## Report on the Minerals Other than Atomic and Hydro Carbons Energy Minerals Concession Third Amendment Rules, 2021
**1. Executive Summary:**
This report analyzes the "Minerals Other than Atomic and Hydro Carbons Energy Minerals Concession Third Amendment Rules, 2021" based on the official notification. This amendment, effective July 1st, 2021, modifies the Minerals Other than Atomic and Hydro Carbons Energy Minerals Concession Rules, 2016, primarily focusing on minimum dispatch requirements for lessees. Key changes involve financial penalties for dispatch shortfalls, potential lease termination for sustained non-compliance, and a grace period for existing leases. This amendment aims to ensure consistent mineral dispatch and revenue for the State Government.
**2. Introduction:**
This report aims to provide a comprehensive overview of the "Minerals Other than Atomic and Hydro Carbons Energy Minerals Concession Third Amendment Rules, 2021," as published in the Gazette of India. The analysis is based solely on the information contained within the provided policy text and intends to inform stakeholders about the key changes and implications of this amendment.
**3. Policy Overview:**
* **Original Policy:** The amendment modifies the Minerals Other than Atomic and Hydro Carbons Energy Minerals Concession Rules, 2016.
* **Core Objective(s):** Based on the provided text, the core objective of this amendment is to ensure consistent dispatch of minerals by lessees, likely to maintain revenue streams for the State Government and potentially to prevent hoarding or under-utilization of mining leases.
**4. Background and Rationale:**
This amendment appears designed to address the issue of lessees failing to meet minimum dispatch requirements as stipulated in the original Minerals Other than Atomic and Hydro Carbons Energy Minerals Concession Rules, 2016. The amendment introduces financial disincentives and the threat of lease termination to encourage consistent dispatch, suggesting that a problem existed with lessees not adhering to these minimum requirements under the original rules.
**5. Key Provisions / Changes:**
This amendment introduces significant changes to Rule 12A of the Minerals Other than Atomic and Hydro Carbons Energy Minerals Concession Rules, 2016. The key changes are:
* **Addition of Sub-rules 1A, 1B, and 1C to Rule 12A:** These sub-rules outline the consequences of failing to meet the minimum dispatch requirements.
* **Sub-rule 1A:** Introduces a financial penalty for dispatch shortfalls assessed quarterly. Lessees must pay the State Government the difference between the amount payable under Rule 13 of the Mineral Auction Rules, 2015 for the minimum required dispatch and the amount paid for the actual dispatch. This penalty is calculated based on the weighted average grade of minerals dispatched during the quarter. The sub-rule also provides for reconciliation at year-end. If the lessee meets the minimum dispatch requirement for the entire year, any shortfall payments will be adjusted against payments for the last quarter of the year. This payment is in addition to any appropriation of performance security.
* **Sub-rule 1B:** States that the State Government may terminate the lease if the lessee does not maintain the minimum dispatch requirement for the year as a whole, after providing a reasonable opportunity to be heard.
* **Sub-rule 1C:** Provides a grace period for existing mining leases. The provisions of sub-rules 1A and 1B will apply one year from the date of execution of the mining lease or the date of commencement of the Third Amendment Rules, 2021, whichever is later.
* **Amendment to Sub-rule 2:** Adds a proviso stating that new lessees must ensure at least eighty percent of their annual production is dispatched in the said year.
**Difference/Effect of Changes:** These changes add teeth to the enforcement of minimum dispatch requirements. The financial penalties and threat of lease termination create stronger incentives for lessees to meet their dispatch obligations. The grace period offers existing leases time to adjust to the new requirements. The 80% dispatch of annual production clause for new lessees aims to quickly establish a baseline of compliance with dispatch standards.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* Mining leaseholders (lessees) involved in the extraction of minerals other than atomic and hydro carbons energy minerals.
* State Governments, specifically those responsible for overseeing and regulating mining operations within their jurisdiction.
* Potential new lessees
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The State Government is the primary responsible body for implementing and enforcing these amended rules. The Mineral Auction Rules, 2015 are also referenced, suggesting the involvement of agencies responsible for administering those rules.
* **Timelines/Procedures:**
* The amendment came into force on July 1st, 2021.
* Financial penalties are assessed on a quarterly basis.
* A reconciliation of dispatch amounts and payments is conducted at the end of the year.
* Existing mining leases have a one-year grace period before sub-rules 1A and 1B apply.
* Lease termination requires the State Government to provide the lessee with a reasonable opportunity to be heard.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these changes include:
* Increased mineral dispatch by lessees.
* Enhanced revenue collection for State Governments due to both increased dispatch and penalty payments for shortfalls.
