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Departments Under Steel And Mines Department are :
















         The zonal level office under the Directorate of Mining & Geology has been functioning since October, 1073 at Keonjhargarh. This office has administrative control in respect of Mineral Exploration over Keonjhar, Mayurbhanj, Balasore and Bhadrak districts. The objective of this zonal office is

i.To search for Mineral occurrences by systematic geological explorations such as geological mapping of the area in different seals, sampling geographical survey, remote sensing and Aero magnetic survey on the basis of HRAMs.(High resolution Aero magnetic Survey).
ii. Detailed assessment of economic mineral deposits by way of drilling and sampling.
iii. Preparation of final geological reports in respect of completed/ continuing mineral investigations year wise.
iv.Chemical analysis of mineral samples and petrological study of rock samples.







Structure of the Department

Steel & Mines ( Administrative Department )

Directorate of
Geology (For Mineral
Survey & Exploration)
(Directorate of Geology)
Directorate of Mines
(For Mineral Administration)
(Director of Mines)
(At Bhubaneswar)
Zonal level
at six District
Chemical wing (laboratory)
(At Directorate & Zonal Level)
(i) Joint Director Geology(L-II) Head of Office)
Supporting Officials (Technical)
Deputy Director Geology (Class-I)
Survey Officer (Class-II)
Store Officer (Class-II)
Supervisor/Technical Assistant/ Senior Surveyor
Zonal Laboratory
(i) Chemist : Supporting Staff (Non-Gazette)
(ii) Assistant Chemist : Ministerial Staff
(iii) Laboratory Assistant

b. District Down wards :

System does not exist.




Programme Implementation 

          The zonal office, Keonjhar has been successfully functioning and implementing mineral exploration programmes since its inception i.e. the year 1973-74. Mineral investigations have been carried out in the districts of Keonjhar, Mayurbhanj, Balasore, Bhadrak and Jajpur districts.

(i) Brief description about different programmes

          A no. of successful investigations have been carried out in the above mentioned districts for assessment of minerals like gold, Pyrophyllites, Sponge Iron, China clay and Chromite. In addition to the beach sand of Balasore Coast has been explored. Recently continuing exploration of chromate in Sukinda Valley of Jajpur district by way of drilling and geo environmental studies in Joda-Barbil area of Keonjhar district needs attentions. Reserve of chromite in Talangi Prospecting Licence area (Part) of Industrial Development Corporation has been estimated.

(ii) Success Stories

Out of different programmes executed so far our department has succeeded in case of

(a) evaluation of sponge iron resources in Joda-Barbil sector in the basis of which sponge iron plently have been step up.

i.In assessment of grade and reserve of pyrophyllites.
ii. Preliminary gold investigations in Banspal block in Keonjhar district.
iii. China clay in parts of Mayurbhanj district.
iv. Chromite investigation in Talangi (Sukinda area) of Jajpur district.

(iii) Slogans

          Our motto is to include as many areas as possible under mineral exploration programme in order to create new mines and indirectly earn revenue for the state and to create employment.

(iv)Work sites/projects that can be visited by interested group/press/media

          The Gold bearing areas in Banspal-Suleikana-Telkoi can be visited. Other working sites are not readily available for solving of the purpose.







Process of interaction with beneficiaries/public 

(i) Contact Officials for different Programmes :
There is regular interaction with IDCOL, Officials for execution of exploration programme in their Talangi Prospecting Licence area by drilling.
(ii) Application forms and application criteria etc.
The case does not arise for our office.
(iii) Internal Grievance redressal system of Department 
There is system for internal grievance in the office the principal secretary, Steel and Mines Department on every Saturday of month except holidays.







Future Prospectives

          Regarding future perspectives there are bright prospective of implementation of different exploration programmes in the zonal level for proving additional resources of sponge iron, manganese pyrophyllite, china clay,dimenisionstones and above alldetailed assessment of chromite resources of different organizations in sukinda area on proper requisition. There is utmost urgency for implementation of Geo-environmental programmes in different areas especially in mining belts under this zone .








