Tamil Nadu tightens rules on mining minerals from government lands, tanks

The State government has amended certain provisions of the Tamil Nadu Minor Mineral Concession Rules, 1959 to seek a refundable deposit from permission-holder who applies for removing sand and other minerals from lands and tanks under the control of various government departments. Under the new rule, the permission-holder, along with the application fee is to make a refundable security deposit, which would be two times the seigniorage fee for the quantum of mineral to be applied.

The government has increased the application fee from ₹1,500 to ₹5,000 and included a provision for “a refundable deposit for an amount equivalent to two times of the seigniorage fee to be paid for the quantum of mineral applied for as security deposit.” It has also modified the system to be followed if a permission-holder has removed in excess of the permitted quantity or if any other violation of conditions.

Now, the District Collector can cancel the permission “after providing an opportunity of being heard and the difference in the seigniorage fee and the cost of the mineral to be paid by the permission holder for the quantity quarried and removed shall be recovered.” Any cost incurred for the restoration of the tank would also be recovered from the security deposit and if such difference exceeds the security deposit, it would be recovered from the permission holder under the Revenue Recovery Act, 1890.

Earlier, if it was found the permission-holder removed in excess of the permitted quantity or violated conditions, the permission would stand cancelled and damages will be recovered depending upon the excess quantity mined and the extent of damage caused to the tanks.

The government has also included a fresh clause as per which, on expiry of the period of permission or exhaustion of the quantity permitted (whichever was earlier), authorities would inspect, verify the compliance of condition and send a report to District Collector concerned. “Upon receipt of such report, the District Collector shall refund the security deposit to the permission holder, by an order made, in writing”, the fresh clause said.