Madhya Pradesh chief minister Kamal Nath

The state cabinet led by chief minister Kamal Nath on Tuesday approved amendment to the Madhya Pradesh Minor Minerals Rules 1996. In February 2015, the Union government decided to notify 31 minerals as 'minor' and gave state governments the power to control its mining.

The minerals put in this category were dolomite, diaspore, corundum, mica, calcareous sand, jasper, mica and others. State governments were also given the power to make policies for mining of these minerals and determine rate of royalties.

Speaking to reporters after the cabinet meeting, minister for mining Pradeep Jaiswal said that the Kamal Nath government has approved amending the Minor Minerals Rules 1996.

Tenders for excavation of minerals will be given through auction. "However, excavation lease will be directly issued without auction to investors who have generated employment for locals and invested Rs25 crore in the state," Jaiswal said.

The amendment is including M-sand (manufactured sand) in Schedule 1 with a proposed royalty of Rs50 per cubic metre. "The government's intention is to increase revenue for the exchequer. Presently, the revenue earned from minor minerals is Rs14 crore only. This will increase revenue from mining manifolds," the minister said.

Jaiswal said that the new mining policy will generate employment opportunities. In case of mining in a private plot, the excavation company may enter into an agreement with the party but will have to pay an extra royalty of 15%. "In granite and other stone mines, there is no provision for sale of unusable stone (waste) received in excess quantity. The demand for this stone is enough for building material. Hence, such unusable stone is being included at sequence No.9 of Schedule-1 for manufacturing macadam and boulder with proposed royalty of Rs120 per cubic metre," a state release explained.

Collectors can sanction up to four hectares area. For areas over four hectares and up to 10 hectares, sanction will be given by the mining director.

