20[13. Financial guarantee

(1) Before applying for movement permit under a quarrying permit for the first time, every quarrying permit holder of granite (building stone) or laterite (building stone) shall furnish a financial guarantee of two lakhs rupees for due and proper implementation of progressive mine closure plan contained in the mining plan or the final mine closure plan, as the case may be.

(2) The financial guarantee in any one of the following forms shall be submitted to the competent authority who issued quarrying permit.

(a) Letter of credit from any Scheduled Bank,

(b) Performance or surety bond

(c) Any other form of security or any other guarantee applicable to the competent authority  

(3) Release of financial guarantee shall become effective when the permit holder gives notice of the satisfactory compliance of the provisions contained in the final quarry closure plan and certified by the competent authority in this behalf. 

(4) If the competent authority has reasonable grounds for believing that the protective, reclamation and rehabilitation measures as envisaged in the progressive mine closure plan contained in the approved mining plan or the final quarry closure plan, in respect of which financial guarantee was furnished, has not been or will not be carried out in accordance with the mining plan or the final quarry closure plan, either fully or partially, the competent authority shall give the permit holder a written notice of his intention to issue the orders for forfeiting the sum assured at least thirty days prior to the date of the order to be issued. 

(5) Within thirty days of the receipt of notice referred to in sub- rule (4) if no satisfactory reply has been received in writing from the permit holder, the competent authority shall pass an order for forfeiting the guarantee amount and a copy of such order shall be endorsed to the Director of Mining and Geology.

20. Rule 12 substituted by SRO 456/2023 w.e.f. 01.04.2023. Prior to substitution it read as

“13. Restriction on quarrying permit from the same area.—No person shall be eligible for a permit on a particular area of contiguous land owned and possessed by him if he has availed permits for quarrying up to a maximum period of five years in different spells on the same land.”