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Disposal of minor minerals – Amendments to the Telangana Minor Mineral Concession Rules, 1966 – Notification



GOVERNMENT OF TELANGANA
ABSTRACT
Mines & Quarries – Disposal of minor minerals generated during excavation by
Government Engineering Departments – Amendments to the Telangana Minor
Mineral Concession Rules, 1966 – Notification – Issued.

___________________________________
INDUSTRIES AND COMMERCE (MINES-I) DEPARTMENT
G.O.MS.No. 6 Dated: 08/02/2016
Read the following:
1. G.O.Ms.No.1172, Industries (B-1) Dept., dated 04-09-1967.
2. G.O.Ms.No.22, Industries Dept., dated 25-01-1968.
3. G.O.Ms.No.226, Industries &Commerce Department, dt:25-03-1977.
4. G.O.Ms.No.55, Industries &Commerce Department, dt:26-08-2015.
5. From the Director of Mines & Geology, Hyderabad
Letter No.4249/P/2015, dated 04.12-2015
6. From the Director of Mines & Geology, Hyderabad
Letter No.7046/MR/2015, dated:31-12-2015.
                                                             *****
ORDER:
In the reference 1 st to 3 rd read above as per the powers delegated
under Section 15 of Mines and Minerals (Development and Regulation) Act,
1957 orders have been issued for notification of the Andhra Pradesh Minor
Mineral Concession Rules, 1966 for grant of prospecting licenses or quarry
leases or other mineral concessions in respect of minor minerals and for
purposes connected therewith.

2.  In the G.O. at reference 4 th read above, orders have been issued as per
Section 101 of Andhra Pradesh Reorganization Act, 2014 for adapting the
Andhra Pradesh Minor Mineral Concession Rules, 1966 by the Telangana State
referred to as A.P. State Minor Mineral Concession Rules, 1966 (Telangana
Adoption) Orders, 2015.

3.  For implementation of major projects by Government Engineering
Departments including the works such as excavation of canals, tunnels, laying
of pipeline, cutting of hillocks for ways/roads, etc., resulting in generation of
minor minerals such as building stone and road metal referred to as rock
spall, morrum/gravel/ordinary earth, etc. Proper guidelines are required for
disposal of these minor minerals for land restoration, conservation and as
generation of revenue to the local bodies in the form of seigniorage fee and
other taxes. Though, the Irrigation & Command Area Development
Department issued certain guidelines for disposal of minor minerals generated
during excavation of irrigation projects, but it is not giving results as
anticipated. Moreover, there are other Government Departments involved in
allied activity and a comprehensive mechanism shall be evolved to have
timely reclamation of land with effective regulatory system.

4. In the references 5 th and 6 th read above, the Director of Mines and
Geology has suggested a mechanism for disposal of minor minerals generated
during excavation by the Government Engineering Departments.

5. The matter has been examined in consultation with the Finance (Works
& Projects) Department and, it is decided to amend the Telangana Minor
Mineral Rules, 1966 suitably with certain modifications for effective
implementation of the mechanism for disposal of minor minerals generated
during excavation.

6. Accordingly, the Government, after careful examination of the matter
and as per the powers delegated under Section 15 of the Mines and Minerals
(Development and Regulation) Act, 1957 hereby issue the amendments to the
Telangana Minor Mineral Concession Rules, 1966 for regulation of minor
minerals generated during the excavation of major projects by Government
Engineering Departments and the purposes connected therewith.

7.  This order issues with the concurrence of Finance (Work and Projects)
Department vide their U.O. No.1392/85/WP/A2/2015, dated: 28.12.2015.

8. The following Notification shall be published in the Extraordinary Issue
of Telangana State Gazette dated the 9 th February, 2016.

                                                    NOTIFICATION

               In exercise of the powers conferred by Section 15(1) of Mines and
Minerals (Development and Regulation) Act, 1957 (Central Act 67 of 1957),
the Governor of Telangana hereby issues the following amendments to the
Telangana Minor Mineral Concession Rules, 1966.

                                                   AMENDMENTS

1.  In the said rules, after Rule 10-B the following shall be inserted
namely:-
10-C. (1) Utilization of excavated minor minerals by Government
Engineering Departments:

The Government Engineering Departments engaged in execution of
major projects involving work such as excavation of canals, tunnels, laying
of pipeline, cutting of hillocks for ways/roads, etc,:

(i)  Shall prepare action plan in advance earmarking land for separate
stacking of excavated material by the excavation agency
generated during digging and evaluate the rate of stacking and
watch and ward for providing in respective estimates and to
incorporate necessary conditions in bid document.

(ii)  After completion of excavation, shall work out the mineral-wise
quantities excavated basing on measurements recorded in the
Field Measurement Book alongwith anticipated Seigniorage Fee,
Sales Tax, Income Tax and any other taxes as applicable as per
the prevailing rates.

(iii)  Being  the  responsibility  of  the  Government  Engineering
Department involved in excavation, safeguard the excavated
material by incorporating appropriate provisions in the tender
document for excavation till its disposal or to make alternative
arrangement for watch and ward of excavated materials if it is not
disposed before the completion of excavation work by the
executing agency.

(iv)  The availability of miner minerals alongwith details of quantity
and location shall be uploaded as e-procurement by the
Government Engineering Department involved in excavation in
the respective web portal of all Government Engineering
Departments/Public Sector Undertakings.

