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Sand Mining Business Plan [Sample Template]

By: Author Tony Martins Ajaero

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Are you about starting a sand mining business? If YES, here is a complete sample sand mining business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a sand mining business. We also took it further by analyzing and drafting a sample sand mining business marketing plan template backed up by actionable guerrilla marketing ideas for sand mining businesses. So let’s proceed to the business planning section .

As an aspiring entrepreneur with interest in the construction cum building industry who is looking towards starting a business, one of your best options of entering the industry is to start a sand mining business. This business does pretty well in the united states of America despite the hurdles that you would have to scale through when carrying out your duties.

Part of what you would need to launch this type of business in the United States of America is your mining license, your excavating, stone crushing and selection machines, trucks cum tippers and employees.

In as much as people can start this business on a local level and on a small scale, it will be a wise decision to write a good business plan especially if you choose to start the business on a large scale and as a standard business that can employ more than a handful of people. Below is a sample sand mining company business plan that will help you successfully launch your own business.

A Sample Sand Mining Company Business Plan Template

1. industry overview.

Players in the sand and gravel mining industry are basically involved in mining and quarrying sand and gravel, along with clay, and ceramic and refractory minerals. Industry activity may include the beneficiation of these minerals by washing, screening and otherwise preparing the mined sand, gravel and clay.

The Sand and Gravel Mining industry predominantly mines and undertakes basic processing of sand and gravel used for construction aggregates and industrial applications such as road building, landscaping, snow and ice control and petroleum extraction.

The industry also undertakes the extraction and primary processing of clay and refractory products for use in downstream manufacturing applications.

Domestic sand and gravel production is expected to rise over the five years to 2017, mirroring industry revenue growth. A sharp rise in hydraulic fracturing activity, to drill for oil and gas also significantly increased demand for industrial sand since it is used to prop open slits in the rock, contributing to the industry’s expansion.

The Sand and Gravel Mining industry is a thriving sector of the economy of the United States and the industry generates over $16 billion annually from more than 2,211 sand and gravel mining companies scattered all around the United States of America.

The industry is responsible for the employment of over 31,042 people. Experts project the industry to grow at a 6.7 percent annual rate. CRH PLC, and Heidelberg Cement are the market leaders in this industry.

A recent report published by IBISWorld shows that the sand and gravel mining industry has a high capital intensity as substantial amount of industry capital is tied up in earthmoving and dredging equipment, along with cartage transport fleets.

High capital intensity arises from the nature of the mining process, which requires considerable investment in large-scale equipment such as electric shovels and conveyors.

The industry also has a high working capital requirement because operators require sufficient capital to survive during periods of low prices, when revenue may temporarily be insufficient to cover costs. The ratio of labor costs (employee compensation) to depreciation charges is indicative of an industry’s relative labor-capital intensity, as this shows the amount of revenue absorbed by labor inputs and capital inputs into production.

Any aspiring entrepreneur that is considering starting a sand and gravel mining business whether on a small scale or in a large scale should ensure that he or she, obtains all the necessary permits from the local government, state government and federal government. He or she should conduct thorough market survey and feasibility studies so as to get it right.

Over and above, sand and gravel mining business is a profitable business venture and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale on a large scale with robust distribution networks all across major construction sites and cement factories in the United States of America.

2. Executive Summary

Jeff Nelson® Sand & Gravel Mining Company is a licensed sand and gravel mining company that will be based in Northern Virginia – Virginia. Although we intend starting out on a small scale as a cottage company, but that will not in any way stop us from maximizing our potential in the sand and gravel mining industry.

Our business goal as a sand and gravel mining company is to become the number one choice of construction companies in Virginia and other cities in the United States where we intend supplying construction sand and gravel, industrial sand and gravel, common clay and other products.

As a business, we are willing to go the extra mile to invest in owning our own world – class and environmental friendly stone quarry and also to hire efficient and dedicated employees. We have been able to secure permits and licenses from all relevant departments both at local government level and state level in Northern Virginia – Virginia.

Jeff Nelson® Sand & Gravel Mining Company is set to redefine how standard sand and gravel mining business should be run, not just in Northern Virginia, but also in the whole of the United States of America. This is why we have put plans in place for continuous training of all our staff at regular intervals.

No doubt the demand for construction sand and gravel, industrial sand and gravel, common clay and other products is not going to plummet anytime soon which is why we have put plans in place to continue to explore all available market around construction sites where we intend supplying our products.

In the nearest future, we will ensure that we create a wide range of distribution channels all across the United States of America.

Jeff Nelson® Sand & Gravel Mining Company will at all-time demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely.

Jeff Nelson® Sand & Gravel Mining Company is a family business that will be owned by Jeff Nelson and his immediate family members. This Arlington, Virginia native originally attended college to become a Civil Engineer. He has a degree in Civil Engineering from the University of Wisconsin-Milwaukee.

He has over 10 years’ hands on experience in the construction cum building industry prior to starting Jeff Nelson® Sand & Gravel Mining Company.

3. Our Products and Services

Jeff Nelson® Sand & Gravel Mining Company is established with the aim of maximizing profits in the sand and gravel mining industry. We want to compete favorably with the leaders in the industry which is why we have put in place a competent team that will ensure that our products are of highest standard.

We will work hard to ensure that Jeff Nelson® Sand & Gravel Mining Company is not just accepted in Northern Virginia, but also in other states all across the United States of America where we intend supplying our products. Our products are listed below;

  • Construction sand mining
  • Gravel mining
  • Silica or industrial sand mining
  • Abrasive-sand mining
  • Ball-clay mining
  • Bentonite mining
  • Common clay mining
  • Fuller’s earth mining
  • Feldspar mining

4. Our Mission and Vision Statement

  • Our vision as a sand and gravel mining company is to engage in the distribution of sand and gravel et al across major construction sites in the United States of America.
  • Our mission is to establish an environmental friendly sand and gravel mining company that will favorably compete with leaders in the industry on the global stage. We want to build a sand and gravel company that will be listed amongst the top 5 sand and gravel mining company brands in the United States of America.

Our Business Structure

Ordinarily, we would have succeeded in running a sand and gravel mining business with few employees, but as part of our plan to build a top mining company in Northern Virginia, we have perfected plans to get it right from the onset which is why we are going the extra mile to ensure that we have competent employees to occupy all the available positions in our company.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions at Jeff Nelson® Sand & Gravel Mining Company;

  • Chief Executive Officer (Owner)
  • Quality Assurance Manager

Human Resources and Admin Manager

  • Sales and Marketing Officer
  • Accountants/Cashiers

Sand and Gravel Mining Casual Workers

  • Truck/Tipper Drivers
  • Customer Service Executives

5. Job Roles and Responsibilities

Chief Baker/Chief Executive Officer – CEO (Owner):

  • Upturns management’s effectiveness by recruiting, selecting, orientating, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Accountable for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Sand and Gravel Mining Manager

  • Responsible for overseeing the smooth running of the organization
  • Makes sure that quality is maintained at all times
  • Maps out strategy that will lead to efficiency amongst workers in the organization
  • Responsible for training, evaluation and assessment of the workforce
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Ensures that our sand and gravel mining site meets the expected safety and health standard at all times.
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defines job positions for recruitment and managing interviewing process
  • Carries out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Oversees the smooth running of daily business activities

Sales and Marketing Manager

  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyze the volumes of transactional data generated by customer purchases
  • Identifies, prioritize, and reach out to new partners, and business opportunities et al
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with customers
  • Develops, executes and evaluates new plans for expanding sales
  • Documents all customer contact and information
  • Helps to increase sales and growth for the company
  • Responsible for operating stone crusher, excavators and other machines and equipment in the sand and gravel mining site
  • Assists in loading and offloading of products into and out of the tippers /trucks

Accountant/Cashier

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Distribution Truck Drivers

  • Assists in loading and unloading sand and gravel
  • Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators
  • Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment
  • Supports the transport and logistics manager in planning their route according to a delivery schedule.
  • Inspects vehicles for mechanical and safety issues and perform preventative maintenance
  • Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
  • Collects and verifies delivery instructions
  • Reports defects, accidents or violations

Client Service Executive

  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries

6. SWOT Analysis

Because of our drive for excellence, we were able to engage some of the finest business consultants in Northern Virginia to look through our business concept and together we were able to critically examine the prospect of the business and to assess ourselves to be sure we have what it takes to run a standard sand and gravel mining business that can compete favorably in the industry in the United States of America.

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in the United States of America. Here is a of what we got from the critically conducted SWOT analysis for Jeff Nelson® Sand & Gravel Mining Company;

Our strength lies in the fact that we have state of the art mining equipment and trucks that have positioned us to meet the demand of our clients even if the demand tripled over night or if we have a massive order to meet and emergency need.

Another factor that counts to our advantage is the background of our Chief Executive Office; he has a robust experience in the industry and also a pretty good academic qualification to match the experience which has placed him amongst the top flight players in the sand and gravel mining industry.

We are not ignoring the fact that our team of highly qualified and dedicated workers will also serve as strength for our organization.

We do not take for granted the facts that we have weaknesses. In fact, the reality is that we are setting up a sand and gravel mining company in a town with other sand and gravel mining businesses and it might pose a challenge for us in breaking into the already saturated market in Northern Virginia. In essence our chosen location might be our weakness. But nevertheless, we have plans to launch out with a big bang.

  • Opportunities:

The opportunities available to us are unlimited. There are loads of construction sites in and around Northern Virginia and all what we are going to do to push our products to them is already perfected.

The threat that is likely going to confront us is the fact that we are competing with already established sand and gravel mining companies in Northern Virginia and also there are other entrepreneurs who are likely going to launch similar businesses within the location of our business, and they will compete with us for the available market. Another threat that we are likely going to face is unfavorable government policies and economic downturn.

7. MARKET ANALYSIS

  • Market Trends

It is a common trend in the sand and gravel mining line of business to find sand and gravel companies positioning their business in locations and communities where they can easily have access to gravel and sand mines and of course cheap labor.

If you make the mistake of positioning this type of business in a location where you would have to travel a distance before you can access sand and gravel mines in commercial quantities, then you would have to struggle to make profits and maintain your overhead and logistics.

Another trend in this line of business is that most registered and well organized sand and gravel mining companies look beyond the market within their locations or state; they ensure that they strike business deals with leading construction companies in the United States of America.

The truth is that if you are able to become a vendor to one or more construction giants in the United States of America, you will always continue to smile to the bank.

8. Our Target Market

When it comes to supplying products from sand and gravel mines, there is indeed a wide range of available customers. In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us.

We are in business to engage in the supply of construction sand and gravel, industrial sand and gravel, common clay and other products to the following organizations;

  • Building and construction companies
  • Road construction companies
  • Cement production plants
  • Blocks molding companies

Our Competitive Advantage

The fact that anybody with interest in the sand and gravel mining business can decide to obtain the required licenses and permits to start the business means that the business is open to all and sundry hence it is expected that there will be high level competition in the industry.

This is so because the technology involved in sand and gravel mining line of business is not complicated. As a standard mining company, we know that gaining a competitive edge requires a detailed analysis of the demographics of the surrounding area and the nature of existing competitors.

And even if you are successful at first, new competitors could enter your market at any time to steal your regular customers. Hence we will not hesitate to adopt successful and workable strategies from our competitors.

Another competitive advantage that we have is the vast experience of our management team, we have people on board who are highly experienced and understand how to grow a business from the scratch to becoming a national phenomenon.

Our large and robust distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Jeff Nelson® Sand & Gravel Mining Company is established with the aim of maximizing profits in the construction cum building industry both in Northern Virginia and throughout key cities in the United States of America. We are going to go all the way to ensure that we do all it takes to sell our products to a wide range of customers.

Jeff Nelson® Sand & Gravel Mining Company will generate income by simply supplying the following;

10. Sales Forecast

One thing is certain when it comes to sand and gravel mining business, if your business is strategically positioned and you have good relationship with players in the construction industry, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Northern Virginia and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow the business and our clientele base.

We have been able to critically examine the sand and gravel mining line of business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Northern Virginia – Virginia.

  • First Fiscal Year: $200,000
  • Second Fiscal Year: $450,000
  • Third Fiscal Year: $900,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same product and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Before choosing a location to start Jeff Nelson® Sand & Gravel Mining Company, we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market in Northern Virginia. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time and also to compete with other stone quarry companies.

We hired experts who have good understanding of the sand and gravel mining line of business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market for our products.

In other to continue to be in business and grow, we must continue to sell our products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals. In summary, Jeff Nelson® Sand & Gravel Mining Company will adopt the following sales and marketing approach to sell our chalks;

  • Introduce our business by sending introductory letters to construction cum building companies, building contractors and other stakeholders in and around Northern Virginia
  • Open our business with a party so as to capture the attention of residents who are our first targets
  • Engage in roadshows in targeted communities from time to time
  • Advertise our products in community based newspapers, local TV and radio stations
  • List our business and products on yellow pages ads (local directories)
  • Leverage on the internet to promote our product cum business
  • Engage in direct marketing and sales
  • Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Regardless of the fact that our sand and gravel mining company is a standard one that can favorably compete with other leading sand and gravel mining companies in Northern Virginia, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Jeff Nelson® Sand & Gravel Mining Company.

Jeff Nelson® Sand & Gravel Mining Company has a long term plan of exporting our product all across the United States of America. This is why we will deliberately build our brand to be well accepted in Northern Virginia – Virginia before venturing out to other cities all across the United States of America.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Jeff Nelson® Sand & Gravel Mining Company;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, et al to promote our brand
  • Install our billboards in strategic locations all around major communities in Northern Virginia
  • Engage in roadshows from time to time in targeted communities
  • Distribute our fliers and handbills in target areas
  • Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing us
  • Ensure that all our staff members wear our customized clothes, and all our official cars and distribution trucks/tippers are customized and well branded.

12. Our Pricing Strategy

At Jeff Nelson® Sand & Gravel Mining Company we will keep the prices of our products below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from construction companies. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off supply contracts especially from government contractors or construction giants which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

  • Payment Options

The payment policy adopted by Joseph Ileaboya & Sons Stone Quarry Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Jeff Nelson® Sand & Gravel Mining Company will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via online bank transfer
  • Payment via Point of Sale Machines (POS)
  • Payment via mobile money platforms
  • Payment via check
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our product without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to pay for our products and services.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on how to achieve our aim of establishing a standard and highly competitive sand and gravel mining company in Northern Virginia – Virginia and here are the key areas where we will spend our startup capital;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of Jeff Nelson® Sand & Gravel Mining Company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring business consultant – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
  • The cost for facility remodeling – $20,000.
  • Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for start-up inventory (sand and gravel mining equipment, tippers/trucks and other related sand and gravel mining devices) – $250,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost of purchase and installation of CCTVs – $5,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
  • The cost of launching a website – $600
  • The cost for our opening party – $5,000
  • Miscellaneous – $5,000

We would need an estimate of $450,000 to successfully set up a standard and highly competitive sand and gravel mining company in Northern Virginia – Virginia.

Generating Startup Capital for Jeff Nelson® Sand & Gravel Mining Company

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. No doubt raising startup capital for a business might not come cheap, but it is a task that an entrepreneur must go through.

Jeff Nelson® Sand & Gravel Mining Company is a family business that is owned and financed by Mr. Jeff Nelson and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

  • Generate part of the startup capital from personal savings and sell of stocks
  • Source for soft loans from family members and friends
  • Apply for loan from the Bank

N.B: We have been able to generate about $150, 000 ( Personal savings $100, 000 and soft loan from family members $50, 000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Jeff Nelson® Sand & Gravel Mining Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to supply our products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Jeff Nelson® Sand & Gravel Mining Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of a facility and renovating the facility as well: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the needed stone quarry machines and equipment, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party planning: In Progress
  • Establishing business relationship with construction companies, contractors and other stakeholders in the construction cum building industry: In Progress
  • Purchase of tippers and delivery trucks: Completed

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How To Start A Mining Business In India (And Small Business Opportunities)

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  • How To Start A Mining…

Are you looking for a new business opportunity? Then you can think about starting a mining company. According To InvestIndia , The mining industry in India was valued at $41.7 billion in 2014-15 and is estimated to reach $125 billion by 2025. Moreover, Mining contributes significantly to the Indian economy.

It usually requires extensive capital to start a mining company anywhere in the world and so it is in India, but you can receive amazing rewards from it at the end of the day. Also, there are many small businesses in the mining industry, which require fewer resources and capital. We will be focusing on them as well.

Small Business Opportunities

According to Wikipedia, Mining carried out on small scale contributes 6% to the entire cost of mineral production in India. Also, The Indian mining industry which ranges from large scale mineral drilling businesses to small scale equipment leasing businesses provides jobs to around 7 lakh individuals. Starting a mining business doesn’t necessarily mean that you should acquire a mineral mining region such as a quartz mine in Rajasthan. However, you will be able to provide a range of other services to small and large mining industries, which are essential for mining.

There are small to medium scale services and businesses in the mining industry, which require less capital and resources to be profitably functional and can help mining industries. Some of them are:

A) Equipment Based Services

  • Equipment Sales: Mining requires lots of different types of tools and machinery. By dealing in equipment sales, you can choose the type of equipments or machinery you want to trade and build a business around it.
  • Equipment Leasing Services: If you want to set up equipment based business on a small to medium scale, you can set up equipment leasing services.
  • Equipment Repairing Services: To start this type of business, you require much less capital and resources. You would mostly need highly skilled labor to start equipment repairing services.

B) Transportation Services

  • Logistic Services: Transporting minerals from mining sites is a huge challenge for any mining company. The mined minerals are loaded in huge trucks, rails or ships from the remote mining sites and sent to the industry for processing. You can start a transportation service to help mining industries with mineral transportation. At UCM LLP, we use local transportation services for transporting quartz from different mines to our industrial plant in Kishangarh.
  • Labor Transportation Services: Mining companies need to work in remote areas such as ocean beds, deserts or forests. Labors and staff are required to be transported to such remote areas via helicopters, boats or ships. You can think of providing offshore transportation services.

C) Drilling Services

  • Borehole Drilling Services: Sometimes Boreholes are drilled in order to mine the minerals. In such cases, high-pressure water jets are used to extract the minerals. By specializing in Borehole Drilling services, you can help the mining companies with mining through hydraulic channels.
  • Mineral Exploration Services: Exploration is a popular niche in the mining industry. Mineral Explorers help the mining industries in locating mineral rich areas.

