Amendment to the Tamil Nadu Minor Mineral Concession Rules
The Industries Department of the Government of Tamil Nadu issued G.O. Ms.No. 168, Industries (MMC-2), dated 18 September 2012, amending the Tamil Nadu Minor Mineral Concession Rules, 1959 by replacing rule 7 and adding a quarry lease application form. The amendment governs quarrying of minor minerals other than granite from specified government waste lands for genuine public works.
What the amendment governs
The Amendment to the Tamil Nadu Minor Mineral Concession Rules replaces rule 7 concerning quarrying for public purposes. It allows the District Collector to permit quarrying of minor minerals other than granite from unreserved waste lands, including poramboke, but excludes bunds of drinking water ponds or tanks.
Permission is available for works of Government of India departments, Tamil Nadu government departments, Panchayat Union Councils, Panchayats and Municipalities, or contractors employed by them. The minerals must be required and used only for a genuine public purpose, not for sale or commercial profit.
Application and payment requirements
The Tamil Nadu Minor Mineral Concession Rules require the contractor awarded the public work to apply to the District Collector using the prescribed form. Key requirements include:
- A specific recommendation from the officer authorised to sign the contract or agreement.
- An original challan showing payment of the non-refundable application fee of Rs. 1,500.
- An attested agreement, work order and details of the mineral, quantity required and requested lease period.
- Payment in one lump sum of the seigniorage fee and mineral cost for the full permitted quantity.
The District Collector may grant a lease after being satisfied that the application is complete and the proposed use is a genuine public purpose.
Lease period and mineral cost
The replacement rule permits a quarry lease for up to one year, depending on the quantity required. The lease deed must be executed within thirty days from receipt of the grant order.
A committee comprising the Commissioner of Geology and Mining, the Chief Engineer of Highways and the Chief Engineer of the Public Works Department determines proposed costs for earth commonly called savudu, gravel and rough stone. The Government fixes these costs and revises them annually, with the revised cost taking effect from 1 April of that year. A lease must require the lessee to pay any difference resulting from a later revision.
Completion and accountability
The Tamil Nadu Minor Mineral Concession Rules require the lessee to certify that all minerals removed were used and accounted for in the public work. Bills cannot be settled unless the District Collector certifies that the mineral cost and seigniorage fee have been paid in full. The Government may exempt specific public welfare schemes implemented by the Rural Development and Panchayat Raj Department from mineral cost.
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Common questions
Can granite be quarried under this public purpose procedure?
No. The replacement rule applies to minor minerals other than granite.
Can a contractor sell minerals obtained through this quarry lease?
No. The minerals must be used only for the genuine public work for which they are required, and not for sale or commercial profit.
How long can a public purpose quarry lease last?
The District Collector may grant the lease for a period not exceeding one year, depending on the quantity of minerals required.
Does the contractor have to pay more if the mineral cost is revised?
Yes. The lease deed must require the lessee to pay the difference when the Government revises the mineral cost after execution of the deed.