(v)  If the excavated minor minerals are required by more than one
Government Engineering Departments, the Department involved
in  excavation  work  shall  permit  Government  Engineering
Department-wise lifting and transporting subject to payment of
Seigniorage Fee, Sales Tax, Income Tax and any other such
statutory taxes.

 (vi)  The  Government  Engineering  Departments  implementing
G.O.Ms.No.94  Irrigation  and  Command  Area  Development
Department dated 01-07-2003, shall produce a certificate on the
recovery of the amounts and submit it to the Government
Department involved in excavation, as evidence.

(vii) The Government Department involved in excavation shall furnish
the details of Seigniorage Fee, Sales Tax, Income Tax realized
from the Government Engineering Departments after lifting of
excavated minor minerals to the concerned Assistant Director of
Mines and Geology, Commercial Tax and Income Tax Depts.

(2) Disposal of excavated minor minerals to agencies other than
Government Engineering Departments:

To have effective implementation mechanism for the disposal of
dug out mines and minerals, the Department of Mines and Geology
shall make information available on web portal service for the said
purpose (Similar to that of services of MSTC) of its own or Telangana
State Mineral Development Corporation so that:

(a) All Engineering Departments will upload the data on availability
minerals giving details such as type of material, quantity, location,
co-ordinates etc.,

(b) Needy Departments/agencies can make requisitions online.

(c) Priority will be given to Government Departments/Public Sector
Undertakings.

(d) If there is no requisitions from Government Departments upto a certain
reasonable date limit, then can go for e-auction.

(e) After considering requisition, net quantity available from time to time
may be displayed in the online portal for further disposal.

2. If there is no requirement for utilization of excavated minor minerals
from Government Engineering Departments upto a certain reasonable date
limit, the Government Department involved in excavation shall furnish the
details to the Assistant Director of Mines & Geology concerned duly giving the
location, minor mineral-wise quantities, etc., for issue of online notification on
the availability of minor minerals, calling for e-applications indicating the base
price arrived by sum total of Seigniorage Fee, Sales Tax, Income Tax and any
other taxes as applicable with 20 percent of base price as Earnest Money
Deposit and challan for Rs.5000/- (Rupees five thousand only) under 0853-
102-81 other receipts, towards non-refundable processing fee within the date
& time prescribed in the e-notice for e-allocation on first-cum-first serve basis.

(i)  After the closing date & time of receipt of e-applications, the
Assistant Director of Mines & Geology concerned shall e-allot the
disposal to the first applicant or to the sole applicant in case of
single application if it is for entire quantity subject to payment of
Seigniorage Fee, Sales Tax, Income Tax and any other taxes as
applicable within (15) days from the date of allotment.

(ii)  If there is more than one e-application quoting part quantity of
minor minerals for lifting, the Assistant Director of Mines &
Geology shall accord separate e-allotment to each applicant on
first-cum-first basis and shall ensure that the entire quantity of
excavated minor minerals is disposed.

 (iii)  The Earnest Money Deposit of the e-allottee(s) who fail to pay
Seigniorage Fee, Sales Tax, Income Tax and any other taxes as
applicable on e-allotment within (15) days shall be forfeited to the
Government and the disposal shall be allotted to subsequent e-
applicant(s).

(iv)  The Earnest Money Deposit of e-applicants other than e-allottee
shall be refunded after payment of Seigniorage Fee, Sales Tax,
Income Tax and any other taxes as applicable by the
e-allottee(s).

(v)  The Assistant Director of Mines & Geology shall issue permit
alongwith transit forms to the e-allottee(s) under intimation to the
Government Department involved in excavation.

(vi)  If any e-allottee leaves minor minerals un-lifted from the
excavated dumps, the Assistant Director of Mines & Geology in
consultation with the Government Department involved in
excavation shall re-initiate of e-notice process calling for e-
applications for lifting of the leftover minor minerals. The Earnest
Money Deposit of such defaulter e-allottee shall be forfeited to the
Government.

(vii) The Earnest Money Deposit of the e-allottee(s) shall be refunded
by the Assistant Director of Mines and Geology on receipt of
report on lifting of specified quantity of minor minerals from the
Government Engineering Department involved in excavation.

(viii) Existing applicants also are eligible and their applications will be
carried forward on e-allotment by the Department.

3.  Provided that the disposal of rocks spall, morrum/gravel/ordinary earth
in Scheduled Areas/Agency Areas shall be as per the norms prescribed under
Panchayat Raj Extension of Services Act (PESA) and Rules made thereunder.

4.  Provided further, that the excavation of canals, tunnels, laying of
pipeline, cutting of hillocks for ways/roads, etc. by any agency other than any
Government Engineering Department shall be after obtaining permission from
the Assistant Director of Mines and Geology concerned and subject to
payment of Seigniorage Fee, Sales Tax, Income Tax and any other taxes as
applicable in advance as per the A.P. Minor Mineral Concession Rules, 1966
(Telangana Adoption) Order, 2015.

5.  Provided also that, any excavation(s) carried-out prior to notification of
these rules shall also be disposed by following the above procedure.

6. These orders shall come into force with immediate effect.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF TELANGANA STATE)
ARVIND KUMAR

SECRETARY TO GOVERNMENT & CIP

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