D) Consulting Business

  • Recruitment Consultants: It is difficult to find the right employees for the mining industry and the traditional recruitment agencies usually can not help in recruiting specialized labors or staff for the mining industry. Hence you can open your own Mining Recruitment Consultancy.
  • Financial Consulting: Financial consultants help the mining industry is seeking the right mining opportunities and earning a profit in the long term. They have financial consultants and analyzers who help the mining company in cost-effective and profitable mining.
  • Project Consulting: Mining is carried out in different areas and changing the locations often can be daunting for the miners. In such cases, the company often takes help of mining consultants who help with the A-Z of the mining project and provide different information such as geological information, mineral information, exploration information and other information which is essential for mining minerals effectively.

E) Technological Services

  • Software Development & Maintenance
  • Equipment Testing
  • Data Mining

F) Other Services

  • Waste Management Services
  • Medical Services
  • Risk Assessment Services
  • Power Supply
  • Temporary Development
  • Security And Safety

Mining companies are in need of these services to move forward with their business operations. Therefore, you will be able to offer them one or many of these services and make a decent amount of money. Since the mining companies don’t hesitate before they go ahead with massive financial transactions, you need to make sure that you document everything legally.

What is needed to start a mining company?

You should do heavy research before you start a mining business. During the research, you will need to speak to the right people and gather all the information needed to start business operations.

If you are thinking about drilling and manufacturing minerals, You should initially learn how to register your mining business . Then you will need to focus on how to supply and export the mined products in the local market. The export of minerals is generally essential for any minerals manufacturing industry. That’s where you need to take a look at the export license and the regulations associated with it. Export licenses are not too difficult to acquire if you are exporting mineral products because any government and likewise the Indian government usually encourages the export of most minerals because of an increase of foreign currency in the domestic government reserves.

At Unique Crystal Minerals LLP, a large scale quartz manufacturer in Rajasthan , We have been exporting quartz globally for the last many years, and we have not faced any major difficulties with Indian government norms or regulations. We are also proud to be one of the largest quartz exporters in India .

If you are not looking forward to drilling for the mineral directly, you can get in touch with mining companies and ask for the issues that they face. Then you will be able to provide the previously listed services, which mining companies can use to overcome the problems.

Mining Equipment

Once you decide to go ahead with mining, you should purchase appropriate mining equipment. This is where you should think about getting the best quality industrial pumps, drills and construction vehicles. At Unique Crystal Minerals LLP, we use most of the vehicles from JCB. We also rent some of the machinery to reduce expenses. These aren’t all the tools. You can get in touch with a professional service provider and figure out what tools you need. You can also learn more about them from the research you do. However, you must also make sure that you don’t go over your budget at the time of purchasing tools.

Hiring Employees

Once you purchase tools, you need to hire skilled employees to work for your mining company. You will need to hire a lot of people due to the nature of the work that you have to do. A lot of employees will be working for a manual labor job, who can assist you mine materials. However, you will also come across the need to hire experienced employees.

After hiring employees, you will have to provide them with accommodation near the mining site. You can find accommodation or build accommodation for them in a nearby town. In addition to that, you will also need to develop an office, where you can manage all administrative work.

Health And Safety

You should understand what health and safety measures you need to practice before you start the mining business. You should also provide appropriate training to all employees on how to use the tools and how to ensure their own safety.

How to make profits from the mining business?

Now you are all set to go ahead with your mining business. This is where you should understand how to make profits out of your business. There is a high possibility for you to make profits out of your business because you will be spending a relatively little amount of money on mining the minerals needed. You just need to mine minerals and sell them in the market at a higher price tag.

To maximize profits, you can figure out what the high demand minerals available for you to mine are. Then you will be able to receive higher profits out of what you sell. Minerals that generate higher profits are changing along with time as well. Therefore, you need to make sure that you have an up to date knowledge about them.

You will also have to come across a lot of challenges when you are managing the mining business. If you can strategically plan to overcome those challenges, the mining company you create can provide you with rewarding results at the end of the day.

Mining Challenges

There are many problems that you may face while starting a mineral mining business. From extensive capital to fluctuating mineral prices and from resource nationalism to frequently changing government policies, Drilling Minerals is definitely not for the weak-spirited person.

1) Initial Costs & Contacts

The costs required to set up a mineral mining business is quite high. You would need heavy capital for purchasing or leasing different equipment, hiring experienced labor, build relevant infrastructures such as processing plants, energy plants, and transportation models. In India, it’s very difficult to acquire mining licenses without contacts at different government levels.

2) Skilled Labour & Staff

Mining business requires highly skilled labor and staff to operate efficiently. Also, many people are not willing to work at mines or remote areas due to health hazards, accidental risks and low quality of life.

3) Fluctuating Mineral Prices

Mineral prices depend on different factors such as demand and supply, the cost of production, the global economy, etc. Varying mineral prices may make it difficult to always trade the minerals profitably.

Water is important for mining minerals at several sites. Such mining is usually carried out through hydraulic channels. Lack of water and implausibility of borehole drilling makes mining challenging in several areas in India.

5) Power Supply

It requires a huge amount of power supply to power the mining equipment. Lack of power supply in certain mining areas makes it difficult to mine minerals.

6) Government Regulations

With changing government policies, sometimes it gets really difficult to acquire a license to operate on a mine. Also, the government imposes certain rules and regulations for its own control of mines. This is popularly known as Resource Nationalism.

Some other challenges include

  • Ensuring Worker safety and all legal procedures pertaining to them.
  • Ensuring the waste is managed properly and the surrounding environment has not been harmed.

Starting a mineral mining business in India or anywhere in the world is interesting but quite challenging at the same time. Although if you are interested to start a business in this field, you can look at smaller business opportunities as well. If you are not well acquainted with the mining industry, you can start by providing smaller services required for the mining industry and then, later on, switch to drilling and mining minerals. You can contact me personally if you are interested in setting up a quartz manufacturing business in Rajasthan or nearby areas.

Author:  Dinesh Agarwal

Dinesh Agarwal is the founder chairman of Unique Crystal Minerals LLP. He is working in the minerals industry for more than a decade now and is widely known in the Inidan state of Rajasthan for his industrial expertise.

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sand mining business plan in india

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sir i want to gain knowledge in this industry . i want to do startup in my village . and there is already so many concrete mining so i also want to open a mining field and i don’t have any knowledge in this field so what to do can you help me out sir

Hello Faiz,

Please contact me at 9414206679

sir i want to start mining business in India, i am already working for mining company, what are the formalities to get into business

That was a beautiful description of the entirety of mining industry. I would like to know what I as a geology graduate can find easy, as compared to other guys from different backgrounds, willing to start this business. I s there any advantage a geology student can avail?

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Sample Sand Mining Business Plan

This article takes you through the process of writing a good sand mining business plan by providing you with a template to work with.

Do you wish to establish a sand mining or dredging business? It will be a great idea if you have the know-how and experience.

However, having experience and knowledge isn’t enough to establish a thriving sand mining operation. You’ll need to plan out how the business will take off and how it will be sustained or run.

Your business plan also helps with strategizing. You’ll definitely need a well-written sand mining business plan if you’re to attract investments.

SAND MINING BUSINESS PLAN SAMPLE

Your sand mining business plan is best written by including all key sections that help with the proper development of the plan. These focus on critical aspects of the business and cannot be ignored.

They include the executive summary, company description as well as the products & services sections.

Others are the market analysis section, strategy & implementation, organization & management team as well as the financial plan & projection sections.

Let’s further break down each of these sections to enable you better understand what they’re about.

i. Executive Summary

Any well-written business plan begins with the executive summary. This normally appears first and seeks to condense the business plan into a few pages.

Why is this so?

Because it’s the introductory part that briefly summarizes and informs your readers about the plan.

How well you write the executive summary section will determine whether your readers are interested in the business idea or not.

This section of your sand mining business plan should include subsections like the business name & location, products and/or services mission & vision statements, and also its purpose.

Business Name & Location

As a business, there needs to be an established identity for your sand mining operations.

Also, you’ll need to provide details about its location. This gives a starting point from where investors or lenders going through your plan get to assess the viability of your business idea.

Products & /or Services

What aspect of sand mining are you going to be focused on? Under this section of your plan, you’ll need to be clear about the range of products and services offered. What more?

There’s a need to state how beneficial your products and/or services are to your market. Who will you be selling such products to?

Mission & Vision Statements

Your mission and vision statements will have to be clear.

The mission statement enables you to articulate your company’s purpose. This is an action-oriented statement explaining the approach to be taken towards achieving your goals.

The vision statement on the other hand clearly describes what you want to achieve. It should also communicate your ideal long-term business goals.

Although short, the vision statement should describe what you want to offer to your clients.

Specific Purpose of the Plan

Why are you writing a sand mining business plan?

One thing that’s never in doubt is that you’d want to have a plan for better implementation of growth strategies. Clearly state the specific purpose of your plan.

ii. Company Description

This is where you fully describe your sand mining business idea to your audience.

Various areas are covered here such as the legal structure adopted, a brief history and nature of your sand mining business as well as the demands you intend to meet or fill.

Have an overview of your services and products while also identifying your customers and suppliers (if any).

Include a summary of company growth as well. This is better represented by market and financial highlights. Your short and long-term goals are vital inclusions.

iii. Products & Services

In this section, all sand mining services and products you wish to offer should be clearly mentioned. This includes those still being researched. Of course, you’ll need to state how your products will benefit the market or clients.

Also, the market role of your products is a crucial addition. What advantages do your sand mining products and services have over those of competitors?

iv. Market Analysis

The market analysis section of your sand mining business plan goes a long way to show your level of industry knowledge. This is a crucial part of the plan as investors seek to know that you’ve done your research well.

Here, areas mostly focused on include a target customer segment sketch. Also, what’s the outlook like for the sand mining sector? You might want to make representations with supporting statistics.

Also, comprehensively describe the industry.

Focus on the historical, current, and projected marketing data for products sales. There should also be an evaluation of competitor strengths and weaknesses.

These are crucial inclusions.

v. Strategy & Implementation

Every business should have a sales and marketing strategy. The same should apply to your sand mining business.

Here, you’re not only required to summarize your sales and marketing strategy but to also provide details about how such strategies will be implemented.

To begin with, explain how you wish to enter the market and how your products and services will be marketed to your target market.

To further break things down, provide information on the cost, pricing, promotion, and distribution of your products.

That’s not all. Also include information on the functioning of your company with regards to operational cycles.

What are your sources of labor, how many employees will you need?

vi. Organization & Management Team

Here, you want to provide details about how your business is structured.

This takes a look at the organization chart, key departments as well as the players or key employees heading such departments.

Also, information about the owner(s) or founder(s) of the sand mining business is necessary. The profiles of management team members also need to be included.

vii. Financial Plan & Projection Sections

The financial plan & projection section is best written with the help of a financial expert.

Here, three key areas are discussed. Such areas include historical financial data, realistic prospective financial information, and brief analysis of your financial data.

With all the above sections clearly explained, you should have a little problem writing a compelling and strategic business plan for your sand mining operation.

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India Sand Market

India Sand Market

India Sand Market Size, Share, Trends, Analysis, Forecast: By Type: Natural Sand, Manufactured Sand, Others; By Application: Industrial, Commercial, Residential, Infrastructure; Regional Analysis; Market Dynamics: SWOT Analysis, Porter’s Five Forces Analysis, Key Indicators for Demand, Key Indicators for Price; Competitive Landscape; 2024-2032

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India Sand Market Outlook

The India sand market attained 1,006.22 million tons in 2023. The market for sand in India is increasing at the rate of 6.50% annually in the forecast period of 2024-2032.

India Sand Market

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Extensive Construction Activities to Aid the Market Growth of Sand in India

The sand market in India is driven by rapid urbanisation and increased demand for construction materials which have sand as a crucial ingredient. In terms of revenue and growth, India is expected to witness the sharpest growth in the silica sand market. The classification of sand as a minor mineral along with marble, clay, and others by The Indian Ministry of Mines was a crucial step in the growth of this industry. The minor minerals account for about 12% of the total mining industry in India. Due to rising concerns for river beds and environmental hazards, the switch to manufactured sand instead of natural sand is gaining traction. Hence, the rise of manufactured sand plants is expected to propel the market for sand in India in the forecast period.

Sand: Market Segmentation

Sand is an abundant natural resource which is utilized heavily in construction and manufacturing, such as in concrete. In India, sand is commonly mined from river beds and the beds of other water bodies.

India Sand Market By Application

The market is segmented on the basis of type into:

  • Natural Sand
  • Manufactured Sand

In terms of application the market is segregated into:

  • Residential
  • Infrastructure

The regional markets for sand in India can be divided into Uttar Pradesh, Maharashtra, Tamil Nadu, Karnataka, Madhya Pradesh, Gujarat, Rajasthan, Andhra Pradesh, and Haryana, among others.

India Sand Market By Region

Rising Urbanisation to Aid the Market Growth of Sand in India

Due to the migration of large chunks of the population, there has been a drastic increase in urbanisation. Increased demand for housing and infrastructure due to rising urbanisation is driving the demand for construction material, in which sand is a major ingredient, hence driving the growth of the sand industry. The increased pressure from the construction sector has put a lot of pressure on the traditional source of sand supplies like river beds, thus causing harm to aquifers, fisheries, and protected areas. The need for non-natural or manufactured sand is therefore on the rise. Furthermore, government initiatives to prevent river sand mining and switching toward manufactured or crushed sand is expected to drive the market forward in the forecast period as well.

Key Industry Players in the India Sand Market

The report gives a detailed analysis of the following key players in the India sand market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

  • Ambuja Cements Ltd
  • H.O. POABS GROUP
  • Thriveni Sand (Thriveni Earthmovers Private Limited)
  • Robo Silicon Private Limited
  • Tavara Mines & Minerals

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

Key Highlights of the Report

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.

1    Preface 2    Report Coverage – Key Segmentation and Scope 3    Report Description     3.1    Market Definition and Outlook     3.2    Properties and Applications     3.3    Market Analysis     3.4    Key Players 4    Key Assumptions 5    Executive Summary     5.1    Overview     5.2    Key Drivers     5.3    Key Developments     5.4    Competitive Structure     5.5    Key Industrial Trends 6    Snapshot     6.1    Global     6.2    India 7    Opportunities and Challenges in the Market 8    Global Sand Market Overview     8.1    Key Industry Highlights     8.2    Global Sand Historical Market (2018-2023)      8.3    Global Sand Market Forecast (2024-2032)     8.4    Global Sand Market by Region         8.4.1    North America         8.4.2    Europe         8.4.3    Asia Pacific         8.4.4    Latin America         8.4.5    Middle East and Africa 9    India Sand Market Analysis     9.1    Key Industry Highlights     9.2    India Sand Historical Market (2018-2023)      9.3    India Sand Market Forecast (2024-2032)     9.4    India Sand Market by Type         9.4.1    Natural Sand             9.4.1.1    Historical Trend (2018-2023)             9.4.1.2    Forecast Trend (2024-2032)         9.4.2    Manufactured Sand             9.4.2.1    Historical Trend (2018-2023)             9.4.2.2    Forecast Trend (2024-2032)         9.4.3    Others     9.5    India Sand Market by Application         9.5.1    Industrial             9.5.1.1    Historical Trend (2018-2023)             9.5.1.2    Forecast Trend (2024-2032)         9.5.2    Commercial             9.5.2.1    Historical Trend (2018-2023)             9.5.2.2    Forecast Trend (2024-2032)         9.5.3    Residential             9.5.3.1    Historical Trend (2018-2023)             9.5.3.2    Forecast Trend (2024-2032)         9.5.4    Infrastructure             9.5.4.1    Historical Trend (2018-2023)             9.5.4.2    Forecast Trend (2024-2032)     9.6    India Sand Consumption by State         9.6.1    Uttar Pradesh         9.6.2    Maharashtra         9.6.3    Tamil Nadu         9.6.4    Karnataka         9.6.5    Madhya Pradesh         9.6.6    Gujarat         9.6.7    Rajasthan         9.6.8    Andhra Pradesh         9.6.9    Haryana         9.6.10    Others 10    Market Dynamics     10.1    SWOT Analysis         10.1.1    Strengths         10.1.2    Weaknesses         10.1.3    Opportunities         10.1.4    Threats     10.2    Porter’s Five Forces Analysis         10.2.1    Supplier’s Power         10.2.2    Buyers Power         10.2.3    Threat of New Entrants         10.2.4    Degree of Rivalry         10.2.5    Threat of Substitutes     10.3    Key Indicators for Demand     10.4    Key Indicators for Price 11    Mining Rules, Regulations and Policies 12    Business Models 13    Trade Data Analysis      13.1    Major Importing Countries         13.1.1    By Value         13.1.2    By Volume     13.2    Major Exporting Countries         13.2.1    By Value         13.2.2    By Volume 14    Price Analysis 15    Competitive Landscape     15.1    Market Structure     15.2    Company Profiles         15.2.1    Ambuja Cements Ltd             15.2.1.1    Company Overview             15.2.1.2    Product Portfolio             15.2.1.3    Demographic Reach and Achievements             15.2.1.4    Certifications         15.2.2    H.O. POABS GROUP             15.2.2.1    Company Overview             15.2.2.2    Product Portfolio             15.2.2.3    Demographic Reach and Achievements             15.2.2.4    Certifications         15.2.3    Thriveni Sand (Thriveni Earthmovers Private Limited)             15.2.3.1    Company Overview             15.2.3.2    Product Portfolio             15.2.3.3    Demographic Reach and Achievements             15.2.3.4    Certifications         15.2.4    Robo Silicon Private Limited             15.2.4.1    Company Overview             15.2.4.2    Product Portfolio             15.2.4.3    Demographic Reach and Achievements             15.2.4.4    Certifications         15.2.5    Tavara Mines & Minerals             15.2.5.1    Company Overview             15.2.5.2    Product Portfolio             15.2.5.3    Demographic Reach and Achievements             15.2.5.4    Certifications         15.2.6    Others 16    Key Trends and Developments in the Market

Additional Customisations Available

1    Manufacturing Process     1.1    Overview     1.2    Detailed Process Flow     1.3    Operation Involved 2    Project Requirement and Cost Analysis     2.1    Land, Location and Site Development     2.2    Construction     2.3    Plant Machinery     2.4    Cost of Raw Material     2.5    Packaging     2.6    Transportation     2.7    Utilities     2.8    Manpower     2.9    Other Capital Investment

List of Key Figures and Tables

1.    Global Sand Market: Key Industry Highlights, 2018 and 2032 2.    Global Sand Historical Market: Breakup by Region (Million Tons), 2018-2023 3.    Global Sand Market Forecast: Breakup by Region (Million Tons), 2024-2032 4.    India Sand Market: Key Industry Highlights, 2018 and 2032 5.    India Sand Historical Market: Breakup by Type (Million Tons), 2018-2023 6.    India Sand Market Forecast: Breakup by Type (Million Tons), 2024-2032 7.    India Sand Historical Market: Breakup by Application (Million Tons), 2018-2023 8.    India Sand Market Forecast: Breakup by Application (Million Tons), 2024-2032 9.    India and Historical Market: Breakup by States (Million Tons), 2018-2023 10.    India and Market Forecast: Breakup by States (Million Tons), 2024-2032 11.    Major Importing Countries by Volume (2020) 12.    Major Exporting Countries by Volume (2020) 13.    Major Importing Countries by Value (2020) 14.    Major Exporting Countries by Value (2020) 15.    India Sand Market Structure

What was the India sand market size in 2023?

