Rules amended after Cabinet approval; Higher fines, stricter vehicle release norms and mining reforms introduced
TFP Bureau, Raipur, 24 June,2026: In a major crackdown on illegal mining, transportation and storage of minerals, the Chhattisgarh government has introduced sweeping amendments to its Minor Mineral Rules under the leadership of Chief Minister Shri Vishnu Deo Sai. The revised provisions, approved by the Council of Ministers, aim to curb illegal mining, boost state revenue and ensure scientific and transparent utilisation of mineral resources.
The most significant change relates to penalties for illegal excavation and transportation. The minimum compounding amount has now been fixed at Rs 25,000 in all cases. For illegal transportation, offenders will have to pay a compounding fee of Rs 2,000 per tonne, apart from the full value of the illegally transported mineral. For instance, a vehicle carrying 35 tonnes of minerals illegally will be liable to pay Rs 70,000 as compounding charges, in addition to the mineral’s value. Tractor operators caught transporting sand illegally will also have to pay a minimum compounding fee of Rs 25,000 along with the cost of the sand.
To prevent repeat offences, the government has tightened norms for the release of seized vehicles, machinery and equipment. Security deposits ranging from Rs 50,000 to Rs 3 lakh, depending on the category of the vehicle, will now have to be deposited before the concerned court prior to release.
Government has eased excavation permit norms for public infrastructure projects. The permissible excavation area for government construction works has been increased from 1 hectare to 2 hectares, while permit validity has been extended from two years to three years.
To promote scientific exploration and infrastructure development, the Chhattisgarh State Mineral Exploration Trust-2025 has been established. Two per cent of royalty collected from minor minerals will be credited to the trust, generating an estimated additional Rs 5.25 crore annually.
The process for amalgamation of mining leases has also been simplified to remove operational difficulties and facilitate premium collection. Further, a uniform system for deduction of mineral royalty, DMF, environmental cess, infrastructure cess and security deposits has been introduced across all construction departments. The amount will be refunded upon royalty clearance from the Mining Department, failing which it will be deposited under the mineral head.
Another key decision extends revenue-sharing benefits from minor minerals to district panchayats in addition to urban local bodies, gram panchayats and janpad panchayats. The government has also increased Dead Rent Rates for mines after nearly 30 years. With over 1,900 minor mineral mines in the state, many lying non-operational, the move is expected to ensure that only serious leaseholders continue operations, while inactive mines become available for re-auction.
The initiative is being seen as a strong manifestation of the Sai government’s zero-tolerance policy towards illegal mining, aimed at strengthening enforcement, transparency, revenue generation and sustainable mineral resource management.
