting the ordinary sand and material hereby authorized to be got and for removing and disposing thereof as aforesaid.

3. There are excepted and reserved to the lessor out this demise:-

I. All minerals and other substances not hereinbefore expressly authorized to be got from the demised pieces of lands by the lessee.

II. Liberty for the lessor or other persons authorized by him to search for, work, get, carry away and dispose of the excavated minerals and other substances for such purposes to have the right of ingress, egress and regress over the said demised pieces of land and to make, erect and use all pits, machinery, buildings, roads and other necessary works and conveniences provided that the rights hereby reserved shall be exercised in such a way as to cause as little obstruction as possible to the lessee in the use and enjoyment of its rights hereunder and that reasonable compensation for damages caused by any such obstruction shall be paid to the lessee the amount thereof in case of difference to be settled by arbitration as hereinafter provided.

4. The said demised pieces of land shall be held by the lessee for the term of ................ year from the ............ day to the ............... day of ............... determinable as hereinafter provided.

5. The lessee hereby agrees to pay during the said term the knocked down amount along with 20% enhancement towards second year lease amount along with I.T. prevailing 45 days before the expiry of the 1st year lease period. In respect of registered Boatsman Co-operative Society who remove and carry sand by Boats shall pay the knocked down amount in four equal quarterly instalments 15 days before the commencement of the quarter.

6. The lessee hereby covenants with the lessor as follows:

I. To pay the knocked down amount / Seigniorage fee / Dead rent on the days and in manner aforesaid.

II. To bear, pay and discharge, all existing and future rates, taxes, assessments, duties, impositions, outgoing and burdens whatsoever imposed or charged upon the demised pieces of land or the produce thereof or the knocked down amount hereby reserved or upon the owner or occupier in respect thereof or payable by either in respect thereof except such charges or impositions as the lessee is or may hereinafter be by law exempted from.

III. Should any rent, knocked down amount or other sum due to the State Government under the terms and conditions of these presents be not paid by the lessee / lessees within the prescribed time, the same may be recovered with simple interest due thereon at the rate of 24% per annum on a certificate of such officer as may be specified by the State Government by General or specific order in the same manner as arrears of land revenue.

IV. Before digging or opening any part of the said demised pieces of land for ordinary sand carefully to remove the surface soil to depth of at least ................... meters and lay aside and store the same in some convenient part of the said demised pieces of land until the land from which it has been removed is again restored to a State fit for cultivation as hereinafter provided.

V. To effectually fence off the said demised pieces of land from the adjoining lands and to keep the fences in good repair and conditions.

VI. A quarry lease granted by sealed tender-cum-public auction for sand is not open for transfer.

VII. After working out any part of the said demised pieces of land forthwith to level the same and replace the surface soil thereof and slope the edges, where necessary, so as to afford convenient connection with the adjoining land.

VIII. That the lessee shall keep correct accounts in such form as the ADM&G concerned shall from time to time require and direct, showing the quantities and other particulars of the said mineral obtained by the lessees from the said lands and also the number of persons employed in carrying on the said quarrying operations therein and shall from time to time, when so directed by the ADM&G concerned prepare and maintain complete and correct plans of all quarries and workings in the said lands and shall allow any officer thereunto, authorised by the lessor from time to time and at any time, to examine such accounts and any such plans and shall, when so required, supply and furnish to the lessor all such information and returns regarding all or any of the matters aforesaid as the lessor shall from time to time, require and direct.

IX. That if in the course of quarrying any mineral not specified in the lease is discovered the lessee or registered holder shall at once report such discovery to the ADM&G concerned who shall obtain orders of the Government regarding the working of the same.

X. That the lessor's agents, servants and workmen shall be at liberty at all reasonable times during the said term, to inspect and examine the works carried on by the lessee under the liberties hereinbefore granted and the lessee shall and will, from time to time, and at all times during the said term hereby granted conform to observe all orders and regulations which the lessor or his authorized agent as the result of such inspection may from time to time see fit to impose, to keep the lands in good and substantial repair, order and condition or in the interest of public health and safety.

XI. That lessee shall without delay send to the ADM&G report of any accident involving the death or injury to person which may occur in or about the quarry and shall observe all rules for the time being in force regulating the working of quarries.

XII. That the lessee shall not without the express sanction in writing of the said ADM&G concerned cut down or injury any timber or trees on the said lands but he may clear away brushwood or under growth which interfered with any operations authorized by these presents on payment of due compensation for cutting or injuring tree growth in the said lands to the departments concerned.

XIII. That wherever necessary, pay to the person concerned, compensation for any loss or damage which may be caused by the lessee to the surface of the demised pieces of land or to anything growing or situated therein in exercise of the rights granted and shall not commence operations until such compensation has been paid. The lessee shall further always keep the lessor indemnified against any claim by any person for any loss or injury caused to him or to his property by lessee. The District Level Committees shall be the competent authority to assess and fix any compensation payable by the lessee for any loss or injury done to him or his property.

XIV. That if required by the ADM&G the lessee erect and maintain at his own expense, boundary pillars of substantial material standing not less than of three feet above the surface of the ground at each corner or angle in the line of the boundary of the area leased to him and intervals at not more than three metres along the boundary, as delineated in the plan attached to the lease deed.

XV. If any mineral is not specified in the lease deed or agreement is discovered, the lessee or the registered holder shall not win or dispose of such mineral without obtaining the permission of the Government and without payment of the Seigniorage Fee and the acreage assessment. If lessee or the registered holder fails to intimate the Government the discovery of such minerals and obtain their permission within a period of thirty days from the date of working of the mineral is begun, the Government may levy enhanced Seigniorage Fee and acreage assessment.

XVI. The lessee or the registered holder shall strengthen and support to the satisfaction of any Railway Administration concerned or the State Government, as the case may be, any part of the quarry which in the opinion of the Railway Administration or as the case may be, the State Government requires such strengthening or support for the safety of any railway, reservoir, canal, road or any other public works or structure.

XVII. The lessee should make use of authorized ramps and paths only for transportation of sand from the quarry and not open any new ramps or paths, without permission of the authorities/pattadars concerned.

XVIII. That this lease may be terminated for violation of conditions of lease as mentioned in Rule 9(B) to 9(z).

XIX. That on such determination the lessee shall have no right to compensation of any kind.

XX. The knocked down amount / Dead Rent and Seigniorage Fee payable under these presents shall be recoverable under the provisions of the Revenue Recovery Act, 1864 thereof.

XXI. That the determination of the tenancy to deliver up the demised land in such condition as shall be in accordance with the provisions of these presents save that the lessee shall if so required by the lessor restore in manner provided by the foregoing covenant in that behalf of the surface or any part of the land which has been occupied by the lessee for the purpose of the works hereby authorized and has not been so restored.

XXII. The lessee shall charge the price for sand at the pit head as fixed by the District level committee, before notification.

XXIII. The lessee shall abide by all the conditions and statutory provisions under Mines and Minerals (Development and Regulation) Act, 1957, and rules made thereunder viz., Andhra Pradesh Minor Mineral Concession Rules, 1966, Andhra Pradesh Mineral Dealers Rules, 2000, Mines Act, 1952, Miners and Metalliferrous Regulations, 1961, and Andhra Pradesh Water Land and Trees Act, 2002 and other State and Central Act and Rules and instructions which are applicable.

XXIV. The lessee shall have no claims for any compensation due to floods or heavy rains or any other situation and extension of the lease period shall not be granted under any circumstances.

7.1. The Lessor hereby covenants with the lessee paying the knocked down amount / Dead Rent and Seigniorage Fee hereby reserved and that on observing and performing the several covenants and stipulations herein the lessee shall peaceably hold and enjoy the demised pieces of land and the liberties and powers hereby demised and granted during the said term without any interruption by the lessor or any person rightfully claiming under or in trust for him.

II. The Government reserves the right to cancel the Quarry Lease granted and executed under these rules after giving due notice.

III. The Government can prohibit quarrying operations in part or whole of the area under lease with recorded reasons.

IV. Whenever ground water affect is noticed, safety of the structure is affected due to sand quarrying by the lease holder, the Government shall issue prohibitory orders banning sand quarrying in consultation with Ground Water Department and with the concerned Assistant Director of Mines and Geology and the local bodies as the case may be.

8. It is hereby expressly agreed as follows:

I. If any part of the knocked down amount / Dead Rent and Seigniorage Fee hereby reserved shall be unpaid after becoming payable (whether formally become demanded or if the lessee while the demised pieces of land or any part thereof remain vested in him shall become insolvent or if any covenant on the lessee's part herein contained shall not be performed or observed by them and in any of the said case it shall be lawful for the lessor at any time thereafter to declare to whole or any part of the said security deposit of Rs. ................ to be forfeited and also to re-enter upon the demised pieces of land or any part thereof in the name of the whole and thereupon this demise shall absolutely determined but without prejudice to the right of action of the lessor in respect of any breach or non-observance of the lessee's covenants herein contained.

II. At the expiry of determination of the lease the lessee shall be at liberty to remove, carry away machinery and all plant articles and things whatsoever (not being building or bricks or stone) within one month or extended period granted by Government after paying bid amount and Seigniorage and other sums which may be due and performing and observing the covenants on his part hereinafter reserved and contained and also making good any damages done by such removal but not buildings which shall be erected on the said demised piece of land by the lessee and left thereon at the determination of the lease land shall be the absolute property of the lessor who shall not pay any price for the same.