In 2023, the India sand market attained a value of nearly 1,006.22 million tons.

What is the growth rate of the market?

The market is projected to grow at a CAGR of 6.50% annually between 2024 and 2032.

What are the major industry drivers?

The industry is primarily being driven by the rapid urbanisation growing demand for construction materials with sand as a key element, various government initiatives, and the rise of manufactured sand plants.

What are the key industry trends of the India sand market?

The key trends augmenting the market’s growth are the increased need for housing and infrastructure and the rising demand for non-natural or synthetic sand.

What are the major regional markets of the India sand market, according to the EMR report?

The major regions in the industry are Uttar Pradesh, Maharashtra, Tamil Nadu, Karnataka, Madhya Pradesh, Gujarat, Rajasthan, Andhra Pradesh, and Haryana, among others.

What is the dominant type of sand in the industry?

The manufactured sand segment is the dominant type of sand in the industry.

What are the major applications of the market?

In terms of application the market is segregated into industrial, commercial, residential, and infrastructure.

Who are the key industry players, according to the report?

The major players in the industry are Ambuja Cements Ltd, H.O. POABS GROUP, Thriveni Sand (Thriveni Earthmovers Private Limited), Robo Silicon Private Limited, and Tavara Mines & Minerals, among others.

The India sand market attained a value of nearly 1,006.22 million tons in 2023, driven by the rapid urbanisation and growing demand for construction materials with sand as a key element. Aided by the growing initiatives by the government and increased need for housing and infrastructure , the market is expected to witness a further growth in the forecast period of 2024-2032, growing at a CAGR of 6.50% annually.

EMR’s meticulous research methodology delves deep into the market, covering the macro and micro aspects of the industry. Based on its types, the India sand industry can be segmented into natural sand and manufactured sand, among others with, the manufactured sand segment accounting for the largest market share. By application, the market can be divided into industrial, commercial, residential, infrastructure. The major regional markets for the India sand industry are Uttar Pradesh, Maharashtra, Tamil Nadu, Karnataka, Madhya Pradesh, Gujarat, Rajasthan, Andhra Pradesh, and Haryana, among others. The key players in the above market include Ambuja Cements Ltd, H.O. POABS GROUP, Thriveni Sand (Thriveni Earthmovers Private Limited), Robo Silicon Private Limited, and Tavara Mines & Minerals, among others.

EMR’s research methodology uses a combination of cutting-edge analytical tools and the expertise of their highly accomplished team, thus, providing their customers with market insights that are accurate, actionable, and help them remain ahead of their competition.

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how to start sand manufacturing business

How to Start a Profitable Sand Manufacturing Business

Do you want to start a sand manufacturing business? If yes, find here a stepwise business plan guide on starting sand making business with the manufacturing process, legalities, machinery, etc.

Sand is an essential component in the construction industry. River sand is the natural source of the sand. Natural or River sand are weathered and worn-out particles of rocks. These are of various grades or sizes. It depends upon the amount of wearing. The sand produced by proper machines can be a better substitute for river sand.

The sand must be of proper gradation. When fine particles are in proper proportion, the sand will have fewer voids. The cement quantity required will be less. Such sand is more economical. Sand manufacturing is a profitable business. It demands substantial capital investment in Plant setup.

Table of Contents

Is Sand Manufacturing Business Profitable?

Manufactured sand is produced by passing boulders and stones. It goes through a series of jaw and cone crushers for size reduction. Sandmaking has a bright future in the construction industry. The demand for sand is increasing rapidly. Here are a few reasons why sandmaking has a good market opportunity in India.

  • At present, sand is nearly 50% cheaper than river sand. The river sand is being sold at around Rs 1,300 a tonne. The sand is sold for half the price.
  • River sand cannot meet the rising demand for the construction sector . River sand in many parts of the country is not graded properly. It has excessive silt and organic impurities. These can be detrimental to the durability of steel in the concrete. The manufactured sand has no silt or organic impurities.
  • The presence of other impurities such as coal, bones, shells, mica, silt, etc. makes it inferior for use in cement concrete. The decay of these materials shortens the life of the concrete. It is because of the weathering effects.
  • Nowadays, the Government has put a ban on lifting sand from River beds.
  • Transportation of sand damages the roads.
  • Removing sand from the river bed impacts the environment, as the water table goes deeper & ultimately dry.

12 Steps to Start Sand Manufacturing Business

1. conduct market research.

Before starting into sand manufacturing, conduct thorough market research to understand the demand for various types of sand in your target market. Identify the specific uses of sand, such as fine sand for concrete or coarse sand for masonry, and the demand from construction companies and contractors.

2. Create a Business Plan

Develop a detailed business plan outlining your business goals, target market, funding requirements, production process, and marketing strategy. A well-structured plan will serve as a roadmap for your sand manufacturing business.

3. Legal and Regulatory Compliance

Check the legal requirements and regulations governing sand mining and manufacturing in your region. You may need permits, licenses, and environmental clearances to operate legally. Ensure compliance with all local and national laws.

Some of the basic licenses and permits needed are as follows:

  • Incorporate the firm with ROC.
  • Obtain a Trade License from the Municipal Authority
  • Apply for Udyog Aadhaar MSME. This is optional. However, it will help you in getting Govt. a subsidy.
  • Obtain GST registration .
  • Apply for ‘NOC’ from the State Pollution Control Board.
  • Apply for BIS certification . The end product must satisfy all the requirements of IS: 383. Additionally, you can do gradation in accordance with the usage of the sand. There are testing sieves, consisting of 4.75mm, 2.36mm, 1.183mm, 600 microns, 300 microns, 150 microns, etc.

4. Location Selection

Choose an appropriate location for your sand manufacturing unit. It should be close to sand sources (riverbeds or quarries) and have easy access to transportation for both raw materials and finished products.

5. Secure Funding

Determine your initial capital requirements for equipment, labor, and operating costs. Explore financing options such as personal savings, loans from banks and financial institutions, or investments from partners. Also, apply for a credit card to meet small-time business expenses.

6. Sand Making Machine & Unit Setup

First of all, you have to procure the major required machines. The list includes a vibrating feeder, jaw crusher, impact crusher, and vibrating screen for sand making. However, only, sand manufactured by VSI crusher/Rotopactor is cubical and angular in shape. Sand made by other types of machines is flaky, which is troublesome in working.

The Jaw crushers are generally used for crushing stones into metal/aggregates. Manufactured sand from jaw crushers, cone crushers, and roll crushers often contain a higher percentage of dust and have flaky particles.

In unit setup, you will require a minimum of 30,000 sq ft of land. It requires high-voltage electricity to operate the machines.

Read: Best Small Manufacturing Business Ideas

7. Sand-Making Process & Raw Materials

The manufacturing of the Sand process involves three stages. These are crushing stones into aggregates by VSI, then fed to Rotopactor to crush aggregates into the sand to required grain sizes (as fines). Then, do the screening to eliminate dust particles, and Washing of sand eliminates very fine particles present within.

Finally, the end product will satisfy all the requirements of IS:383. It can be used in Concrete & construction. However, the VSI Plants have an available capacity of up to 400 tons Per Hour (TPH).

Additionally, you can use all types of stone like gravel, basalt, and granite as the raw material in sand-making plants.

8. Quality Assurance and Testing

Regularly test and analyze the quality of your sand products to meet industry standards. Ensure that your sand complies with the specifications required for various construction applications.

9. Financial Management

You need to maintain accurate financial records, including income, expenses, and profits. Track your cash flow and budget for future investments or expansion.

Read:   Best Accounting Software in India

10. Environmental Considerations

Adopt eco-friendly practices in your manufacturing process to minimize the environmental impact. Implement measures for responsible sand extraction and processing, including land reclamation and wastewater treatment.

11. Pricing Strategy

Determine competitive pricing for your sand products while considering production costs and market demand. Pricing should be competitive yet profitable.

12. Marketing and Distribution

Create a marketing strategy to reach potential customers in the construction industry. Build relationships with contractors, builders, and construction companies. Consider establishing distribution channels to deliver sand to construction sites efficiently.

Frequently Asked Questions

What types of sand are commonly produced in a sand manufacturing business.

Sand manufacturing businesses typically produce various types of sand, including fine sand for concrete, coarse sand for masonry, plastering sand, and specialty sands like silica sand for glass manufacturing. The types of sand you produce should align with the demand in your target market.

What are the environmental concerns associated with sand manufacturing?

Sand manufacturing can raise environmental concerns, particularly if it involves sand extraction from riverbeds or quarries. To address these concerns, businesses should obtain necessary permits, practice responsible land reclamation, and implement wastewater treatment systems to minimize environmental impact.

What are some common challenges in the sand manufacturing business?

Common challenges include fluctuating demand, environmental regulations, and competition. To overcome these challenges, diversify your product range to meet varying demands, ensure strict compliance with regulations, and focus on product quality and customer relationships to stay competitive.

What are some cost considerations in a sand manufacturing business?

Costs in a sand manufacturing business include machinery and equipment, labor, raw materials, maintenance, transportation, and compliance with regulatory requirements. Managing costs efficiently is essential for profitability.

Can I export sand products to international markets, and what are the considerations for international trade?

Exporting sand products is possible, but it involves compliance with international trade regulations and quality standards. Research international markets, understand import/export regulations, and establish efficient logistics and distribution channels for exporting.

Next What Business Research Team

Next What Business Research Team

The Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium-scale businesses.

South Asia Network on Dams, Rivers and People

sand mining business plan in india

Riverbed Mining India 2021 Overview: Govts’ Changing Policies to Mine Revenues

(Feature image showing brazen rule violations in legally approved sand (morang) mining site along river Ken at Kanwara, Banda. Source: Ashish Sagar Dixit.)

This second part of riverbed sand mining overview 2021 by SANDRP highlights relevant reports from ten different states where governments have taken new policy, administrative decisions. The first part presenting prevailing riverbed mining scenario over past one year can be seen here . The third and final part of this series would cover the key judicial interventions.    

1. Madhya Pradesh Honest woman officer gets transferred The transfer of Shradha Pandre SDO forest department from Morena to Umaria within 3 months of her joining, sparked protest in the district as the locals called it an injustice with an honest officer and praised her effort for curbing the illegal sand mining menace under her division in Chambal Wildlife Sanctuary. Pandre’s transfer order was issued 3 days after she seized illegally mined sand from a construction site of a woman police station and the government’s pond in Morena.

#MadhyaPradesh :Shradha Pandre SDO, Forest Dept, Morena who acted strong against illegal mining in #Chambal Wildlife Sanctuary gets transferred within 3 months. She faced ~11 attacks by mining mafia & seized >80 illegal sand trolleys/trucks. https://t.co/syRtZ4253p @ChouhanShivraj pic.twitter.com/9pA5B4n9fe — SANDRP (@Indian_Rivers) July 16, 2021

“On the complaint of Pandre, an FIR was registered against the sub-divisional officer and sub-engineer of Police Housing Board and 2 contractors for using illegal sand for the construction of the police station. In a matter of using illegally mined sand for construction of a wall of the pond, police are investigating,” said Rai Singh Narwariya, additional superintendent of police, Morena, adding that no FIR has been lodged.

Pandre was attacked by the mining mafia at least 11 times and registered the complaint at a different police station. Pandre seized more than 80 tractor-trolleys and trucks laden with illegally mined sand worth lakhs of rupees. Despite repeated attempts, Pandre couldn’t be contacted. On Facebook, she had posted, “The transfer is a normal practice for me as whenever I took a tough action against the mafia, I had to face this. Earlier too, I was transferred for the same reason.” https://www.hindustantimes.com/cities/bhopal-news/mp-woman-officer-takes-action-against-illegal-mining-mafia-gets-transferred-101626366908961.html   (15 July 2021)

Honest Forest Ranger gets transferred The forest department transferred the deputy forest ranger who filed a criminal complaint against the state tourism minister, Usha Thakur. The officer, Ram Suresh Babu, in his complaint to the police on Jan 12, 2021 had alleged that Usha Thakur and her supporters had forcibly taken away a heavy-duty earth extraction JCB machine and a tractor-trolley on Jan 11 night that were seized during illegal stone and soil mining in a reserved forest area. His complaint was not registered by the police but the forest minister was forced to constitute a high-level inquiry headed by a Principal Chief Conservator of Forest level officer as the opposition raised the issue. The latest action of the forest department came before the completion of the high-level inquiry. https://www.indiatoday.in/india/story/forest-ranger-transferred-for-naming-mp-tourism-minister-in-dacoity-complaint-1760472-2021-01-19 (19 Jan 2021)

No action on Minister’s complaint Kamal Patel, the agriculture minister of the state, spotted illegal sand mining in Narmada river in Narshinghpur district. He subsequently wrote to the collector Jabalpur for immediate action. However, the mining was not stopped. Exposting his own government, the minister said he had similar videos from other areas along the river. https://ndtv.in/videos/minister-himself-raising-questions-on-claims-of-illegal-mining-in-madhya-pradesh-576377   (19 Feb. 2021)

sand mining business plan in india

Govt allows desilting, excavation of sand from 4 dams After Kerala and Maharashtra, MP is third state attempting to start desilting of dams. In the Cabinet meeting held on July 20 2021, the state government decided to issue tenders for desilting and excavation of sand from Bansagar in Shahdol, Tawa in Itarsi, Bargi in Jabalpur, and Indira Sagar Dam in Khandwa, said home minister Narottam Mishra.

However, experts feel that desilting is an economically unviable proposition and in the absence of proper guidelines, it could damage the structure of dams. Experts also ask how thousands of tonnes of silt will be transported to different places as the state government aims to provide it to farmers for free. Himanshu Thakkar, coordinator, SANDRP said, “Desilting is not a new process but it was not adopted widely as it is not economically viable. Even farmers have to use the silt in a scientific way to make the land fertile. They may have to bear the extra cost.”

He added, “Desilting will increase the capacity of the dam but excavation of sand can damage the structure of dam too. In recent years, we saw that unsustainable sand mining damaged the aqueduct of Orsang river, a tributary of Narmada, in Gujarat. A similar, incident was reported from Maharashtra where a bridge collapsed due to sand mining. In MP, we know that illegal sand mining is rampant.” The state government earned more than ₹500 crore in revenue from the sand mining in 2020. https://www.hindustantimes.com/india-news/mp-government-allows-desilting-excavation-of-sand-from-four-dams-101626782134879.html   (20 July 2021)

Govt on January 05, 2021, issued the amendments in Sand (Mining, Transportation, Storage and Trading) Rules, 2019. https://avantis.co.in/updates/article/12411/amendment-in-madhya-pradesh-sand-mining-transportation-storage-and-tra/   (21 Jan. 2021)

2. Bihar Action on corrupt officials The Economic Offences Unit (EOU) began preliminary inquiry against 42 government officers including the 2 IPS officers. Sources said, EOU’s inquiry report on rampant illegal sand mining had named these officers from Patna, Bhojpur, Saran, Aurangabad, Rohtas and Kaimur. https://timesofindia.indiatimes.com/city/patna/illegal-sand-mining-costs-bihar-rs-700-crore-a-year-minister/articleshow/84509186.cms   (18 July 2021)

4 deputy superintendents of police (DSPs) in various districts were removed from their posts on July 15 2021 and directed to report to the state police headquarters reportedly as part of the ongoing crackdown on the nexus between the police and sand mafia. https://www.hindustantimes.com/cities/patna-news/biharfour-dsps-shifted-for-illegal-sand-mining-101626364208059.html   (15 July 2021)

2 Indian Police Service officers, 4 DSP rank officers besides four Bihar Administrative Service officers were among 17 officials suspended on July 27 2021 for aiding sand mafias & abetting illegal mining in Sone & Ganga rivers in Patna, Bhojpur, Aurangabad & Rohtas districts. A motor vehicle inspector along with 6 officers of M&G department were also reportedly suspended. https://www.hindustantimes.com/cities/patna-news/bihar-illegal-sand-mining-nexus-17-officers-including-2-sps-4-dsps-suspended-101627402391832.html   (27 July 2021)

M&G department principal secretary Harjot Kaur had written to DGP S K Singhal on May 16 2021 for strict action against the police personnel who were helping the mafia in illegal sand mining and its transportation. Videos had gone viral a few days back showing police vehicles escorting trucks overloaded with illegally mined sand. The secretary pointed out in the letter that illegal mining, storage and transportation of the sand is not possible from the bordering areas of districts like Patna, Bhojpur, Saran, Aurangabad and Rohtas without the connivance of the police personnel concerned. https://timesofindia.indiatimes.com/city/patna/mines-secretary-asks-dgp-to-stop-illegal-sand-mining/articleshow/82747640.cms   (19 April 2021)

SET BACK? The M&G department gave responsibility to a “tainted officer” to issue tender of sand mining in 8 districts. The notification was issued by Harjot Kaur Banhara, Principal Secretary of the M&G Ministry and the responsibility was given to Surendra Prasad Sinha. Sinha, along with 4 other officials were removed from their respective posts in July 2021 after the Economic Offence Wing found them guilty of earning disproportionate assets. https://www.daijiworld.com/news/newsDisplay?newsID=895914   (21 Nov. 2021)

Bihar: Other Stories Govt amends mine rules The government amended the mining rules to provide for levy of heavy fines following seizure of vehicles involved in illegal sand mining, which has shown no sign of abating, leading to environmental hazard and revenue losses. Under the new rules, trucks ferrying illegally mined sand will be released on payment of ₹4 lakhs in fine and tractors for ₹25,000. This will be in addition to the penalty imposed on the seized sand.

