Punjab Cabinet on Thursday approved amendments in the Sand and Gravel Mining Policy-2021, to revise the rates of sand to Rs nine per cubic feet and fixing maximum retail price (MRP) of gravel at Rs 20 per cubic feet.
Also approving a new policy for crusher units, the Cabinet has decided to impose an environment charge of Re one per cubic feet on output material — a move expected to fetch Rs 225 crore to the state exchequer.
“The existing policy has been amended and the rate of sand has been revised from Rs 5.50 per cubic feet to Rs nine per cubic feet,” said the state Mining Minister Harjot Singh Bains, addressing the media after the Cabinet meeting.
Citing the reason for amending the mining policy and revising sand rates, Bains claimed that the people did not get sand at the rate of Rs 5.50 per cubic feet. Notably, the previous Congress Government, under Charanjit Singh Channi, had reduced the rate of sand from Rs nine to Rs 5.50 per cubic feet.
“Nobody ever got sand at the rate of Rs 5.50 per cubic feet. When we checked the files, we found the State Government’s royalty was reduced from Rs 2.40 to 70 paise,” said Bains, adding that it was only the mining contractors who benefited from the previous Congress Government’s decision.
Bains further said that the MRP for gravel has also been fixed at Rs 20 per cubic feet. “Crushers will not charge more than the MRP for the processed material. This decision will lead to a healthy competition among crushers and will eventually benefit people,” said Bains.
He said that the officials of the Mining Department will be deputed at the sites to ensure that people get sand at Rs nine per cubic feet.
As major burden to consumers come from the transportation rates, the Department will prepare a mobile app connecting transporters and consumers while the rates will be fixed by the Transport Department, said Bains.
The Minister said that surveys will be conducted in the State for sand mining, and it will throw light on which areas mining can be carried out.
A policy for crushers has been approved by the Cabinet, he said, adding that as per the new policy, crushers will be allotted a mining site of five hectares or a multiple of five hectares to check illegal mining. “But it will not be mandatory for every crusher to take these sites...The allotment of these mining sites will be carried out through e-auction,” he said.
He said that the contracts will be allotted for a period of three years extendable up to four years provided there is material available at the site.
An environmental fund at the rate of Re one per cubic feet has been imposed on the output material of crushers — generating a revenue of Rs 225 crore, he said.
It has been made mandatory that weighbridges, along with CCTV cameras, be installed both at the mining site as well as at the crusher site to check illegal mining.
The sale of material at the crusher shall be monitored through an online portal. Registration fee for a crusher has been enhanced to Rs one lakh from existing Rs 10,000.
Apart from this, a security of Rs three lakh to Rs five lakh will also be taken from the crusher units, which shall also file monthly returns of the material processed by them.
The crusher owner will be required to pay penalty on the material processed by them in excess of the material procured from valid sources, he said, adding that the penalty will be increased further in case of delay in making payment..
The policy also envisages provisions for suspension and cancellation of registration in case of any violation.
The allotment of these mining sites will be carried out through e-auction and as per PMMR 2013. The contracts will be allotted for a period of three years extendable up to four years provided there is material available at the site.
As per official statement, spokesperson of the Chief Minister’s Office said that Government’s this initiative will rationalize the sand and gravel policy of the state with a view to give relief to consumers on one hand and generate more revenue for state exchequer on the other.
As per this policy, the royalty of Rs 2.40 per cubic feet will be the same as earlier. The revenue, collected under the Information and Technology and Weigh Bridge Head which is 10 paise per cubic feet, will be deposited in the state exchequer instead of being retained by the contractor currently.
It added that the Department will make the payment of the bills raised by the contractors at the weigh bridge as per terms of the agreement which will facilitate the Department to computerize the entire operations of Weigh Bridge and further reduce the scope of illegal mining.
Instead of earlier practice of issuing K-2 permits, a surcharge of Rs five per square feet will be charged by the authority approving the building plans where construction of basement is proposed and the revenue thus generated will be collected by respective local bodies or town planning authorities and deposited it in the appropriate Receipt Head of the Department.
This will not be applicable for residential houses of any size or for any other building on plot size up to 500 square yards. The royalty rate of ordinary clay and ordinary earth will be Rs 10 per ton for commercial use except brick kilns.
BOX
· Sand rates revised to Rs 9 per cubic feet
· MRP for gravel fixed at Rs 20 per cubic feet
· New policy for crusher units approved
· Re 1 per cubic feet Environment Charge on output material to fetch Rs 225 crore revenue
· Mining officials to be deputed at the sites to ensure people get sand at Rs 9 per cubic feet
· Mobile app, connecting transporters and consumers, to be developed
· Transport Dept t fix rates for transportation
· Surveys to be conducted for sand mining
· Crushers to be allotted a mining site of five hectares or a multiple of five hectares to check illegal mining
· Allotment of mining sites through e-auction
· Contracts to be allotted for three years, extendable up to four years, provided there is material available at mining site
· Mandatory to install weighbridges, along with CCTV cameras, both at mining site and at crusher site
· Registration fee for crusher increased from Rs 10,000 to Rs one lakh
· Crusher units to also deposit security of Rs 3 to Rs 5 lakh
· Crusher owner to pay penalty in case material was processed in excess of the material procured from valid sources; Penalty to be increased further in case of delay in making payment
· Policy has provisions for suspension and cancellation of registration in case of any violation