The Chhattisgarh government has amended its secondary minerals rules to impose tougher penalties and stricter enforcement measures against illegal mining, transportation and storage of minerals under the leadership of Chhattisgarh CM Vishnu Deo Sai.
The amended provisions, approved by the state cabinet, aim to curb illegal mining activities, improve transparency and increase state revenues through stricter regulation of mineral resources.
Higher penalties, more stringent vehicle release standards
Under the amended rules, the minimum aggravation amount in all cases of illegal excavation and transportation was set at $25,000. Criminals involved in illegal transportation will also have to pay $2000 pounds per ton, in addition to the full value of the metal transported illegally.
The government said that a vehicle transporting 35 tons of minerals illegally will now be charged double fees $70,000 excluding the value of the metal. Tractor operators caught illegally transporting sand will also face a minimum penalty $25,000 with metal cost recovery.
The rules also tighten conditions for the release of seized vehicles and machinery. Security deposits range from $50,000 to $3 lakh, depending on the class of vehicle, will now have to be deposited with the relevant court before it can be released.
Mining reforms and revenue measures
The government also relaxed drilling permit criteria for public infrastructure projects. The permitted excavation area for government construction work was increased from one hectare to two hectares, while the permit validity was extended from two to three years.
To promote scientific exploration and infrastructure development, the state has established the Chhattisgarh State Mineral Exploration Fund – 2025. 2% of the proceeds collected from secondary minerals will be added to the trust, which is expected to generate an additional $5.25 crores annually.
The process of consolidating mining leases has also been simplified, while a unified system for deducting royalties, DMF, environmental taxes and infrastructure charges across construction departments has been introduced.
The government has also increased dead lease rates for mines after nearly three decades. The move is expected to ensure that only active tenants continue their operations, while inactive mines become available for re-auction, officials said.