Attempts to regulate sand mining trade since 2016 failed spectacularly despite formation of a new policy and attempt to cancel mining lease of 25 companies owned by powerful people, who were reportedly believed to operate in connivance with politicians, police and officials of M&G department. Patna, Saran, Bhojpur, Aurangabad, Kaimur and Rohtas are some of the worst-affected districts. Sand in Bihar is being sold for ₹30,000 to ₹35,000 per truck load. https://www.hindustantimes.com/cities/patna-news/bihar-amends-mine-rules-with-aim-to-contain-emboldened-sand-mining-mafia-101625294095934.html   (03 July 2021)

The state government incurs an average annual loss of up to Rs 700 crore due to illegal sand mining, M&G department Minister Janak Ram said. As per the details available on the official website of the M&G department, sand mining is the biggest source of revenue for the state government generating Rs 428.06 crore revenue in 2015-2016 and Rs 457.65 crore in 2016-2017. This share of revenue from the sand mining was a little less than 50% of the total revenue of Rs 971 crore generated from all sources by the department in 2015-16 and Rs 994.1 crore in 2016-17. https://timesofindia.indiatimes.com/city/patna/illegal-sand-mining-costs-bihar-rs-700-crore-a-year-minister/articleshow/84509186.cms   (18 July 2021)

On Oct. 1, government started auctioning of ghats (river banks) for sand mining in 8 more districts after the state cabinet nod to the mines department’s proposal, officials said. The government also decided to extend the lease of ghats of various rivers for sand mining in another 8 districts for a period of 6 months (from Oct 1, 2021 to March 31, 2022) on the deposit of 50% extra of the previously settled lease amount. https://www.hindustantimes.com/cities/patna-news/new-sand-mines-set-for-auction-in-8-districts-in-bihar-101633187622199.html   (02 Oct. 2021)

The state cabinet on Oct.1 2021 approved resumption of sand mining activities in 16 districts. The settlement in Patna, Bhojpur, Saran, Rohtas, Aurangabad, Gaya, Jamui and Lakhisarai districts was to be done afresh through open bidding. https://timesofindia.indiatimes.com/city/patna/resumption-of-sand-mining-in-16-districts-okd/articleshow/86689849.cms   (02 Oct. 2021)

sand mining business plan in india

The state road construction department on March 10, 2021 issued an order banning sand mining around bridges 500 metres up and downstream. Amrit Lal Meena, additional chief secretary of the department, said mining not only diverted the water flow, it also threatened the foundation of bridges.

Another senior official of the department admitted that the foundation of some bridges were damaged by illegal sand mining.  Most complaints were reported in rivers flowing in south Bihar, including Falgu, Panchane, Sakri, Sone, Punpun, Badua, Chanan and Goithwa.

Illegal sand mining has, over the last few years, damaged the foundation of the Koilwar railway bridge, which was built by the British in 1900. A new road bridge on river Sone near old Koilwar bridge is also under threat,” the official said. Similar reports come from several bridges on different rivers in the state.  https://www.downtoearth.org.in/news/mining/bihar-government-bans-sand-mining-near-river-bridges-75908   (11 March 2021)

M&G department principal secretary Harjot Kaur on March 31 2021 said the revenue collected by the department on account of trade and mining of sand done by the old settlement holders in 13 districts at the ‘ghats’ settled earlier was only Rs 678 crore during 2020-21. In the prevailing situation, the settlement period of the old settlement holders in 13 districts was extended by 6 months up to September 30, 2021.

She said sand mining operations at the ‘ghats’ settled afresh for the purpose has been affected by the continued delay in grant of EC by the NGT. “As many as 373 sand mining ghats have already been settled with the persons/companies concerned against the settlement amount of Rs 2,677 crore, but the EC from the NGT was awaited. The department had appealed in the Supreme Court pleading for the early issuance of the EC by the NGT, but the hearing was yet not begun,” she added. https://timesofindia.indiatimes.com/city/patna/govt-delay-in-environmental-clearance-hits-sand-mining-ops/articleshow/81856208.cms   (2 April 2021)

3. Maharashtra Sangli admin proposes mining in rejuvenated river The Sangli dist administration has proposed mining of sand from 13 locations on the beds of five rivers — Agrani, Nandani, Man, Korda & Bor — which flow through rainfall-deficient tehsils. Five of the proposed sand mining sites are on the Agrani riverbed alone.

Incidentally, it took nearly 2 decades of sustained efforts by the local residents, NGOs and the administration to rejuvenate the Agrani river, which has started flowing properly once again. These efforts were also recognised by a national award recently. Now, despite opposition from local residents, the administration has moved the sand mining proposal. The tehsils along which the five rivers flow get 450-500 mm annual average rainfall — much less than the district average of 700 mm.

sand mining business plan in india

As per the proposal, 43 depots will be set up at 13 locations by the sand miners. According to the survey report, the GSDA has recommended mining of 12,500 brass (1 brass equals 4,500kg) of sand from these depots. The maximum depth of mining (1.54 m) will be at the Man river site in Atpadi tehsil, while the minimum (0.7m) will be at the Korada river in the severely water deficient Jat tehsil. In case of the Agrani river, the depth of mining has been fixed at 1m at all the five locations from where 4,500 brass of sand will be mined.

Then, district collector Abhijeet Chaudhary had said that sand mining is being proposed to curb illegal sand mining. He had said that if the locals were willing to take the responsibility of stopping illegal mining, the administration will not auction the sites for sand mining. The GSDA study also claims the replenishment capacity of these rivers is more than the actual sand to be mined out. https://timesofindia.indiatimes.com/city/kolhapur/sangli-dist-admin-proposes-sand-mining-on-13-riverbed-locations/articleshow/80201963.cms   (11 Jan. 2021)

4. Odisha 45% tehsils report illegal sand mining! Over 45 per cent of the Tehsils in Odisha report illegal sand mining. Odisha, along with Jharkhand, are the only two major states in the country that have no policy on sand. With illegal mining of major minerals in Odisha having been shrunk to a mere one case in the first half of 2020-21 from over 45 in 2017-18, courtesy of the SC guidelines post the famous Shah Committee report, illegal sand mining has emerged as a lucrative business for mining mafia in the State.

The role of the Odisha government in putting shackles on the rampant illegal mining looks lackadaisical because, replying in Odisha Assembly recently, Revenue and Disaster Minister Sudam Marandi conceded that Odisha has neither estimated the demand – consumption of sand in the State nor has fixed any price for the sale of sand.

As per the data provided by the Minister, Odisha has been a sand surplus State for a long period of time. The State has exported sand to the tune of 2.7 lakh cum during 2018-21. The total revenue earned from sand in 2019-20 had been Rs 680 crore against Rs 303 crore in 2018-19 The State has collected revenue to the tune of Rs 37.11 crore during the period of April and May 2020 from minor minerals.

No Data on FIRs, cases, attacks, deaths As per official data, while one person was killed due to a road accident during illegal sand mining, two activists against illegal sand mining were killed in the State during the year 2019-20. The State has no data to show the number of attacks on government officials in the anti-illegal sand mining squad. There is no data on the number of FIRs and court cases on illegal sand miners. https://odishatv.in/odisha-news/odisha-only-major-state-sans-sand-mining-policy-45-tehsils-report-illegal-mining-521924   (27 Feb. 2021)

Sand mining had been the most unregulated form of excavation in #Odisha . Changing natural course of rivers, flouting majority of the mining norms, patronage from local admin have led to plundering of natural resources unabated in Balasore, Jajpur, Ganjam & other regions. pic.twitter.com/ruwluub1Ak — Manish Kumar (@scribemanish) September 4, 2021

Sand Export from Odisha During the question hour on Feb. 26, 2021 members cutting across party lines expressed concern over sand smuggling in the State. Speaker SN Patro also expressed concern over the matter and asked Revenue and Disaster Management Minister Sudam Marndi why the government has no specific policy for lifting sand from different rivers.

The Minister said the government is in the process of consultation with different stakeholders and will soon formulate a policy in this regard.  Stating that a decision was taken on April 11, 2018 for deploying police to check sand theft from different rivers, the Minister said it could not be implemented due to the Covid-19 pandemic. He said the government has already identified 144 tehsils in the state as sensitive areas. Special squads consisting of officials, including revenue inspectors, have been formed in those areas to keep a check on the illegal activities, he added. https://www.newindianexpress.com/states/odisha/2021/feb/27/to-stop-illegal-activities-sand-policy-in-odisha-soon-2269704.html   (27 Feb. 2021)

The state is losing nearly Rs 14,000 crore per annum because of illegal sand mining, which is rampant across the state, the Opposition members alleged in the Assembly. They said that though a draft policy was prepared in 2018 to curb the illegal sand mining no steps were taken to turn it into a law. https://www.telegraphindia.com/india/ire-over-illegal-sand-mining-in-odisha/cid/1807936   (27 Feb. 2021)

sand mining business plan in india

Govt diverts DMF funds to urban areas as mining-affected communities suffer https://india.mongabay.com/2021/05/odisha-diverts-dmf-funds-to-urban-areas-as-mining-affected-communities-suffer/   (05 May 2021)

The government notified the Odisha Sand Policy – 2021 aiming to identify and quantify all potential sand sources and devise mining plans accordingly to address the demand-supply gap as well as the adverse effects of sand mining. https://www.newindianexpress.com/cities/bhubaneswar/2021/sep/04/sand-policy-to-govern-sustainable-mining-in-odisha-2354147.html   (04 Sept. 2021)

5. Karnataka New sand rules fails to deal with Mafia The Cabinet approved the Karnataka Minor Minerals Concessions Rules, 2021, and fixed the price of sand at ₹300 per T at the gram panchayat level. Similarly, price of sand from riverbeds and streams and sold in urban areas/ towns/ cities has been fixed at ₹700 per T. https://www.thehindu.com/news/national/karnataka/new-sand-rules-approved/article37388748.ece (9 Nov 2021)

Deal with sand mafia Good to see the Deccan Herald writing top edit on the issue of Karnataka’s new sand mining policy and also headlining the sand mafia and also underlining the need to with environment impact issues. It would have been good if the edit had been more forthright also about the need for demand side management measures, not just supply side issues. It also highlights the adverse impact of M sand manufacture.

Sharing incidents of illegal sand mining damaging infrastructure and violent attacks by sand mafia on government officials, this concludes that no policy will work if this mafia continues to be in business.” https://www.deccanherald.com/opinion/first-edit/welcome-policy-but-deal-with-sand-mafia-1049063.html   (10 Nov. 2021)

– Some key features of new sand policy. A truckload (10-15 T) of sand will cost Rs 10 to 12 k, down from current 30-40k. Sand extracted from gram panchayat land to cost Rs 300 per T, while sand from river to cost Rs 700 per T.

– Royalty to state will be Rs 50-60 per T. 25% of it will go to panchayats where sand is extracted and 25% to panchayats through which it is transported. It says sand can be extracted only with the permission of the local authorities. A district level body is to be formed to permit sand mining based on survey reports. The district level bodies to be responsible for monitoring and enforcement.

– The Minister said an environment impact assessment (EIA) is to be done of the sand policy. The govt to identify sand reserves, amount to be mined, depth to which it is to be mined, including from lakes, rivers and other sources. The traditional sand extraction in Dakshin Kannada district will continue in non CRZ areas, without using machinery. https://www.deccanherald.com/state/top-karnataka-stories/karnataka-promises-cheaper-sand-under-new-policy-1048576.html   (08 Nov. 2021)

Experts says the draft of the new policy favours the construction industry more over environmental issues. According to the Mining & Geology Department in Karnataka, 38 lakh tonnes of M-sand and 14-15 lakh MT of natural sand is utilised. There is a shortage of around 15-20 lakh MT annually. Experts say the shortage can be addressed with technological interventions, which the government is not keen to explore.

Conservationists say the new policy does not mention adhering to environmental rules – CRZs, eco-sensitive zones, buffer zones and protected areas – where mining activities are prohibited. As M-sand is obtained from quarries, a cap on this is also needed, says activist S R Hiremath. The government could have taken stern steps earlier and stopped illegal mining in Ballari. But it lacked political will. The same is happening now also. The government is supporting industries and areas like Raichur, river banks along Tungabhadra, Cauvery and others are being exploited, he pointed out. https://www.newindianexpress.com/states/karnataka/2021/nov/14/eco-concerns-slip-through-karnatakas-new-sand-policy-2383360.html   (14 Nov. 2021)

#Karnataka :-Sand policy is not as big a problem as it sounds. But challenge before govt & citizens is how to effectively deal with powerful sand mafia, which hs well-entrenched corrupt politicians & officials says SR Hiremath. https://t.co/mHQZ9TEunb @IndiaRiverForum @yamunajiye — SANDRP (@Indian_Rivers) January 3, 2021

SR Hiremath revealed how politicians are involved in the illegal sand mining and why the policy is being pushed now.

On alternative: M-sand is an alternative, but it is equally disastrous to ecology and local people. Another alternative, which is being explored is recirculation: extracting sand from debris. The real alternative is to use the minimum necessary quantity of sand by controlling our unnecessary aspirations, changing our perspective and lifestyle.

On Policy: The sand policy is not as big a problem as it sounds. But the challenge before the government and citizens is how to effectively deal with the powerful sand mafia, which has well-entrenched corrupt politicians and officials.

On Industry: The question of striking the balance should be answered not just in the short term concerning only the real estate sector, but also with a long-term perspective, considering a healthy relationship between nature, society and culture. https://www.newindianexpress.com/states/karnataka/2021/jan/03/sand-mining-worse-than-iron-ore-mining-activist-2244763.html   (03 Jan. 2021)

One of the recommendations of the Dr K Kasturirangan report is a complete ban on mining, quarrying and mining of sand in ecologically sensitive areas. This was in direct conflict with Sand Policy 2020. The state’s Sand Policy 2020 was on the lines Andhra Pradesh’s policy and shifts from past policies by classifying the streams as I, II, II, IV, V and VI. The classification will not stand legal scrutiny if the streams are not notified under relevant laws.

Sand mining in evergreen and semi-evergreen forests would largely affect the riparian ecosystem, fauna and flora. A riparian ecosystem is a vegetated area near a stream, usually thickly forested, which helps shade and partially protect the stream. It plays a key role in increasing water quality in associated streams, rivers, lakes and estuaries. Sand mining will destroy them, enhance the drying of perennial steams leading to extinction of amphibians, fish and other water habitat fauna/flora.

As per the estimation of the Mines Department, around 45 million tonnes (MT) of sand is required in the State per year. Of this, around 30 MT is produced and supplied as manufactured sand (M-sand). About 4.5 MT of natural sand is supplied legally from various sources. Some sand comes from other states. There is a gap of about 8.5-10 MT which is supplied and procured illegally. Some agencies put the requirement at 60-70 MT. https://www.newindianexpress.com/states/karnataka/2021/jan/03/karnatakas-sand-policy-at-odds-with-kasturirangan-report-2244764.html   (3 Jan 2021)

This mentions of adverse impacts of stone, sand mining on local eco-system, people including water sources and forest and risks of making panchayats permitting authority and also raises important questions. https://www.deccanherald.com/specials/insight/mining-activity-continues-at-the-cost-of-environment-942672.html  (24 Jan. 2021)

A senior legal expert says, “The best and fastest way to become a politician is to get yourself involved in mining as profit margins are more than 110 per cent as compared to other industries, where it is 10-15 per cent… People in power do not want to stop it because it is a major profitable business and that was the reason the government announced legalising it in Shivamogga. That was why portfolios of ministers were shuffled 4 times to ensure that the ‘right’ person gets it. Whoever knows about the industry is well aware that there is profit in every aspect of mining – extraction, transportation, sales and even middlemen,” says the expert, requesting anonymity.

The problem: He said there is no ready record with the M&G Department head office on how many mines and quarries are operating in Karnataka and how many are defunct. “Though the process has been decentralised, there should be a uniform platform available for the public to ensure transparency. There are no field-level staffers in the Department, like guards in the forest department or constables in the police department,” he adds.

The suggestion: A member of the SC committee on mining, UV Singh, who is known for his fight against illegal mining, says there is an urgent need to bring in amendments to existing laws. Alternative sources are well known and they should be used. The government must have the will to push it, he says. https://www.newindianexpress.com/states/karnataka/2021/jan/31/illegal-mining-menace-it-is-deep-and-disturbing-2257481.html   (31 Jan. 2021)

Some other govt dicisions:- During question hour in Assembly, M&G Minister Murugesh Rudrappa Nirani said on Jan. 29, 2021 that a separate sand policy would be introduced to help the people of Udupi, Dakshina Kannada and Uttara Kannada districts in the coastal region. https://www.thenewsminute.com/article/ktaka-come-out-new-sandmining-policy-coastal-region-142443   (30 Jan. 2021) Udupi district was given a target of ₹ 24 crore royalty collection and so far, ₹ 16.29 crore was collected. Minister for M&G C.C. Patil on Jan. 6 asked officials to reach the target by March. https://www.thehindu.com/news/cities/Mangalore/act-tough-against-illegal-mining-sand-extraction/article33515078.ece   (07 Jan. 2021)

M&G Minister Murugesh R. Nirani on Feb. 10, 2021 said that the M&G department is planning to set up Karnataka Mineral Industrial Development Board (KMIDB) on the lines of Karnataka Industrial Area Development Board (KIADB) to give further impetus to mining activities.  The Minister said that a single-window agency also would be set up to ensure speedy clearance of proposals among forest, environment, revenue and home departments. https://realty.economictimes.indiatimes.com/news/allied-industries/karnatakas-new-sand-mining-policy-allows-extraction-from-183-blocks/80857701  (11 Feb. 2021) 

Malaysia Sand:- This is another bid from MSIL after no demand for ‘videshi’ sand in the state. Government had taken up an ambitious plan of importing sand from Malaysia in 2018. Since then, 1.03 lakh tonnes of sand have been imported. However, there seems to be an unsteady demand as MSIL has been able to sell only 14,759 tonnes of sand so far. In fact, the imports have stopped since February 2020 where 89,000 tonnes of sand imported from Malaysia is lying at Krishnapatnam port in Andhra Pradesh. https://bangaloremirror.indiatimes.com/bangalore/civic/made-in-malaysia-sand-is-making-a-comeback/articleshow/86186346.cms   (14 Sept. 2021)

Government is proposing to create a separate protection force to prevent illegal sand mining, the Department of M&G informed the NGT. Vehicles of the lessees are fitting with GPS to keep watch over the transportation. Weigh bridges and CCTVs are fitting at important places to prevent any illegality in transportation. https://www.deccanherald.com/state/karnataka-to-set-up-separate-force-to-check-illegal-sand-mining-1062578.html   (19 Dec. 2021)

Illegal mining cases:- The state saw over 10,513 cases of illegal sand mining over the last 3 years. According to data tabled in the Legislative Council, illegal sand mining has gone unabated even during the pandemic with about 3,451 identified cases in 2020-21 and 3,193 cases in 2019-20, 3869 in 2018-19. https://www.deccanherald.com/state/top-karnataka-stories/over-10k-cases-of-illegal-sand-mining-in-karnataka-in-3-years-1034879.html (27 Sep 2021)

