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Chhattisgarh Tightens Minor Mineral Rules, Raises Penalties

Officials say the changes will deter illegal mineral trade through higher fines, tighter asset-release rules, targeted revenue measures, a new exploration trust.

Overview

  • The state Cabinet approved amendments to the Minor Mineral Rules on Thursday, June 25, 2026, making the new framework the official regulation for minor minerals in Chhattisgarh.
  • The rules fix a minimum compounding amount of ₹25,000 for illegal excavation and transport and add a compounding fee of ₹2,000 per tonne for illegally transported minerals.
  • Seized vehicles, machinery and equipment now require security deposits of ₹50,000 to ₹3,00,000 to be deposited with the court before release to deter reuse in illegal operations.
  • The government created the Chhattisgarh State Mineral Exploration Trust-2025 funded by 2% of minor-mineral royalty, estimated to add about ₹5.25 crore a year, and introduced uniform royalty and cess deductions plus simpler lease amalgamation and higher dead rent to free inactive mines for re-auction.
  • Permit rules for public works were eased by doubling allowable excavation to 2 hectares and extending permit validity to three years, a move meant to secure lawful material for infrastructure while stricter controls target illegal supply chains.