          By the way of successful implementation/ execution of Mineral investigation programmes certainly our geological Department can add more economic deposits in the mineral maps of Keonjhar, Mayurbhanj, Balasore and Bhadrak districts thereby earning additional sizeable mineral revenue for these districts. This can indirectly be helpful for upliftment of condition of tribals in the district, removal of poverty and above all development of the districts. Hence it is suggested for arrangement of additional funds for our department by district authorities for implementation/execution of mineral exploration of programmes in selected areas on priority basis.





















          The Keonjhar Circle was created in the year 1979 as an independent Circle for mineral administration of Anandapur & Sadar Sub-division of Keonjhar district having its headquarters at Keonjhargarh and headed by a Class-II Officer of Orissa Mining & Geology Service namely Mining Officer, Keonjhar Circle. The Office Started functioning with effect from 05.02.1979.

          The Mining Section of the Collectorate was amalgamated with the circle office soon after its functioning. As such mineral concession cases of Champua Sub-division is also dealt in this Office. The Head of Office is under immediate control of Collector, Keonjhar and overall control of Director of Mines, Orissa and he is also drawing and disbursing officer for his establishment.

          The primary function of the circle office are to (i) Receive application for mineral concession on behalf of Collector, Keonjhar and processing thereof (ii) Administration of matter relating to mining under the provision of the Mines and Minerals (Regulation and Development) Act, 1957 & Rules, 1960 which covers (a) Survey and demarcation of terms and conditions of mining lease & prospecting license (c) Collection of Mining revenue & cess (d) Checking and weighment of min& Other Un-lawful Activities ) Act & Rules 1990 (v) Formulation and submission of proposal for diversion of forest land of Mining Lease /Prospecting Licence area under Forest Conservation Act 1980 as the user agency.








Structure of the Department (District & downward)


Assistant Mining Officer-1

Senior Inspector of Mines-1

Senior Surveyor-1


2.(a) Receive of application for mineral concession on behalf of the Collector, Keonjhar and processing thereof.

          The Collector (or Officer authorized by the Collector presently Mining Officer) receives applications for mineral concession i.e. prospecting license / Mining lease on behalf of the State Government and maintain standard registers as required under Rules.

          Applications with views in prescribed proforma are sent to Government through the Director of Mines, Orissa , Bhubaneswar for final disposal.

          Being granted by the State Government, survey and demarcation and execution of prospecting license/Mining leases are done at district level on behalf of the State Government. The Collector accords surface right within the leasehold area in favour of the lessee for exploitation of mineral in the land after obtaining views of Sub Collector & Divisional Forest Officer concerned.

(b) Survey and demarcation work of granted Mining Lease/Prospecting Licence areas : Senior Surveyor of this Office is entrusted for survey of field. Besides this survey and demarcation work is being carried out on subsisting leases wherever necessary for observance of terms & conditions of Mining lease and prospecting licence.

(i) Collection of Mining Revenue & Cess :

Mining revenue is collected form lessees by this office basing on mineral despatches from the leasehold area. For this the despatched quantity is first assessed basing on transit pass, Bill, weighbridge figure and then revenue is collected as per price fixed by Central Government from time to time. Royalty chart attached. (Annexure-1).

(ii)   Checking & Weighment of Minerals :

To ascertain the actual quantity and quality of minerals removed from the mines are to check up illegal movement of Ores/minerals, the mineral carrying vehicle are weighed at weighbridge installed on the way which are checked by check gate clerk and check gate peon. Where there is no weighbridge quantity of minerals is ascertained by conversion factor. This conversion factor is determined for each mines for each mineral separately.

(c) Enforcement of Orissa Minerals Prevention of Theft, Smuggling & Other Un-lawful Activities) Rules, 1990 :

          Since the Mines and Minerals(Regulation & Development. Act,) 1957 & the Mineral Concession. Rules, 1960 do not contain any special provision for regulating illegal collection, sale, trading, transport and storage of minerals including precious and semi-precious stone, State Government. formulated special provisions in the form of an act called "The Orissa Minerals (Prevention of Theft, Smuggling & Other Un-lawful Activities) Act,1989 with a view to check such illegal and un-authorised sale trading etc. By this provision the Competent authorities can search, seize, confiscate and impose penalty like fine and imprisonment up to 2 years etc.