Stone Mining:- After over a month since quarry and stone-crushing units were shut following the blasts in Shivamogga and Chikkaballapur, the government decided to allow them to resume operations. M&G Minister Murugesh R Nirani said the closure of these units had led to job losses and had an adverse impact on the state’s revenue to the tune of over Rs 300 crore. https://indianexpress.com/article/cities/bangalore/karnataka-govt-financial-loss-quarry-crusher-units-resume-operations-7251147/   (31 March 2021)

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Mandya District in-Charge Minister K.C. Narayanagowda said that the government decided to ban all types of mining and quarrying, both legal and illegal, in 10-12 km radius of KRS Reservoir taking into account the safety and stability of the Dam. https://starofmysore.com/quarrying-in-vicinity-of-krs-dam-to-be-completely-stopped/   (13 July 2021)

Next month, the M&G Minister Achar Halappa Basappa said that government would assess requests to renew quarrying licences near KRS dam. He dismissed complaints that the safety of the dam was compromised due to illegal quarrying around it.  https://www.deccanherald.com/state/karnataka-govt-to-decide-on-quarry-licences-near-krs-after-review-1022828.html   (24 Aug. 2021)

Dirty dynamics of stone quarrying https://www.deccanherald.com/specials/insight/the-dirty-dynamics-of-stone-quarrying-942671.html   (24 Jan. 2021)

Diversion of DMF Funds:- M&G Department allowed Dakshina Kannada district administration to utilise funds available under the District Mineral Foundation (DMF) for purchase of oxygen tankers, medicines and other health related items needed to tackle the COVID-19 pandemic. The department has decided to consider similar demands from other districts. https://www.thehindu.com/news/national/karnataka/dmf-funds-for-pandemic-treatment/article34550234.ece   (13 May 2021)

As of January 2021, the government had already spent around Rs 118 crore out of the DMF specifically toward COVID-19. Experts said that just because such special funds remain unspent does not provide legitimacy to utilising these for other purposes. https://www.newsclick.in/Karnataka-Diversion-Unused-District-Mineral-Funds-COVID-Raises-Eyebrows   (17 May 2021)

6. W Bengal Mining corporation to auction sand mining rights All sand mining auctions in Bengal will be done by W Bengal Mineral Development and Trading Corp (WBMDTC) instead of district magistrates, CM Mamata Banerjee said on July 22. To usher in transparency and accountability into the allotment of 5 year sand mining rights along river beds state wide, the allotment process would be monitored by the state chief secretary and finance secretary. Bengal, the CM said, would also introduce CCTV coverage and digital mapping of sand mines. https://timesofindia.indiatimes.com/city/kolkata/mining-corpn-to-auction-sand-mining-rights-says-cm/articleshow/84661559.cms   (23 July 2021)

#WestBengal :"Illegal sand mining rampant in svrl dists; business runs into 1000s of crores. Thr exists nexus btw local politicians-mafia-administration,” Fmr chief law officer @WBPCB . @DrGargava @RajivRanjanMis5 @MamataOfficial @PrashantKishor @byadavbjp https://t.co/XbsBcAfLzR — SANDRP (@Indian_Rivers) August 8, 2021

But those earlier auctions only covered a tiny portion of the sand mining activity, according to Biswajit Mukherjee, the former chief law officer of SPCB. “Illegal mining of sand from the riverbeds and riverbanks is rampant in several districts and the business runs into thousands of crores of rupees. There exists a nexus between local politicians, the mafia and the administration,” Mukherjee added.

The CM had also complained about the state losing out on revenue due to the local mafia. A senior officer of the state irrigation department put this into perspective: in December 2015, when there was a crackdown on sand mafia, the state’s revenue earning from sand mining went up from around ₹25 crore to ₹300 crore. “There have been crackdowns in the past but the menace goes on unabated with the help of local politicians, mafia and a section of the administration because huge money is involved. In an auction done legally, the bids can go as high as ₹2-3 crore. Imagine the profit from illegal sand mines,” the officer said. https://www.hindustantimes.com/cities/kolkata-news/sand-mining-experts-remain-wary-as-bengal-govt-centralises-auction-101627843885346.html   (02 Aug. 2021)

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The WBMDTCL – under the industries department – was given the responsibility to monitor mining instead of the land and land reforms department, whose officials have often been accused of corruption. The agency directed operators to install GPS or RFID devices in all sand vehicles. The final list of operators was expected to be ready by October. https://timesofindia.indiatimes.com/city/kolkata/bengal-sets-ball-rolling-for-digital-vigil-on-sand-mining/articleshow/86182729.cms   (14 Sept. 2021)

7. Uttarakhand Govt to have new mining policy  Officials, on Oct. 2 2021, said Uttarakhand is likely to formulate a new mining policy soon. State Chief Secretary SS Sandhu said, “for the first time, suggestions have been invited from the stakeholders to formulate ‘User Friendly’ policy for mining”. He further added that the new policy is likely to increase the revenue of Rs 500-1000 crore. Meanwhile, environmentalists, activists have objected to this suggestion alleging indiscriminate mining already being practiced in the hill state.

Dushyant Mainali, a practising advocate who has been pursuing multiple petitions including public interest litigations said, “the negative impact of illegal sand mining far outweighs the economic benefits. The perception that sand and boulders are useless and rivers have a lot of sand is incorrect, because they are crucial for the sustained existence of the river and perform many functions.”

Uttarakhand has lost about 50,000 hectares of its forests to ‘developmental activities’ in the past 20 years, revealed data by the state forest department last year. According to the data, the highest amount of forest cover has been lost to mining (8760 ha) followed by road construction (7539 ha), power distribution lines (2332 ha) and hydropower plant projects (2295 ha). https://www.newindianexpress.com/nation/2021/oct/02/uttarakhand-to-have-new-mining-policy-soon-saystate-officials-2366816.html   (02 Oct. 2021)

The new mining policy proposes reduction in distance for establishment of stone crushers and screening plants from earlier 250 m to 50 m from the banks of seasonal and rainfed streams and rivrers. Similarly, the distance for storage is proposed to be reduced from 1500 m to 500 m in hill area. The storage distance in plain areas is also proposed to be brought down from 1500 m to 1000 m along Ganga and 500 m along other rivers in plain areas. The policy reportedly relaxes storage rules. The govt also proposed to change name of River Training Policy to River Dredging Policy permitting lifting of riverbed minerals upto 3m through opening bidding. https://www.jagran.com/uttarakhand/dehradun-city-uttarakhand-news-stone-crushers-and-screening-plants-will-be-set-up-at-a-distance-of-50-meters-from-river-22160523.html   (29 Oct. 2021)

What an Himalayan plunder! This organised loot by @ukcmo govt-mining mafia must stop. On State's foundation day, I request people of #Uttarakhand , please oppose such amendments in mining policy of state govt. This will bring more devastation & disasters upon our heads. @byadavbjp pic.twitter.com/QcdGs6X8hB — Harsh Vats (@HarshVatsa7) November 9, 2021

New Policy Announced With several such relaxations the new mining policy was released on Nov. 10, 2021 by Meenakshi Sundaram, Secretary Mining Industry.  https://www.jagran.com/uttarakhand/dehradun-city-stone-crushers-will-be-opened-in-uttarakhand-at-one-km-from-ganga-river-and-500-meters-from-other-rivers-22199299.html   (12 Nov. 2021)

For monitoring illegal transportation and storage government decided to install GPS system in vehicles and CCTVs at storage points. https://www.jagran.com/uttarakhand/dehradun-city-plan-to-install-gps-and-cameras-for-monitoring-of-mining-is-still-on-file-in-uttarakhand-22199232.html   (12 Nov. 2021)

This report mentions of relaxation in new mining policy and says mining would be done through machines. https://www.jagran.com/uttarakhand/dehradun-city-minerals-will-now-be-extracted-from-jcb-and-pokeland-in-rivers-in-uttarakhand-22195745.html   (11 Nov. 2021)

Namesake consultation This report says government had sought suggestion from all stakeholders, however people in the know say primarily the stone crushers owners and businessmen involved in mining were consulted and there was no such consultation with experts, general public and people from mining affected areas. The report further mentions government lacking revenue generation in proportion of area allotted for mining. The illegal mining is a problem and government planned to tackle it though installation of CCTV, drone cameras, satellite imageries. https://www.amarujala.com/dehradun/uttarakhand-news-new-mining-policy-will-come-soon-and-proposal-will-be-placed-in-cabinet-meeting   (02 Oct. 2021)

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Government earns Rs 400-500 crores annually as revenue from mining. In 2020-21, mining activities generated reveue worth Rs. 506 crores. The target for 2021-22 was set Rs. 750 crores, however by July 2021, the revenue earned was Rs. 105 crores which is nearly 14 per cent of the target. https://m.jagran.com/uttarakhand/dehradun-city-uttarakhand-government-will-do-amendment-in-mining-policy-22129211.html   (19 Oct. 2021)

Staring at revenue losses due to pandemic restrictions, the Garhwal Mandal Vikas Nigam Ltd, (GMVNL) which is mainly involved in pilgrim and tourism sector, also decided to enter into mining industry. As per Jatinder Kumar, GM, GMVNL tenders for mining at 36 sites including Asan, Bhaldi, Dubri, Banjarawala, Jakhan, Jhothi, Juyalgarh, Jwalapur, Kalirao, Mahendrapur, Naingaon, Sarana, Sripur, Sudhowala, Sundana, Towns, Yamuna were issued for five years on Sept. 14, 2021 where mining would start from October 1. https://www.jagran.com/uttarakhand/dehradun-city-tender-for-36-mining-lots-will-be-released-tomorrow-20748169.html   (15 Sept. 2020)

8. Andhra Pradesh Govt tie up with PSU for sand mining, supply The Mining dept has planned to enter into an agreement with Metal Scrap Trade Corp (MSTC). Whether the agency would take up the task of implementing the revised sand policy of the State govt on its own or it would appoint another agency was to be finalised.

The AP Principal Secretary (Mines and Panchayat Raj and Rural Development) Gopala Krishna Dwivedi said that the talks were in the final stage with the PSU, after they had received response from several Central agencies about implementing the revised sand policy.

The government had cleared the new sand policy deciding to hand over the entire sand mining activity to a single entity. It further intended to seek help from a Central Government agency for this purpose. Under the new policy, people would be authorised to examine the quality of sand & transport it in their own vehicles after the booking online. The Cabinet proposed a price list that would vary based on the delivery point from each supply or mining point. https://english.sakshi.com/news/andhrapradesh/ap-govt-likely-tie-psu-sand-mining-supply-128435 (3 Jan 2021)

CM Y.S. Jagan Mohan Reddy directed the officials to focus on expanding the revenue sources of the State for implementing Navaratnalu and other welfare schemes promised in the manifesto. During a review meeting on Feb. 11 2021, the CM called for focus on high revenue yielding mining activities and ordered that works related to sand mining be expedited. https://www.thehindu.com/news/national/andhra-pradesh/cm-tap-revenue-sources-for-implementing-navaratnalu/article33814531.ece   (11 Feb. 2021)

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Officials of the AP Mineral Development Corporation (APMDC) said the MSTC, which was endorsed with the task of sand mining and supply, had invited technical bids and will call for financial bids within a week. All the remaining formalities involved in the process of transferring the operations is expected to be completed by the end of March.

Asked about the current position of sand as the construction activity picked up momentum across the State, the APMDC managing director said the demand and supply are more or less the same. “As of now, we are able to mine 1.25 lakh tonnes of sand a day and the demand stands at 1.30 lakh tonnes a day. Thus, the pendency is less and we are able to deliver the construction material on the immediate day after booking. Moreover, we have 14 lakh tonnes of buffer stock and thus, we are in a position to meet the demand,’’ Venkata Reddy explained. https://www.newindianexpress.com/states/andhra-pradesh/2021/mar/06/apmdc-all-set-to-hand-over-sandoperations-to-mstc-by-march-end-2273010.html   (06 March 2021)

Director of the department of M&G entered into a MoU on 04-01-2021 with MSTC Ltd to select the eligible agency for undertaking sand mining, storage and sales for a period of 2 years. MSTC Ltd confirmed that Jayaprakash Power Ventures Ltd was the successful bidder as they announced the highest price for all 3 packages.

Officials informed that Jayaprakash offered Rs. 477.50 crore for package-1, Rs. 745.70 crore for package-2 and for Package – 3, Rs 305.60 crore. https://www.deccanchronicle.com/nation/in-other-news/210321/jayaprakash-power-ventures-gets-sole-sand-mining-rights.html   (21 March 2021)

Responding to the allegations levelled against selection of Jayaprakash Power Ventures Ltd, Gopal Krishna principal secretary said, “The allegations that claim that the company isn’t experienced enough, or it would earn Rs 2,000 crore from this contract, or that the agency is bankrupt are all baseless.”

The government will also be holding an amount of Rs 120 crore as security, he said. He said that it is not possible for the company to earn Rs 2,000 crore out of the contract. The state requires two crore MTs and with the price capped at 475 per tonne, the total value on this contract is not more than Rs 950 crore, he said. Out of this, the company will have to pay the government Rs 765 crore. Therefore, the company is set to earn around Rs 72 crore, he said. https://newsmeter.in/regional/andhra-pradesh/principal-secretary-defends-selection-of-jayaprakash-power-ventures-for-sand-mining-contract-675847   (22 March 2021)

Jaiprakash Power Ventures under NGT scanner for illegal sand mining in AP districts #AndhraPradesh #JaiprakashPowerVentures #NGT #SandMining https://t.co/e7IiLgibG5 — NewsMeter (@NewsMeter_In) August 31, 2021

NGT ordered a joint committee to inspect the alleged unscientific sand mining being done by Jaiprakash Power Ventures Limited in the 13 districts. It was alleged that the firm was carrying excessive mining using machines thus causing damages to rivers eco-system in Andhra. https://newsmeter.in/regional/andhra-pradesh/jaiprakash-power-ventures-under-ngt-scanner-for-illegal-sand-mining-in-ap-districts-682679    (31 Aug. 2021)

The government had earned Rs 161.30 crore on sand in 2019-20 and Rs 380 crore during 2020-21 till February. It is expecting to earn a revenue of Rs 765 crore in the next financial year with the new contractor. https://timesofindia.indiatimes.com/city/vijayawada/jaypee-group-to-handle-sand-excavation-supply/articleshow/81608601.cms   (21 March 2021)

State government is considering a proposal to allow both online and offline booking of sand, said principal secretary said. Recalling that customers faced hardships when the bookings were accepted only online when the APMDC took care of the sand operations, he felt that the presence of both the systems will allow customers the freedom to pick their preferred choice. https://www.newindianexpress.com/states/andhra-pradesh/2021/dec/22/andhra-pradesh-government-mulling-both-online-offline-booking-of-sand-2398305.html   (22 Dec. 2021)

9. Goa Govt to decide on permitting legal sand mining from Chapora A senior official said that the National Institute of Oceanography (NIO) has completed the impact study of Chapora river and its tributaries. “The study of Mandovi River is in process and the same is likely to be completed in next 2-3 months,” the official said. “The Government, through Environment Department and Directorate of Mines and Geology (DMG) will take a call on granting sand mining permits in Chapora River based on the findings of the impact study,” the official said. https://www.heraldgoa.in/Goa/State-may-take-call-on-permitting-legal-sand-mining-from-Chapora-riverbed/169165   (29 Dec. 2020)

Reiterating that the government is opposed to illegal sand mining carried out with mechanical pumps, CM Pramod Sawant on Jan. 24 2021 said there should not be a problem to restart sand extraction in the traditional way. He said that those who have gone to the court against sand mining are to be blamed and not the government for stopping sand extraction in Goa. https://www.thegoan.net/goa-news/sand-mining-chennaibased-agency-roped-in-to-conduct-survey/64807.html   (25 Jan. 2021)

A study was under way to assess the environmental damage due to sand mining, Sawant told reporters. “The study of the first cluster covering the Chapora river has been completed. Based on the assessment, permissions will now be issued for sand extraction in that belt,” Sawant said. Sand mining in the rest of the rivers will be legalised once the study is completed, he said.  https://timesofindia.indiatimes.com/city/goa/process-for-sand-mining-licences-to-start-soon-cm/articleshow/80439117.cms   (25 Jan. 2021)

Nilesh Cabral, Goa’s cabinet minister of power and non-conventional energy, said, “In Goa river beds do not get dried up during the non-monsoon period. We have requested the MoEF to amend the CRZ Notification 2011 and allow the state to extract sand from flowing rivers by traditional means.”

The Goan reported that in Feb. 2021, the NIO had submitted a report to the state biodiversity board, assessing the environmental impact of 6 out of 12 sites along the Chapora river in Goa. It suggested that 33.20 lakh cubic meters of sand can be excavated from these sites. The report for this has been presented to the division bench of the Bombay high court at Panaji.

The NIO has also completed the study of the Mandovi river coastline, and the report is expected in April 2021. “Existing laws are snubbed and let sand mafias to proliferate. Natural sand is a part of the ‘commons’ and is meant for collective benefit, it is not the property of a selected few.” Antonio Mascarenhas from NIO added. https://science.thewire.in/environment/goa-moves-centre-to-allow-sand-mining-in-areas-studied-by-science-institutes/   (12 March 2021)

CM Dr Pramod Sawant on April 7 2021 said the government has started the process of setting up the mining corporation to restart mining. https://www.heraldgoa.in/Goa/Govt-in-process-of-setting-up-mining-corporation/173356   (08 April 2021)

Major implications for #Goa & #GoaMining , and big chunks – every part of India sees sand mining. @goafoundation @GoenchiMati @rights_mineral @PWYPtweets @NRGInstitute @_YLNM @Sand_Stories @minesmineralsP https://t.co/vLiTiUUsC1 — Rahul Basu (@rahulbasu) August 6, 2021

In July 2021, government passed the Goa Mineral Development Corporation Bill, 2021 aiming to revive mining operations. The bill follows the decision of the Supreme Court which dismissed review petitions against its 2018 order ruling against the state government’s decision to renew 88 mining leases.

Civil society leaders fear that the government will sublease the contracts to mine owners, bringing the same people back. They also criticised that the new law does not address the concerns of the mining-affected communities. https://india.mongabay.com/2021/08/goa-forms-mineral-development-corporation-hopes-to-revive-mining/   (09 Aug. 2021)

Taking note of a report by scientists of the NIO, the State Expert Appraisal Committee (SEAC) gave the go ahead to resume sand extractions at 4 locations in the River Chapora. However, the committee laid down a host of restrictions, including installing CCTV systems to monitor the mining activity.

