Ammonium Nitrate Rules, 2011

G.S.R.694(E).--The following draft of Ammonium Nitrate Rules, 2011, which the Central Government proposes to make in exercise of the powers conferred by sections 5 and 7 of the Explosives Act, 1884 (4 of 1884) is hereby published as required by sub-section (1) of section 18 of the said Act for information of all persons likely to be affected thereby and notice is hereby given that the said draft shall be taken into consideration forty five days after the Gazette containing this notification is made available to the public;

The objections or suggestions may be sent to the Joint Secretary, Ministry of Commerce and Industry, Department of Industrial Policy and Promotion, Room No. 135, Udyog Bhavan, New Delhi-110107. Email: prasad.chaitanya@nic.in;

Any objection or suggestion received from any person with respect to the said draft rules before the date so specified will be considered by the Central Government.

DRAFT RULES

CHAPTER I

PRELIMINARY

1. Short title and commencement.-

(1) These rules may be called the Ammonium Nitrate Rules, 2011.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. Definitions.--

In these rules, unless the context otherwise requires, -

(a) "Act" means the Explosives Act, 1884(4 of 1884);

(b) "Ammonium Nitrate" means the compound having the chemical formula NH4NO3 and includes any mixture or compound having more than 45 per cent. Ammonium Nitrate by weight including emulsions, suspensions, melts or gels (with or without inorganic nitrates) but excluding emulsion or slurry explosives and non-explosives emulsion matrix and fertilizers from which Ammonium Nitrate cannot be extracted by any physical or chemical process;

(c) "Chief Controller" means the Chief Controller of Explosives;

(d) "competent person" means a person recognised by the Chief Controller, who is adequately experienced and well conversant in safe manufacture, conversion, storage, transportation and handling of Ammonium Nitrate, as the case may be;

(e) "Controller" includes Joint Chief Controller of Explosives, Deputy Chief Controller of Explosives, Controller of Explosives and Deputy Controller of Explosives;

(f) "converter" means a person or an agency which undertakes conversion of solid form of Ammonium Nitrate into melt form or melt form of Ammonium Nitrate into solid form;

(g) "Conservator" includes any person or agency or firm acting under the authority of the officer or body of persons appointed to be conservator of a port under section 7 of the Indian Ports Act, 1908 (15 of 1908);

(h) "District Authority" means,-

(i) in towns having a Commissioner of Police, the Commissioner or a Deputy Commissioner of Police;

(ii) in any other place, the District Magistrate or Additional District Magistrate;

(i) "Departmental Testing Station" means the testing station of the Petroleum and Explosives Safety organisation;

(j) "explosive" means the explosives as defined under clause (d) of section 4 of the Explosives Act, 1884 (4 of 1884).

(k) "emulsion explosive" and "non-explosives emulsion matrix" shall have the same meaning as defined under the Explosives Rules, 2008.

(l) "Form" means a Form specified in the Schedules annexed to these rules;

(m) "licence" means pre-requisite document to manufacture, convert, import, export, stevedoring, bagging, transport, possess, sale and use of Ammonium Nitrate.

(n) "licensing authority" means authority empowered to issue the licence specified in Schedule I.

(o) "Occupier", in relation to a premises means a person who has the control and is responsible for managing the affairs of the premises, and includes, in relation to Ammonium Nitrate, the person in possession of the Ammonium Nitrate:

Provided that in relation to a-

(i) proprietary firm, the proprietor; or

(ii) partnership firm, the partner nominated in writing by all other partners; or

(iii) company, the director or any other person nominated in writing by the Board of Directors; or

(iv) society or association, the office bearer nominated in writing by the governing body,

shall be deemed to be the occupier;

(p) "slurry explosive" and "Site mixed explosives" shall have the same meaning as defined under Explosives Rules, 2008;

(q) "store house" means independent building meant to possess or Store Ammonium Nitrate other than Ammonium Nitrate melt;

(r) "stevedore" includes any personoragencyorfirm which undertakes loading and unloading of bulk Ammonium Nitrate from the ship, its transport to the transit store at the port site for its bagging;

(s) "Safety and Security Management Plan" means the comprehensive plan for ensuring and managing safety and security in Ammonium Nitrate manufacturing factory, stevedoring, transport, storage and usage premises;

3. Scope of applicability of rules and exemptions.--

(1) These rules are applicable all over India for regulating the manufacturing, conversion, import, export, stevedoring, bagging, transport, and possession for sale or use of Ammonium Nitrate for bonafide purposes.

(2) Nothing in these rules shall apply to possess, use, transport or import or export of Ammonium Nitrate by -

(a) any of the Armed Forces of the Union and Ordnance Factories or other establishments of such Forces for own use in accordance with the rules or regulations made by the Central Government;

(b) Indian Railways while acting as a carrier;

(c) Port authority;

(d) any person employed under the Central or State Government in exercise of any power under the Act or these rules.

(3) established laboratories, educational institutions, medical institutions, hospital and health clinics may possess and use for scientific and educational purpose the Ammonium Nitrate of quantity not exceeding five kilograms under intimation to the local Police Station.

CHAPTER II

GENERAL PROVISIONS

4. Control over manufacture, conversion, stevedoring and bagging, import, export, transport, possession for sale or use of Ammonium Nitrate.--

No person shall undertake manufacture, conversion, stevedoring, import, export, transport or possess for sale or use Ammonium Nitrate except as authorised or licensed under these rules:

Provided that any person carrying on the business of manufacture, conversion, sale, transport, possession, use, stevedoring, bagging, import and export shall be entitled to continue to carry on such business without licence in respect of Ammonium Nitrate for a period of six months from the date of publication of these rules;

5. Pre-requisite for grant of licence.--

No licence shall be granted unless all the relevant provisions laid down under these rules and all conditions contained in the license forms under Part-2 of Schedule II annexed to these rules are complied with:

Provided that all the existing manufacturers, converters, users, transporters, stevedores, baggers, sellers, storehouses, possessors, importers and exporters shall make application for grant of licence under these rules within a period of six months from the date of publication of these rules.

6. General Restrictions.--

(1) Restriction on manufacture -

The Ammonium Nitrate shall not be manufactured at any place other than the place indicated in the licence.

(2) Restriction on storage and conversion -

(a) The Ammonium Nitrate storehouse should not be located in thickly populated areas.

(b) No Ammonium Nitrate shall be converted at any place except at converter's premises duly licensed.

Note: Conversion means converting melt Ammonium Nitrate into solid form such as prill or crystalline or vice-versa.

(c) No person shall extract Ammonium Nitrate from any fertilizer including Calcium Ammonium Nitrate (CAN), having the chemical formula CaNO3NH4NO3 by any chemical or physical process.

(3) Restriction on stevedoring, bagging and possession for sale or use-

(a) No person shall undertake stevedoring, bagging and possession for sale or use Ammonium Nitrate except under conditions of a licence granted under these rules at an authorised store house as specified therein; (b) No person shall store, process, deliver, receive, handle or transport any Ammonium Nitrate contaminated fully or partially with any organic material, metal powder or scraps, or sulphur, phosphorous etc.

(4) Restriction on import or export-

(a) No person shall import or export any Ammonium Nitrate except under and in accordance with the conditions of licence granted under these Rules;

(b) No Ammonium Nitrate shall be imported or exported except at its ports notified by the Central Government.

(c) The Ammonium Nitrate shall not be imported into India by Sea except through the ports which are duly approved for this purpose by the Ministry of Shipping and Transport, Government of India, in consultation with the Chief Controller and declared as Custom's Ports by the Commissioner of Customs.

(5) Restriction on transport and storage -

(a) Ammonium Nitrate shall not be transported with any other explosives, inflammable substances, oil, gases, carbonaceous matter, etc.

(b) No Ammonium Nitrate shall be transported in any carriage vessel or aircraft plying for or carrying passengers on hire.

(6) Restriction on delivery or dispatch-

(a) No person shall deliver or despatch any Ammonium Nitrate to anyone other than a person who-

(i) is the holder of a licence to possess the Ammonium Nitrate or the agent of a holder of such a licence duly authorised by him in writing on his behalf; or

(ii) is entitled under these rules to possess the Ammonium Nitrate without a licence.

(b) The Ammonium Nitrate so delivered or despatched shall in no case exceed the quantity at any point of time for which the person is holding a licence under these rules.

(c) No person shall receive Ammonium Nitrate from any person other than the holder of a licence granted under these rules.

(d) No person shall receive from or...

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