Chhattisgarh Cracks Down On Illegal Mining, Hikes Penalties And Tightens Enforcement Rules

Last Updated:June 25, 2026, 15:09 IST

The revised norms were approved by the state Cabinet under the leadership of Chief Minister Vishnu Deo Sai.

The Chhattisgarh government has introduced sweeping changes to its mining regulations, significantly increasing penalties for illegal mining, transportation and storage of minerals while strengthening enforcement mechanisms across the state.

The revised rules, approved by the state Cabinet under the leadership of Chief Minister Vishnu Deo Sai, aim to curb illegal mining activities, boost government revenue and ensure the scientific and transparent use of mineral resources.

One of the most significant changes relates to penalties imposed on offenders. Under the amended rules, the settlement amount in cases of illegal mining and transportation cannot be less than Rs 25,000.

For illegal transportation of minerals, violators will now have to pay a compounding fee of Rs 2,000 per tonne, in addition to the full market value of the illegally transported mineral.

Similarly, those caught transporting sand illegally using tractors will be required to pay a minimum compounding fee of Rs 25,000 along with the value of the sand.

The government has also tightened rules governing the release of vehicles seized in illegal mining cases. Authorities said vehicles, machinery and other equipment involved in mining violations will no longer be released easily.

Under the new provisions, owners will have to deposit a security amount ranging from Rs 50,000 to Rs 3 lakh, depending on the category of the vehicle, before obtaining custody through the court process. The measure is intended to prevent repeat offences and discourage the use of seized vehicles in illegal mining activities.

In a move aimed at facilitating development projects, the government has also relaxed certain provisions related to excavation permits for public construction works.

The permissible excavation area for government projects has been increased from one hectare to two hectares, while the validity of excavation permits has been extended from two years to three years. Officials said the changes will ensure adequate availability of minerals for infrastructure projects and promote organised mining operations.

The state has also announced the establishment of the Chhattisgarh State Mineral Exploration Trust-2025, which will focus on scientific mineral exploration and the development of mining-related infrastructure.

Under the new framework, 2 per cent of the royalty collected from minor minerals will be deposited into the trust. The government estimates that the initiative will generate an additional Rs 5.25 crore annually for exploration and development activities.

Another key reform relates to the consolidation of mining leases. The government has simplified the process for merging leases approved under different categories, a step expected to reduce administrative hurdles and facilitate the collection of premium payments.

The Cabinet has also standardised mineral royalty deduction procedures across government construction departments.

Under the revised system, departments will uniformly deduct royalty, District Mineral Foundation (DMF) contributions, environmental cess, infrastructure cess and security deposits in accordance with prescribed rules. These amounts will be refunded upon submission of royalty clearance certificates issued by the mining department. If such clearances are not produced, the deducted amount will be deposited under the mineral revenue head.

Officials said the measure is expected to discourage the use of minerals sourced through illegal channels and strengthen compliance across the sector.

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