Government of Karnataka

Department of Mines & Geology

M.V. Prashanth Kumar, KSAS

Nodal Officer, e-cell
 DMG Objectives
Regulatory & Promotional
Receipt and processing of Applications for the grant of leases under
Mineral Concession Rules.
Inspection of Applied areas to advice the Govt. for grant of Leases.
To monitor scientific exploitation of mineral wealth of the state.
To control illicit mining, quarrying and transportation of minerals.
Scanning and identification of Mineral Resources
Mineral Investigations, Exploration, Quantification and Analysis of
Minerals
Guidance and Dissemination of Mineral Information
Promotion of Mineral Based Industries.

Mineral Revenue and assessments

To monitor production and dispatches of various minerals.
To monitor collection of royalty and seignior age fee based on
grades/quantity.
Imposition of penalties on illicit mining, transportation and storage.

Page 2 Transformation in Mineral Management

 ILMS e-Permit System
 e-permit system was evolved with the help of inputs from various
stakeholders such as Departmental Officers, Lessees, mineral based
industries and others in accordance with acts and rules in vogue.

 The e-permit system as a module of Integrated Lease Management

System was introduced in 2011.

 A circular vide No. DMG/ AD(MIN)/e-permit/2011-12 Dated

05.12.2011 was issued to all the stakeholders to use only ILMS
system for all major minerals and not to use PMS or manual
permits.

 The circular also made it necessary to ensure that for all major
minerals, trip sheet are generated through e permit system.

 Any technical problems faced in the implementation of the above

guidelines, is addressed with the assistance of helpdesk at DMG,
Head Office.
Page 3 Transformation in Mineral Management
 Implemented ILMS Modules

M-
E-Permit e-Return Rake Permit
Governance

Weighbridge
DCB RFID DSC
Software

Page 4 Transformation in Mineral Management

 Ongoing & Future Initiatives

Mobile
E-Payment LiDAR
Application

GIS

Page 5 Transformation in Mineral Management

 Efficiency Enhancement

Page 6 Transformation in Mineral Management

Comprehensive Computerization of
Mineral Administration (CCOMA)
 Objective of e-Governance
 Process Re-engineering of current Quarry / Mining
business processes
 Introduction of technology for stake holders of Geology
and Mining for automation of Govt processes
 Real time accounting of payment, royalty pass, mineral
transportation etc.
 Reduction in illegal mining through automated system
 Effective and Hassle free mineral administration
 Faster processing to ensure timely delivery of services
 e-Services for ALL stakeholders like
Lease Owners, Weighbridge Owners,
Mineral stockiest/traders, Department users

Page 8 Transformation in Mineral Management

Stakeholder wise Roles & Responsibilities
Stakeholder Roles

State Government  Policy making decision , necessary approvals/orders, Designing of Rules and Framework

 Lead the overall implementation of initiatives

 Initiation of reforms including development of ILMS application
Department of
 Enhancing the ILMS application based on stake holder feedback and real time issues
mines & Geology
 Monitoring of effectiveness of administrative reforms and carryout effective mineral
administration and increase stake holder satisfaction and revenue

 Use of ILMS application and improve monitoring through data consolidation

District Geologist  Implementation of modules at district level
Office  Improve effectiveness in mineral administration with the use of ILMS and administrative
reforms
 Use ILMS application and its various modules
Lease / Permit
 Provided necessary inputs on the challenges and the expectations from the system
Holder
 Monitor and maintain records

Weigh Bridge  Use ILMS application and weigh bridge module

Holder  Real time data & accurate weight measurement before trip sheet generation.

 Participate in e-Auction
Buyer
 Acknowledge material receipt and mineral transportation of auctioned material.

 DMG is in process to implement e-payment system such Net Banking and online RTGS/NEFT
Partner Bank
Transaction for hassle free and quick fund transfer service to stakeholders.
(n)Code Solution  Develop, implement and support various ILMS modules.

