(1)

The preferred bidder shall submit the first instalment being ten per cent. of the upfront payment as per rule 11.

(2)

Upon receipt of the first instalment of the upfront payment, the State Government shall issue a letter of intent to the preferred bidder.

(3)

The preferred bidder shall be considered to be the "successful bidder " upon,-

(a) continuing to be in compliance with all the terms and conditions of eligibility;

(b) payment of the second instalment being ten per cent. of the upfront payment;

(c) furnishing performance security as specified in rule 12;

(d) satisfying the conditions specified in clause (b) of sub-section (2) of section 5 with respect to a mining plan; and

(e) satisfying such other conditions as may be specified by the State Government with the prior approval of the Central Government.

(4)

The successful bidder shall sign the Mine Development and Production Agreement with the State Government upon obtaining all consents, approvals, permits, no-objections and the like as may be required under applicable laws for commencement of mining operations.

(5)

The successful bidder shall pay the third instalment being eighty per cent. of the upfront payment subsequent to execution of the Mine Development and Production Agreement, and upon such payment the State Government shall grant a mining lease to the successful bidder.

(6)

The Mining Lease Deed shall be executed by the State Government within thirty days of the date of completion of the conditions specified in sub-rule (5) and shall be subject to the provisions of the Act and the rules made thereunder.

[Provided that no Mining Lease Deed shall be executed on expiry of a period of three years from the date of the letter of intent, and the letter of intent shall be invalidated leading to annulment of the entire process of auction:

Provided further that the State Government may allow a further period of two years for execution of the Mining Lease Deed if the reasons for delay were beyond the control of the preferred bidder.] [Inserted by Notification No. G.S.R. 1469(E), dated 30.11.2017 (w.e.f. 20.5.2015).]

(7)

The mining lease shall be for minerals found in the area pursuant to exploration prior to the auction:

Provided that where, subsequent to the auction, any new mineral is discovered, then the holder of mining lease shall follow the provisions of the [Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016] [Substituted 'Mineral Concession Rules, 1960' by Notification No. G.S.R. 1469(E), dated 30.11.2017 (w.e.f 20.5.2015).]for inclusion of such new mineral in the Mining Lease Deed.

(8)

Where, prior to the auction or subsequent to the auction, presence of minor mineral is established or discovered, such minor minerals shall be dealt in accordance with such rules made by the State Government under section 15.

(9)

The date on which a duly executed Mining Lease Deed is registered shall be the date of commencement of the mining lease.