The Ministry of Law and Justice has notified Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Third Amendment) Rules, 2021. The Rules shall come into force on July 1, 2021. The Rules, 2021 amends Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 in the following manner:
In rule 12A, following sub-sections have been inserted :
- (1A) 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:—
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- 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; and
- 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.
- (1B) 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.
- (1C) 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.
- In 12A(2), the following proviso shall be 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.”.
*Tanvi Singh, Editorial Assistant has put this story together.