(d) Administration of Minor Minerals as per Orissa Minor Minerals Concession Rules,1990.

          In exercise of the powers conferred by Sub-section(1) of section-15 of the Mines and Minerals(.Regulation and Development) Act, 1957 ,the Government of Orissa makes rules for regulating the grant of mining lease in respect of minor minerals (i.e. all types of rock used for decorative, industrial purposes including dimension stone.)

(e) Formulation of De-reservation Proposal (D.R.P.)

          After implementation of Orissa Forest Conservation Act, 1980, no mining work can be undertaken within the forest land without the approval of Ministry of Environment & Forest, Government of India. For this De-Reservation Proposal. for forest land is initiated and submitted in the forest Office for diversion.

3.(i) Programme related to mineral administration as per Mineral Concession. Rules, 1960, Orissa Minor Mineral Concession Rules, 1990, and peripheral development of the district.

  (ii) Different mines including underground mines of M/s. FACOR Ltd & M/s. IMFA Ltd. At Boula under Anandapur Sub-division (Annexure-2)

4.(i)(a)For mineral administration: Revenue & Forest Department.

      (b) For peripheral development : All Mine Owners & Industrialist of the district.

  (ii) Application form & application criteria :








For Major Minerals

(Mining lease and prospecting license)

(i) Application for prospecting license : Form-B
(ii) Receipt of application for prospecting license/mining lease or Renewals : Form-D
(iii) Application for renewal for prospecting license. : Form-E
(iv) Prospecting license deed : Form-F
(v) Application for mining lease : Form-I
(vi) Application for renewal of mining lease : Form-J
(vii) Mining lease deed : Form-K
(viii) Application for revision : Form-M
(ix) Application for removal permission under Transit Pass Regulation : Form-A
(x) Declaration of grade : Form-B
(xi) Transit permit for removal of minerals :

For Minor Minerals

(i) Application for quarry lease : Form-A
(ii) Receipt of application for quarry lease : Form-B
(iii) Form of quarry lease deed : Form-D
(iv) Application for renewal of quarry lease : Form-E
(v) Form for grant of quarry permit : Form-H
(vi) Form of appeal : Form-J
(vii) Transit pass for minor minerals : Form-K
(viii) Monthly return in form : Form-G

For Minor Minerals

(i) Application for quarry lease : Form-A
(ii) Receipt of application for quarry lease : Form-B
(iii) Form of quarry lease deed : Form-D
(iv) Application for renewal of quarry lease : Form-E
(v) Form for grant of quarry permit : Form-H
(vi) Form of appeal : Form-J
(vii) Transit pass for minor minerals : Form-K
(viii) Monthly return in form : Form-G

Orissa Minerals(Prevention of Theft Smuggling & Other Un-lawful Activities) Rules,1990








For Orissa Mineral (Prevention Of Theft, Smuggling & Other Unlawful Activities) Rules,1990

(i) Application for license : Form-A
(ii) Acknowledgement receipt of application for license. : Form-B
(iii) Form of license : Form-D
(iv) Application for permit : Form-H
(v) Form of issue of permit : Form-I
(vi) Form of appeal : Form-L
(vii) Form of seizure : Form-N
(viii) Form of confiscation : Form-O
(ix) Accounts of Ores/Minerals : Form-E
(x) Accounts of Ores/Minerals fed to plant : Form-E
    1.     Any type of grievance can be made either to the Collector & District Magistrate,            Keonjhar or to the Mining Officer, Keonjhar.
    2.     Development of Mineral concession and setting up mineral based industries.
    Mineral Exploitation :

Though Iron Ore and Chromite Ore dominate the mineral production of the Circle, Pyrophyllite, Quartz, Quartzite, Soapstone, Chinaclay have also been listed as mineral resource of the Circle.

The details of Mining leases under this circle are as follows.

