MINERAL CONCESSION RULES, 1960
Grant of Reconnaissance Permits
4. Application for reconnaissance permit. (1) An
application for reconnaissance permit shall be made to the State Government in Form
A through such officer or authority as the State Government may specify in
(2) (a) Every such application shall be
accompanied by a non-refundable fee calculated at the rate of five rupees per square
(b) a valid clearance certificate, in the form prescribed by the State
Government for payment of mining dues, such as royalty or dead rent or surface rent
payable under the Act or rules made thereunder, from that Government or any officer or
authority authorised by that Government in this behalf;
Provided that where a person has furnished an affidavit to the
satisfaction of the State Government stating that he does not hold and has not held a
reconnaissance permit, it shall not be necessary for him to produce the said valid
Provided that an affidavit stating that no dues are outstanding shall
suffice subject to the condition that the certificate required as above shall be furnished
within ninety days of the date of application and the application shall become invalid if
the party fails to file the certificate within the said ninety days:
Provided also that where any injunction has been issued by a court of
law or any other competent authority staying the recovery of any such mining dues or
income tax, non- payment thereof shall not be treated as a disqualification for the
purpose of granting the reconnaissance permit:
Provided further that in case the applicant is a partnership firm or a
private limited company, such certificate shall be furnished by all persons of the
partnership firm or, as the case may be, all members of the private limited company.
(c) an affidavit stating that the applicant has -
(i) filed upto-date income-tax returns;
(ii) paid the income-tax assessed on him; and
(iii) paid the income-tax on the basis of his assessment as provided in the Income-Tax
Act, 1961 (43 of 1961).
(d) an affidavit showing the particulars of areas, mineral-wise in the
State, which the applicant or any person jointly with him -
(i) already holds under a reconnaissance permit;
(ii) has applied for but not granted; and
(iii) being applied for simultaneously.
4A. Acknowledgement of application. (1) Where an
application for the grant of reconnaissance permit is delivered personally, its receipt
shall be acknowledged forthwith.
(2) Where such application is received by registered post, its receipt
shall be acknowledged on the same day.
(3) In any other case, the receipt of such application shall be
acknowledged within three days of the receipt.
(4) The receipt of every such application shall be acknowledged in Form
5. Refusal of application for a reconnaissance permit.
(1) The State Government may after giving an opportunity of being heard and for reasons to
be recorded in writing and communicated to the applicant, refuse to grant a reconnaissance
permit over the whole or part of the area applied for.
(2) Where it appears that the application is not complete in all
material particulars or is not accompanied by the required documents, the State Government
shall, by notice, require the applicant to supply the omission or, as the case may be,
furnish the documents without delay and in any case not later than thirty days from the
date of receipt of the said notice by the applicant.
6. Status of grant on death of the applicant for reconnaissance
permit. (1) Where an applicant for the grant of a reconnaissance permit dies
before the order granting him a reconnaissance permit is passed, the application for the
grant of reconnaissance permit shall be deemed to have been made by his legal
(2) In the case of an applicant in respect of whom an order granting a
reconnaissance permit is passed but who dies before the deed referred in sub rule(1) of
rule 7A is executed, the order shall be deemed to have been passed in the name of the
legal representative of the deceased.
7. Conditions of a reconnaissance permit. (1) Every
reconnaissance permit granted under these rules, shall, in addition to any other
conditions that may be specified therein be subject to the following conditions namely,
(i) the holder of reconnaissance permit shall progressively relinquish
the area granted under the permit as follows:-
(a) After completion of two years, the area shall be reduced to one
thousand square kilometres or fifty per cent of the area granted, whichever is less; and
(b) The area would be further relinquished so that the permit holder is
left with an area not more than twenty five square kilometers at the end of the third
(ii) The holder of the reconnaissance permit shall strictly adhere to
the minimum expenditure commitment and specific physical targets specified in the order of
grant of the permit failing which reconnaissance permit may be cancelled.
(iii) The holder of reconnaissance permit shall make available all data
collected by him during the reconnaissance operations to the Geological Survey of India,
Indian Bureau of Mines and the State Government which may be made available to any
prospecting investor after a minimum period of two years of the completion of the period
of reconnaissance permit.
(iv) The holder of reconnaissance permit shall not enter any forest
land or any private land without obtaining permission of the Forest Department or the
owner of the private land, as the case may be.