III. No movement of sand shall be allowed across the border to the neighbouring State.

IV. No quarrying of sand will be done with machinery / poclains or any other machinery for digging / loading.

V. The sand required for Weaker Section Housing Programme shall be supplied free of cost at pit head by the bidder / tenderer and is exempted from payment of Seigniorage Fee on certificate issued by the District Collector or any other Officer nominated by him.

VI. Sand transported through Bullock Carts and Animals shall be exempted from payment of Seigniorage Fee.

VII. The Government shall have the powers to either suo motu or on complaint cancel the confirmation bid at any stage in such case the bid amount equivalent to the possession held by the bidder will only be collected.

VIII. If the lessee paid the knocked down amount / Dead Rent and Seigniorage Fee and duly observed and performed the covenants and conditions on his part herein contained the said deposit of Rs. ............... shall be returned to him at the expiration of the said term of ......... years.

IX. The Way bill for transporting sand shall be in the "Form S-5". The way bills will be issued proportionate to the knocked down bid amount by calculating Seigniorage Fee as specified in the Schedule-1 of Rule 10 of Andhra Pradesh Minor Mineral Concession Rules, 1966. The bidder is liable to pay Seigniorage Fee additionally and obtain permits for the quantities exceeding the proportionate bid amount.

X. If any question of difference or dispute shall arise between the parties hereto or any person or persons claiming under them respectively concerning the knocked down amount/Dead Rent and Seigniorage Fee hereby reserved or touching the construction of any clause herein contained or the rights, duties or liabilities of the parties hereunder or in any other way touching or arising out of these presents the same shall be referred to the Government whose decision thereon shall be final and binding on the parties thereto.

XI. Removal of sand in patta lands: It is the responsibility of the bidder to obtain the consent of the Pattadar in respect of any area on the land abutting the river, streams etc. which is classified as patta land. The Pattadar, who is claiming the ownership of the land shall produce valid documents and also certificate issued by the concerned Mandal Revenue Officer.

The Schedule

Lessor

Form 'H'

Mineral Dues Clearance Certificate

1. Name and style of the company, firm, Hindu undivided family or individual in which the applicant/bidder/tenderer is assessed or assessable to mineral revenue and address for the purpose of assessment.

2. The place, taluk and district in which the applicant/bidder/tenderer is assessed to mineral revenue.

3. The following particulars shall be furnished concerning mineral revenue assessment for the preceding four years.

(a) The total correct amount received during the preceding four accounting years: -

(Total mining dues assessed)

(1) Seigniorage fee/Bid amount/Cesses. (in the case of minor minerals)

(2) Royalty/Dead Rent/Surface Rent. (in the case of major minerals)

(Mining dues demanded)

(1) Seigniorage fee/Bid amount/Cesses. (in the case of minor minerals)

(2) Royalty/Dead Rent/Surface Rent/Mineral Right Tax/Cesses. (in the case of major minerals)

(Balance dues)

(1) Seigniorage Fee/Bid amount/Cesses. (in the case of minor minerals)

(2) Royalty/Dead Rent/Surface (in the case of major minerals)
Rent/Mineral Right Tax/Cesses

(b) In case there has been no mineral revenue assessment in any year, it must be stated clearly with reasons therefor.

(c) It must be declared whether any attachment or certificate proceedings are pending in respect of the arrears.

(d) The name and address of branch(es) if any.

Signature of the Issuing Authority.

[Form-J]

(Should be submitted in triplicate)

Model form of application for appeal/revision under Rule 35 or 35-A

[See Rule 35-C]

1. Name and address of individual(s), firm or company, applying.

2. Profession of individual(s), firm or company.

3. No. and date of order of the ADMG/DDM & G/DMG, against which the appeal/revision application is filed (copy attached).

4. Minor Mineral or Minor Minerals for which the revision application is filed.

5. Details of the area in respect of which the revision application is filed.

(A map or plan of the area(s) to be attached).

6. Whether application fee has been deposited in the manner prescribed in sub-rule 35-B read with Rule 35-C(i) if so, the Treasury receipt in original should be attached.

7. Whether the appeal/revision application has been filed within time specified in Rule 35/35-A, if not, the reasons for not presenting it within the prescribed limits as provided for in rules.

8. Name and complete address of the party/parties impleaded, under Rule 35-C of A.P.M.M.C. Rules, 1966.

9. No. of copies of petitions/applications attached (Rule 35-C(4) A.P.M.M.C. Rules, 1966).

10. Grounds of appeal/revision.

11. If the appeal/revision application has been filed by the holder of Power of Attorney, the Power of Attorney to be attached.

Signature of the Applicant.

[Form-J 1]

[Should be submitted in triplicate]

Model Form of Application for Appeal/Revision under Rule 9-H

1. Name and address of individual(s), firm or company, applying.

2. Profession of individual(s) firm or company.

3. No. and date of the order against which the revision application is filed (copy attached).

4. Minor Mineral or Minor Minerals for which the appeal / revision application is filed.

5. Details of the area in respect of which the appeal / revision application is filed.

6. Whether the application fee has been deposited in the manner prescribed in Rule 9-GH(7), if so, the Treasury Receipt in original should be attached.

7. Whether the appeal / revision application has been within time specified in Rule 9-H(7), if not, the reason for not presenting it within the prescribed limits as provided for in rules.

8. Name and complete address of the party / parties impleaded, under Rule 9-H of APMMC Rules, 1966.

9. No. of copies of petition / applications attached under Rule 9-H of Andhra Pradesh Minor Mineral Concession Rules, 1966.

10. Grounds of appeal / revision.

Signature of the applicant.

[Form-K]

Application for issue of permit for despatch of Minor Minerals

[See Rule 34]

1. Name of the lessee :

2. Address:

3. Location of the quarry

Survey No., Village, Mandal and District):

4. Name of the Minor Mineral :

5. Quantity of the Minor Mineral in stock and the quantity proposed to be despatched:

6. Payment Particulars

(a) Challan No., date & amount :

(b) Name of the Treasury :

7. Route and Mode of Transportation:

8. Purpose of despatch of Minor Mineral (Own consumption or sale in case of sale, the name and address of the purchaser should be furnished):

9. Station of loading :

10. Destination of the Consignment with the name and address of the consignee.

11. Basic value of the minor mineral at pits head.

12. Date within which the applicant desires to despatch the quantity:

13. Other particulars which the applicant wishes.

Signature of Lessee/Authorised Agent.]

[Form-K1]

Application for issue of permit for dispatch of Minor Minerals

[See Rule 10(5) and Rule 34(3)]

1. Name of the Industry:

2. Address

3. Location of the Industry

Survey No.    Village, Mandal and District :

4. Name of the Minor Mineral utilized in the industry:

5. Quantity of the Minor Mineral in stock and proposed to be procured

6. Payment Particulars:

(a) Challan No., Date and amount:

(b) Name of the Treasury

7. Route and Mode of Transportation of Raw Blocks:

8. Basic value of Finished Product at Industry Site.

9. Date with in which the applicant desires to dispatch the quantity:

10. Other particulars which the applicant wishes.

Signature of the applicant/Authorized Agent.".

4. The Director of Mines and Geology shall review the entire system once in 3 months, to take stock of the situation at regular Intervals.

5. The Director of Mines and Geology, Hyderabad shall take necessary action to implement the recommendations made by the 2nd Administrative Reforms Commission in its Fourth Report titled "Ethics in Governance" relating to "Reducing Discretion".

6. The order issues with the concurrence of Finance (Expr. I&C) Department vide their U.O.No. 12770/221/Exp. I&C/09, dated 13.5.2009.]

[Form L]

Permit for despatch of Minor Mineral

[Under Rule 34]

Permit No ......................       Dated .....................

1. The permit is valid for ................ from ......................... to ............................ and shall expire on ..............................

2. The permit is not transferable.

3. [***]

4. The permit shall be surrendered after the quantity noted therein is despatched to the Department within a week after the last consignment of despatch along with the despatch particulars by giving the details of the name of the consignee, the date of despatch etc.

5. Holder of the permit shall allow the executive staff and the officers of the Department of Mines and Geology to inspect, check and measure the minor minerals in all stages of movement.

6. The department has the right to claim amounts by way of difference of seigniorage fee based on the scrutiny of the sale documents and the check measurements, provided the excess quantity is not beyond 10% of the quantity mentioned in the documents. The excess quantity beyond 10% is liable for penalisation under [Rule 34 (1).]

6A. [***]

7. Failure to comply with any of the above conditions shall entitle withdrawal of the permit or cancellation of the same.

Issuing Authority

[Form-L1]

Permit for Dispatch of Minor Mineral

Under Rule 34(3)

Permit No ......................       Dated .....................

1. The permit is valid for ................................................................................. from ............. to ................................. and shall expire on ........................ .

2. The permit is not transferable.

3. The permit shall be surrendered after the quantity noted there in is dispatched to the Department within a week after the last consignment of dispatch along with the dispatch particulars by giving the details of the name of the lease holders from whom the material is procured.

4. Holder of the permit shall allow the executive staff and the officers of the Department of Mines and Geology to inspect, check, and measure the minor minerals in all stages of movement.

5. The Department has the right to claim amounts by way of difference of seigniorage fee based on the scrutiny of the sale documents and the check measurements, provided the excess quantity is not beyond 10% of the quantity mentioned in the documents. The excess quantity beyond 10% is liable for penalization under [Rule 34 (1).]

