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Challenges


Bottlenecks

The minor mineral mining business across 20 states of India generates an annual revenue of $126 billion, equivalent to ₹1.50 lakh crore. This sector grapples with a significant issue of royalty pilferage, estimated at an average of about 30% per annum (₹ 50,000 Crore).

Statewise Malaise

As per the Union Ministry of Mines, Sand is the fourth most important minor mineral in terms of production after metals, building stone and brick earth. Yet the government does not collect data on the volume of illegally mined sand.

Cases of illegal mining of minor minerals are present across the country:

Bottlenecks

Illegal Transportation & Mining

Transporters involved in moving minerals without a valid or expired transit pass and engaged in unauthorized mining by operating in areas not sanctioned according to Mining Department policies

Forgery of Transit Passes

Irregularities in the transportation of minerals, particularly the widespread use of counterfeit and altered transit passes, led to a loss in government royalty.

Ad hoc Enforcement Approach

Complaints about arbitrary spot inspections have arisen due to inconsistencies in enforcement caused by human intervention.

Overloading of minerals

The overloading of minerals not only leads to a loss of royalty but also causes damage to roads and poses safety hazards to personnel.

Royalty Pilferage

Engaging in illegal sand mining constitutes the evasion of government revenue and is subject to prosecution under the MMDR Act, 1957.

State Wise Potential iCheckgate®

S.No. State Mining District
1 Assam 33
2 Andhra Pradesh 12
3 Bihar 31
4 Chhattisgarh 27
5 Goa 2
6 Gujrat 32
7 Haryana 16
8 Himachal Pradesh 11
9 Jammu Kashmir 10
10 Karnataka 10
11 Kerala 4
12 Madhya Pradesh 52
13 Maharashtra 34
14 Punjab 16
15 Rajasthan 28
16 Tamil Nadu 30
17 Telangana 27
18 Uttarakhand 13
19 Uttar Pradesh 68
20 West Bengal 8
TOTAL 464

Note: Approximately 2000 iCheckGate® are required across 464 districts to curb illegal transportation & royalty pilferage.

Source: The state wise no. of mining districts has been taken from https://mines.gov.in/webportal/home
The above stats shown are as on 31st December, 2023