Sl. No

Name of Mineral




1. Iron Ore 4 1 5
2 Iron Ore 4 2 6
3 Pyrophyllite, Quart,


6 3 9






Production & despatch during the last five years in respect of this circle are as follows.





Quartz & Quarttzite
Quartz & Quarttzite
Quartz & Quarttzite
Quartz & Quarttzite








Collection of Mining Revenue

The collection of Mining Revenue i.e. royalty, dead rent, surface rent during the last few years are as indicated below.




1995-96 225 lakh 2,20,09,145.00
1996-97 250 lakh 2,15,99,656.00
1997-98 210 lakh 2,01,40,247.00
1998-99 225 lakh 2,22,29,160.00
1999-2000 250 lakh 2,56,97,500.00
2000-2001 Not fixed 26,60,658.00

(Up to 15th June-2000)

10. Mineral Concession :

          The Collector (or Officer authorized by Collector presently Mining Officer) receives applications for mineral concession i.e. prospecting license/Mining lease on behalf of the State Government and maintain standard registers as required under Rules.

          Applications with views in prescribed proforma are sent to Government through the Director of Mines, Orissa, Bhubaneswar for final disposal.

          Being granted by the State Government, Survey & demarcation and execution of prospecting license/Mining leases the Collector accords surface right within the leasehold area in favour of the lessee for exploitation of mineral in the land after obtaining views of Sub-Collector & Divisional Forest Officer concern.

          At present 463 nos. of Mining Lease./Renewal of Mining Lease /Prospecting Licence. applications of the district are pending for disposal. For disposal of Mining Lease /Renewal of .Mining .Lease./Prospecting Licence. applications ,views of Divisional Forest Officer., Tahasildar & Sub-Collector are required. If reports from the concerned authorities are obtained in time the pending can be minimized.

11. Minor Mineral :

          At present there are 11 nos. of quarry leases for decorative stone under this circle out of which 4 nos. are working. The rough blocks of decorative stone produced are being exported and also used internally. 7 nos. of quarry lease are not working due to lack of suitable market.

12. Enforcement of Prevention of Theft, Smuggling & Other Un-lawful Activities Act, 1989 & Rules,1990.

          Under Orissa Minerals (Prevention of Theft Smuggling & Other Un-lawful Activities) Rules,1990 11 nos. of licenses have been granted to different firms/persons to deal-with various minerals during the year as detailed below.

1. Iron - 1
2. Coal - 2
3. Chrome Ore - 4
4. Pyrophyllite - 4

13. Mineral based Industries :

          5 nos. of mineral based industries under this circle have been established the details of which are given below.


Name of the Company




M/s. Orissa Sponge Iron Ltd.


Sponge Iron


M/s. Utkal Mineral (Pvt) Ltd.


Pyrophyllite powder


Utkal Mineral Industries


Pyrophyllite powder


Keondujhar Agro Mineral Processing (Pvt) Ltd


Pyrophyllite powder


Sri Banawarilal. Newatia


Pyrophyllite powder

14. Year wise expenditure.

          Year wise expenditure pertaining to this circle has been incurred during last five years is indicated below.

  1996-97 - Rs.14,87,770/-
  1997-98 - Rs.22,80,622/-
  1998-99 - Rs.23,87,001/-
  1999-2000- Rs.20,88,715/-
  2000-2001- Rs. 9,00,827/-
  (Up to May'2000)

15. Constraints in mineral development.

1.     Expeditious steps may be taken for early completion of Banspani Daitary Rail link which is under construction to avoid higher freight charges towards transportation of Iron Ore by road from this sector to Paradeep Port.
2.     Reduction in off-take quota of Iron ore by Mineral and Metal Trading Corporation have deprived the lessee for further development of mines & utilization of their entrepreneurship & skilled mining personnel and also created adverse situation for retrenchment of laborer from mines in future.
3.     Due to enforcement of Forest Conservation Act, 1980 & Rules, thereof, the Mine Owners are facing a lot of problem to get the De-Reservation Proposal. cleared by the Government of India, Ministry of Environment and Forest. Even though the mine owners have submitted their de-reservation proposal for the forest land on the basis of the Record of.Right. of the has settlement, they are again required to submit fresh De-Reservation.Proposal. on the basis of Sabik Record of Right as well as forest land identified by the District Level Committee.






