New mining policy in place for Madhya Pradesh, but operations to begin from next year

BHOPAL: As per the new mining policy, mining operations in Madhya Pradesh would not start before next year. The state government introduced the new mining policy this year, but after some delay. This pushed back the auction procedure, which is still in process.

The mining department has invited online tenders for lease of mines till November 26.

From November 27 onwards, the technical bids would be opened. It would start from Bhopal and Hoshangabad divisions. The process would continue till December 2. After scrutiny of technical bids between December 7 and December 12, financial bids would be opened.

The successful bidders would deposit money after that within 10 days. Bidders would have to take clearance from environment, mining and pollution departments, besides completing other formalities, which would require at least a month more in the new year to start mining. Till then, the existing system would be in place and panchayats would run the mines.

According to the new mining policy, auction would be held in district-wise groups. The offset price would vary, depending on the number of mines and availability of sand. There are mines in 43 districts of the state. The offset price of Hoshangabad is a maximum Rs 96 crore. The offset price of five districts is more than Rs 25 crore.

After the new policy, sand mining lease would be allotted for three years in the state. Till last year, the lease used to be for one year only. Mines allotted this year would be renewed in 2022. Once allotted, the contractor would pay increased royalty of 10 per cent per year and continue to operate the mines for three years. Officials said the decision to give lease for three years is meant to ease the sector from getting into the lease process every year.

The government expects to earn Rs 600 crore revenue every year, while in 2018-19, it had earned just Rs 69 crore when the sand mines were with panchayats.

In the new mining policy, the government has banned storage and sale of sand within 2 km from a mine. Moreover, the policy states that only the licensed contractor or the one having a mining lease would be allowed to sell sand within 50 km from any sanctioned sand quarry. However, these restrictions would not be applicable for major cities, including Bhopal, Indore , Gwalior and Jabalpur .

The policy has continued with the state government’s directive for a complete ban on mechanized mining from the quarries along Narmada river . As many as 1,438 mines have been identified in the state and of them 400 are new mines, officials said.