* Deterrence of hoarding or under-utilization of mining leases.
* Greater accountability and compliance with dispatch requirements.
**9. Conclusion:**
The Minerals Other than Atomic and Hydro Carbons Energy Minerals Concession Third Amendment Rules, 2021 represent a significant step towards ensuring consistent mineral dispatch and revenue generation. By introducing financial penalties and the possibility of lease termination for non-compliance, the amendment creates stronger incentives for lessees to meet their dispatch obligations. This amendment is significant because it attempts to address a specific weakness in the enforcement of minimum dispatch requirements, potentially leading to more efficient and productive mining operations.
Key Entities Referenced
New Delhi: The location where the Ministry of Mines issued the notification.
Ministry of Mines: The government ministry that issued the notification.
Mines and Minerals Development and Regulation Act, 1957: The Act of the Parliament of India which empowers the Central Government to make rules for regulating the mining sector.
Minerals Other than Atomic and Hydro Carbons Energy Minerals Concession Rules, 2016: The set of rules being amended by this notification.
Minerals Other than Atomic and Hydro Carbons Energy Minerals Concession Third Amendment Rules, 2021: The new rules which amend the Minerals Other than Atomic and Hydro Carbons Energy Minerals Concession Rules, 2016.
State Government: The government of a State in India, to whom certain payments are to be made according to the rules.
Mineral Auction Rules, 2015: A set of rules related to mineral auctions, which are referenced in the notification for calculating certain payments.
Mine Development and Production Agreement: An agreement related to mine development and production, referenced in the context of performance security.
Dr. VEENA KUMARI DERMAL: Joint Secretary who signed the notification.
Gazette of India: The official government gazette where the amended rules were published.
Mayapuri, New Delhi: Location of the Dte. of Printing at Government of India Press.
Delhi: Location of the Controller of Publications.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-10062021-227472
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 319] नई दिल्ली, र्ृहस्ट्प जतिार, िनू 10, 2021/ज्य ष्े ठ 20, 1943
No. 319] NEW DELHI, THURSDAY, JUNE 10, 2021/JYAISTHA 20, 1943
खान मत्रं ालय
अजधसचू ना
नई दिल्ली, 10 िून, 2021
सा.का.जन. 397(अ).—केन्द्रीय सरकार खान और खजनि (जिकास और जिजनयमन) अजधजनयम, 1957 (1957 का
67) की धारा 13 म ें प्रित्त अजधकारों का प्रयोग करते हुए, खजनि (परमाणु और हाइड्रोकार्बन ऊिाब खजनिों से जभन्न)
ररयायत जनयम, 2016 में और संिोधन करने के जलए जनम्नजलजखत जनयम र्नाती ह ैअर्ाबत्:-
1. (1) इन जनयमों का संजिप्त नाम खजनि (परमाणु और हाइड्रोकार्बन ऊिाब खजनिों से जभन्न) ररयायत (तीसरा
संिोधन) जनयम, 2021 ह।ै
(2) ये 01 िलु ाई 2021 को प्रिृत्त होंगे।
2. खजनि (परमाण ु और हाइड्रोकार्बन ऊिाब खजनिों स ेजभन्न) ररयायत जनयम, 2016 म,ें जनयम 12 क म,ें -
(i) उप-जनयम (1) के पश्चात, जनम्नजलजखत उपजनयम अंतः स्ट्र्ाजपत दकया िाएगा, अर्ाबत:् -
"(1क) उप-जनयम (1) के अधीन अपेजित न्द्यनू तम प्रषे ण से प्रेषण म ेंकमी के मामल े म,ें जिसका जतमाही आधार पर
आकलन दकया िाएगा, पट्टेिार, िास्ट्तजिक प्रेषण के जलए खजनि (नीलामी) जनयम, 2015 (जिसे इसम.े इसके पश्चात
3121 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
नीलामी जनयम कहा गया ह)ै के जनयम 13 के अधीन िये रकम के अजतररक्त राज्य सरकार को जनम्नजलजखत के र्ीच अतं र की
र्रार्र रकम भी चुकाएगा, अर्ाबत:् -
