Rajasthan Updates Mining Policy for Manufactured Sand Production

07 Jan 2025 CW Team

The amendments include simplifying the e-transport permit (e-TP) system, which now applies only to sand, masonry stone aggregates, and M-sand, aligning it with the e-way bill framework. An official stated that, in an effort to enhance revenue, the ‘Strip of Land’ provision has been abolished, and for gap-area allocations, the reserve price, dead rent, or license fee has been raised from 10 to 25 times. Guidelines for mining lease allocation in urban areas have been introduced to curb illegal mining.

The expansion of M-Sand mining will include the annual reservation of five plots per district, up from the previous two, with auctions to commence immediately after approvals. Additionally, government land surrounded by private holdings can now be allocated to the concerned owner or their nominee.

For short lease durations, environmental clearances must be obtained before lease approval, and the maximum validity for letters of intent is set at five years. In tribal areas, bid security has been reduced from Rs 1 million to Rs 0.5 million to encourage local participation. Performance security has been standardized at 50 per cent of the dead rent or license fee for both new and old leases. Deadlines have been tightened, with late fees introduced for delays in mine transfers, contract execution, and the proportional calculation of dead rent for surrendered mines. Leases violating terms will face strict actions, including lapses and revival restrictions, the official added.

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The Rajasthan government has amended the Rajasthan Minor Mineral Concession Rules, 2017, in line with the provisions of the Rajasthan Mineral Policy 2024 and Rajasthan M-Sand Policy 2024. Bhajan Lal Sharma, Chief Minister and Mines Minister, announced the implementation of the new mineral policy following the formation of the new government. As part of this announcement, the new mineral and M-sand policies were issued on December 4, 2024, and corresponding provisions have now been integrated into the Minor Mineral Concession Rules. Principal Secretary (Mines), T Ravikant, confirmed that the amendments have been notified and are effective immediately. The amendments include simplifying the e-transport permit (e-TP) system, which now applies only to sand, masonry stone aggregates, and M-sand, aligning it with the e-way bill framework. An official stated that, in an effort to enhance revenue, the ‘Strip of Land’ provision has been abolished, and for gap-area allocations, the reserve price, dead rent, or license fee has been raised from 10 to 25 times. Guidelines for mining lease allocation in urban areas have been introduced to curb illegal mining. The expansion of M-Sand mining will include the annual reservation of five plots per district, up from the previous two, with auctions to commence immediately after approvals. Additionally, government land surrounded by private holdings can now be allocated to the concerned owner or their nominee. For short lease durations, environmental clearances must be obtained before lease approval, and the maximum validity for letters of intent is set at five years. In tribal areas, bid security has been reduced from Rs 1 million to Rs 0.5 million to encourage local participation. Performance security has been standardized at 50 per cent of the dead rent or license fee for both new and old leases. Deadlines have been tightened, with late fees introduced for delays in mine transfers, contract execution, and the proportional calculation of dead rent for surrendered mines. Leases violating terms will face strict actions, including lapses and revival restrictions, the official added.

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