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The NIO scientists Mandar Nanoskar and Saurav Mondal carried out prefeasibility reports for sand extraction for the River Chapora and found that the upper stretches of river banks have experienced bank erosion at many locations. They noted that many more areas are vulnerable and prone to bank erosion. “Based on the baseline data and the prevailing site conditions, sand extraction at unregulated rates or in the sensitive area will have negative impacts on the environment. Accordingly, certain areas in the stretches of the river have been demarcated where sand extraction from the river bed requires restrictions,” states the NIO report. https://timesofindia.indiatimes.com/city/goa/nio-study-calls-for-caution-in-sand-mining-flags-erosion/articleshow/86717419.cms   (03 Oct. 2021)

State Environment Impact Assessment Authority (SEIAA) approved sand mining in 4 stretches of the Chapora river at its meeting held on October 5. However, SEIAA has asked for further scientific studies to be carried out in the case of 2 other zones in the Chapora. Applications were received from the North Goa collector for 6 zones in the river for sand mining. https://timesofindia.indiatimes.com/city/goa/sand-mining-in-chapora-river-can-resume-in-4-zones/articleshow/87073562.cms   (17 Oct. 2021)

10. Punjab New mining policy would deplete fertile soil cover The government had recently come up with the new sand and gravel mining policy 2021, which states that landowners can dispose of ordinary earth extracted or removed during the leveling of their Agricultural fields up to 3-feet. Even the government advertisement states that landowners are permitted to extract up to 3-feet sand. Several farmers were already into illegal sand mining in their fields and this new policy now allows all farmers to extract up to 3 -feet earth from their fields without any environment clearance.

Earlier, farmers were required to take EC for mining their fields and as per norms, no agricultural land can be excavated upto 3-meters after procuring EC certificate. Agriculture department officials said that Punjab government’s policy will ruin the state’s soil badly because several farmers see the short term gains and also are not aware that the soil of the upper layer is the most fertile and best one.

#Explained | Several farmers were already into illegal sand mining in their fields and Punjab's new policy allows all farmers to extract up to 3 -feet earth from their fields without any environment clearance certificate. https://t.co/EK7M0Rr7oc — The Indian Express (@IndianExpress) January 2, 2022

Several sand dealers revealed that both individual farmers and panchayats, which own large village chunks of common land, are very much interested in getting mined their fields up to 3 feet and they are contacting them to bargain the rates. It is a lucrative business and they are getting a good amount. “If they are removing even a single cubic feet of earth from one acre, they would get Rs 3 to 3.5 lakh and by removing up to 3-cubic feet they would earn Rs 9 to 11 lakh from a single acres as we are paying them Rs 8 to 9 per cubic feet sand,” said a dealer in Jalandhar, adding that several farmers have asked him to remove sand from their fields after the harvesting of wheat.

This practice is quite common in Hoshiarpur’s Mukerian subdivision where farmers are giving their fields to the sand mafia for digging in exchange of money. The sand mafia is earning much more from what they are paying to the farmers from their fields. “This is a short term gain and farmers should not do it as it will lead to water logging in the low lying fields. And if the surrounding areas of such fields are at a higher level, then these fields would turn a drain for the surrounding areas,” said Dr RK Gupta, principal soil chemist, Department of Soil Sciences, PAU, adding that a brick or a house can be made from the unproductive soil but crops cannot be grown in non-fertile soil. He added that this is also causing a huge damage to our environment. https://indianexpress.com/article/explained/explained-in-punjabs-new-mining-policy-a-big-gain-for-farmers-and-a-big-loss-7701902/   (02 Jan. 2022)

CM Captain Amarinder Singh on March 5 said when his government took over, the revenue from mining was as low as Rs. 35 crore annually, which has been enhanced to ₹250 crore. https://www.hindustantimes.com/cities/chandigarh-news/amarinder-announces-enforcement-directorate-to-check-illegal-mining-101614972420891.html   (06 March 2021)

The Cabinet on April 1 cleared the setting up of an enforcement directorate (ED) to check illegal mining. https://www.tribuneindia.com/news/punjab/poll-in-mind-punjab-clears-enforcement-directorate-to-curb-illegal-mining-232827   (01 April 2021)

The government on April 24 2021 imposed a ban on sand mining at night. https://www.indiatvnews.com/news/india/punjab-government-imposes-ban-sand-mining-night-chief-minister-amarinder-singh-700173   (24 April 2021)

ED reportedly started investigations into contractor Gurinder Singh’s suspected involvement in the “shady” sand mining contract dating back to 2017. https://www.tribuneindia.com/news/punjab/ed-investigates-contractors-link-in-sand-mining-scam-290618   (31 July 2021)

CM Charanjit Singh Channi lauched “Mission Clean” to take strict action against drung, sand and liquor mafia. https://www.ndtv.com/india-news/punjab-cm-announces-mission-clean-initiative-to-curb-illegal-sand-mining-liquor-trade-2595115    (01 Nov. 2021)

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CM announced a reward of Rs 25,000 to every person who gives a proof or tip-off about any violation of mining norms. https://indianexpress.com/article/cities/ludhiana/rs-25k-reward-for-tip-off-on-sand-mining-violations-7693946/  (28 Dec. 2021)

Other States

Jammu & Kashmir New rules open doors for stone crushers Past 40 years have been particularly brutal for riverine ecology in Jammu & Kashmir, as pollution, encroachment & water diversion have increased, adding to introduction of non-native species. In recent years a new threat has emerged: riverbed mining.

The regional government has recently permitted the establishment of more stone-crushing plants. According to a list seen, between October and December 2020 the region’s Department of Fisheries issued No Objection Certificates (NOCs) for around 130 additional stone crushers, 70 of them in the Kashmir Valley.

Mining by heavy machines has left deep and wide craters in many river beds in Kashmir. Experts warn that this could destroy the environment to such an extent that it will become impossible to fix the situation. | Aaqib Fayaz and Bhumika Saraswati report https://t.co/Tszmtx3gu3 — The Wire Science (@TheWireScience) June 5, 2021

In late Feb 2021, the administration created new rules for stone crushers and ‘hot and wet mixing plants’ (where stones and gravel are processed), dispensing with the previous requirement for a licence. The rules simplify the process of establishing a unit by reducing the requisite clearances to just two documents: Consent to Operate (CTO) from the region’s Pollution Control Board and an NOC from the relevant district administrator.

The issuing of NOCs has been brought under the J&K Public Services Guarantee Act, 2011, making it mandatory to issue it within 30 days. This leaves little time for due diligence, much less an assessment of the environmental impact of the proposed stone crusher, which means assessments may be done on paper only. https://www.thethirdpole.net/en/nature/riverbed-mining-kashmir-permissions-final-straw-for-fish/   (16 July 2021)

sand mining business plan in india

After the denial of Environment Clearance (EC) by the J&K Environment Impact Assessment Authority (JKEIAA) the authorities decided to prepare a policy document to revive traditional sand mining identifying rightful beneficiaries and send it to the Government of India for consideration. https://lakecitytimes.com/2021/06/19/geology-mining-dept-decides-to-prepare-policy-document-to-revive-sand-mining/   (19 June 2021)

Rajasthan Task force, new policy CM Ashok Gehlot on Jan. 9 2021 constituted a task force comprising officers of forest, mines and revenue depts headed by chief secretary for speedy disposal of issues related to mining sector. He said the state govt would work with full commitment, technology, transparency & investment-friendly policy to take the state forward.

Gehlot said soon the govt would come out with a mineral and mines policy to provide a favourable environment for investment in this sector. The CM said the govt’s endeavour was to complete the process of mines auction in a transparent manner through the digital platform. He said procedures related to lease allocation and auction would be effectively monitored at the level of the CM and chief secretary. https://timesofindia.indiatimes.com/city/jaipur/task-force-under-chief-secretary-for-mines-development-new-mines-and-mineral-policy-sooncm/articleshow/80191976.cms (10 Jan 2021)

CM after unveiling the manufactured (M) sand policy on Jan. 25 said the M-sand policy-2020 would prove to be a game changer with investment and creation of jobs in the mining sector in a big way. He said the use and production of M-sand in the state would be encouraged and the dependence on gravel mined the river beds will be reduced. The problem of waste in the mining areas would also be solved as masonry stones could be used as an input for M-sand.

Gehlot said in order to instill confidence among the public and to create demand, it has been decided use M-sand mandatory for the PWD and other government departmenst to use a minimum of 25% of their demand for sand from M-sand. Minister of mines and Gopalan Pramod Jain Bhaya said that M-sand units have been given industry status in the policy. He said that there is a demand for about 70 million tonnes of gravel in various construction works in the state in a year.

Principal Secretary of mines and petroleum department Ajitabh Sharma said new units to be set up and already operating in the state will also be eligible for the benefit payable under RIPS-2019 for their expansion. In this policy, attractive provisions have been made for the investors like investment subsidy, exemption electricity duty, land tax and stamp duty in SGST for 7 years. At present 20 major M-Sand units are operational, which is producing 20,000 tons of M-Sand per day. The establishment of new units will be encouraged once the policy is introduced. https://timesofindia.indiatimes.com/city/jaipur/m-sand-policy-will-prove-to-be-a-game-changer-gehlot/articleshow/80456484.cms   (26 Jan. 2021)

#Rajasthan :- Dainik Bhaskar series on how excessive, illegal sand mining deforms & adversely damages Kasavati #river bed near Neem-Ka-Thana, Seekar. @ashokgehlot51 @RajCMO @gssjodhpur @OfficeOfGSS @byadavbjp @moefcc @CPCB_OFFICIAL @RSPCB_official @IndiaRiverForum pic.twitter.com/gSmR3yiQ7r — SANDRP (@Indian_Rivers) September 12, 2021

In the past one year, 639 cases pertaining to illegal mining of different minerals were reported in different districts, data from the state’s mining department revealed. During Jan 1 2020 to Jan 31, 2021, the highest — 86 cases — were reported from Bhilwara district followed by Jodhpur and Nagaur with 58 and 49 cases respectively, revealed the data in response to a question in the Assembly.

In Jan 2021, government had lauchned M-sand policy to govern the manufacturing of sand using mining waste. The policy was introduced with the purpose of increasing the supply of legal sand in the state. However, in recent times, illegal mining of sand has come up as one of the biggest challenges faced by the government, with CM Ashok Gehlot himself acknowledging the problem on several occasions.

According to the data, in the past 3 financial years (2018-19, 2019-20 and up to January 31, 2021), the mines department registered 38,335 cases and collected Rs 252.85 crore as fine. In 3,375 of these cases, FIRs were registered by the police. https://indianexpress.com/article/india/639-illegal-mining-cases-last-year-over-3000-firs-since-2018-19-govt-data-7212150/   (03 March 2021)

After the amendment to the Mines and Minerals (Development and Regulation) Act, about 46 mineral bearing blocks were set to be cancelled and the mines department issued orders to analyse the status of each block for either auction or exploration. https://timesofindia.indiatimes.com/city/jaipur/state-readies-plan-to-auction-46-cancelled-mining-blocks/articleshow/82377324.cms   (04 May 2021)

After nearly 35 years, 3 leaseholders were allowed to excavate sand from the riverbeds of Luni and Banas in Kotadi (Bhilwara), Jalore and Syala (Jalore) by government on May 26. There are 82 large lease holders for sand mining in the state. “After the completion of the replenishment study, the lease holders had received EC on October 16, 2020. So, it was decided to allow these large operators to mine sand,” an official with the mining dept said.

According to officials, the demand of the remaining 79 large leaseholders was pending in the Supreme court. After the central empowered committee (CEC) had recommended issuing EC to valid lease holders, the hearing was scheduled on April 15. However, it was postponed after the second Covid-19 wave. https://timesofindia.indiatimes.com/city/jaipur/sand-mining-raj-gives-nod-to-3-leaseholders/articleshow/82987999.cms   (27 May 2021)

Congress MLA Bharat Singh has written to CM Ashok Gehlot on the rampant illegal sand mining. https://timesofindia.indiatimes.com/videos/city/chandigarh/illegal-sand-mining-congress-mla-seeks-cm-gehlots-intervention/videoshow/83896797.cms   (27 June 2021)

Despite the fact that the Dholpur police noticed the stocking of illegally mined sand gravel worth more than Rs 1 crore, they were unable to transport in lacking resources and vehicles. Police stated that during the monsoon to avoid day-today transportation and invite risk the mining mafia stocked their bajri at various villages in Dang Basai and other areas. https://timesofindia.indiatimes.com/city/jaipur/rajasthan-dholpur-cops-lack-resources-to-move-seized-sand-gravel/articleshow/84540781.cms   (19 July 2021)

Tamil Nadu River sand mining set to return Clearing the decks for river sand use in construction after about a decade, the government fixed 1,000 per unit as basic cost of sand, and unveiled a set of guidelines to supply sand in a “fair and transparent manner”. To begin with, the department of water resources permitted 16 lorry quarries and 21 bullock carts’ sand quarries, which had EC, to operate. Following this, as many as 63 lorry quarries and 8 bullock cart sand quarries, which are in various stages for obtaining EC, would be permitted to operate as per the existing protocol said an order issued by Sandeep Saxena, additional chief secretary of the water resources department.

Till a decade ago, river sand was a key construction material, but it grew scarce about five years back. Promoted aggressively by the then state government, m-sand replaced river sand almost totally in recent years. The present order marking the return of river sand into construction sector has come amidst allegations from environmentalists that m-sand caused irreplaceable damage to earth and its exploitation was rampant and unscientific. https://timesofindia.indiatimes.com/city/chennai/river-sand-mining-set-to-return-in-tn/articleshow/88783357.cms   (09 Jan. 2022)

Govt likely to stop import of river sand 3 years after introducing a policy allowing for the import of river sand to counter an acute shortage of the key construction material, Tamil Nadu may do away with the policy. While the contractor sourcing sand from overseas has been told not to proceed with anymore imports, new sand quarries to scoop river sand in different districts are in the offing. Consumer organisations have urged the government to make river sand from local quarries available to the public at nominal rates.

About 18,616.5 tonnes of river sand imported through three TN ports including Kamarajar port and Adani Kattupalli port on Chennai’s outskirts have remained unsold since mid-July. Now, according to a PWD order, the contractor importing sand has been given till June 2022 to complete the sale of existing stock. The initiative to import natural river sand was launched in September 2018, with most of it received from Malaysia.

sand mining business plan in india

PWD officials said import of river sand would be discontinued since there were few takers after the demand for MSand shot up. Pointing out that MSand was cheaper, they said the cost component was a major factor. “The government is planning to reopen 15 new sand quarries across the state, for which steps have been initiated to get necessary approvals,’ a PWD official said. While seven sand quarries are currently operating across the state, the new quarries are set to open in the first quarter of next year.

Tamil Nadu M-Sand Lorry Owners Welfare Association president S Yuvaraj said three units (300 cubic feet) of imported river sand cost Rs 40,000 including the charges for delivering it to construction sites. “But, the same quantity of MSand is available for half the price, Rs 19,500, and covers the transportation charges as well,” he added. https://timesofindia.indiatimes.com/city/chennai/tamil-nadu-likely-to-stop-import-of-river-sand/articleshow/87148995.cms   (20 Oct. 2021)

Summary Unscientific and unsustainable are only words that best describe the riverbed mining situation in India over the years. Categorized under minor minerals, the identification, extraction, storage, transportation of riverbed minerals (RBMs) is under state governments’ jurisdiction. The state governments are also responsible for curbing the illegalities and irregularities associated with the mining operations. The Central government also has significant role both as environment regulator and in policy making. But the Central government has shown little commitment in this regard.

Broadly, every single state governments in India has made riverbed mining a revenue generation business where with each passing year the mining operations and revenue targets are only surpassing previous records, while the sustainability and governance issues are being buried even deeper. This has been common feature and sad reality of riverbed mining activities all through the pandemic year in India in 2021.

After monsoon break, mechanized #illegalsandmining resumes in UP. On very 1st day, 5 JCBs against law diverting Yamuna flows, creating bund in river bed at Nanglarai Kairana in Shamli. @dm_shamli @PoliceShamli @myogiadityanath @myogioffice @CMOfficeUP @RajivRanjanMis5 @byadavbjp https://t.co/mX2XcaWdoU pic.twitter.com/77h6DBGF1R — SANDRP (@Indian_Rivers) October 2, 2021

In fact, now most of illegal, unscientific riverbed mining is happening in so called legally approved mining projects across the country. The state governments have been changing the policies only to relax norms to facilitate more mining and rely heavily on CCTVs, GPS, drones etc. for monitoring and norm compliance though these tools have proved of no good so far. However, the governments refuse to provide any key role for the local communities, the biggest stakeholders.

Setting up of development corporations, boards and outsourcing mining to corporate giants is emerging trend. On the other hand, the mining departments are short staffed and lack basic skills, resources to check unlawful excavation of finite minerals. The unaccountable and opaque political economy of riverbed mining is an elephant in the room that no one is ready to give necessary attention. The sand mafias are flourishing due to political patronage across the party lines. Unless, these route causes are addressed, no one can save the rivers and people from mining monsters and disasters. 

Compiled by Bhim Singh Rawat ( [email protected] )

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2 thoughts on “ Riverbed Mining India 2021 Overview: Govts’ Changing Policies to Mine Revenues ”

It’s a Neo norm in India and elsewhere. Whoever stands against corruption of any kind, face trials and tribulations. The violators get away and repeat their acts on another person.

This is a very sad state of affairs. River mining has a overall negative impact on the environment and so this is just short-term profit at the expense of long-term environmental damage. Why are the Indian local authorities allowing this? Why are the local water authorities not intervening to stop it taking place?

“Excessive instream sand-and-gravel mining causes the degradation of rivers. Instream mining lowers the stream bottom, which may lead to bank erosion. Depletion of sand in the streambed and along coastal areas causes the deepening of rivers and estuaries, and the enlargement of river mouths and coastal inlets.”

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Sand Mining in India, Illegal Mining, Causes and Effect_1.1

Sand Mining in India, Illegal Mining, Causes and Effect

Illegal sand mining in India, governed by Sections 378 and 379 of the Penal Code, poses severe environmental and social consequences. Know All about sand mining in India here

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Sand, a seemingly abundant resource, is the second most consumed natural resource on the planet after fresh water. In India, the demand for sand has surged exponentially in recent years due to rapid urbanization, infrastructure development, and a booming construction industry. However, the unregulated and rampant exploitation of this invaluable resource has given rise to a critical environmental issue – illegal sand mining.

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Illegal Sand Mining

Illegal sand mining in India is a crime under Sections 378 and 379 of the Penal Code, 1860. This is because natural resources are public property, and the state is its trustee.

Illegal sand mining can have negative social and economic impacts on local communities. It can lead to the displacement of communities that depend on riverbanks for their livelihoods, such as fishing and agriculture.

Illegal and excessive sand mining can also result in environmental degradation. For example, illegal sand mining in the Papagani catchment area in Karnataka has resulted in groundwater depletion and environmental degradation in communities along the river’s banks in both Andhra Pradesh and Karnataka.