Frequently Asked Questions

Question No-1 What are the criteria for filing Mineral Concession application?

  (i) Must be a citizen of India (Section-5 of Mines and Minerals(Regulation &                    Development)Act,1957
  (ii) Applications to be filed in form ‘B’, ‘E’,’I’ &’ ‘J’ for Prospecting Licence, Renewal of. Prospecting Licence, Mining Lease & Renewal of Mining Lease respectively along with Nationality certificate, treasury challan in original showing payment of application fee, land schedule, Boundary description, Map and affidavit showing holding of Mining Lease /Prospecting Licence , mining dues etc.

Question No-2 Whether a foreign national is eligible for Mineral concession?

Answer-No foreign national is eligible for Mineral Concession unless prior approval of Central Government is obtained.

Question No-3 What is premature application?

Answer-Applications filed for Mining Lease./Prospecting Licence for areas which are required to be thrown open under Rule 59 of Mineral Concession Rules,1960. (Rule-60 of Mineral Concession.Rules,1060).

Question No-4 Whether Rule-59 can be relaxed?

Answer-It can be relaxed by the Central Government. (Rule-59(2) of Mineral Concession.Rules,1960).

Question No-5 How much is the application fee ?

Answer-Prospecting Licence./Renewal of.Prospecting Licence.-Rs.50/- for 1st sq. K.ms. or part thereof and Rs.10/- for subsequent Sq. K.Ms or part thereof.
Mining Lease- Rs.500/- , Renewal of Mining Lease- Rs.500/-

Question No-6 Whether any record is maintained on receipt of Mineral Concession application?

Answer-On receipt of the Mineral concession application, the same are entered in the Standard Register.
For Prospecting Licence /Renewal of Prospecting Licence- Form ‘G’
For Mining Lease /Renewal of Mining Lease – Form ‘L"

Question No-7 Who is authorized to receive Mineral Concession applications?

Answer-The Collector is authorized to receive the Mineral Concession applications. He may authorize the Deputy Director, Mines / Mining Officer attached to the District Headquarters to receive the applications on his behalf.

Question No-8 What action is taken on receipt of the applications ?

Answer-Mining Officer/ Deputy Director, Mines. on behalf of the Collector forward a copy of the application to the concerned Tahasildar/ Sub-Collector, Divisional Forest Officer for their views.

Question No-9 What is the basis of recommending the Mineral Concession application?

Answer-Basing on the report of the forest and revenue authorities the Collector recommends the application either for rejection or grant.

Question No-10 Whether Mineral concession is granted by the State Government or Central Government ?

Answer-State Government grants mineral concessions. But for the 1st schedule minerals State Government grants with due approval of the Central Government section-5 of Mines & Minerals ( Regulation & Development)Act, 1957. Sit schedule minerals are coal, lignite, Beryl., Gold, Zircon, Iron, manganese, Chrome, lead, Zinc, precious stones etc.

Question No-11 What is the maximum area for which Prospecting Licence / Mining Lease can be granted?

Answer-Prospecting Licence- One or more Prospecting Licence covering a total area up to 25 Sq.,. K.Ms. (Section 6.1(9) of Mines & Minerals ( Regulation & Development)Act. 1957)
Mining Lease- One or more Mining Lease covering a total area up to 10 Sq.K.Ms. (Section 6.1.6 of Mines & Minerals ( Regulation & Development)Act,1957.

Question No-12 Whether the maximum limit for Prospecting Licence/Mining Lease can be relaxed ?

Answer-It can be relaxed by the Central Government for mineral development. ( Mines & Minerals ( Regulation & Development)Act. 1957.)-Section 6.1..

Question No-13 What is the maximum period for which Prospecting Licence/Mining Lease/Renewal of Mining Lease can be granted ?