(क) जतमाही के िौरान प्रेजषत खजनिों के ग्रेड के लािे गए औसत के आधार पर उक्त जतमाही में उप जनयम (1) के अधीन
अपेजित न्द्यूनतम प्रेषण के र्रार्र मात्रा के जलए नीलामी जनयम के जनयम 13 के अधीन िेय रकम; और
(ख) उक्त जतमाही म ेंिास्ट्तजिक रूप से प्रेजषत मात्रा के जलए नीलामी जनयम के जनयम 13 के तहत चुकायी गयी रकम:
परंत ु िषब के अंत म ें नीलामी जनयम के जनयम 13 के अधीन चुकायी गई रकम का समाधान दकया िाएगा और
ऐसे समाधान पर यदि यह पाया िाता ह ै दक पट्टेिार न े पणू ब रूप से उस िष ब के जलए उप जनयम (1) के अधीन अपेजित
न्द्यूनतम प्रेषण से अजधक या उसके र्रार्र प्रेजषत दकया ह ै तर् उस िष ब की दकसी जतमाही या जतमाजहयों म ें प्रेषण में कमी
के जलए पट्टेिार द्वारा चुकायी गयी दकसी रकम को िष ब की अंजतम जतमाही के जलए भुगतान की िान े िाली रकम के सार्
समायोजित दकया िाएगा।
परंतु यह और दक खान जिकास और उत्पािन करार के अधीन दकसी न्द्यूनतम उत्पािन या प्रेषण अपेिा के गैर
अनुपालन के जलए कायब जनष्पािन प्रजतभूजत के जिजनयोिन के अजतररक्त इस उप जनयम के अधीन िेय रकम होगी।
(1ख) िहा ं पट्टेिार पूणरूब पेण िषब के जलए उप जनयम (1) के अधीन अपेजित न्द्यूनतम प्रेषण को र्नाए नहीं रखता ह,ै तो
राज्य सरकार सनु िाई का उजचत अिसर िेन े के पश्चात ् ऐस ेपट्टे को रद्द कर सकती ह।ै
(1ग) उन मामलों म ें िहााँ खनन पट्टे का जनष्पािन खजनि (परमाण ु और हाइड्रोकार्बन ऊिाब खजनिों स े जभन्न) ररयायत
(तीसरा संिोधन) जनयम, 2021 को लाग ू होन े या उससे पहले दकया गया ह ै िहां खनन पट्टे के ऐस े जनष्पािन की तारीख
से एक िष ब की अिजध के पश्चात् या खजनि (परमाण ु और हाइड्रोकार्बन ऊिा ब खजनिों स े जभन्न) ररयायत (तीसरा संिोधन)
जनयम, 2021 के लाग ू होन े की तारीख को, इनमे िो भी र्ाि में हो, िहााँ उप जनयम (1क) और (1ख) के प्रािधान लाग ू
होंगे।";
(ii) उप जनयम (2) म,ें जनम्नजलजखत परन्द्तुक अंतःस्ट्र्ाजपत दकया िाएगा, अर्ाबत:् -
"परंत ु दक नया पट्टेिार यह भी सुजनजश्चत करेगा दक उक्त िष ब म ें ऐसे िार्षबक उत्पािन का कम से कम अस्ट्सी प्रजतित
प्रेजषत दकया गया ह।ै "
[फा.सं. 16/98/2020-खान-VI]
डॉ िीणा कुमारी डरमल, संयुक्त सजचि
रिप्पण : खजनि (परमाणु और हाइड्रोकार्बन ऊिाब खजनिों से जभन्न) ररयायत जनयम, 2016 भारत के रािपत्र, असाधारण,
भाग II, खंड 3, उप-खंड (I) की अजधसूचना संखयांक सा. का. जन. 279 (अ) तारीख 4 माचब, 2016 म ें प्रकाजित की गई र्ी
और अजधसूचना संखयांक सा. का. जन. 254 (अ), तारीख 8 अप्रलै 2021 म ेंअंजतम र्ार संिोजधत की गई र्ी।
MINISTRY OF MINES
NOTIFICATION
New Delhi, the 10th June, 2021
G.S.R. 397(E).— In exercise of the powers conferred by section 13 of the Mines and Minerals (Development
and Regulation) Act, 1957 (67 of 1957), the Central Government hereby makes the following rules further to amend
the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016, namely: —
1. (1) These rules may be called the Minerals (Other than Atomic and Hydro Carbons Energy Minerals)
Concession (Third Amendment) Rules, 2021.[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3
(2) They shall come into force on the 1st day of July, 2021.
2. In the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016, in rule
12A,—
(i) after sub-rule (1), the following sub-rules shall be inserted, namely:—
“(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:—
(a) 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
(b) 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.”;
(ii) in sub-rule (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.”.
[F. No. 16/98/2020-M.VI]
Dr. VEENA KUMARI DERMAL, Jt. Secy.
Note: The Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 were
published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide notification number G.S.R.
279 (E), dated the 4th March, 2016 and last amended vide notification number G.S.R. 254 (E), dated the 8th April,
2021.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.