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Chhattisgarh government tightens illegal mining rules, raises penalties

Posted on: Jun 25, 2026 12:43 IST | Posted by: Hindustantimes
Chhattisgarh government tightens illegal mining rules, raises penalties
THe Chhattisgarh authorities has amended its venial Mineral Rules to innovate stricter penalties and tighter enforcement measures against illegal minelaying, transport and storage of minerals under the leadership of Chhattisgarh CM Vishnu Deo Sai.The revised provisions, approved by the state Cabinet, aim to curb illegal mining activities, improve transparency and increase state revenue through stricter regulation of mineral resources.Higher penalties, stricter vehicle release normsUnder the amended rules, the minimum compounding amount in all cases of illegal excavation and transportation has been fixed at ₹25,000. Offenders involved in illegal transportation will also have to pay ₹2,000 per tonne in addition to the full value of the illegally transported mineral.The government said a vehicle transporting 35 tonnes of minerals illegally would now attract a compounding charge of ₹70,000 apart from the mineral’s value. Tractor operators caught transporting sand illegally will also face a minimum penalty of ₹25,000 along with recovery of the mineral cost.The rules also tighten conditions for release of seized vehicles and machinery. Security deposits ranging from ₹50,000 to ₹3 lakh, depending on the category of vehicle, must now be deposited before the concerned court prior to release.Mining reforms and revenue measuresThe government has also relaxed excavation permit norms for public infrastructure projects. The permissible excavation area for government construction works has been increased from one hectare to two hectares, while permit validity has been extended from two years to three years.To strengthen scientific exploration and infrastructure development, the state has constituted the Chhattisgarh State Mineral Exploration Trust-2025. Two per cent of royalty collected from minor minerals will be credited to the trust, which is expected to generate an additional ₹5.25 crore annually.The process for amalgamation of mining leases has also been simplified, while a uniform system for deduction of royalty, DMF, environmental cess and infrastructure cess has been introduced across construction departments.The government has also increased dead rent rates for mines after nearly three decades. Officials said the move is expected to ensure that only active leaseholders continue operations, while inactive mines become available for re-auction.

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