6. Failure to comply with any of the above conditions shall entitle withdrawal of the permit and cancellation of the same.

Issuing Authority.]

Form 'M'

Form of Agreement

[See Rule 10]

Part - I

Mode of Payment of Knocked Down Amount

Part - II

Liberties of the Authorised Agent

[(1) To collect seigniorage fee at the relevant rates specified in Schedule 1 to Rule 10(1) and the relevant rates mentioned under Rule 12(5)(e) from the lease holders including temporary permit holders except the persons/organisations who obtained quarry leases with exemption from payment of seigniorage fee in respect of specified minerals for the quantities consumed or despatched by lease holders from their respective leases situated within the demised area at or before the time of despatch of the minerals.

(2) To issue transit way bills to the lease holders including temporary permit holders after collecting the seigniorage fee.]

(3) To check the vehicles transporting specified minor minerals for the purpose of collection of seigniorage fee.

Part - III

Restrictions on the Authorised Agent

[(1) The authorised agent shall not collect the seigniorage fee in excess of relevant rates specified in the Schedule I to Rule 10(1) and the relevant rates mentioned under Rule 12(5)(e).]

(2) The authorised agent shall not interfere with the quarrying operations or transportation of any Minor Minerals other than those specified under the schedule appended.

(3) The authorised agent shall not interfere with the [Mining] and transportation of any Major Minerals from the demised area.

(4) The authorised agent shall not interfere with the transportation of Minor Minerals specified in the schedule when they are quarried and transported from the leases situated outside the demised land and the transportation is covered by a valid despatch permit issued by competent authority having jurisdiction over the area from which the minor mineral was quarried.

(5) No building or thing shall be erected, set up or placed on any public ground or any place held sacred any class of persons or in such a manner as to injure pre-judicially effect any rights of other persons.

Part - IV

Liberties of the State Government

(1) The State Government shall have the liberty to grant the quarry leases in respect of the minor minerals specified in the schedule hereunder as per A.P.M.M.C. Rules, 1966.

(2) The State Government shall have the power to penalise any person indulged in illicit quarrying and transportation of minerals from demised area as per rules.

(3) The State Government shall have the power to terminate the agreement with the authorised agent if he violates the conditions specified in Part-III above.

Part - V

(1) The authorised agent shall immediately inform to the Assistant Director of Mines and Geology concerned about any illicit quarrying of minor minerals noticed within the demised area.

(2) The authorised agent shall maintain correct account of the minor minerals consumed or despatched from the demised area and shall furnish the same to the department when asked for.

(3) The authorised agent shall make his own arrangements for collecting the seigniorage fee from the lessee and he shall not claim any compensation for any failure on his part in collecting the same.

(4) The Bank Guarantee furnished by the Authorised Agent for the 75% of the knocked down bid amount and the security deposit of [Rs. .......] shall be returned after the completion of the said term of one year. Provided that the authorised agent duly observed and performed the conditions on his part herein contained.

(5) If any question of difference or dispute shall arise between the parties here to or any person concerning the [knocked down] amount and seigniorage fee hereby reserved any of these presents, it shall be reserved to the State Government whose decision thereon shall be final and binding on the parties hereto.

The Schedule

[Model Form - N]

Application for Quarry Prospecting Licence for [granite and marble] To be submitted in triplicate

[See Sub-Rule (5) of Rule 12]

Dated .......... day ........ of ........20 ...

2. A sum of Rs. 5000/- and DD for Rs. ....... being the fee in respect of this application and deposit respectively has been paid Vide Challan No.......... date .......... of the State Bank of India/Treasury ( ) DD No. ............. date ........... of .......... [any Nationalized Bank.]

3. The required particulars are given below:-

(i) Name of the applicant with complete address.

(ii) Is the applicant a private individual/private company/public company/firm or association?

(iii) In case applicant is:

(a) an individual, his nationality.

(b) A company, an attested copy of the certificate of registration of the company shall be enclosed.

(c) A firm or association, the nationality of all the partners of the firm or members of the association.

(iv) Profession or nature of business of applicant.

[v-a] No. and date of the valid clearance certificate of payment of mining dues [Copy attached].

[v-b] If on the date of application, the applicant does not hold a Prospecting Licence, it should be specified whether an affidavit to this effect has been furnished to the satisfaction of the State Government.

(vi) Details of [granite and marble] which the applicant intends to prospect.

(vii) Period for which the Prospecting Licence is required.

(viii) Extent of the area the applicant wants to prospect.

(ix) Details of the area in respect of which prospecting Licence is required.

(x) (a) Does the applicant have surface rights over the area for which he requires a prospecting licence? If so with relevant certified documents.

(b) If not, has he obtained the consent of the owner, and the occupier of the land for undertaking prospecting operations].

If so the consent of the owner and the occupier obtained in writing be filed. (in certified copies)
N.B.: - The areas shall cover whole or recognized part survey numbers.

(c) In case of forest areas, the name of the working circle, the range and felling series.

(d) For areas where no forest or cadestral maps are available, a sketch plan should be submitted on scale showing the area applied for together with boundary, if any, of any other existing quarrying lease or prospecting licence areas if the areas applied for has any common point or line with the boundaries of existing prospecting licence or quarrying lease areas.

(xi) The area applied for should be marked on plans as detailed below: -

(a) In case a cadestral map of the area is available the area on this map should be marked showing the name of the Village, Khasra

No. and areas in hectares of each field and part thereof.
N.B.: - The area applied for shall cover whole survey numbers.

(b) In the case of forest maps the area should be marked on the map showing the range and felling series.

(c) In case neither cadestral nor forest maps, are available, the area should be marked on a sketch plan drawn to scale showing on this plan all important surface and natural features, and dimensions of the lines forming the boundary of the area and the bearing and distance of all corner points from any important, prominent and fixed point or points].

(xiii) Particulars of the areas mineral-wise (in each State duly supported by an affidavit) for which the applicant or any person joint in interest with him.

(a) Already holds under prospecting licence.

(b) Has already applied for but not granted, or

(c) Being applied for simultaneously.

(xiii) Nature of joint in interest, if any.

(xiv) If the applicant intends to supervise the work, his previous experience of prospecting and mining should be explained, if he intends to appoint a manager, the name of such manager, his qualifications, nature and extent of his previous experience should be specified and his consent letter be attached.

(xv) Financial resources of the applicant.

(xvi) Particulars of receipted treasury challan and deposits attached for the amount referred to at 2 above.

(xvii) Any other particulars or sketch map which the applicant wishes to furnish.

Yours faithfully
Signature and Designation of the Applicant.

Form - O

Form of Prospecting Licence of [granite and marble]

[See Rule 12(5)(e)]

2. These are included in the said demise and for the purposes thereof following liberties: -

(i) To get from the said demised pieces of land.

(ii) For the purpose aforesaid to use any water in or under the said demised pieces of land and to divert the same and to make or construct any water courses or ponds so however that nothing shall be done in the exercise of this authority which shall interfere with the rights of any adjoining owners or the tenants of the Government, in respect of such water.

3. These are expected and reserves to the Government out of this demise.

(i) Liberty for the Government or other persons authorised by them to search for work, get and carry away the excepted minerals and other substances and for such purposes to have the right of ingress, egress and regress over the said demised pieces of land and to make erect and use all pits, machinery, buildings, roads and other necessary works and conveniences provided that the rights hereby reserved shall be exercised in such a way as to cause as little obstruction as possible to the licence in the use and enjoyment of its rights hereunder and that reasonable compensation for damages caused by any such obstructions shall be paid to the licensee the amount thereof in case of difference to be settled by arbitration as hereinafter provided.

4. The said demised pieces of land shall be held by the Licensee for the term of ........ years from the...... day of.....20.... to the......... day of ......20.... determinable as hereinafter provided.

5. The Licensee hereby agrees to pay during the said term a Prospecting fee of Rs. ......... per hectare together with Land Assessment, and Cesses thereon which may from time to time be imposed by the Government.

6. The Government may during the currency of the Licence, vary the rate of Prospecting fee.

7. It is hereby agreed and declared that the said Prospecting fee together with Land Assessment and Cess on Land Assessment shall be paid by the licensee at the time of execution of the Licence Deed and for the subsequent years one month in advance every year.

8. The Licensee is hereby covenants with the Government as follows:-

(i) To pay the Prospecting Licence fee on the days and in the manner aforesaid.

(ii) To bear, pay and discharge all existing and future rates, taxes, assessments, duties, impositions, outgoings and burdens whatsoever imposed or charged upon the demised pieces of land or the Prospecting fee hereby reserved or upon the owner or occupier in respect thereof or payable by either in respect thereof except such charges or impositions as the Licensee is or may hereinafter be by law exempted from.

(ii-A) Should any Prospecting fee or other sums due to the State Government under the terms and conditions of these presents be not paid by the Licensee within the prescribed time, the same may be recovered together with simple interest due there on at the rate of twenty four percent per annum on a certificate of such officer as may be specified by the State Government by general or special order in the same manner as on arrears of land revenue.

(iii) Before digging or opening any part of the said demised pieces of land for............ carefully to remove the surface soil to a depth of atleast ..........metres and lay aside and store the same in some convenient part of the said demised pieces of land until the land from which it has been removed is again restored to a state fit for cultivation as hereinafter provided.

(iv) To effectually fence off the said demised pieces of land from the adjoining lands and to keep the fences in good repair and conditions.

(v) Not to assign under let or part with the possession of the demised land or any part thereof without written consent of the Government first obtained.

