Thiruvananthapuram: The state government has relaxed the requirement of public auction for granting permission to quarry rock on government land, allowing mining without an e-tender in select cases where the land is surrounded by private properties.

Under the revised rules, applicants who arrange access to government land identified for quarrying and surrounded by private property can obtain a No Objection Certificate (NOC) without participating in an e-tender, provided there is no alternative road access to the site. District collectors have been authorised to issue the NOCs.

The Revenue Department issued the order in a bid to increase domestic production of quarry products amid a shortage of construction materials in the state. The move also comes after Tamil Nadu restricted the transportation of quarry products to other states, affecting the availability of materials in Keralam.

The government had framed guidelines in January 2021 for granting NOCs to quarries on government land. The key condition was that applications had to be invited through e-tenders, with a minimum annual lease rent of ₹10 lakh per hectare. The NOC was to be granted to the bidder quoting the highest amount.

The NOC is required to obtain a mining licence from the Department of Mining and Geology.

However, the tender process could be completed only in Thiruvananthapuram district, where it was subsequently caught up in litigation. In other districts, the process stalled because access to government land was possible only through properties owned by one or more private individuals.

The Land Revenue Commissioner had submitted a report in February recommending that the public auction requirement be waived in such cases.

With a shortage of quarry products affecting construction projects across the state, the Revenue Secretary convened a meeting of district collectors around two months ago. The latest relaxation was introduced following discussions on the issue.

Under the revised provision, an applicant can seek an NOC without an e-tender if the government land identified for quarrying is surrounded by private properties and has no other road access, provided the applicant arranges a route to the site.

The new rules do not stipulate that the application must be submitted by the owner of the adjoining private property. However, if more than one application is received, an e-tender will be mandatory.

The relaxation also applies when a rock formation owned by the government falls within the boundaries of a privately owned quarry. Applicants can seek an NOC without an e-tender in such cases as well.

Government land will be leased for mining for a period of seven to 12 years.

Revenue for government
The government will receive an annual lease rent of ₹10 lakh per hectare, along with a security deposit of the same amount per hectare. In addition, the lessee will have to pay the royalty (seigniorage) fixed by the government for extracting minerals from public land.

The first year's lease rent must be paid before the NOC is issued. The amount will not be refunded if the Department of Mining and Geology subsequently denies mining permission.

However, if the applicant is unable to obtain other licences for reasons unrelated to any fault on their part, half of the security deposit will be refunded.