The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) empowers state governments to make rules for regulating the grant of mineral concessions in respect of minor minerals.

Causes of Illegal Sand Mining

High demand for construction.

The construction industry’s insatiable appetite for sand, a key ingredient in concrete, is a primary driver of illegal sand mining. As cities expand and infrastructure projects multiply, the demand for sand skyrockets, leading to illegal extraction from riverbeds, beaches, and other ecologically sensitive areas.

Lax Regulatory Framework

Weak regulatory measures and ineffective enforcement have created an environment conducive to illicit sand mining. The absence of stringent laws and their lax implementation contribute to the proliferation of illegal activities, allowing perpetrators to operate with impunity.

Lack of Alternative Materials

The lack of viable alternatives to sand in construction exacerbates the problem. While there are efforts to develop substitutes, such as recycled materials, their widespread adoption is hindered by cost considerations and technological challenges.

Effects of Illegal Sand Mining in India

Environmental degradation.

Unregulated sand mining leads to the destruction of river ecosystems and coastal habitats. The removal of sand alters river channels, disrupts sediment balance, and contributes to erosion. The loss of vegetation along riverbanks further exacerbates environmental degradation.

Impact on Biodiversity

Sand mining negatively impacts aquatic and terrestrial ecosystems, jeopardizing the biodiversity of flora and fauna. Disruption of riverbeds and sediment transport affects fish habitats, leading to a decline in fish populations. Additionally, the disturbance of nesting grounds for various species of turtles and birds poses a threat to their survival.

Groundwater Depletion

Excessive sand mining can alter the natural flow of rivers, affecting groundwater recharge. This, in turn, contributes to the depletion of groundwater resources, which are crucial for sustaining agriculture and providing drinking water to communities.

Social Consequences

The social ramifications of illegal sand mining are significant. Conflicts often arise between local communities dependent on rivers for their livelihoods and sand miners. The illegal nature of the activity further exacerbates these tensions, leading to disputes over resource access.

Constitutional and Legal Framework

The legal foundation for regulating the mining sector in India is established through the Mines and Minerals (Development and Regulation) (MMDR) Act of 1957. The constitutional division between the state and central governments, as specified in Lists I and II, mandates their respective roles in mineral ownership and governance.

The MMDR Act empowers state governments to manage minor minerals, including sand, while requiring central approval for major minerals such as coal and rare earths. This dual governance framework ensures a balance between centralized control and regional autonomy, crucial for effective and sustainable management of India’s mineral wealth.

Sustainable Sand Mining Management Guidelines 2016

The Sustainable Sand Mining Management Guidelines 2016 were released by the Union Ministry of Environment and Forests. The guidelines aim to ensure that sand and gravel mining is environmentally and socially responsible.

  • Environmental and Social Responsibility:
  • Ensure sand and gravel mining is conducted in an environmentally sustainable and socially responsible manner.
  • Sustainable Aggregate Availability:
  • Guarantee an adequate quantity of aggregate is available sustainably, preventing over-exploitation.
  • Enhanced Mining Monitoring and Transportation:
  • Improve the efficiency of mining monitoring and the transportation of mined-out material.
  • River Conservation and Equilibrium:
  • Conserve the river’s equilibrium and natural environment by protecting and restoring the ecological system.
  • Prevent Downstream Aggradation:
  • Avoid aggradation in downstream areas, especially those housing hydraulic structures like jetties and water intakes.
  • Protection from Bank and Bed Erosion:
  • Ensure rivers are safeguarded from bank and bed erosion beyond their stable profile.
  • Unobstructed River Flow and Water Transport:
  • Prevent obstruction to river flow and water transport, while restoring riparian rights and in-stream habitats.
  • Prevent Water Pollution:
  • Avoid pollution of river water to prevent deterioration of water quality.
  • Prevent Groundwater Depletion:
  • Mitigate excessive groundwater draining to prevent depletion of groundwater reserves.
  • Streamlined Environmental Clearance Process:
  • Streamline the environmental clearance (EC) process for sustainable mining, facilitating responsible extraction practices.

The guidelines require the preparation of District Survey Reports (DSRs) before granting mining leases. The guidelines also state that the layers of sand and gravel that can be removed from the river bed depend on the river’s width and replenishment rate. The guidelines also prohibit the extraction of sand and gravel where erosion may occur, such as at the concave bank.

Sand is mainly used for concrete, which is in high demand due to urbanization. Sand can also be used as a mixer with salt to prevent ice on roads, or to reshape coastlines that have significantly eroded.

Sand Mining in India UPSC

Illegal sand mining in India, governed by Sections 378 and 379 of the Penal Code, poses severe environmental and social consequences. Fueled by the construction industry’s voracious demand and a lax regulatory framework, it leads to river ecosystem destruction, biodiversity loss, groundwater depletion, and social conflicts. The Mines and Minerals (Development and Regulation) Act of 1957 divides governance between state and central governments. The Sustainable Sand Mining Management Guidelines 2016 aim to ensure responsible mining, emphasizing environmental conservation, efficient monitoring, and prevention of downstream aggradation. However, challenges persist, requiring a delicate balance between economic development and sustainable resource management.

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Sand Mining in India FAQs

Where is sand mining in india.

Sand mining occurs across India, notably in states like Uttar Pradesh, Madhya Pradesh, Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh.

Why is Sand Mining Illegal?

Illegal sand mining disrupts ecosystems, causes habitat degradation, and depletes groundwater. Unregulated extraction and conflicts with local communities drive its illegality.

Is River Sand Mining Legal in India?

While legal guidelines exist, illegal river sand mining is prevalent due to weak enforcement and high demand for construction.

Who Controls Sand Mining in India?

Control involves both central and state authorities, with the Mines and Minerals Act and the Ministry of Environment setting guidelines for sustainable sand mining.

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New platform unites tech and activism to monitor sand mining in India

As illegal sand mines continue to harm river ecosystems and communities in india, a non-profit initiative launching this month empowers journalists, activists and concerned citizens with data..

AWest Bengal-based non-profit organisation has launched a new platform ­–  India Sand Watch  – which aims to monitor every stage of both legal and illegal sand mining operations in the country.

Created by Kolkata’s  Veditum India Foundation , India Sand Watch has been designed to become a one-stop destination for those concerned about sand mining in the country, from activists and journalists to researchers and policymakers.

The environmental impacts of sand mining in India range from  eroded riverbanks  and  lost biodiversity  to  disrupted sedimentation processes  and  altered river courses . Furthermore, the industry exacts a human toll: during the past two years, a total of 124 people in India’s eastern states have  died  in accidents and violence related to sand mining.

Launching in early August, the India Sand Watch platform should enable users to find out the location of a sand mine, its legal status, any documented impacts on local communities and rivers, as well as any related legal documentation.

Reporting on the lucrative sand trade can be a dangerous undertaking in India and journalists covering it often face  serious threats .  Siddharth Agarwal , founder of both India Sand Watch and the Veditum India Foundation, says one of the project’s goals is to provide a method for information sharing that doesn’t compromise contributors’ safety.

A booming business anchored by riverbeds

As a core material in cement production – and therefore essential to the construction of modern infrastructure – sand is big business in India. Demand for Indian sand tripled between 2000 and 2017, and in 2019 the industry was  valued at  INR 150 billion (USD 2 billion). And while China is the runaway leader in cement production, India is in second place, producing  370 million tonnes  in 2022 alone.

Sand from deserts and the seabed is  not suitable  for use in construction due to its shape and  strength , so the burden falls upon rivers. In India, major  rivers  like the Ganga, Yamuna, Narmada, Jhelum and Brahmaputra have been dredged to extract sand for concrete. But this exploitation is not limited to major rivers; sand mining is also rampant in smaller tributaries such as  the Sone  in Bihar and the  Rambi Ara  in Jammu and Kashmir, and in smaller rivers like  the Gaula  in Uttarakhand.

“ It’s not enough to simply have identified potential mining sites unless you’re also building a story around that. Akshay Roongta, co-founder, Ooloi Labs

There are no official estimates of how much sand is being mined in India, nor of the share of legal versus illegal extraction within the industry. As construction  continues to boom , the country’s sand market is  expected  to grow at a compound annual rate of 6.2 per cent between 2023 and 2028. But as the  second most  exploited natural resource in the world, sand is a  shrinking commodity .

Sand is a classified as a ‘ minor mineral ’ in India, which means that unlike ‘major minerals’ such as coal, iron or bauxite, the power to grant sand mining licenses lies with state governments. Mining is  regulated  under the 1957 Mines and Minerals (Development and Regulation) Act, which is designed to ensure that resources are mined in a ‘sustainable manner’.

Despite this regulation, illegal mining (for example, mining without the necessary state government permits) continues largely unabated. According to an official  estimate , there were 416,000 documented cases of illegal mining between 2013 and 2017 in India; states with the most cases included Maharashtra, Uttar Pradesh, Madhya Pradesh and Karnataka.

Governmental efforts to regulate sand mining

In an effort to deal with illegal sand mining, India’s Ministry of Environment, Forest and Climate Change released a set of guidelines in  2016  aimed at regulating the extraction of sand and gravel, while adopting ‘required environmental safeguards’. It also recommended targeting alternative sources of sand and gravel and exploring manufactured substitutes to reduce dependence on riverbeds.

Four years later, the central government released  new guidelines  for monitoring the sand mining process, from the identification of deposits through to dispatch and end uses, via new surveillance technologies including drones and night vision.

These guidelines also sought to strengthen regulation and enforcement by looking to India’s top environmental court, the National Green Tribunal. The court set up a high power committee to assess illegal mining on the Yamuna River, which established  environmental audit procedures  in 2020 for state authorities issuing mining leases. It dictated, for example, that an independent audit of each lease should take place annually.

However, experts point out that the central government’s measures are  advisory  in essence:  reports  of illegal sand mining, coupled with state-level  judicial interventions  into some of these operations, betray lacklustre implementations of government regulations. An analysis of how effective these guidelines are is yet to take place.

How does the India Sand Watch platform work?

From June 2016 to April 2017, Agarwal  walked 3000km  along the  Ganga River , from West Bengal’s Ganga Sagar to Gangotri in Uttarakhand. This resulted in Veditum’s  Moving Upstream  project, which charts various challenges faced by the riparian communities that Agarwal encountered. During his survey, Agarwal identified sand mining as one of these challenges, in particular the paucity of public information regarding where it takes place, the volumes of sand extracted and who is licensed to do it.

Veditum’s India Sand Watch  platform  is now aiming to tackle this lack of public information. It comprises multiple modules through which users can upload information about sand mining, from news reports and relevant legal documents about operations, to on-the-ground mine location data.

Users can access data organised around three parameters: states, districts and rivers. As the database grows, users will be able to collect location-specific information about the discovery of a mineral, the tendering process, sites where mining is happening illegally, and relevant guidelines and district survey reports.

Monika Mondal , an independent journalist who has  investigated  unsustainable riverbed mining in the Gaula River, says that this platform could be helpful for journalists like her.

“When I was working on my report, I had to look for [court cases and tender documents] at multiple places and it was difficult to find information. If someone could curate all of this information in one place… it is definitely helpful for journalists,” she says.

Mondal is especially keen on gathering more information on which companies are involved in sand mining and thinks this data could be a strong asset to the platform.

At present, India Sand Watch is dependent on user-generated information, which brings with it questions over the reliability and veracity of its data. “That’s a challenge that exists with all the open data platforms because the ethos of the platform is trust,” says Agarwal. “But there are various ways in which we can try and ensure that this trust is not breached.”

Adding data to the platform requires users to sign up and create a profile. Initially, the data entered by the users will have to be approved by the India Sand Watch team. Agarwal explains that Veditum’s methodology is to initially engage and encourage trusted partners to add data, thus building a robust dataset. Once this strong foundation of users has been established, Veditum’s long-term plan is to engage this community to clean, verify and approve any uploaded information before it is published.

According to Akshay Roongta, co-founder and partner at Ooloi Labs, a Mumbai-based social enterprise which is partnering with Veditum on the project, one of the big advantages that the platform offers is  a safe space for those researching or reporting on sand mining  in India. For example, digital platforms facilitate data collection without the need to be physically close to illegal and potentially dangerous activities, and India Sand Watch users are able to request anonymity.

Creating a community of stakeholders with technology

Agarwal and Roongta say that India Sand Watch can be a place where various stakeholders – organisations, activists, journalists and concerned citizens – can build something new from the various scraps of information that have so far been gathered.

For example, one user could add court documents related to sand mining happening at a given riverbed. A second user could add GPS coordinates for other sites on the same river where sand is being mined. A third user, for example a local policymaker or an environmental activist, could then combine these datasets for a better understanding of the situation in a particular district or state, thus informing new policies or campaigns.

Roongta says collating different types of data paints a more comprehensive picture of sand mining in India: “It’s not enough to simply have identified potential mining sites unless you’re also building a story around that and corroborating, or rather cross-referencing, tender documents and survey reports.”

As a next step, Agarwal wants to introduce regional languages to make the platform more inclusive. Initially, those regional languages will be introduced where users are most active to exploit the greatest amount of information. Another goal is to introduce satellite imagery using GPS coordinates submitted by users, so that people can easily see where sand mining is happening.

Agarwal says India Sand Watch is one response to the growing environmental anxiety he is witnessing, by enabling something more proactive than simply sharing information on social media: “I see so many people around me who are constantly spending their time firefighting. As the civil society and citizens, I think we can set the agenda instead of constantly responding to the challenges that are emerging.”

This story was published with permission from  The Third Pole .

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The messy business of sand mining explained

Shifting sands

A 21st century construction boom is driving unregulated sand mining around the world - eroding rivers and coastlines, disrupting ecosystems and hurting livelihoods.

From Shanghai to Seattle, the world’s cities are built on sand - massive amounts of sand. It’s in the cement and concrete that make the bulk of most buildings. The glass in those buildings’ windows is made with sand, too. So is the tarmac laid onto the roads around them.

Sand is the planet’s most mined material, with some 50 billion tons extracted from lakes, riverbeds, coastlines and deltas each year, according to the United Nations Environment Programme. Per person, that’s about 6,570 kilogrammes (14,500 pounds) per year - more than an elephant’s weight in sand.

Over a year demand is the equivalent of around 6,570 kg per person.

According to the UN, the global daily demand for sand is around 18 kg per person on average.

Demand for sand is only expected to grow, as the global population continues to climb, cities expand and countries further develop. But in much of the world, sand mining faces little to no government scrutiny. There are scant regulations for protecting the environment, or workers’ safety. And few entities monitor or document the trade for its impact.

The result is that sand is being extracted far more quickly than it can naturally be replaced. That’s causing environmental damage and, in some cases, jeopardising livelihoods.

“This isn’t an issue that’s relevant for only some places. Sand is a critical material for every country,” said ecologist Aurora Torres at the Universite Catholique de Louvain in Belgium. She researches how sand mining can affect both the natural world and people’s well-being.

But many people still “don’t know about these problems,” Torres said. “The number of extraction sites is just huge, which makes it hard to monitor. And we researchers still don’t know many things about the magnitude of the impacts.”

Demand for sand has surged in the last two decades, thanks to urbanisation and construction in China, India and other fast-developing countries.

In just the last 10 years, China’s cities went from housing 51% of the national population to about 60%, according to the National Bureau of Statistics of China. To handle the housing pressure, cities have expanded, adding new structures and building out roads.

China already has used more cement since 2006 than was used in the United States during the entire 20th century.

China in 10 years

Between 2006 and 2016, China used enough cement to cover more than 90% of the country's surface area with a 1m thick layer of cement.

U.S. in 115 years

In more than a century, the U.S. has used less than a third of the total cement used by China over the past 10 years.

8.7 billion

cubic metres

2.4 billion

This is the 147m-high Great Pyramid of Giza to scale

8.7 billion cubic metres

2.4 billion cubic metres

China is not alone in its drive to build infrastructure and housing. In fact, sand is in such demand that cargoes are regularly shipped around the world. In 2018, those trades were worth some $1.9 billion, according to Harvard’s Atlas of Economic Complexity.

The vast majority of mined sand, however, gets used in the country where it was extracted. In parts of Africa, sand mining has helped people build sturdier homes. But in some cases it has also left the ground pocked with open pits, which can fill up in rainy seasons, providing breeding ponds for disease-carrying mosquitoes.

People have suffered directly from illegal activity as well. In India, 193 people died in accidents related to sand mining operations or sites in 2019-2020, according to a January report by the rights group South Asia Network on Dams, Rivers and People. About half of those deaths occurred from drowning in mining pits, including 76 “minor kids or young children or teenagers who entered the river to have a bath, unaware of deep pits in the riverbed".

The right kind of sand

It’s hard to imagine a shortage of sand. It covers millions of square kilometers across the world’s many deserts, piled in some places into towering dunes.

But desert sand is useless for construction. The wind-weathered grains are too small and smooth for binding in concrete. Sea sand has similar properties from being tossed by ocean currents. But it can be used in land reclamation projects, such as in China, Singapore and Hong Kong.

The sand that’s ideally sized, shaped and cut out for construction comes from shorelines and the beds of rivers and lakes. This is also where to find silica sand, which is melted down to make glass for everything from windshields to smartphone screens.

Some countries, including China and the United States, have begun producing “crushed rock” as an alternative, blasting into rock beds and then grinding the rubble down to cement-suitable aggregates. But that requires investment in both equipment and power to run the machinery, which many small, informal mining operations don’t have.

Desert sand

Sand grains from the desert are fine and rounded, giving low cohesion if used in concrete.

Sharper grains, like those from rivers or beaches, have more cohesion and make for a stronger concrete mix.

Scientists have called for a global programme to monitor and manage the industry as a first step to controlling the plunder. Standardising the industry would also mean miners don’t have to become criminals to operate.

Experts also note a need for more materials recycling. Already, the mass of all human-made materials is greater than that of all living things on Earth, according to research published in December in the journal Nature.

“Some people talk about a global sand scarcity, which doesn’t make sense since we don’t have any data that could prove that,” said researcher Torres. What’s needed is more research to map out where sand exists and determine mining volumes “to ensure supply on an increasingly crowded planet without compromising biodiversity”.

SILT, too small

Grains under 0.5mm in diameter are considered silt and are too small

SAND, optimal size

The ideal grain should measure between 0.6mm and 2mm in diameter

PEBBLES, too big

Measuring between 3mm and 64mm, these grains are too big to bind with cement, leaving voids within the concrete mix

OPTIMAL SIZE

Mining hot spots

Sand mining took off only decades ago. The method of extraction depends on where the sand is located. On land or along rivers, it is often dug up with backhoes, shovels or bare hands. Along coastlines, miners use dredging boats or suction pumps.

