Cement, Energy and Environment

• 20 THE GAZETTE OF INDIA: EXTRAORDINARY I PART II-SEC. 3(i)J (d) the bidders shall be provided a fixed period, as prescribed by the State Government, to study the Tender Document and such reports and the bidding process shall commence only on expiry of such period. 18. Crant of Composite Licence.-( I) Upon completion of the auction process. the preferred bidder shall submit a perforn1ance security in the manner specified in sub-rule ( I ) of rule 19 and upon receipt of such performance security. the Stare Government shall issue a letter of intent to the preferred bidder. (2) On receipt of the letter of intent the preferred bidder shall be considered to be the successful bidder upon fulfiln-ent of the following conditions, namely:- (a) compliance with all the te rms and conditions of eligibility: (b) obtaining all consenL~. approvals, permits, no-objections and the like as may be required under applicable laws for commencement of prospecting operations: and (c) submitting the Scheme of prospecting. (3) Upon ful filment of the conditions speci tled in sub-rule (2). the State Government shall grant a Composite Licence to the successful bidder and such Composite Licence shall be subject to the provisions of the Act and the rules made thereunder, as applicable to a prospecting licence and mining lease. (4} The minimum area for grant of a Composite Licence shall not be less than the minimum area for which a mining lease may be granted in accordance with the provisions of the Mineral Concession Rules, 1960 and the maximum area shall be in accordance with section 6 as applicable to a prospecting licence. (5) The bolder of a Composite Licence shall conduct geological exploration of the area unde r the Composite Licence so as to ascertain evidence of mineral contents and shall submit periodic reports in accordance with the Act and rules made thereunder, as applicable to a prospecting licence and all reports, studies and other documentation related to the geological exploration of the area under the Composite Licence shall be submitted to the State Government and Indian Bureau of Mi nes. (6) If a holder of a Composite Licence.- (a) fai ls to complete prospecting operations in accordance with sub-section (9) of section II or fails to establish the existence of mineral contents in accordance with sub-section (I 0) of section II. and U1e Mi nerals (Evidence of Mineral Contents) Rules, 20 15, such holder shall not be eligible to receive a mining lease and the Composite Licence shall be terminated: (b) completes prospecting operations in accordance with sub-section (9) of section II resulting in detem1ination of evidence of mineral contents conforming to the Mineral (Evidence of Mineral Contents) Rules. 201 S. such holder shall make an application to the State Government for grant of a mining lease accompanied with the first instalment, being ten per cent of the upfront payment: Provided that the mining lease shall be granted only with respect to the area for which evidence of mineral contents has been found and shall not be for an area larger than the maximum area for which a mining lease may be granted under the Act: Provided further that any excess area shall be deemed to be surrendered by the holder of Composite Licence after completing its reclamation. (7) Upon receipt of the dul y completed mining lease application and the first instaln-ent of the upfront payment as specified in clause (b) of sub-rule (6), the State Government shall issue a letter of intent for mining lease. (8) A Mine Development and Production Agreement shall be executed bel\veen the State Government and the holder of Composite Licence if U1e holder of a Composite Licence- (a) continues to comply with the terms and conditions of eligibility; (b) pays tre second instalment being ten per cent. of the upfront payment; (c) furnishes the enhanced performance security as specified in sub-rule (2) of rule 19: (d) satisfies the conditions specified in clause (b) of sub-section (2) of section 5 with respect to a mining plan; (e) obtains all consents. approvals. permits, no-objections and the like as may be required under applicable laws for commencement of mining operations; and (t) satisfies such other conditions as may be specified by the State Government with the prior approval of the Central Government. (9) The holder of the Composite Licence shall pay the third instalment being eighty per cent. of the upfront payment, subsequent to execution of the Mine Development and Production Agreement, and upon such 25