(v) The holder of reconnaissance permit shall maintain accurate
faithful account of all the expenses incurred by him on the reconnaissance operations.
(vi) The holder of reconnaissance permit shall submit to the State
Government a six monthly report of the work done by him and the valuable data collected by
him during the period. The report shall be submitted within three months of the close of
the period to which it relates.
(vii) The permit holder shall also submit to the State Government
within three months of the expiry of the permit, or abandonment of the operations or
termination of the permit whichever is earlier, a full report of the work done by him and
all information relevant to mineral resources acquired by him in the course of
reconnaissance permit in the area covered by the permit.
(viii) While submitting reports under sub clause (vi) or (vii), the
permit holder may specify that the whole or any part of the report or data submitted by
him shall be kept confidential; and the State Government shall thereupon, keep the
specified portions as confidential for a period of two years from the expiry of the
permit, or abandonment of operations or termination of the permit, whichever is earlier.
(ix) The permit holder shall allow every officer authorised by the
Central Government or the State Government in this behalf to examine at any time accounts
maintained and furnish to the Central Government or the State Government or any other
officer authorised by it in that behalf such information and returns.
(x) The permit holder shall allow any officer authorised by the Central
Government or the State Government in this behalf to inspect any reconnaissance operations
carried on by him.
(xi) The permit holder shall pay such permit fee as may be fixed by the
State Government, being not less than five rupees per square kilometer and not more than
twenty rupees per square kilometer of land held by the permit holder for each year or part
(2) The reconnaissance permit may contain such other conditions as may
be imposed by the Central Government which inter-alia may include the condition that the
representative of the Directorate General, Civil Aviation or Ministry of Defence shall be
present during the aerial surveys.
(3) The State Government may, with the approval of the Central
Government, impose such further conditions in the permit as it may think necessary in the
interest of mineral development and for compliance of various legal provisions.
(4) In case of breach of any condition imposed on any holder of
reconnaissance permit by or under this rule, the State Government may by order in writing,
cancel the permit, and/or forfeit in whole or in part, the amount deposited by the permit
holder as security:
Provided that no such order shall be made without giving the permit
holder a reasonable opportunity of stating his case.
7A. Reconnaissance Permit to be executed within three months.
(1) Where on any application for a reconnaissance permit an order has been made for the
grant of such permit, a deed granting such permit shall be executed within ninety days of
the date of the communication of the order or such further period as the State Government
may allow in this behalf, and if no such deed is executed within such period due to any
fault on the part of the applicant, the State Government may revoke the order granting the
reconnaissance permit and in that event the fee paid shall be forfeited to the State
(2) The deed referred to in sub rule 1 shall be in Form F-1, or in a
Form as near thereto as circumstances of each case may require.
(3) The date of the commencement of the period for which a
reconnaissance permit is granted shall be the date on which the deed is executed after all
necessary clearances have been obtained.
7B. Security deposit.
(i) An applicant for a reconnaissance permit shall, before deed referred to in sub rule
(1) of rule 7A is executed, deposit as security for the observance of the terms and
conditions of the permit a sum of twenty rupees in respect of every square kilometre or
part thereof for which the permit is granted.
(ii) Any deposit made under sub clause (i) above if not forfeited under the rules shall
be refunded to the applicant as soon as the report referred to in sub rule (1)(vii) of
rule 7 is submitted.
7C. Prospecting Licences and Mining Leases of other minerals.
The applications received for grant of prospecting licences or mining leases within
the area granted under reconnaissance permit for minerals other than those for which the
permit has been granted, shall not be refused on the grounds that the area is not
available for grant. The State Government shall dispose of such applications as per
provisions of these rules.
Provided that if a prospecting licence or a mining lease for other
mineral has been granted to some other applicant within the area granted for a
reconnaissance permit and where the reconnaissance permit holder discovers availability of
minerals covered under his permit within the area so granted subsequently for prospecting
or mining of minerals other than those covered under the reconnaissance permit, he shall
have the right to get such areas vacated from the licensee or the lessee, as the case may
be and such licensee or lessee shall not hinder the reconnaissance operations being
undertaken by the reconnaissance permit holder.
7D. Registers. (1) A register of applications for
reconnaissance permits shall be maintained by the State Government in Form G-1.
(2) A register of reconnaissance permit shall be maintained by State
Government in Form H-1.]