Bhopal: Mining Corporation likely to get back sand mining right

Bhopal: Mining Corporation likely to get back sand mining right

R SrinivasanUpdated: Monday, June 03, 2019, 07:51 PM IST
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Bhopal: State government would soon unveil new sand mining policy. The state government is mulling over centralizing the sand mining and handing it back to mining corporation. Earlier, the BJP government had given the rights of sand mining to panchayats, however after the change of guard in the state, the new government is considering to withdraw the rights and give it back to the mining corporation. Currently, panchayats have right over sand mining in their respective areas Soon after forming the government, the Kamal Nath-led government had started looking into avenues from where they could generate more revenue.

State government eyes are on mining corporation, a sector which has potential to bring huge revenue, Currently the corporation is engaged in mineral and coal mining only. The previous government decentralizing the sand mining business had given the rights to the panchayats. The move came following the allegations of increasing dominance of certain sand mafias and unregulated and illicit mining. The Congress, which was in opposition then, had raised the issue prompting the government to decentralized the sand mining. However, the Congress government after coming to power is considering to centralize the sand mining and giving its right back to mining corporation.

According to sources, the finance department has suggested that they would keep the profit of the mining auction and provide the management cost to the corporation. Earlier the corporation used to keep the entire profit and only a certain amount was transferred to state exchequer.  The corporation too has suggested that entire amount be sent to its account and after retaining the management cost it would return the rest to the government. The corporation maintained that monetary channel would help them to maintain a robust balance sheet to enable it to take part in the national or international bidding process.

Sources informed that due to the decentralisation of the mines, the state government is not getting the expected revenue. The decentralization has also led to black marketing, besides financial irregularities by panchayat officials had also come to fore. Earlier the state government had sent the mining officials to other states to study their mining policy. After analysing the policies and taking out best ideas, the officials have chalked out a policy.

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