Page 9 Transformation in Mineral Management

E-auction & Transportation
 Spot “e-auction”
1. Identification and quantification of Iron ore
lots for e-auction is done by the DDMGs.
2. Samples are collected & sent to the DMG Laboratory for Fe
grading.
3. Material identified for e-auction is in lot size of 4000 MT and
is with an identification number (lot number).
4. Details are provided to MSTC a week before the actual date
of auction.
5. The prospective buyers/bidders would be able to visit the
locations and satisfy themselves as to the quality of the ore.
6. Normally a day before the actual e-auction, Fe content and
floor price is indicated in MSTC portal based on market
information.
 Only end users can bid…Continued
7. Prospective end users, interested to bid in
e-auction, register themselves with MSTC well
before the actual auction date. Bidders are also
expected to sign the Bid/Auction Document containing terms and
conditions of the e-auction and submit along with EMD before
participation in the bid process.
8. Bid Documents signed by the bidders are forwarded by MSTC to the
MC for approval.
9. After approval MSTC allows such applicants to participate in the e-
auction.
10. On the day of e - auction, the lots are kept open for 2 hours and if
there is any participation in the bid with higher price, time is given for
bidders to quote their price.
11. When the scheduled time allotted expires, bidding process ends.
 Post e-auction…Continued
12. Unless the last minute bidder quotes
higher price, portal is open for another 5
minutes and likewise the cycle is continued
until no one bids within that 5 minutes of grace period.
13. After the completion of auction, MSTC forwards the EMD money with a
list of Successful Bidders and Bid Sheet to the MC.
14. Monitoring Committee issues the Acceptance Letter to the successful
bidders giving details of lot number, payment details etc.
15. Successful bidders are given time frame to make payment as per
acceptance letter.
16. Payments are received in full (cost of material+ 10% royalty+ 12% FDT+
5.5 % VAT+ processing fee+ PWD fee etc)
17. If the bidder fails to pay the amount with in the prescribed time frame, he
will be loosing the right over the auctioned material and EMD amount will
be forfeited.
 ILMS… Continued
18. Bulk Permits are generated in DMG & then forest department is
intimated if it is a forest land.
19. Based on the bulk permits issued, the lease/mine holder will be
generating the Mineral Dispatch Permits (MDPs) in Special Security
Papers (SSPs) supplied by DDMG offices by opening the website
using his password.
20. The entire process which works on e-mode is under Integrated Lease
Management System (ILMS) which involves less of manual
intervention and more usage of
electronic mode resulting in
saving of time and hassle-free
movement of iron ore.
 Advance e-auction
1. Normally e- auction is conducted for the
ore which is produced and ready for
movement.
2. M/s NMDC has introduced a system of “advance e-
auction”, before production of the material with an
proposed quantity with grade & price.
3. At the time of lifting of material bidder is liable to pay
the price for actual grade of material available for
loading.
4. The system is an advantage to clear the stock of fresh
production instantaneously.
 Pricing Mechanism
1. For e-auction, M/s NMDC fixes the floor price based on
the “Platt index” to the respective grade & type of the
material (lump or fines) from their mines.
2. For the existing stock Monitoring Committee fixes the
floor price.
3. For fresh production in the mines, lessees will indicate
the floor price of the material.

Warren C Platt
 e-payment

1. Payment is done by RTGS where the money is credited into the

account of MC instantaneously.
2. Action is underway in the department of Mines & Geology to provide
a mechanism to all the stakeholders for making payment online
through Net Banking or RTGS/NEFT through Virtual accounting
system.
3. Confirmation through internet .
 Important E-Permit Features
• This module is designed to control mineral transportation
for major & Minor mineral Leaseholders.
• Introduced SSPP (Special Security Permit Paper) to print
trip information for mineral transportation.
• System is validating Annual Mining Plan (AMP) Target
Quantity & AMP Expiry Date, Lease expiry, excavated
Mineral stock, Payment balance & Dues before issuing bulk
permit for mineral transportation.
• District Officers are authorized to reconcile stock in system,
approve bulk permit.
• System extended e-Permit modules to Beneficiation Plant to
acknowledge mineral received and operate same process
like leaseholder to transport mineral

Page 18 Transformation in Mineral Management

 Important E-Return Features
• This module is designed to submit online Monthly, Quarterly
and Annual Return forms specified in Mineral Conservation
and Development Rules,1988 for Leaseholders.

• This system helps lessee in filling accurate information as

per Production and transportation information provided in
e-Permit System.

• DMG has given windows to IBM to review submitted e-

Return forms by lessee.

• System will lock submitted e-Return forms after specified

time limit.
Page 19 Transformation in Mineral Management
 Important Rake Permit Features
• This modules facilitates leaseholders to transport mineral
through multi mode transportation like By Road, By Rail, By
Road-Rail, By Rail-Road, By Road-Rail-Road.

• System controls mineral stock in each stage of mineral

transportation and validate information while transporting
minerals.

• District Officer approves rake permit, applied by lessee

through ILMS System.

• System controls and track mineral transportation flow from

leaseholder to check post to Source to Destination Railway
Yard to Buyer and same will continue till material reaches to
industries.
Page 20 Transformation in Mineral Management
 Important M-Governance Features
• This modules specifically designed for Non Specified
leaseholders who doesn’t establish IT Infrastructure in lease
premises.

• Lessee has to forward SMS to DMG Server as per defined

SMS Syntax to generate trip sheet information through ILMS
System.

