MP Govt in trouble over sand mining in four districts

MP Govt in trouble over sand mining in four districts

Instead of confiscating earnest money, govt may give time to contractors

Staff ReporterUpdated: Tuesday, February 11, 2020, 09:34 PM IST
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BHOPAL: The contractors taking over the mines in Hoshangabad, Mandla, Raisen and Ashoknagar have put the government to trouble by not depositing the security money.

Companies and individuals who have taken over those mines had to deposit the security money worth 25% of the maximum cost of those mines, but they did not pay in the amount till February 8.

Now that the money has not been deposited, the government has to decide whether it should seize their earnest money or give them more time to deposit security.

Power Make Projects Limited (Hoshangabad), Rajendra Raghuwanshi (Raisen), KP Singh Bhadauria (Mandla) and Rajendra Singh Raghuwanshi (Ashoknagar) quoted the highest price in the bid for mines.

The government has earnest money of more than Rs 32 crore, but it is unable to decide whether they should confiscate the money or not.

According to sources, the issue has gone to Chief Minister Kamal Nath who may give those contractors extra time.

Nevertheless, the mines in Hoshangabad and Raisen are a major problem for the mining department.

The Power Make Projects Limited which has quoted the highest rate has also taken mines in Sehore and Bhind.

Although the company has deposited security money for mines in these two districts, it has some problems in doing that in Hoshangabad.

The company has taken mines in Hoshangabad by depositing Rs 216 crore against Rs 100 crore offset price.

In Hoshangabad, there is a difference of Rs 84 crore between H-1 and H-2.

Now, the problem is that if the company does not take this contract, no other firm will pay this much prices for mines in the district. A sum of Rs 25 crore of the company is kept with the government in the form of security deposit.

In Raisen, too, a sum of Rs 72 crore was deposited, which was six times higher than that of the last year.

Besides Mandla, Bhadauria has taken mines in Datia and Dindori. He has deposited the security money for the mines in these two districts.

The main reason for not depositing security money in the four districts is that the maximum amount of the price has to be deposited.

The earnings from sand mining are not as much as the amount of money the contractors have already deposited.

According to director of mining, Vineet Austin, the government is working out the issue of the four districts.

Austin said the last date for depositing security money was February 8 so their earnest money might be confiscated after that date.

Hoshangabad- Power Make Projects Limited

Raisen- Rajendra Raghuwanshi

Mandla- KP Singh Bhadauria

Ashoknagar -Rajendra Singh Raghuwanshi

The government has earnest money of more than Rs 32 crore, but it is unable to decide whether they should confiscate the money or not.

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