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Punjab unveils mining policy
Naveen S Garewal/TNS

Chandigarh, April 26
Punjab’s Industries Minister Manoranjan Kalia today announced the state mining policy aimed at curbing the rising prices of sand, hampering infrastructure development.

Under the new policy, the mines will be clubbed together as groups and allotted after e-auctioning. Punjab will be the first state in the country to do so.

Based on the recommendations of deputy commissioners, the government will determine the maximum retail price for sand in each of the state’s 20 districts. The government’s new policy proposes to bring sand under the Essential Commodities Act. This means that any person who violates the terms of sale or exceeds the quarrying limit agreed upon at the time of bidding will be booked under this Act.

Kalia said the policy that has been formulated to ensure the supply of sand and other construction material like gravel would help check escalation in the construction cost. “Small and large sand mines will be allotted to the highest bidder for three years. Besides supplying sand at the maximum retail price, the bidder will pay a fixed amount to the government”.

The new policy had been formulated and approved by a Cabinet sub-committee headed by Chief Minister Parkash Singh Badal, Secretary Industries SS Channy said.

Based on this policy, the Industries Department has asked the government to build a new cadre of policemen to be attached with the Industries Department on the pattern of the Excise department. “These personnel will be taken from the regular police for a fixed tenure”, Kalia said.

Punjab has two types of sand mines, those less than 5 hectares (165 in number) that require no environmental clearance and those larger that 5 hectares (147 in number) that require environmental clearance. The e-auctioning of the 165 mines will be done within a month, while the larger ones will require environmental clearance from the Centre before these are auctioned.

The new policy also has a share for the panchayats. Earlier, the panchayats were given Rs 10 as royalty for each truck of sand. The royalty has now been doubled to Rs 20. The new policy will also charge royalty from crushers, based on their electricity bills. Punjab receives gets Rs 78 crore annually from sand mining.

The new mining policy has come at a time when the Congress has accused the ruling SAD-BJP of running a “sand mafia” in the state, with mining contracts being given to those at the helm of affairs. Now, when the mines are auctioned in about a month, it will become clear how much more revenue the state earns.This will either confirm or belie the allegations of the Congress against the ruling SAD-BJP alliance. 

Fresh guidelines

* Cap on maximum retail price for sand

* Brought under Essential Commodities Act

* Mines to be allotted after e-auctioning

* New police cadre to enforce policy

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