(vi) After working out any part of the said demised pieces of land forthwith to level the same and replace the surface soil thereof and slope the edges, where necessary, so as to afford convenient connection with the adjoining land.

(vii) That the Licensee shall keep correct accounts, in such form as the Assistant Director of Mines & Geology concerned shall, from time to time, require and direct showing the quantities and other particulars of the said mineral obtained by the Licensee from the said lands and also the number of persons employed in carrying on the said Prospecting operations there in and shall, from time to time, when so directed by the Assistant Director of Mines & Geology concerned prepare and maintain complete and correct plans of all Prospecting operations conducted in the said lands and shall allow any officer thereunto, authorised by the Government from time to time and at any time, to examine such accounts and any such plans and shall, when so required, supply and furnish to the Government all such information and returns regarding all or any of the matters aforesaid as the Government shall from time to time require and direct.

(viii) That if the course of the Prospecting any mineral not specified in the licence is discovered the Licence or registered holder shall at once report such discovery to the Assistant Director of Mines & Geology concerned who shall obtain orders of the Director regarding the Prospecting of the same.

(ix) That the Governments agents, servants and workmen shall be at liberty at all reasonable times during the said term, to inspect and examine the works carried on by the Licensee under the liberties hereinbefore granted and the Licensee shall and will, from time to time, and at all times during the said term hereby granted confirm to observe all orders and regulations which the Government or an authorised agent as the result of such inspection may from time to time see fit to impose to keep the lands in good and substantial repair, order and condition or in the interest of public health and safety.

(x) The Licence shall without delay sent to the Assistant Director of Mines & Geology a report of any accident involving the death or injury to any person which may occur in or about the Prospecting Licence area and shall observe all rules for the time being in force regulating the working of Prospecting Licence.

(xi) That the Licensee shall not without the express sanction in writing of the said Assistant Director of Mines & Geology cut down or injure any timber or trees on the said lands but he may clear away brushwood or undergrowth which interferes with any operations authorised by these presents on payment of due compensation for cutting or injuring tree growth in the said lands to the departments concerned.

(xii) That wherever necessary, pay to the person concerned, compensation for any loss or damage which may be caused by the Licensee to the surface of the demised pieces of land or to anything growing or situated therein in exercise of the rights granted and shall not commence operations until such compensation has been paid. The Licensee shall further always keep the Government indemnified against any claim by any person for any loss or injury caused to him or to his property by the Licensee. The Deputy Director shall be the competent authority to assess and fix any compensation payable by the licensee for any loss or injury done to him or his property.

(xiii) That if required by the Assistant Director of Mines & Geology, erect and maintain at his own expense, boundary pillars of substantial material standing not less than three feet above the surface of the ground at each corner or angle in the line of the boundary of the area granted to him and at intervals of not more than three metres along the boundary, as delineated in the plan attached to the licence deed.

(xiv) If any mineral not specified in the Licence deed or agreement is discovered the Licensee or the registered holder shall at once report such discovery to the Assistant Director of Mines & Geology, to enable him to obtain the orders of the Director of Mines and Geology/Government for Prospecting of the same.

(xv) The Licensee or the registered holder shall strengthen and support to the satisfaction of any Railway Administration concerned or the State Government as the case may be, any part of the Prospecting Licence area which in the opinion of the Railway Administration or as the case may be, the State Government requires such strengthening or support for the safety of any railway, reservoir, canal, road or any other public works or structure.

(xvi) That this Licence may be terminated in respect of the whole or any part of the premises by six months notice in writing on either side.

(xvii) That on such determination the Licensee shall have no right to compensation of any kind.

(xviii) That the Prospecting fee payable under these presents shall be recoverable under the provisions of the Revenue Recovery Act, 1864 thereof.

(xix) That the determination of the tenancy to deliver up the demised land in such condition as shall be in accordance with the provisions of these presents save that the Licensee shall if so required by the Government, restore in the manner provided by the foregoing covenant in that behalf the surface or any part of the land which has been occupied by the Licensee for the purpose of the works hereby authorised and has not been so restored.

[(xx) The licensee for granite and marble shall comply with the provisions of Granite Conservation and Development Rules, 1999 and the Marble Development and Conservation Rules, 2002 respectively.]

9. The Government is hereby covenants with the Licensee that on the Licensee paying the Prospecting fee hereby reserved and that on observing and performing the several covenants and stipulations herein, the Licensee shall peaceably hold and enjoy the demised pieces of land and the liberties and powers hereby demised and granted during the said term without any interruption by the Government or any person rightfully claiming under or in trust for him.

9A. Government reserves the right.

(i) To cancel the Prospecting Licence granted and executed under these rules after giving a previous notice.

(ii) To prohibit Prospecting operations in part or the whole of the area under Licence with recorded reasons.

10. It is hereby expressly agreed as follows:- (i) If any part of the Prospecting Fee hereby reserved shall be unpaid for 30 days for becoming payable (whether formally demanded or not) or if the Licensee while the demised pieces of land or any part thereof remain vested in him shall become insolvent or if any covenants on the Licensee's part herein contained shall not be performed or observed them and in any of the said case it shall be lawful for the Government at any time thereafter to declare the whole or any part of the said security deposit of Rs. ............. to be forfeited and also to reenter upon the demised pieces of land or any part thereof in the name of the whole and thereupon this demise shall absolutely determine but without prejudice to the right of actions of the Government in respect of any breach or non observance of the Licensees covenants herein contained.

(ii) At the expiry of the determination of the Licence, the Licensee shall be at liberty to remove and carry all Engines, Machinery, articles and other things whatsoever (not being building or bricks or stones) within one month or extended period granted by the Government after paying Prospecting fee and other sums which may be due and performing and observing the covenants on his part herein before reserved and contained and also making good any damages done by such removal but not building which shall be erected on the said demised piece of land by the Licensee and left there on at the determination of the Licence and shall be the absolute the Property of the Government who shall not pay any price for the same.

(iii) If the Licensee shall have paid the Prospecting Fee and duly observed and performed the covenants and conditions on his part herein contained the said deposit of Rs. ........... shall be returned to him at the expiration of the said term of...... years.

(iv) If any question of difference or dispute shall arise between the parties hereto or any persons claiming under them respectively concerning the Prospecting Fee hereby reserved or touching the construction of any clause herein contained or the rights, duties or liabilities of the parties hereunder or in any other way touching or arising out of these presents the same shall be referred to the Director of Mines and Geology whose decision thereon shall be final and binding on the parties thereto.

The Schedule

Signed and delivered by the above
named in the presence of ...........

Model Form-P

Application for Quarry Lease for [Granite and Marble]

To be submitted in Triplicate

[See Rule 12(5)]

Dated the ........ day of ....... 20 ....

...............................
................................
Through:

2. A sum of Rs. 5000/- and DD for Rs. ....... Being the fees in respect of this application and deposit respectively payable under sub-rule (5-a) of Rule 12 (vide Challan No. ............ dated ............ of the State Bank of India/Treasury ...........) and DD No. ............... and date ............) [of any Nationalised Bank].

3. The required particulars are given below:

(i) Name of the applicant with Complete Address. Status of the applicant.

(ii) Is the applicant a private individual/Cooperative/ firm/association/private sector undertaking/Joint Sector undertaking or any other.

(iii) In case the applicant is ...........

(a) an individual, his nationality qualification and experience relating to quarrying

(b) a company, an attested copy of the certificate of registration of the company shall be enclosed.

(c) firm or association, the nationality of all the partners of the firm or members of the association; and

(d) a co-operative, nationality of non-India Members, if any along with place of Registration and a copy of the certificate of registration.

(iv) Profession or nature of business of applicant.

(v) Particulars of documents appended: Document Reference

(a) Mineral Dues Clearance Certificate

Or

(b) Affidavit in lieu of Mineral Dues Clearance Certificate; subject to the production of Mineral dues, clearance certificate within the period of ninety days of making application

Or

(c) Affidavit when not holding any quarry lease.

(vi) Mineral or minerals which the applicant intends to quarry.

(vii) Period for which Quarry lease is required.

(viii) Extent of the area for which quarrying lease is required.

(ix) Details of the area in respect of which quarrying lease is required.

(x) Brief description of the area with ; particulars reference to the following: -

a. Does the applicant have surface rights over the area for which he is making an application for grant of a quarry Lease.

b. If not, has he obtained the consent of the owner, and the occupier of the land for undertaking quarrying operation. If so, the consent of the owner and occupier of the land be obtained in writing and be filed.

(xi) a. A copy of Village Map which is not in less scale than village map showing the area applied for the situation of the area in respect of natural features such as streams or lakes.

b. in the case of Village area ; the name of the village, the khasra number, the area in hectares of each field or part hereof applied for ;

c. In case the area applied for is under forest, then the following particulars be given: -

(xii) 1. Forest division Block and Range

2. Legal status of the Forest (namely reserved, Protected, unclassified etc.)

(xiii) Particulars of the areas mineral wise in each Stated duly supported by an affidavit for which the applicant or any person joint in interest with him.

A. Already holds under quarrying lease.

B. Has already applied for but not granted.

C. Being applied for simultaneously.

(xiv) Nature of joint in interest if any.