Answer-Prospecting Licence- 3 years. Section-7(1) of Mines & Minerals ( Regulation & Development)Act.1957.
Mining Lease- 30 years. Section –8(1) of Mines & Minerals ( Regulation & Development)Act, 1957.
Renewal of Mining Lease- 20 years. Section 8(2) of Mines & Minerals ( Regulation & Development)Act. 1957.

Question No-14 Is there any provision to give preference for grant of Mining Lease?

Answer-The Prospecting Licence holder has the preferential right for Mining Lease if he has observed all the terms & conditions of the Prospecting Licence deed. Section-11 of Mines & Minerals ( Regulation & Development ) Act. 1957.

Question No-15 When a Prospecting Licence/Mining Lease area is surveyed & demarcated ?

Answer-After grant at the cost of grantee.

Question No-16 Is there any provision for security deposit ?

Answer-Prospecting Licence- s.500/- in respect of every Sq. K.Ms. or part thereof for which the license is granted. ( Rule-20 of Mineral Concession Rules, 1960)
Mining Lease- Rs.10,000/- (Rule-32 of Mineral Concession (Amendment) Rules,2000.

Question No-17 By whom Prospecting Licence/Mining Lease deeds are executed?

Answer-The Collector on behalf of the Governor executes the deed.

Question No-18 Is there any restriction on forest point of view for mining operation.

Answer-No mining operation can be undertaken unless clearance form forest authorities is obtained as per Forest Conservation Act, 1980(A).

Question No-19 How surface right is granted?

Answer-After obtaining forest & revenue clearance and consent of the concerned tenants for the tenanted land, surface right is granted.

Question No-20 Who is the authority to grant surface right?

Answer-Collector is the authority to grant surface right.

Question No-21 Can surface right be withdrawn?

Answer-Surface right can be withdrawn without assigning any reason?

Question No-22 What is lapsing of lease?

Answer-When mining operation is not undertaken within a period of two years from the date execution or discontinued for a continuous period of two years after commencement of such operation. State Government declare the Mining Lease as lapsed. (Rule –28 of Mineral Concession Rules, 1960)

Question No-23 How a lessee can be relaxed from lapsing of lease?

Answer-The lessee will apply to the State Government with requisite fee of Rs.500/- stating the reason beyond his control.(Rule-28(A)(1) of .C.Rules,1960.

Question No-24 What is the date of commencement of period for Mining Lease/Prospecting Licence?

Answer-Prospecting Licence- from the date of execution of the Prospecting Licence deed, (Rule-15(3) of Mineral Concession Rules,1960.
Mining Lease-from the date of registration of the Mining Lease deed (Rule-31(2) of Mineral Concession (Amendment) Rules,2000).

Question No-25 Whether a Mining Plan is absolutely necessary for Mining Lease?

Answer-It is absolutely necessary since mining operation is to be in accordance within the duly approved Mining Plan.

Question No-26 Whether a Mining Lease can be transferred?

Answer-It can be transferred with the consent of the State Government (Rule- 37(1) of Mineral Concession Rules,1960)

Question No-27 What is prospecting operation?

Answer-It means any operation undertaken for the purpose of exploring, locating, or providing mineral deposit. Section-3(h) of Mines & Minerals ( Regulation & Development)Act,1957.)

Question No-28 What is the maximum quantity to be transported from Prospecting Licence area with payment of royalty from Prospecting Licence area?

As per Schedule- III. Iron & Manganese- 10 tons
Asbestos- 250 Kg.
Steatite- 50 tons (Rule-14(1)(ii)(a) of Mineral Concession Rules,1960).

Question No-29 What is the maximum quantity to be transported from Prospecting Licence area with payment of royalty?


As per Schedule-III
Iron & Manganese- 200 tons.
Asbestos- 10 tons.
Steatite- 200 tons.
(Rule-15(1)(ii)(b) of Mineral Concession Rules-60.

Question No-30 What will be the penalty if more than the limit specified in Schedule-III is transported?

Answer-The State Government may recover the cost of the excess quantity transported. (Rule-15(ii)(b) of Mineral Concession Rules,1960)

Minor Minerals

How Quarry lease will apply?

