The ministry of Mines on June 10, 2021 has issued the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Third Amendment) Rules, 2021 to further amend the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016.
The following amendments have been made:
• Rule 12A (1A), which specifies the shortfall in the dispatch, has been inserted, namely:
“In case of shortfall in dispatch from the minimum dispatch required under sub-rule (1), which shall be assessed on a quarterly basis, the lessee shall, in addition to the amounts payable under rule 13 of the Mineral (Auction) Rules, 2015 (hereinafter referred to as the Auction Rules) for the actual dispatch, also pay to the State Government, an amount equal to the difference between the following, namely:
1. the amounts payable under rule 13 of the Auction Rules for the quantity equal to the minimum dispatch required under sub-rule (1) in the said quarter on the basis of the weighted average of grade of minerals dispatched during the quarter.
2. the amounts paid under rule 13 of the Auction Rules for the quantity actually dispatched in the said quarter.
Provided that a reconciliation of the amounts paid under rule 13 of the Auction Rules shall be done at the end of the year and on such reconciliation, if it is found that the lessee has dispatched more than or equal to the minimum dispatch required under sub-rule (1) for that year as a whole, then any amount paid by lessee for the shortfall in dispatch in any quarter or quarters of that year shall be adjusted with the amounts to be paid for the last quarter of that year.
Provided further that the amount payable under this sub-rule shall be in addition to any appropriation of performance security for non-compliance of any minimum production or dispatch requirement under the Mine Development and Production Agreement.
• Rule 12A (1B), which specifies the case in which the lessee does not maintain minimum dispatch, has been inserted, namely:
“Where the lessee does not maintain minimum dispatch required under sub-rule (1) for the year as a whole, the State Government may terminate such lease after giving the lessee a reasonable opportunity of being heard.”
• Rule 12A (1C), which specifies the execution of the mining lease, has been inserted, namely:
“In cases where the mining lease is executed on or before the commencement of the Mineral (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Third Amendment) Rules, 2021, the provisions of sub-rule (1A) and (1B) shall apply after a period on one year from the date of such execution of mining lease or the date of commencement of the Mineral (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Third Amendment) Rules, 2021, whichever is later.”
• Rule 12A (2), which specifies the minimum dispatch limit, a new proviso has been inserted, namely:
“Provided that the new lessee shall also ensure that at least eighty percent of such annual production is dispatched in the said year.”
[Notification No. G.S.R. 397 (E)]