(xv) a. Does the applicant hold a prospecting licence over the area mentioned at (xi) above? : If so, give its numbers and date of grant and the date when it is due to expire.

b. Has the applicant carried out the prospecting operation over the area held under PL and sent his report to the State Government, If not, state reasons for not doing so.

c. Nature of the land chosen for dumping overburden/waste and tailings (that is type of land whether agricultural, grazing land ; barren, saline land etc.) and whether proposed site has been shown on the mine working plan. Give also the extent of area in hectares set apart for dumping of waste and tailings.

(xvi) A report giving the details of prospecting carried out in the area together with assessment of the ore reserves, geological plans, results of chemical analysis of the representative samples and bore holes and logs.

(xvii) Manner in which the mineral raised is to be utilised.

a. i. if for captive use, the location of plant and industry.

ii. for sale for indigenous consumption.

b. If for exports to foreign countries: -

i. Names of the countries to which it is likely to be exported where the name is being set up on 100% export oriented or tied up basis.

ii. Whether mineral will be exported in raw form or after processing. Also indicate the stage of prospecting, whether intermediate stage or final stage of the end product.

c. If it is to be used within the country, indicate:- the industry/industries in which it would be used. Whether it will be supplied in raw form or after processing.

(xviii)(i) Financial resources of the applicant.

(ii) Anticipated yearly financial investments during the course of quarry construction and aggregate investment upto the stage of commencement of commercial production.

(xix) The application form should be accompanied by a statement of the salient features of the scheme of quarrying. This should be generally on the lines of the Project at a Glance given in a quarrying feasibility report including features relating to the protection of environment.

Yours faithfully,
Signature of the Applicant.

Note: - 1. If the application is signed by any Authorized Agent of the applicant, then the Power of Attorney should be attached.

2. The application should relate to one compact area only except when the application for Q.L. is for an area already held under P.L. by the applicant.

Model Form Q

Application for Renewal of Quarry Lease for [Granite and Marble]

[See Rule 12(5)(h)(xi)]

Dated the ..... day of ........ 20 ...

Through

(i) Name of the application with complete address.

(ii) Is the applicant a private individual/private company/public company/firm or association.

(iii) In case applicant is:

(a) An individual, his Nationality

(b) A company, an attested copy of Certificate of registration of the company shall be enclosed.

(c) A firm or association, the Nationality of all the Partners of the firm or members of the Association.

(iv) Profession or nature of business of applicant

(v) Number and date of valid clearance of payment of Mining and Quarrying dues.

(vi)(a) Particulars of the Quarry lease of which renewal is desired.

(b) Details of previous renewal granted if any.

(vii) Period for which the renewal of lease is required.

(viii) Whether renewal is applied for the whole or part of the lease hold?

(ix) A. (a) Does the applicant continue to have surface rights over the Area of the land for which he required renewal of the Quarry Lease

(b) If not, has he obtained the consent of the owner, and the occupier for undertaking quarry operations. If so the consent of the owner and the occupier of the land obtained in writing be filed.

B. Particulars of the areas mineral wise in the State duly supported by affidavit for which the applicant or any person join in interest with him.

(a) already holds under quarry lease.

(b) has already applied for but not granted, or

(c) being applied for simultaneously.

C. A mining plan which shall include:

(a) the plan of the area showing the nature and extent of the mineral body spot or spots where the excavation is to be done in the first year and its extent, a detailed plan of spot(s) of excavation based on prospecting data gathered by the applicant, a tentative scheme of quarrying, for the first five years of the lease.

(b) the details of geology and lithology of the area, the extent of manual quarrying and through machines.

(c) annual programme and plant for excavation for five years and

(d) the plan, the area showing natural water courses, limit of reserved and other forest areas and density of trees, assessment of impact of quarrying activity of forest, land surface and environment including air and water pollution, and details of the scheme for afforestation, land reclamation, use of pollution control devices.

D. Is the mineral going to be used in his own industry?

x. In case the renewal applied for is only part of the leasehold:

(a) the area applied for renewal.

(b) description of the area applied for renewal (description should be adequate for the purpose of demarcating the plot)

(c) particulars of map of the lease hold with area applied for renewal clearly marked on it (attached)

(d) particulars of existing or created dumps of ones, if any

(xi) Means by which the mineral is to be raised i.e., by hand labour or mechanical or electric power.

(a) manufacture in India.

(b) for exports to foreign countries.

(c) in the former case the industries in connection with which it is required, should be specified. In the latter case, the countries to which the mineral will be exported and whether the mineral is to be exported after processing or in raw form should be stated.

(xii) Details of output during the last three years and phase programme For production during the next three years along with a layout plan for development if any.

(xiii) Any other particulars which the applicant wishes to furnish.

Yours faithfully,
Signature of the Applicant.

Model Form - R

Application for Transfer of Licence/Lease for [Granite and Marble]

[See Rules 12(5)(h)(viii)]

Dated the.......... day of....... 20....

Through

2. A sum of Rs. 5000/- (Rupees Five Thousand only) being the fee in respect of this transfer application has been deposited (Vide Receipt Challan No. ........... Dated ....... of the State Bank of India/Treasury...........)

3. The required particulars are given below:

(i) Name and address of the Transferor (Original Licencee/Lessee)

(ii) Location of the area proposed for transfer.

iii. Extent of the area proposed for Transfer Sy.No. Extent

iv. No. and date of Grant of the Licence/lease

v. Date and Execution and period of the Licence/Lease

vi. Name and Address of the Transferee to whom the Licence/lease is proposed for transfer

vii. Whether valid MRCC of the Transferor And transferee are filed.

viii. Whether consent of both the parties for The transfer in the form of an affidavit is Filed.

ix. Reasons for Transfer

x. Whether any financial Consideration is Involved in the Transaction, If so the details Thereon.

Signature of the Transferor
Signature of the Transferee.

Note: - 1. Sketch of the area delay indicating the area granted in favour of the Transferor with signature of the Transferor are to be attached in Triplicate.

2. Sketch of the area duly indicating the area intended for Transfer duly signed by Transferor and Transferee is to be attached in Triplicate.

3. The application should relate to One compact area only.

(x) Brief description of the area with particular reference to the following: -

(a) Does the applicant have surface rights over the area for which he is making an application for grant of a quarry Lease.

(b) If not, has he obtained the consent of the owner, and the occupier of the land for undertaking quarrying operation. If so, the consent of the owner and occupier of the land be obtained in writing and be filed.

(xi) (a) A copy of Village Map which is not in less scale than village map showing the area applied for the situation of the area in respect of natural features such as streams or lakes.

(b) in the case of Village area; the name of the village, the khasra number, the area in hectares of each field or part hereof applied for.

(c) In case the area applied for is under forest, then the following particulars be given: -

(xii) 1. Forest Division Block and Range

2. Legal status of the Forest (namely reserved, Protected, unclassified etc.)

(xiii) Particulars of the areas mineral-wise in each State duly supported by an affidavit for which the applicant or any person joint in interest with him.

A. Already holds under quarrying lease.

B. Has already applied for but not granted.

C. Being applied for simultaneously ;

(xiv) Nature of joint in interest if any.

(xv) (a) Does the applicant hold a prospecting licence over the area mentioned at (xi) above? If so, give its numbers and date of grant and the date when it is due to expire.

(b) Has the applicant carried out the prospecting operation over the area held under PL and sent his report to the State Government? If not, state reasons for not doing so.

(c) Nature of the land chosen for dumping overburden/waste and tailings (that is type of land whether agricultural, grazing land, barren, saline land etc.) and whether proposed site has been shown on the mine working plan. Give also the extent of area in hectares set apart for dumping of waste and tailings.

(xvi) A report giving the details of prospecting carried out in the area together with assessment of the ore reserves, geological plans, results of chemical analysis of the representative samples and bore holes and logs.

(xvii) Manner in which the mineral raised is to be utilized.

(a) (i) if for captive use, the location of plant and industry.

(ii) for sale for indigenous consumption.

(b) If for exports to foreign countries: -

(i) Names of the countries to which it is likely to be exported where the name is being set up on 100% export oriented or tied up basis.

(ii) Whether mineral will be exported in raw form or after processing. Also indicate the stage of prospecting, whether intermediate stage or final stage of the end product.

(c) If it is to be used within the country, indicate : -

[Model Form-R-1]

(See Rules 12(5)(h)(viii) b to d and 31(ix) b to d)

(i) Name;

(ii) Address;

(iii) Location of the Lease area;

(a) Sy. No;

(b) Village;

(c) Mandal;

(d) District;

(e) Extent in Hects;

(iv) Name of the Mineral/s;

(v) Number and date of grant order of the Lease;

(Please enclose copy of grant order);

(vi) Number and date of work order of the Lease;

(Please enclose copies of work order and lease deed); 4. Reasons for change of entity;

Declaration

Signature of the Lease Holder/
Authorized Signatory

Note: In case the application is signed by the authorized signatory, enclose the authorization.

[Form-S 1]

[See Rule 9-D]

Notice inviting Sealed Tenders / Public Auction for leasing out the Right of Quarrying for the Sand Bearing Areas

.................. District

Schedule

Conditions of Auction

1. (a) Submission of Sealed Tender and accepting the Bid. - (i) Any person, who intend to obtain a lease for quarrying sand in a Reach or Mandal as notified under Rule 9-D shall submit Sealed Tender for the grant of the lease in the prescribed form so as to Reach the Assistant Director concerned two days before the date of conduct of auction (excluding the date of auction) before 5.00 PM and obtain proper acknowledgement.

