The Central Government on 2nd November, 2021 has issued the Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021. The amendment provides that In any lease of mines, where mineral is required to be used for captive purpose, the lessee may sell mineral in the following manner,
namely:—
- Lessee may sell up to fifty per cent. of total mineral produced in such captive mine in a financial year while ensuring that not less than fifty per cent. of total mineral produced in such captive mine shall be used during the financial year for meeting the requirement of the end use plant linked with the mine;
- The requirement of the end use plant linked with the mine for a financial year shall be the actual quantity of mineral consumed in the said plant, in that financial year;
- Lessee shall pay the additional amount as specified in the Sixth Schedule of the Act for the quantity so sold;
- Lessee who has been allowed to sell mineral before the commencement of Mines and Minerals (Development and Regulation) Amendment Act, 2021, shall also pay the additional amount for the quantity so sold, as specified in the Sixth Schedule of the Act, only for the quantity sold after the commencement of said Act;
- Lessee will keep a separate record of such sale and shall report such sale in the monthly and annual returns to be submitted under the Mineral Conservation and Development Rules, 2017;
- At the end of the financial year, the lessee shall carry out the reconciliation of the quantity of mineral produced, the quantity of mineral consumed in the linked end use plant and the quantity of mineral sold in that financial year;
- In case lessee sells less than fifty per cent. of total mineral produced in a captive mine in a financial year, it shall not carry forward the deficient quantity for sale in the subsequent year.
The amended penalty for contravention of these rules is imprisonment for a term which may extend to two years or with fine which may extend to rupees five lakhs, or with both, and in the case of a continuing contravention, with additional fine which may extend to rupees fifty thousand for every day during which such contravention continues after conviction for the first such contravention.