• District Officers and layman can cross check trip sheet

information through SMS and Trip sheet Print Out

• System is designed in such a way where DMG can introduce

many services initiate M-Governance Activities.
Page 21 Transformation in Mineral Management
 Important DCB Features
• District Officers are preparing DCB to calculate leaseholder’s
dues after calculating opening, Demand, Collection.

• System will calculate interest and deduce dues from

leaseholder ledger instantly and restrict lessee to apply for
bulk permit unless dues are not cleared but allow leaseholder
to generate permit in case of any legal orders.

• System calculates all defined formula as per rules and fetch

necessary information from e-Permit system to prepare DCB.

• This module is online, so lessee and DMG will be able to

access information which will save lots of manual and re-
conciliation work.
Page 22 Transformation in Mineral Management
 Important RFID Features
• DMG has introduced RFID system to be incorporated in lease
premise, Govt Check Post and Buyer Premises to systematize
mineral movement tracking and acknowledgement to avoid
manual mistake and malfunction.

• RFID System is cross verification of trip sheet information to

cross check with printed trip sheet and RFID information.

• In Govt. Check Post, It facilitates fast vigilance and eliminate

manual intervention to achieve transparency.

• RFID system is tempered proof and destruct of removal to

abolish malfunction.
Page 23 Transformation in Mineral Management
Important Weighbridge Features
• All major mineral leaseholders have to measure mineral
carrying vehicle tare weight and gross weight before
generating trip sheet.

• System tracks loading process and Validate each stage of

loading.

• ILMS System is integrated with more than 200 electronic

registered weighbridge in all major mineral leaseholder
premises.

Page 24 Transformation in Mineral Management

 Digital Signature Certificate (DSC) Features
• Digital Signature Certificate (DSC) is mandatory for all
leaseholders to access ILMS System.

• DSC ensures authentication and authorization of ILMS

Operations performed by stakeholders through registered
DSC only.

• Each Transactions has been mapped with DSC, IP Address

and list of activities performed during session.

• DSC authentication eliminates malfunction in data and

restrict access of other credential without registered DSC.

Page 25 Transformation in Mineral Management

 Ongoing &
Future Initiatives

Page 26 Transformation in Mineral Management

LiDAR Technology ( To be Implemented)
 LiDAR scanning is far safer than conventional surveying
methods and takes only a fraction of the time.
 The speed at which data is collected minimizes delays to the
mining schedules and processes. For example, operational
mine faces can often be surveyed in the time during shift
change, causing zero delays in production.
 The LiDAR solution is ideal for finding differences between
two time periods to accurately monitor the changes in the
terrain.
 Data from the LiDAR solution dovetails cleanly into existing
data workflows to produce deliverables including
engineering drawings, as-built, contours and volumes.

Page 27 Transformation in Mineral Management

Mobile Application (To be Implemented)
 Android based Mobile Application for Flying squad,
Vigilance team & Govt Check Post to use mobile app to feed
vigilance information and fetch trip sheet information for
cross checking.
 This Application has been supported to all Android based
Mobile Devices and Tablets with minimum specification.
 DMG is in process to enhance and extends mobile
application features to be introduce for ease of access in
ILMS Operations.
 Mobile Apps has features to scan barcode to fetch trip sheet
information, Fetch GPS Co-ordinates, Time Stamping,
Immediate actions information, Capturing Vehicle Image
with driver.
Page 28 Transformation in Mineral Management
E-Payment (To be Implemented)
 E-Payment module has been designed, developed and
integrated with State Bank of India and its group bank like
SBH, SBM, SBT.
 DMG is waiting for RBI Approval to implement e-Payment
for Leaseholders for fund transfer through Net Banking or
RTGS/NEFT.
 E-Payment module has been secured with SSL Certificate,
DSC Signing and Encryption of Data, IP tracking, Cleared
Third Party Security Audit.
 After Successful implementation with State Bank Group,
DMG shall incorporate other nationalized bank to enable
multiple bank options for leaseholders facility.

Page 29 Transformation in Mineral Management

 RFID Implementation

Page 30 Transformation in Mineral Management

 RFID/ Weighbridge Functionalities – Lessee
Premises 2. Tare Weight 3. Gross Weight
Measurement Measurement &
Trip Sheet Generation

1. Entry gate

Pass Weighing
Information

RFID Tagged Middleware

Vehicle 4. Exit gate

Centralized
Solution

Integration
with ILMS System

Page 31 Transformation in Mineral Management

RFID/Weighbridge Functionalities – Check
Post 6. Alert due to mismatch

5. Read Vehicle RFID 7. Store information and

Print Check Post Slip

Middleware

Centralized
Solution

Integration
with ILMS System

Page 32 Transformation in Mineral Management

RFID/Weighbridge Functionalities – Buyer
Premises 9. Weight Measurement 10. Alert due to mismatch