(ii) Each bid document can be obtained by paying Rs. 1000/- in the form of DD drawn in favour of Assistant Director Mines & Geology concerned. For each additional Reach/Mandal an amount of Rs. 500/- shall be paid in similar manner. The said amount shall be credited towards user charge head of account within 7 days.

(iii) All persons intending to participate in the public auction shall simultaneously submit the sealed tender for any Reach or Mandal separately in Form 'S-4' in a Sealed Cover superscribing: -

(a) Notification Number;

(b) Name of the Tenderer; and

(c) The Reach / Mandal quoted for.

(iv) Every such Sealed Tender shall be accompanied by an application in prescribed Form 'S2' along with the enclosures as required thereunder.

(v) The amounts offered by way of sealed tender shall not be less than the minimum bid amount. Even if the less amounts are mentioned in the sealed tender, it will be read as equivalent to minimum bid amount.

(vi) Soon after the receipt of the Sealed Tenders from the Tenderers, necessary entry should be made in the register by the Assistant Director of Mines & Geology concerned while issuing acknowledgement to the Tenderer. Such Sealed Tenders so received shall be kept under the safe custody of Assistant Director of Mines & Geology. He has to ensure that all such Sealed Tenders and registers are kept safe under his personal custody duly observing the possible safety measures.

(vii) Every tenderer shall be eligible to participate in the auction after obtaining Hall tickets from Assistant Director of Mines & Geology.

(viii) The tenderer shall present by himself or through his authorized agent in the auction hall at the time of opening of the sealed tender. There shall be open auction and the bidding from different tenderers / bidders shall continue till the highest bid has been arrived at. The Sealed Tenders shall be opened after the bidding is over for each Reach or Mandal. The Auctioning Authority shall finalize the highest bid amount by taking the highest bid amount from open auction and sealed tenders whichever is higher.

(ix) 25% of the upset price should be fixed as Earnest Money Deposit in case of those participating in the auction. This amount shall be remitted through Demand Draft drawn in favour of Assistant Director of Mines & Geology concerned.

(x) The EMD is ordinarily, for a Reach / Mandal for which he has applied for. However he can opt for all Reaches / Mandals, simultaneously to participate, with the same EMD. The applicability of EMD for more than one Reach / Mandal as per the option of the applicant at the time of filing of applications is allowed. The moment he is the 1st or 2nd or 3rd bidder for a particular Reach / Mandal he ceases to participate for the next Reach / Mandal since the validity of the EMD gets exhausted. In order to participate for more than one Reach / Mandal with one EMD the applicant shall pay the highest EMD amount as applicable to a Reach/Mandal. With low amount of EMD, he will not be allowed to participate for the next Reach / Mandal for which the EMD is more than what is paid by the applicant. One is entitled to knock down one area only on one EMD. Persons who intend to acquire rights for more than one Reach/Mandal shall pay separate EMDs for each area.

(xi) It shall be at the discretion of the Auctioning Authority to accept or reject the tender or bid for the reasons to be recorded.

(xii) A Tender once submitted shall not be withdrawn before the bid is concluded.

(xiii) The Assistant Director, Mines & Geology concerned shall announce the names of person or persons who had submitted Sealed Tender and the Hall Ticket holders before commencement of the bidding for all Reaches/Mandals.

(xiv) The proceedings for the disposal of Reach or Mandal for quarrying sand shall be concluded on tenders or bids as the case may be by the Auctioning Authority. The tenders shall be opened only when it is ensured by the Auctioning Authority that there is no further bidding for the Reach or Mandal. The Auctioning Authority shall knock down the highest tender or bid provided he is satisfied with the same. In case the highest bid amount and one or more tendered amount remaining the same, of the Reach or Mandal shall be knocked down by drawing lots immediately.

(xv) The Auctioning authority concerned shall have the power to reject the highest tender or bid on substantial grounds to be recorded in writing at the time of auction and accept another next tender or bid.

(b) Issue of Hall Ticket. - (i) The applications will be issued by the ADMG from the date of publication of the notification and upto the date of closing for submission of filled-in applications. Filled-in applications shall be submitted two days before the date of auction [excluding the date of auction] before 5.00 PM to the Assistant Director of Mines & Geology concerned and obtain proper acknowledgement.

(ii) Hall tickets shall be issued one day before the date of conducting of auction and shall be closed by 5.00 PM. It is the responsibility of the applicant to collect the hall ticket either in person or by authorized representative in this behalf.

(iii) The auction conducting authority, on the day of auction is authorized to postpone the said date of auction to any other date for recorded reasons duly announcing the postponement in the auction hall and in such case no fresh notification is necessary and no fresh applications will be entertained.

(iv) After publication of the notification in the newspaper and upto one day before the closing date for receipt of application, for any eventuality to be recorded in writing, the Assistant Director, Mines & Geology concerned with the approval of the Auctioning Authority may postpone the auction and the date of postponement shall be notified in the newspapers.

(v) The venue of the auction due to any exigency may vary from the notified place in the notification and in such case same shall be informed while issuing hall tickets.

(c) Refund of Earnest Money Deposit. - (1) No person shall be admitted in the Auction Hall without the Hall Ticket issued by the Assistant Director of Mines & Geology concerned.

(2) The Earnest Money Deposit (EMD) of an unsuccessful bidder/tenderer except the first, second and third shall be refunded / returned by the Assistant Director, Mines & Geology concerned as early as possible i.e. within 15 days from the date of conducting of the auctions.

(3) In respect of the second highest bidder, the Earnest Money Deposit will be refunded only after the completion of the agreement with the first bidder. Similarly, in case of the 3rd bidder, it will be refunded only after completion of the agreement with either first or second highest bidders as the case may be.

(4) The right of quarrying shall be strictly subject to the confirmation or otherwise by the competent authority, who has the right to refuse to confirm the right of quarrying sand with the reasons recorded therein.

(d) (1) The following are the auctioning, confirming and appellate authority:

(2) The Auctioning authority shall have discretion to fix the minimum and maximum amounts of hike by the bidders in the Auction hall for each Reach.

(3) In case there is no hike of the bid for a particular Reach/Mandal both in the Public Auction and Sealed Tenders offered by all the participants:-

(i) The auction conducting authority may knock down the bid by drawing lots among the applicants in the Auction Hall. For all practical purposes, the bid knocked in favour of a bidder / tenderer in lots will be treated as highest bidder for that Reach / Mandal.

(ii) Similarly, 2nd and 3rd bidders will also be selected by way of lots and all the provisions are applicable to them as if they are 2nd and 3rd highest bidders to that area.

(4) The Auction Authority shall have the discretion to postpone the Auctions in case it is felt that more revenue will be realized if fresh auctions are conducted in all such cases where no hike takes place over and above minimum bid amount.

(5) In case, a single bid is received for any Reach / Mandal, the auction conducting authority at his discretion may knock down the bid in his favour. In such cases, he will be treated as highest bidder for the said Reach / Mandal.

(6) The concerned Assistant Director shall record the proceedings during auction in the proforma enclosed. Soon after the auctions are over on the same day the said proforma shall be made in triplicate and one shall be handed over in a sealed cover to the Auctioning Authority and one shall be sent to the Director of Mines & Geology. On the next working day of the completion of the auctions, he shall circulate the file to the confirming authority for obtaining orders by a special messenger. The confirmation authority shall pass orders within a maximum period of 7 days from the date of receipt of the proposals from the Assistant Director of Mines & Geology concerned.

(7) Any appeal or revision as the case may be against any order passed under sub-rule (1) of Rule 9-H can file appeal or revision application before the concerned in Form J-1 and the fee for such appeal / revision shall be made as per Rule 35-B of Andhra Pradesh Minor Mineral Concession Rules, 1966 within 15 days from the date of receipt of the order.

2. (i) No person shall be permitted in the auction Hall without the Hall ticket in the prescribed form issued by the Assistant Director of Mines & Geology concerned. The Hall Ticket holder may be allowed to be assisted with one assistant during auctions to participate in the auction.

(ii) The hall ticket shall be issued by the Assistant Director of Mines & Geology concerned on submission of the filled in application in the prescribed form with the following documents:-

(a) A Notarized affidavit in the prescribed form on a non-judicial stamp paper worth Rs. 25/- for abiding the conditions and Rules of auction.

(b) Bank Draft/Banker's Cheque obtained only from any Scheduled Bank in Andhra Pradesh for an amount equivalent to 25% of the minimum bid of sand reach/mandal drawn in favour of the Assistant Director of Mines & Geology concerned.

(c) Mineral Revenue Clearance Certificate in Form-H to substantiate that he is not in debit to the Government in the Mines and Geology Department, provided that in case the bidder did not hold or not holding a licence or lease under any of the mineral concession rules, he shall submit declaration to this effect in the form of a notarized affidavit.

3. (a) Sealed Tenders shall be accepted for each Reach / Mandal separately in separate covers provided.

(b) Every such sealed tender will be separately accompanied with a filled in prescribed form along with the enclosures as required under item (2) above.

(c) Every sealed tender shall be taken into consideration if it is submitted to the Assistant Director of Mines & Geology before the due date as per the notification.

(d) No person shall bid for any person unless he holds a Registered Power of Attorney and presents an application signed by such person.

(e) Tenderers shall be present by himself or through his authorized agent in the auction hall at the time of opening of the sealed tenders. The sealed tenders shall be opened after the bidding is over for each Reach/Mandal. The Assistant Director of Mines & Geology shall maintain a register by duly mentioning all the particulars of all the participants who have submitted sealed tenders and the hall ticket holder. The person whose tender bid is knocked down shall sign and mention his name in block letters by duly affixing, his thumb impression in the register. At the end of the day of the auctions, the auction conducting authority shall announce that any one who is willing to sign at the end as a witness to the proceedings may sign in the Register.