          Quarry lease application shall made to the Competent authority i.e. to the concerned Mining Officer/ Deputy Director of Mines in form-A in triplicate accompanied with the following documents.

i.    Treasury challan showing payment of Rs.2000/- towards application fee.
ii.        Name & nationality, profession and address of the applicant.
iii.       Plan, boundary description which would facilitate easy identification of area applied         for.
iv.      Name of the minerals which the applicant intend to remove extract
v.       Purpose for which the minor mineral to be used.
        a. Period for which lease is required.
        b. An affidavit showing total area held by the applicant with any other person                        (s) having joint interest by way of quarry lease  in  the state.                           
        c. Where the land applied for belongs to private person, consent of all such person             for grant of lease.
vi. Attested copies of up-to-date income tax & sale tax, certificate or  non-assessment        certificate as the case may be.
a. Where the applied quarry lease relates to any type of rock used for decorative, industrial or export purpose including dimension stone.
b. A solvency certificate and a list of immovable properties from the                concern revenue authorities.
c. A certificate from the bankers stating the extent of credit worthiness.
ix.  Any other information which the application intends to furnish such as technical knowledge, knowledge, financial position & the like.

(i) What is the procedure of disposal of quarry lease application?

Answer- After filing of quarry lease application by the person concern the competent authority shall be entered in to the register of application for quarry lease maintained in form-"C". Then the competent authority will issue the acknowledgement form-B indicating the receipt of documents submitted by the applicant. Soon after the receipt of quarry lease application submitted by the applicant the competent authority will forward the same to the concern Tahasildar & Divisional Forest Officer for necessary enquiry and submit the report on revenue and forest point of view. The concern authority i.e. Mining Officer & Deputy Director of Mines will also conduct the technical enquiry of the applied area whether the are is free from overlapping or any other correctness of the applied area. After receipt of the report from the concern authorities the competent authority will forward the same to the controlling authority i.e. Director of Mines, Orissa for disposal of the application within the period of 6 months.

(ii) How a Quarry lease renewed?

Answer- The applicant will file the renewal of quarry lease application in form-E to the competent authority ( Mining Officer & Deputy Director,Mines ) before 90 days from the date of expiry of the lease term. The applicant will submit the same documents which was indicated by the quarry application along with fee of Rs.200/- towards fee for renewal of application fee & the application will be disposed off before the expiry of the lease term.

 (iii) How to execute the quarry lease?

Answer- After receipt of grant order of quarry lease from Government in Steel & Mines Department. the Competent will take up the survey and demarcation of the granted area and the same is to be forwarded to the controlling authority i.e. the Director of Mines for necessary approval of the surveyed area plan etc. Soon after receipt of the surveyed area plan etc. duly approved by the Director of Mines the competent authority will forward the same for issue of execution order. After receipt of the execution order from Government the party will execute the quarry lease deed in the required stamp paper duly assessed by District Sub-Registrar in form-‘D’.

5. What the rate of royalty and surface rent paid by lessee?

Answer- The holder of quarry lease shall pay to the Government every year the dead rent and surface rent for minor minerals specified in schedule-II is indicated in Annexure-I.


Ordinary boulders , Ballast & road metal - Rs. 12.00
Stone used for household utensils- Rs. 30.00
Ordinary clay, rehmatim brick, morrum ,silt- Rs. 5.00
Pebbles - Rs. 25.00
Decorative stone used for industrial & Export purpose :--
Up to size less than 0.5 cum- Rs.200.00
Upto size less than 0.1 cum - Rs. 20.00
Size more than 0.5 cum & above - Rs.800.00 (for blackstone)
Rs. 600.00 (for coloured stone)
For all types of rocks used for decorative, industrial and export purposed;
Up to 15 hects Rs. 1000/- per hects per annum.
Up to 15 –150 hects Rs.2000/- per hects per annum
150 hects & above Rs.4000/- per hects per annum

Surface Rent

For hects Rs. 50/- pr annum

          Provided that the rate specified in Schedule-II may be revised by Government from time to time by an amendment made to the said schedule but no such enhancement shall be made before expiry of 3 years from the date when the date were last fixed.

What the procedure for cancellation of lease ?