Pass Weighing
Information

Middleware
8. Entry gate 11. Exit gate

Centralized
Solution

Integration
with ILMS System
Page 33 Transformation in Mineral Management
RFID Implementation Phases
 Entry Gate : In Time Stamping & Alert in case of Vehicle
 Ceased in Govt. Check Post
 Unacknowledged Vehicle in Buyer Premises for unloading
 Arrived before Journey End time
 Tare Weight : Fetch Vehicle No & Deny Operation, if vehicle
 Entry Time Stamping is Missing
 Already Gross Weight Measured
 Gross Weight : Fetch Vehicle No & Deny Operation, if vehicle
 Tare Weight is not yet measure
 Trip Sheet has been generated

Page 34 Transformation in Mineral Management

RFID Implementation Phases
 Exit Gate : Exit Time Stamping & Alert in case of Vehicle
 Trip Sheet has not been generated
 RFID Tag is not readable or not Found
 Check Post : Fetch Vehicle No & Alert in case of vehicle
 Weight excess compare to mentioned weight in trip sheet
 RFID Data mismatch with ILMS Data
 Journey period is expired.
 Route mismatch as per route proposed by lessee
 Ceased by any other Check Post or Vigilance Squad.
 Operator will hold vehicle in case of any other illegality
found.
Page 35 Transformation in Mineral Management
RFID Implementation Phases
 Entry Gate Buyer Premises : In Time Stamping & Alert in
case of Vehicle
 Ceased by Check Post or Vigilance Squad
 Escaped Check Post
 Journey Period expired
 Trip Sheet belongs to other buyer
 Exit Gate Buyer Premises : Exit Time Stamping & Alert in
case of Vehicle
 Trip Sheet acknowledgement is pending

Page 36 Transformation in Mineral Management

Facts Figures till Date
Particular
E-auction
Total Major Total Minor (Iron Ore,
Minerals Mineral Manganese)
No of Bulk Permits Issued to Lessee
11,018 16,086 5,470
Total Quantity approved as Bulk Permit
7.73 Cr MT 0.65 Cr MT 5.85 Cr MT
Total No. of Trip sheets generated
0.47 Cr 0.039 Cr. 0.37 Cr
Maximum Trip sheets generated / day
8,214 1,812 7,398
Total Mineral transported
6.09 Cr MT 0.55 Cr MT 4.59 Cr MT
Total Rake Permit Issued to Lessee
7,130 7,087
Total Mineral transported through Rail
2.63 Cr MT 2.62 Cr MT
Total Weighbridge Installed
211
Total e-Return Submitted
4,843 1,673

Page 37 Transformation in Mineral Management

 Challenges Vs. Action
Challenges Action Taken

Limited IT Infrastructure in Remote

 Introduced M-Governance
Area
 Training sessions were organized at micro level,
Stake holders are not IT savvy & not
operational manuals were designed, and demo
willing to be computerized
cases were prepared and presented to
stakeholders.
 Process Re-engineering and make all process
Manual Operations
computerized and user friendly
 More than 200 weighbridge Integrated with
Required accurate weight of Mineral
ILMS system.
Need to Verify Information at Check  Modernizing 13 Check Post equipped with RFID,
Post CCTV, Weighbridge, IT & Civil Infrastructure
 Recommend changes in rules to strengthen
State Govt Rules & Regulations
process
 Introduce e-Auction by Honorable Supreme
Ceased Material
Court and adopted process.
Transportation Challenges  Introduce Multi-Mode Mineral Transportation
 in Handled
Transformation Rules & Regulation through System to
Mineral Management
Physical
Page 38 Verification to validate Rules
avoid human error.
Benefits

Page 39 Transformation in Mineral Management

Benefits

Page 40 Transformation in Mineral Management

Benefits

Page 41 Transformation in Mineral Management

 Testimony by Stakeholder
e-permit SSPP

Manual Pre printed

Page 42 Transformation in Mineral Management

Awards

 eINDIA Awards 2013: “Best Government to Business Initiative of

the Year” for "Comprehensive Computerization of Mineral
Administration (CCOMA)".

 National Awards in IT Excellence 2013: “Award for Process

Innovation in IT” for Transformation of Mineral & Administration
through e-Governance.

 16th National e-Governance Award 2013: Excellence in

Government Process Re-engineering for “Comprehensive
Computerization of Mining Administration”.

 eWorld Forum Awards 2012: “Best Government to Business

(G2B) Initiative of the Year” for "Transformation of Mineral
Administration through e-Governance".

 Presently Applied for Prime Minister Award 2012-13.

Page 43 Transformation in Mineral Management

Page 44 Transformation in Mineral Management