4. On the oral promise of the auctioning authority, the participants shall have no claim to any right.

5. (i) The following persons shall not be entitled to participate in the auction: -

(a) Persons aged below 18 years.

(b) Persons who have been debarred from obtaining Quarry Leases.

(ii) If any person obtains the quarry lease for sand by sealed tenders/public auction on misrepresentation or hiding the facts, the quarry lease shall be cancelled on its coming to the notice of the Government and the amount paid by him shall be forfeited to the Government.

6. No person shall be admitted into Auction Hall without the Hall Ticket issued by the Assistant Director of Mines & Geology concerned. The right of quarrying sand will be ordinarily knocked down to the highest tenderer / bidder, but the right is reserved to the auctioning authority who is conducting the proceedings to reject any tender/bid without assigning any reasons thereof. The deposits made by the unsuccessful tenderers/bidders will be returned to them as early as possible i.e., within 15 days from the date of conducting of auctions. The leasehold right for quarrying sand shall be strictly subject to the confirmation or otherwise by the competent authority who has that right to refuse to confirm the right to quarrying sand by recording reasons thereof.

7. No Reach/Mandal partly or fully covered by scheduled areas shall be leased out to any person who is not a member of Scheduled Tribe.

8. Special Concessions to Boatsmen Co-op. Societies.

(1) The Reaches identified in Major Rivers where the sand is lifted and carried by means of boats, the Registered Boatsmen Co-operative Society registered under the Andhra Pradesh Co-operative Societies Act, 1964 shall be given preference by allowing 10% concession on the highest bid/tendered amount offered in the Auction Hall. The concessional knocked amount be paid by the successful Registered Boatsmen Co-operative Society in not more than four equal quarterly instalments and each such instalments shall be paid 15 days before commencement of each quarter. If there is more than one Boatsmen Co-operative Society participating in the Auction and claims for the same Reach, local registered Boatsmen Co-operative Society shall be given preference. However, if there is more than one local Registered Boatsmen Society participating in such auction and claims for the same Reach, the successful bidder / tenderer shall be decided by drawing lots. Where no local societies participate and if only non-local Societies participate and claim for the same Reach, the successful bidder / tenderer shall be declared by drawing lots among the said non-local registered Co-operative Societies. The Society claiming as local Society to any particular Reach shall submit a certificate from the Divisional Co-operative Officer to the effect that it is a local Society to a particular Reach. Such certificate shall be submitted at the time of filing application.

(2) In case of a Boatsmen Co-operative Society who can participate in the auction in respect of areas like River, water tanks, ponds and from where sand is to be lifted in Boats, such society shall submit genuinity certificate pertaining to the society from the concerned Divisional Co-operative Officer along with a Statement of Annual audited statement of accounts audited by the Co-operative Department of the preceding year or in its absence, the previous preceding year together with byelaws of the Society. These documents are to be submitted at the time of filing of application.

9. The auctioning authority may at his own discretion reject any persons tender/bid who. - (a) has been convicted for any offence under any lease for the time being in force or any offence under the Mines and Minerals (Development and Regulation) Act, 1957; or

(b) is a debtor to the Government of Andhra Pradesh in the Mines and Geology Department.

10. (a) When the tender/bid is knocked down by the Competent Authority, the successful tenderer/bidder shall deposit Bank Draft/Bankers Cheque obtained from any Scheduled Bank within two immediate working days a sum equivalent to 25% of the knocked down amount with the Assistant Director of Mines & Geology concerned.

(b) The successful tenderer/bidder on receipt of the orders of confirmation shall remit the remaining amount including Income Tax as referred in the confirmation order to the prescribed Head of Account in a Government Treasury and also a security of Deposit of 10% knock down amount subject to a minimum of Rs. 1,00,000/- (Rupees One Lakh only) or equivalent to bid amount whichever is less in the form of National Saving Certificate duly pledged to the Governor of Andhra Pradesh or Bank guarantee issued by any Nationalised Bank and submit the same before the date specified in the order of confirmation to Assistant Director of Mines & Geology concerned and execute the lease deed in Form-G1 on stamped paper as per Registration Act and Indian Stamp Act, 1899, as applicable to Andhra Pradesh within seven days of the order of confirmation.

11. If the successful bidder/tenderer fails to pay 25% of the knocked down amount and prevailing I.T. within two working days or the remaining 75% of the knocked-down amount and prevailing I.T. within the specified time in the confirmation order, the amount already paid by the successful tenderer/bidder shall be forfeited to the Government. The confirming authority is the competent authority to forfeit the deposits to the Government.

12. If the successful tenderer/bidder fails to pay 25% of the knocked down bid amount and prevailing I.T. on the next two working days or the remaining 75% of the knocked down amount and prevailing I.T. amount after the issue of confirmation orders and fails to execute the lease deed in the prescribed form within the stipulated time, the amounts paid by him shall be forfeited to the Government by the confirming authority.

13. Payment of Second year lease amounts. - (a) The lessee shall pay the knocked down amount along with 20% enhancement towards the second year lease amount. Out of the total amount, 95% shall be paid towards Zilla Parishad Head of Account and balance 5% amount towards State Head of Account and submit the challans to the Assistant Director of Mines & Geology concerned on or before 45 days of the expiry of the first year lease period. If no such payment is received, the lease period gets expired by the first year ending itself and the Security Deposit gets forfeited to the Government. The Assistant Director of Mines & Geology shall make necessary arrangement for leasing out the area through sealed tender-cum-public auction.

(b) In respect of the Reaches identified to the boatsmen co-operative societies, the society shall pay the second year amount along with 20% enhancement in not more than four equal quarterly instalments and each instalment shall be paid 15 days before commencement of each quarter.

(c) The condonation of delay as stipulated under clauses (a) & (b) of Rule 9-P does not entitle the lessee for extension lease period.

14. The successful tenderer/bidder shall have no claims for compensation due to floods or any other situation or extension of lease period for the delays in pending orders or the delay caused by himself in paying the required amounts and executing the agreement.

15. The successful bidder bound to observe all the statutory provisions of various State and Central enactments and instructions issued by the Government/Department of Mines & Geology, WALTA, 2002 and Ground Water Department from time to time.

16. Use of authorized Ramps. - The lessee should make use of authorized ramps and paths only for transport of sand from the quarry and not open any new ramps or paths. However any new ramps can be permitted by the concerned Assistant Director of Mines & Geology only with the consent of the concerned Mandal Revenue Officer in the case of Government Land and River Conservator where the River Conservation Act applies and in case of patta lands with the consent of the Pattadar duly verifying the claims supported by certification issued by the Mandal Revenue Officer concerned.

17. Powers of the State Government. - (1) The Government shall have the power to cancel the auction conducted and confirmation orders issued thereon by the competent authority duly recording its reasons thereof.

(2) The Government shall have the power to condone the delay in issue of confirmation orders, execution of lease deed, etc. for the valid reasons to be recorded.

(3) The Government shall have the power to issue orders/clarifications, if any not specifically mentioned in implementation of these rules.

18. If the auctioning authority notices that any person in the auction hall before or at the time of bidding behaves or acted in such a manner as to cause loss to Government or induces or forbids any person from bidding, he may suspend him from participating the auction and remove him from the auction hall.

19. The successful tenderer/bidder shall not be entitled to commence the quarrying on the privilege acquired before executing the lease deed and take out the right of quarrying. It shall be the responsibility of the successful bidder to execute the quarry lease deed within the stipulated time and obtain the right of quarrying sand. If the successful tenderer/bidder fails to comply with the above formalities or if the privilege acquired could not be functioned he shall not be absolved of the responsibility to pay the knocked down amount.

20. If the successful tenderer/bidder dies after the privilege is knocked down to him, his legal heirs shall be responsible to execute the lease deed and to carry out the business by remitting to the Government their dues. If the legal heirs do not want to continue the privilege, they should within thirty days from the date of death of the auction purchaser intimate the auctioning authority their intention in writing by Registered Post. In such cases the auctioning authority shall make alternative arrangement or re-auction the privilege, the amount deposited by the deceased bidder shall be refunded to the legal heirs.

21. The sale price at pit head before notification shall be fixed by the District Level Committee by considering the following points:

1. Seigniorage Fee, Sales Tax, Income Tax and other taxes if any applicable during the course of lease period.

2. Location, demand and supply.

3. Marginal profit to be collected by the knocked down bidder.

4. Loading and formation of laying of ramps or roads in the Reach or Mandal.

22. The lessee shall abide by all the conditions and statutory provisions under Mines and Minerals (Development and Regulation) Act, 1957, and rules made thereunder viz., Andhra Pradesh Minor Mineral Concession Rules, 1966, Andhra Pradesh Mineral Dealers Rules, 2000, Mines Act, 1952, Mines and Metalliferrous Regulations, 1961 and Andhra Pradesh Water Land and Trees Act, 2002 and other State and Central Acts and Rules and instructions which are applicable.

23. The bidders shall not use poclains or any other machinery for the purpose of digging / loading since as per the WALTA Act, 2002, the sand mining is restricted to one Metre only and use of machinery leads to extraction of sand beyond one metre.

