The government said Budgam district generated Rs 200 million (mn) in revenue from riverbed and earth mining activities over the past three financial years, with a sharp rise in earnings from brick earth and clay extraction even as riverbed mining revenue declined. The information was provided in a written reply to a question by MLA Aga Syed Muntazir Mehdi and outlined recent trends in the sector.

Brick earth and clay extraction remained the dominant source of income in the district, with the department realising Rs 27.8 mn in 2023-24, rising to Rs 84 mn in 2024-25 and settling at Rs 72.3 mn in 2025-26. These figures indicate a substantial shift in the composition of mining receipts towards brick earth operations.

Revenue from riverbed mining declined sharply over the same period, falling from Rs 19.4 mn in 2023-24 to three point nine three mn in 2025-26. The primary extraction sites were identified as the Doodhganga and Shaliganga nallahs and several blocks in Chadoora, Magam and Beerwah.

To mitigate impacts on local communities a District Mineral Foundation trust has been established under the chairmanship of the Deputy Commissioner and 48 welfare schemes have been sanctioned under the Pradhan Mantri Khanij Kshetra Kalyan Yojana for mining affected areas. An expenditure of Rs 55.7 mn has been approved for these schemes, of which Rs 44.5 mn has already been released.

The government noted National Green Tribunal orders that found the Union Territory responsible for failing to curb illegal mining and sewage discharge in the Doodhganga and Mamath Kul areas. The Mining Department deposited Rs 10 mn with the Deputy Commissioner for restoration works. The Flood Control Department completed seven restoration projects including concrete protection walls, crate protection works and fall check dams. The tribunal levied penalties of zero point seven five mn and zero point eight three mn on leaseholders of Minor Mineral Blocks 11 and 12 and these funds have been earmarked for ecological restoration.