(1) Before a licence is issued, bank guarantee for an amount of security calculated at the rate of Rs. 1000/- for each of the contract labours to be employed, in respect of which the application for licence has been made, shall be deposited by the contractor with the authority for performance of the conditions of the license and compliance with the provisions of the Code.

(2) If contractor proposes to engage one lakh or more but less than one lakh fifty thousand contract labours an amount of security shall be Rs. 10 Crore and engages one lakh fifty thousand but less than two lakhs contract labour an amount of security shall be Rs. 15 Crores and engages two lakh or more contract labour an amount of security shall be Rs. 20 Crores.

(3) Wherein the issued contract license had expired, based on the request of the applicant in FORM-XXII, the authority may adjust the security deposit under sub-rule (1) in respect of their application for new license.

(4) The fees to be paid for the grant of a license shall be as specified in the Table: