10/6/20001-M V

Government of India

Ministry of Mines

To

1.      The Secretary(Mines)

All State Governments 

2.      The Director(Mines and Geology)

All State Governments

3.      The Secretary General

      Federation of Indian Mineral Industries

      New Delhi

                  (For Wide Circulation).

 New Delhi, dated 9 March, 2001

Sub: Condition to be imposed under Rule 27(3) of the Mineral Concession Rules, 1960 in the mining leases granted for diamonds and other precious stones

Sir

     Under the Mines and Minerals(Development and Regulation) Act, 1957, the State Governments are required to obtain prior approval of the Central Government before granting of mineral concessions in respect of minerals specified in the First Schedule. Under Rule 27(3) of the Mineral Concession Rules, 1960, "the State Government may , either with the previous approval of the Central Government or at the instance of the Central Government , impose such further conditions as may be necessary in the interests of mineral development…."in the mining lease.

     The Central Government hereby suggests that the following additional condition may be incorporated in the mining leases to be granted in cases of diamond and other precious stones in future:-

"Further processing, including cutting and polishing of diamonds/precious stones shall be done within the country."

           Kindly acknowledge receipt of  this letter.

(Aditi S Ray)

Director

Copy to:

1.            DG,GSI /CG, IBM /CMD, NALCO /CMD, BALCO/CMD, HZL/

           CMD, MECL/ CMD, HCL/ MD, BGML

2.            All Officers and Sections of  Ministry of Mines

3.            Guard File

(Aditi S Ray)