24. Sand exempted from payment of Seigniorage Fee

(1) Sand used in the weaker sections housing programme shall be supplied free of cost at pit head by the bidder / tenderer including exemption of payment of Seigniorage Fee on a certificate issued by the District Collector or any authorized officer by him.

(2) Bullock carts and animals transporting sand are also exempted from payment of Seigniorage Fee.

25. No movement of sand shall be allowed across the border to the neighbouring State. In case any vehicle is found transporting to the neighbouring State even with permit it will be treated as violation of rules and the penal provisions as specified in Rule 9X will apply besides the lease shall be liable for cancellation.

26. Whenever the Ground Water effect is noticed and safety of structures is effected due to sand quarrying in any area, the Government/Director of Mines and Geology shall issue prohibitory orders in consultation with Ground Water Department. In case the Director of Mines and Geology issues such order, he shall obtain the approval of the Government as early as possible.

27. Leases granted for sand by Tender or by Public auction are not liable for transfer.

28. The successful bidder or tenderer shall charge the price for sand at the pit head as fixed in the tender notice.

29. The lessee should observe the conditions stipulated by the Conservator of Rivers and the Ground Water Department and Irrigation and Command Area Development.

30. Persons authorized to check unauthorized transportation of the sand.

(a) The District Collector shall take all precautionary measures to stop illegal mining of sand in the District. In case of any illegal mining of sand by any person from any quarry or Reach unauthorizedly and is transporting it thereof, the officers competent under Rule 26 of Andhra Pradesh Minor Mineral Concession Rules, 1966 are empowered to check the vehicles and take appropriate action as specified therein or compound as specified in sub-rule (b) hereunder whichever is higher. Besides the District Collector shall nominate any other officer as he thinks deemed fit to exercise these powers in addition to officials so specified.

(b) The minimum penalty for each truck carrying sand without valid permit issued by the concerned authority must be Rs. 10,000/- (Rupees Ten Thousand only) for each truck of 10 tonnes capacity and Rs. 5,000/- (Rupees Five Thousand only) in respect of Tractor. In case of repeated violations vehicle will be confiscated by the officer not below the rank to the Assistant Director of Mines and Geology. The powers delegated to various office under the existing provisions of Andhra Pradesh Minor Mineral Concession Rules, 1966 shall be extended to sand cases also.

(c) The Way bill for transporting sand shall be in the "Form-S-5". The way bills will be issued proportionate to the knocked down bid amount by calculating Seigniorage Fee as specified in the Schedule-1 of Rule 10 of Andhra Pradesh Minor Mineral Concession Rules, 1966. The bidder is liable to pay Seigniorage Fee additionally and obtain permits for the quantities exceeding the proportionate bid amount.

(d) The Municipalities concerned who are the approving authorities for Housing Plans or Shopping / Commercial Complexes are empowered to recover the component of Seigniorage Fee on sand at the rates specified under Schedule-1 of Rule 10 of Andhra Pradesh Minor Mineral Concession Rules, 1966 with one time penalty in case of procurement of sand by any builder without any valid permit in respect of constructions which are of the value of above Rs. 1.00 Crore. Any person aggrieved by the said deduction/orders passed by the Municipalities of Grade-I, II, III appeal lies to the Director of Mines and Geology and in respect of Special Grade, Selection Grade Municipalities and Municipal Corporations appeal lies to Government and the procedure as envisaged in sub-rule (7) of Rule 9-H shall apply.

31. (a) Removal of sand in patta lands. - It is the responsibility of the bidder to obtain the consent of the Pattadar in respect of any area on the land abutting the river, streams etc. which is classified as patta land. The Pattadar who is claiming the ownership of the land shall produce valid documents and also certificate issued by the concerned Mandal Revenue Officer.

(b) Recovery of Seigniorage fee

32. The General provisions of Andhra Pradesh Minor Mineral Concession Rules, 1966 shall apply for cases which are not explicitly mentioned herein.

33. In case of any doubt as to the application or interpretation of the version of any of these conditions, the decision of the Government of Andhra Pradesh on the issue shall be final.

Form-S 2

Application for issue of Hall Ticket

(Under condition 2 of the Annexure)

(Under Rule-9E)

1. Name and present address of the applicant in Block Letters (proof of address such as attested copies of any ration card / telephone bill / Current Bill / Voter Identity Card / Driving Licence / PAN shall be enclosed). In the absence of the above, a certificate issued by the Mandal Revenue Officer concerned. 2. Name and Permanent address of the applicant in Block Letters)

Photo One spare photo to be enclosed duly signed by the

Note: - In case of partnership firm the partnership deed in case of Private Limited Company, the Articles of Association and in case of Registered Labour Contract Co-operative Society a certificate from the Divisional Co-operative Officer concerned should be produced for participating in the auction:

3. Date of Birth and Age of the applicant (persons of 18 years below not eligible):

4. Reach/Mandal for which he intends to participate in the auction/for submission of sealed tender:

5. Affidavit in the prescribed Form on a Non-Judicial Stamped paper worth Rs. 25/- enclosed or not:

6. No. and date of Bank Draft/Bankers Cheque obtained from any Scheduled Bank for an amount equivalent to 25% of the Minimum Bid:

7. Particulars of Leases if any under different mineral Concession:

8. Mineral Revenue Dues Clearance Certificate in Form 'H' enclosed or not:

9. (a) Has he been convicted for any penal offence or any offence under M and M (R and D) Act, 1957:

10. (b) Has he been debarred earlier in participating auctions or to obtain leases under different Mineral Concessions:

11. Whether agreed to pay a sum equivalent to 25% of the knocked down amount within two working days and the remaining 75% of the amount within the prescribed time in the confirmation order:

Signature of the Applicant.

Affidavit

1. To pay the sum equivalent to 25% of knocked down amount along with prevailing IT there of in the form of demand draft, obtained from any scheduled Bank within two working days and to tender the same before the ADMG concerned.

2. To pay balance 75% of the knocked down amount along with prevailing IT there of and security deposit of 10% of the knocked down amount subject to the minimum amount of Rs. 1,00,000/- or equivalent to the bid amount whichever is less on or before to date mentioned in confirmation orders and to execute the lease deed with the Assistant Director of Mines and Geology concerned in Form 'G1' within 7 days from the date of confirmation.

3. In case of default in payment of 25% of the knocked down amount and I.T. thereon within two working days or the remaining 75% of the knocked down amount and I.T. thereon within the time specified in the confirmation order and executed the lease deed within 7 days from the date of confirmation.

4. To abide by the condition that I shall pay the knocked down amount along with 20% enhancement towards the second year lease amount in the Government Treasury and submit the challans to the concerned Assistant Director of Mines and Geology on or before forty five days of the expiry of the 1st year lease period. If no such payment is received by the ADM&G concerned, the Confirmation Authority shall make necessary arrangement for leasing out the quarry and forfeit, the security deposit paid by the original lessee.

5. In case of negligence on my part to pay the balance amount and to execute the lease deed in time, I accept for any action taken by concerned authority to cancel the auction or terminate the lease as the case may be and to forfeit all sums paid.

6. To abide by the additional conditions if any imposed by the authority competent to do so, and

7. To abide by the decision of the Government of Andhra Pradesh in case of any doubt as to the application or interpretation of the versions of any of the conditions or provisions of M&M (D&R) Act, 1957, APMMC Rules, 1966, Mines Act and the Rules made thereunder.

8. I declare that I hold/do not hold any licence or lease under any of the Mineral Concession Rules and not in debt to the Government.

Deponent.

Sworn and signed before .................... me on ................ day of .................

Notary
Attested

Form-S 3

Hall Ticket

[Under Rule 9-E]

Office of the ADM&G
Dated:

Signature of the Issuing Authority.

Form-S 4

[See Rule 9E]

Tender Form

Signature
Name in Block letters.

Note:- 1. This tender is to be submitted in a sealed cover in person or by Reg. Post Ack. Due or through his Power of Attorney holder and acknowledgement obtained.

2. The Application shall reach on or before the date specified in the notification to the Assistant Director of Mines and Geology concerned in a properly sealed cover.

3. The Assistant Director concerned shall not be responsible for the loss in the postal transit or the delay in receipt of the sealed cover.

Form-S 5

Sand Way Bill Form

[See Rule 9-X(c)]

Book No. ............
Date ..................

1. Name of the lessee

2. Name of the consumer and destination

3. Name of village / villages / reach / mandal

4. Date of issue of permit and validity

5. Date and time of issue of way bill

6. Quantity of sand under transportation

7. Sale Price of Sand for Cub. Mt at Pit Head

8. Vehicle No.

9. Date and time of departure of the vehicle from the village / reach / mandal.

Signature of the lessee / authorized representative.

Note: 1. No overwriting in any form in the way bills makes it invalid.

2. The driver shall carry the duplicate stamped copy of the way bill and hand over it to the consumer / purchaser of sand as evidence of payment of Seigniorage fee.

3. The original Transit Form shall be surrendered to the Assistant Director concerned within 15 days from the date of dispatch and the Triplicate shall be retained with the Lessee.

4. The transporter of the Sand shall produce the way bill as the token of paid the Seigniorage Fee to any checking authorities authorized by the Government or at the check post in operation by the Department of Mines and Geology or other authorized Officers of the Government.

5. The consumer shall properly retain this way bill as token of evidence for payment of Seigniorage Fee to any authorized persons who is authorized for counter checking or else will be liable to pay Normal Seigniorage Fee with one time penalty.

Form-S 6

For recording Auction Proceedings

[See Rule 9 H (6)]