Chandigarh, August 6: Haryana Chief Minister, Sh. Manohar Lal said that if any mining lease holders in the state are unable to obtain environmental clearance and operation consent within 12 months from the date of issuance of the consent letter, then from now onwards, he will have to pay 1 percent of the annual bid amount for the first six months and  2 percent of the annual bid amount for each month for the next six months.

Sh. Manohar Lal said that such contractors would have to pay interest at the rate of 12 percent per annum on the amount due which would be applicable from the date of commencement of the contract. However, the amount of interest shall not exceed 50 percent of the total amount payable. Further, the duration of the contract will not change, which means that the date of commencement of the period will remain the same as fixed earlier.

The Chief Minister said this while presiding over the review meeting held here today regarding resolving long pending mining disputes and problems. Mines and Geology Minister, Sh.  Mool Chand Sharma was also present in the meeting. Representatives of mining leaseholders from across the State also attended the meeting.

He said that in all such cases, the request for cancellation of the contract (if surrender is sought for the entire area) by the contractors who had demanded cancellation of the contract as per the Departmental Rule Amendment of May 3, 2021 and the same was rejected, then an amount equal to the amount due for two months from the date of submission or the date of passing the order of cancellation of the contract, whichever is earlier, shall be paid by the contractor. If the mining work is not closed even after submitting the request for cancellation of the contract, then the period of two months shall be considered from the date of closure of the mining operation accordingly.

The Chief Minister said that in cases where the mining contractor could not execute the contracts and operate the mines, the initial security deposit (10 percent of the bid amount) deposited at the time of auction would be forfeited and cancelled, while 15 percent of the bid amount and any other amount demanded by the department will be waived off.

The Chief Minister said that if the demand was made to give up or surrender the mining contract on the ground that the mine area was found to be less than 50 percent of the reserve forest and area found under Aravalli Project plantation, then in such cases the contract would be deemed to be terminated and there will be no liability on any of the parties.

In case environment clearance is obtained for production less than 50 percent of the proposed production, then the Contract will be deemed to be terminated and there will be no liability of any of the parties. Similarly, in cases where environmental clearance, consent for installation or operation was refused, the contract shall be deemed to have been terminated and there shall be no liability on any of the parties.

The Chief Minister said that if 25 to 50 percent of the area of the mine allotted to a contract holder is reduced due to any reason, then in all such cases the annual contract amount will also be reduced in proportion to the mine area. However, the disputed mining area should not exceed 25 percent of the total area, he added.

The quantity of mining carried out by the contractor during the first 3 years of mining should be 90 percent or more of the total sanctioned quantity. Even if there is a reduction of more than 50 percent in mining areas, only 50 percent of the contract amount will be reduced, added Sh. Manohar Lal.

If the Pollution Control Board has not given Consent to Establish/Consent to Operate after obtaining Environment Clearance or after the granting the consent which has been stayed by the High Court, then the contract amount for that period will be forfeited.

The Chief Minister said that on submission of application for surrender, after two months from the date of closure of mining, the contract would be considered terminated and the contractor would have to pay money for only two months. The contractors are required to pay 2 installments after the date of surrender, he informed.

He said that if the entire outstanding amount is deposited within 90 days of the contracts which have been terminated before March 31, 2010, then the entire interest amount will be waived off. Similarly, in cases of contracts that have expired or are in progress after April 1, 2010, then 50 percent of the interest amount will be waived off if the contractor pays the entire outstanding amount within 90 days. However, the interest amount has to be deposited within the next 90 days.

The Chief Minister said that as per the announcement made in the budget session this year, these concessions have been given to the mining contractors under ‘Vivaadon se Samadhan’ programme run by the State Government with the objective to resolve pending disputes of the mining contractors.

He said that with this initiative on one hand, the contractors will be benefited, while on the other the State will also get revenue and functioning of mining activities will be made smooth in the state.

Additional Chief Secretary, Mines and Geology Department, Sh. Alok Nigam, Additional Chief Secretary, Irrigation and Water Resources Department, Sh. Devender Singh, Additional Chief Secretary, Finance Department, Sh. T.V.S.N. Prasad, Principal Secretary to Chief Minister Sh. V. Umashankar, Director General, Mines and Geology Department, Mohammed Shayin, and other senior officers also remained present.