Amendments to the Tamil Nadu Minor Mineral Concession Rules, 1959 (417 Ex III 1a)
The Government of Tamil Nadu, Industries (MME.1) Department, issued G.O. Ms. No. 183 dated 28 December 2017 to amend the Tamil Nadu Minor Mineral Concession Rules, 1959. The amendments increase several deposits and security amounts and replace Appendix II with revised seigniorage fees, area assessments, dead rents and granite prospecting fees.
What the amendments cover
The Amendments to the Tamil Nadu Minor Mineral Concession Rules, 1959 were made by the Governor of Tamil Nadu under the Mines and Minerals (Regulation and Development) Act, 1957. They affect people and businesses dealing with minor mineral leases, bids, tenders and prospecting, including operations involving stone, granite, sand, earth, clay and limestone.
The amendments were published by the Government of Tamil Nadu, Industries (MME.1) Department, under G.O. Ms. No. 183 dated 28 December 2017.
Increased deposits and security amounts
The amendments increase several financial requirements:
- A payment based on a lease amount is increased from 10 per cent or Rs. 5,000, whichever is greater, to 20 per cent or Rs. 10,000, whichever is greater.
- Security for a lease granted through bid or tender is increased from 10 per cent or Rs. 20,000, whichever is higher, to 20 per cent or Rs. 40,000, whichever is higher.
- A required demand draft is increased from Rs. 20,000 to Rs. 40,000.
- Two amounts under the provisions addressed in rule 19-A are increased from Rs. 5,000 to Rs. 10,000 and from Rs. 20,000 to Rs. 40,000.
- A deposit that ordinarily could not exceed Rs. 5,000 is increased to an ordinary maximum of Rs. 10,000.
Revised mineral charges
The replacement Appendix II sets the following seigniorage fees per cubic metre:
- Rough building and road stones, Rs. 46. Broken or crushed materials, Rs. 59. Laterite, Rs. 33.
- Black granite, Rs. 3,859. Other coloured, multicoloured, ornamental or decorative granite, Rs. 2,321.
- Ordinary sand, Rs. 120. Earth, turf and specified clay, Rs. 26.
- Limestone, limeshell and kankar, Rs. 130. Pebbles and specified nodules, Rs. 195. Steatite and household or carving stones, Rs. 52.
- Other unspecified minor minerals, 30 per cent of local market value at the pit mouth.
Area assessment is Rs. 300 per hectare per year for granite and Rs. 150 for the other listed categories. Dead rent ranges from Rs. 1,500 to Rs. 22,500 per hectare per year, depending on the mineral. Granite prospecting fees are Rs. 13,000 per hectare per year for dolerite type and Rs. 6,500 for other granite types.
Relevance to landowners and buyers
The amendments concern mineral concessions and related charges rather than ordinary land transfers. A buyer or owner should pay particular attention where land is used or proposed for quarrying, mining or granite prospecting, or where a minor mineral lease, bid or tender is involved.
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Common questions
Does this change the charges for quarrying minor minerals?
Yes. The replacement Appendix II revises seigniorage fees, area assessments, dead rents and granite prospecting fees for specified minor minerals.
What security is required for a lease granted through a bid or tender?
The security is 20 per cent of the bid or tender amount for which the State Government granted the lease, or Rs. 40,000, whichever is higher.
What is the seigniorage fee for ordinary sand?
The replacement Appendix II sets the seigniorage fee for ordinary sand at Rs. 120 per cubic metre.
What are the granite prospecting fees?
The fee is Rs. 13,000 per hectare per year for dolerite type granite and Rs. 6,500 per hectare per year for other types of granite.