Answer- If the lessee does not work upon the quarry for a continuous period of one year in case of a lease for any types of rocks used for decorative industrial or for export purpose or six month in the case of other leases the lease shall be liable to be cancelled, unless prior permission has been granted for such stoppage by the competent authority or reasonable ground.

F.A.Q. For Orissa Minerals ( Prevention Of Theft, Smuggling & Other Un-Lawful Activities) Rules,1990

Question no-1 How a licence under Orissa Minerals ( Prevention of Theft, Smuggling & Other Un-lawful Activities) Act 1989 is applied>

Answer- Any person who wished to possess, store, sell, trade or otherwise deal with any minerals shall have to obtain a licence from the competent authority of Steel & Mines Department. For this following documents are required.

 i.         An application in form-A duly filled in by the applicant made to the Competent Authority in duplicate.
ii.         A fee of Rs. 5000/- (Five thousand) only payable through Treasury challan and deposited under head " 08533-Non-Ferros Mining & Metallurgical Industries 102-Mines/Concession fees & royalties"
iii.         Income tax clearance certificate.
iv.         Sale Tax clearance certificate
v.         An affidavit to the effect that he has not been convicted in any case relating to smuggling of Ores / Minerals;
vi.         A copy of certificate issued by Industries Department.

Question no-2 How it is granted?

Answer- After receipt of application the competent authority shall verify the bonafides of the applicant and examining all records shall grant the licence within 2 months with some conditions as per Rule-6 of Orissa Minerals Prevention of Theft, Smuggling & Other Un-lawful Activities Rules, 1990 from the date of receipt of application.(If considered necessary)

Question no-3 What the period of licence?

Answer- One year

Refusal of application-

The Competent authority may for reasons to be recorded in writing & communicated to the applicant of refusal of application within two months from the date of application.

Question no -4 When the application fee is refunded to the applicant?

Answer- In case of refusal/ rejection of the application 50% of the application fee shall be refunded to the applicant.

Question no -5 What is the amount of Security deposit?

The amount of Security deposit is Rs.5000/- in shape of postal saving pass book account duly pledged to the Competent authority which can be forfeited in the event of cancellation of license on account of breach of terms & conditions of license.

Question no -5. How a license is rescissioned? 

Answer- The competent authority may at any time during the currency of licence and after giving an opportunity of being heard to the licensee, rescind the license by an order in writing communicated to the licensee for breach of any of the terms and conditions of the licence.

Appeal:- Filling of appeal petition:-

1) Any person aggrieved by an order of the competent authority made under Sub-Section (3) of Section 6 read with Sub-rule (2) of rule-5 Section-7 Section-8(3) read with rule-11 or section-9 may within sixty days from the date of communication of the relevant order, prefer an appeal in form’K" to the appellate authority appointed by Government under section-10.

  1. Every application for appeal shall be accompanied with a fee of Rs.200/- (Two hundred) only to be deposited under the head of account mentioned in Sub-Rule of Rule-3.
  2. The appeal shall be disposed of by the appellate authority within a period of two months from the date of its filing.
  3. Compound of offence-

  4. On receipt of written application from the accused person the Competent authority may, in exercise or its powers under section-15 compound the offence punishable under the act, either before or after institution of the prosecution..

Collection Of Mining Royality

1. Due date for payment of royalty in :- 15th of succeeding month respect of working leases.

2. In case of non-working mine :- Half yearly dead rent and surface rent is to be paid by 15th January & 15th July of each year.

3. In case of default of payment :- If royalty, dead rent & surface rent are not paid in due time interest @ 24% per annum is to be charged from the 60th day of due date of payment.

4. If royalty, dead rent, surface rent are not :- Certificate case under Orissa Public Demand Recovery Act is to paid in spite of issue of notices. Be filed for recovery.

ii) Government may be moved to issue 60 days notice for determination of mining lease.

5. Process for assessment of royalty :- Administrative Return, dispatch figures of minerals transit passes, weigh bridged/ Check gate reports , analysis report in support of grade of minerals to be checked for the purpose of assessment of royalty.




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