The damage from sand extraction can be seen clearly in satellite images, with coastlines eroded, ecosystems destroyed, and even entire small islands in Southeast Asia wiped off the map. Rivers can see major environmental disruption, including the erosion of river banks to the point where they collapse, and the destruction of breeding habitats for riverine animals including birds and crocodiles.

Small-scale mining operations along Vietnam’s Mekong River and its tributaries have robbed the region of sand, while upstream dams prevent it from being replenished. As a result, the delta is sinking about 2 centimetres (0.75 inches) each year, according to local officials and Duong Van Ni, an expert on the Mekong River at the College of Natural Resources Management of Can Tho University, the largest city in the Mekong delta region.

Rapid erosion, meanwhile, is destroying homes and threatening livelihoods across the Southeast Asian country’s largest rice-growing region.

The impact of sand mining is clear in this stretch of the Da Dang River, in the Vietnamese province of Lam Dong. River banks have badly degraded over a five-year period, illustrated in these satellite images released by Digital Globe and Airbus and analysed by Earthrise Media.

Da Dang River - Vietnam

Satellite images: ©2016, 2014 Maxar Technologies. PLEIADES © CNES 2019 Distribution Airbus DS / produced by Earthrise

Many places around the world bear the scars of rampant sand extraction. In southern India, for example, extensive sand mining along the Palar River fed a construction boom in the city of Chennai. In the images below, the dry, sandy river bed appears to have been scraped and excavated over the years, leaving a large depression now filled with water.

A state court intervened in 2013 to ban mining in the Palar. But that ban expired in 2018.

Palar River - India

sand mining business plan in india

Palar River

Palar Anaicut Bridge

Satellite images: Google, ©2003, 2005, 2014, 2018 Maxar Technologies.

When rivers are dredged, the evidence can be hidden beneath the water until disaster occurs.

Local politicians near India’s Phalguni River blame the extraction of sand for undermining the foundations of the Mullarapatna Bridge, causing it to collapse just 30 years after it was built. The bridge was located near Mangaluru in the southern state of Karnataka, one of India’s top spots for rampant sand mining, according to the Indian Bureau of Mines.

Mangaluru - India

Collapsed bridge

Satellite image: Google, © CNES 2018 CNES / Airbus

In the rivers of Azad Kashmir in northern Pakistan, at least seven different sand mining operations can be seen in this satellite snapshot from May last year.

Azad Kashmir - Pakistan

SAND CRUSHERS

Sand crushers are used to break stones and gravel, refining the sand to an optimal size. Many can be seen in this satellite image of the Azad region.

An enlargement of one of the sites shows a deployment of trucks, excavators and sand piles.

ACTIVE PITS

Satellite images: PLEIADES © CNES 2020,

Distribution Airbus DS / produced by Earthrise

Satellite images: PLEIADES © CNES 2020, Distribution Airbus DS / produced by Earthrise

Near the southwest Indian town of Alappad, beaches have been eroding gradually for six decades. But sand mining has caused wide stretches to vanish in the last decade alone.

Satellite images from 2003 to 2019 reveal deep cuts into the sand on the beach, as well as watery space where sand, trees and other vegetation were removed entirely.

Alappad - India

Coastline in 2003

KOLLAM KOTTAPURAM

Satellite image: ©2019 Maxar Technologies.

Just like rivers, freshwater lakes can hold vast amounts of coarse sand, ideal for construction. One of the most obvious examples of sand extraction is in Poyang Lake, the largest freshwater lake in China, located in Jiangxi Province.

The lake’s inflow and outflow of water have been disrupted in recent years by sand mining, as well as by dams and landscape changes. In 2020 the lake filled to its highest recorded level, prompting authorities to declare a “red alert” as flooding threatened surrounding areas.

This 2017 image of just a portion of the lake shows dozens of ships dredging sand or carrying it away.

Poyang Lake - China

Active pits

Sand barges

Sand dredgers

Satellite image: ©2017 Maxar Technologies.

Since June, Chinese dredgers have swarmed around the Taiwan-administered Matsu Islands, dropping anchor and scooping up vast amounts of sand from the ocean bed for land reclamation projects in China.

Aside from Matsu, where 13,300 people live, Taiwan’s coast guard says China also has been dredging in the shallow waters near the median line of the Taiwan Strait, which has long served as an unofficial buffer separating China and Taiwan.

Last year, Taiwan expelled nearly 4,000 Chinese sand-dredgers and sand-transporting vessels from waters under its control, most of them in the area close to the median line, according to the coast guard. That’s a 560% surge from the 600 Chinese vessels repelled in all of 2019.

Chinese sand mining vessels expelled from Taiwanese waters

Two vessels

expelled in 2017

At one point last year, more than 200 Chinese sand-dredging and transport boats were spotted operating south of Nangan, the main Matsu islet, three Taiwanese officials told Reuters. Lin Chie-ming, the coast guard commander, recalled encountering a similar scene with about 100 Chinese boats on Oct. 25. His team expelled seven Chinese vessels that breached Matsu waters that day.

Matsu Islands - Taiwan

Reuters counted as many as 226 vessels in this satellite image taken by ESA's Sentinel-2 on Oct. 25, 2020, off Nangan island

Waters controlled by Taiwan's coast guard

Nangan island

Satellite image taken on Oct. 25, 2020, 2.50pm local time by Sentinel ESA.

While scientists advocate for more oversight of the sand industry, and more effort by industries to recycle old materials, they are also exploring other solutions.

Two years ago, a group of researchers noted that, as climate change speeds the melting of ice in Greenland, more water is flowing toward the ocean carrying sediments that are deposited at the coastline - sediments that could potentially be used in the island’s construction industry or sold to boost the Greenland economy.

Within days of the study’s publication in the journal Nature, Greenland’s politicians “decided they wanted to investigate this”, said co-author Mette Bendixen, who researches how climate change is impacting the Arctic landscape at the University of Colorado Boulder’s Institute of Arctic and Alpine Research.

It’s still unclear if the sand is even suitable for construction. Bendixen tried once to row out in a dinghy to collect samples, but turned back after getting caught in the currents.

But while mining Arctic sand might help Greenlanders, it’s far from a solution to meet the global sand appetite. “The key is really to find ways to monitor the way we’re using sand right now,” she said.

Marco Hernandez, Simon Scarr and Katy Daigle

Kenneth Maxwell

Earthrise Media; Maxar Technologies; Airbus; Landsat, NASA. U.S. National Oceanic and Atmospheric Administration (NOAA). United Nations Environment Programme (UNEP). U.S. Geological Survey. National Bureau of Statistics of China. China’s Ministry of Natural Resources.

SCC Times

Bringing you the Best Analytical Legal News

Sand Mining in India – Grain of Despair: Failure of Regulatory Machinery

by Naveen Kumar†

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sand mining business plan in india

S and is considered to be an essential ingredient/material when it comes to building civilisations. As global urbanisation continues, the demand for sand for making concrete, building sites, filling roads, making bricks, making glass, sandpapers, etc. As the global population continues to rise and so does the expansion of cities, demand for sand is only expected to grow.

sand mining business plan in india

Fig.1: Demand for sand Source : United Nations Environment Programme 1

Every year, billion tons of sand is extracted from lakes, riverbeds, coastlines, and deltas, which makes sand the planet’s most mined mineral. However, the process by which sand can be naturally replenished is extremely slow. Excessive extraction of sand has earned a huge disrepute and has become a huge cause of concern for ecology.

Sand mining refers to the process of extraction of sand usually from an open pit. It is an activity in which sand is removed from the rivers, streams, and lakes. Beaches all over the world are being mined for sand for a variety of uses. Sand mining has tripled in the last two decades because of the increase in demand as reported by the UN Environment Programme (UNEP).

III-effects of sand mining

Sand is essential for the maintenance of rivers. Indiscriminate and excessive mining of sand has recorded various ill-effects inasmuch as:

Excessive mining of sand affects the regular course of the river. A change in the course of a river causes river erosion which further leads to floods during monsoon.

Serious effects on the nearby wildlife which is dependent on the sandy banks for their survival.

Intrusion with the sand on the riverbed causes disturbance in the water, which is injurious to sea animals resulting in hindrances/difficulties to the population which relies on fishing for their livelihoods.

Removing coastal barriers leads to the exposure of beachside areas to floods, cyclones, and tsunamis.

Depletion of sand in the riverbed resulting in the deepening of riverbeds and the widening of river mouths which increases the salinity of the water.

Riverbed becomes dry due to exposure to solar radiations.

Sand mining affects the homes and livelihoods of people living nearby.

Sand mining also destructs picturesque beaches.

Sand mining converts the riverbeds into large and deep pits which results in a fall in the groundwater index.

Sand mining has a straight impact on the physical characteristics of the stream, such as channel geometry, bed elevation, substratum composition, stability, flow velocity.

The impact of sand mining on environment could be summed up by the following figure:

sand mining business plan in india

Fig. 2: The impact of sand mining on environment Source: Science of the Total Environment 2

Besides the loss to habitat, illegal sand mining also causes violence. Villagers, media reporters, environment activists and government officers are brutally harmed and killed year after year when they raise objections to or take any action against illegal sand mining. In addition to rampant killings, there have been several instances where open threats were given to villagers, government officials, activists, and reporters. A study reflects that around 418 people died and 438 people got injured in India from December 2020 to March 2022 in sand mining cases. The highest number of deaths have been reported in North India (95), followed by 42 in West and Central India, 41 in East India and 15 in South India. 3

The causes of death are drowning in deep sand mining pits, the downfall of sand mounds, and the caving in of sand mines. Vehicles that are involved in sand mining business are often reported to be damaged by road accidents.

sand mining business plan in india

Fig. 3: Sand mining violence and accidents from December 2020 to March 2022 Source: SANDRP’s Report, April 2022

sand mining business plan in india

Fig. 4 : Statewise death toll due to sand mining related activities in India from December 2020 to March 2022 Source: SANDRP’s Report, April 2022

Workers operating in sand mines or stone quarries have an alarming exposure to several health hazards that can also become life threatening. They work without any proper safety gear and survive on meagre compensation. They mostly come from economically and socially weaker sections or tribal communities.

Excessive mining also leads to pits in riverbeds. These pits act as death traps that can lure children who are unmindful of the depth. Children visit riverbanks for playing or bathing or just for leisure and they slip inside these deep pits which ultimately leads to their death on the spot.

Sand mining in India

In India, rather than treating sand as a valuable natural source, it is often treated like a commodity. Sand mining in India has been making news mostly for notorious reasons. It has caused irreversible damage to the environment and virtually killed many of our rivers. Sand mining has led to the devastation of rivers like Narmada, Chambal, and Betwa in Madhya Pradesh. Similarly, in Kerala, Bharathappuzha River has fallen victim to sand mining. Gujarat, Karnataka, and Tamil Nadu have also reported about the negative impact that is the result of sand mining across their rivers. 4 The expansion of real estate and infrastructure industries has fuelled the need for excessive sand mining. indiscriminate sand mining against the laws of nature has become a serious threat to our environment. There has been a constant temptation on the part of unscrupulous persons to extract more and more quantity of sand while discarding regulations and environmental concerns. The lack of proper monitoring technology for river sand mining has led to widespread illegal mining.

A report on ABC Foreign Correspondents states that “… the sand mining business in India offers employment to over 35 million people and it is valued at over $126 billion per annum. In the year 2015-2016, there were over 19,000 cases of illegal minor minerals including sand in the country….”

Legal regime in India

Mmdr act, 1957.

Sand has been notified as a “minor mineral” under Section 3( e ) of the Mines and Minerals (Development and Regulation) Act of 1957 5 5 (hereinafter referred to as “the MMDR Act”). The term “ordinary sand” that is used in clause ( e ) of Section 3 of the MMDR Act, 1957 has been given a clear understanding through Rule 70 of the Mineral Concession Rules, 19606 6 as follows:

70. Sand not be treated as minor mineral when used for certain purposes. — Sand shall not be treated as a minor mineral when used for any of the following purpose, namely:

(i) purposes of refractory and manufacture of ceramic;

(ii) metallurgical purposes;

(iii) optical purposes;

(iv) purposes of stowing in coal mines;

(v) for manufacture of silvicrete cement;

(vi) for manufacture of sodium silicate; and

(vii) for manufacture of pottery and glass.

Section 15 of the MMDR Act states that “the State Government may, by notification in the Official Gazette make rules for regulating the grant of quarry leases, mining leases or other mineral concessions in respect of minor minerals and for purposes connected therewith”. 7 Further, Section 23-C of the MMDR Act states that:

“The State Governments may, by notification in the Official Gazette, make rules for preventing illegal mining, transportation and storage of minerals and for the purposes connected therewith.” 8

Acting in accordance with the provisions of Section 23-C of the Act, 21 State Governments, namely, Andhra Pradesh, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Nagaland, Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, Uttarakhand, and West Bengal have brought forward rules to control the menace of illegal mining. 22 State Governments have set up task forces at State and district levels to curb illegal mining and assess the action taken by departments for checking the illegal mining activities at State and district levels. 9

Section 4 of the Act specifically states that mining without necessary permits is illegal. This includes sand mining also. 10

An amendment was brought forward in 2015 to the MMDR Act, 1957. 11 The amendment was enforced on 12-1-2015. The Amendment Act has increased punishment for illegal mining that now exceeds to imprisonment for up to five years and fine that may extend to five lakh rupees per hectare of the area. 12 Provisions have also been included in the Act to set up Special Courts that help in providing speedy trial of offences relating to illegal mining.

Under this Act, a statutory obligation is cast upon the State Governments to enact laws and adopt rules that govern mining activities; there is a lack of consistency from State to State. Many States have framed different regulations in respect of minor minerals which give rise to inconsistencies and chaos.

Environment Protection Act, 1986

Environment Impact Assessment Notification, 2006 was issued by the Central Government under the provisions of the Environment Protection Act, 1986. 13 As per the notification, “the mining of minerals with a lease area of five or more hectares would require prior environmental clearance”. 14 The notification however does not clearly point out any difference between the major or minor minerals.

Natural resources belong to the public, and they are an asset to the nation as a whole. The doctrine of public trust extends to natural resources also and it rests on the important principle that certain resources like air, sea, water, and forests are of great importance to the public. Mining of sand from the riverbeds without licence or permit thus constitutes an offence of theft of minerals under Sections 378 and 379 of the Penal Code, 1860 as natural resources are also the property of the public, and the State is its trustee. 15

In 2016, the Ministry of Environment, Forests and Climate Change (MoEFCC) has recently issued Sustainable Sand Mining Management Guidelines, 2016. 16 Apart from laying importance on sustainability in sand mining and monitoring of sand mining activities, the guidelines also focus on the conservation, protection and restoration of ecological systems while maintaining river equilibrium. The salient features of the guidelines are as follows:

It is aimed to ensure that sand and gravel mining is done in an environmentally sustainable and socially responsible manner.

Implementing safeguards for checking illegal and indiscriminate mining.

Monitoring system for sustainable sand mining.

To improve the effectiveness of monitoring of mining and transportation of mined-out material.

Its object is to ensure the conservation of the river equilibrium and its natural environment by protection and restoration of the ecological system.

To ensure the rivers are protected from bank and bed erosion beyond their stable profile.

Streamlining and simplifying the process for grant of environmental clearance (EC) for sustainable mining.

Prevent groundwater pollution by prohibiting sand mining on fissures where it works as a filter prior to groundwater recharge.

Streamlining and simplifying the process for grant of environmental clearance for sustainable mining.

In the recent past, there has been an upsurge in the number of illegal mining cases. Illegal mining constitutes loss of revenue to the State, and degradation of the environment apart from causing annoyance and law and order situations. Adhering to the need to monitor mining activities, particularly sand mining, the Ministry of Environment, Forest and Climate Change (MoEFCC) has brought forward the Enforcement and Monitoring Guidelines for Sand Mining, 2020. 17

The main objective of these Guidelines is to regulate sand mining in the country and to control the instance of illegal mining. The salient features of the guidelines are as follows:

Effective monitoring of sand mining from the identification of sand mineral sources to its dispatch and end use by consumers and the general public and look at a uniform protocol for the whole country.

Constant monitoring of mining activity is to be done by drones and night surveillance.

Auditing of rivers by the State.

Dedicated task forces at district levels should be set up by the States which shall prepare district survey reports.

Conducting a replenishment study for the riverbed by the State to minimise the adverse impacts arising due to excessive sand extraction.

Prohibition of riverbed mining during monsoon seasons.

Other than these guidelines and statutes at the Central level, each State has also implemented their own policies and legislations in consonance with the MMDR Act, 1957, and the Guidelines of 2016 and 2020.

Of late the issues relating to sand mining has also engaged attention of higher judiciary and National Green Tribunal (NGT). Over the recent past, the courts particularly the Supreme Court and NGT has dealt the cases of illegal extraction sand with heavy hands. The courts have tried to address the lacuna, loopholes, and tendency of vested interests to evade the rigour of law in the following cases:

In A. Chidambaram v. District Collector 18 , the High Court of Madras held that:

“… the Tamil Nadu Government to ban the removal or extraction of sand from rivers where the present sand bed level is below the required level as fixed by the State because such activities were causing environmental degradation in that area….”

Similarly, in Paristhithi Samrakshana Sangham v. State of Kerala 19 , the High Court of Kerala held that:

… when the Government is presented with a choice between irreparable injury to the environment and severe damage to economic interests, protection of the environment would have precedence. No permit shall be given to any person for sand mining in the area concerned unless a sand audit is conducted.”

The courts through their decisions from time to time have been encouraging the Government on the Centre as well as the State level to impose conditions on sand mining activities in India. The High Court of Kerala in Soman v. Geologist 20 held:

… the principle of sustainable development is now a part of environmental jurisprudence, flowing from Article 21 of the Constitution of India , and hence the State is bound to impose any conditions while granting the permit for sand mining.…

The Supreme Court in Deepak Kumar v. State of Haryana 21 heard challenges to auction notices issued by the Department of Mines and Geology, Government of Haryana which invites bidders to participate in the auction for extraction of minor minerals not exceeding 4.5 hectares in each case. The notices were challenged to be violative of the Environmental Impact Assessment Notification, 2006 which specifies that the authority concerned requires prior environmental clearance before granting of mining leases of area equal to or more than 5 hectares. In the auction notices by Haryana Government, an attempt was made to defy the EIA Notification by dividing the land into pieces and reducing the area of each piece to less than 5 hectares. Taking note of the matter, the Court ordered Central Empowered Committee (CEC) to make a local inspection with respect to alleged illegal mining in U.P., Rajasthan, and Haryana and also whether there is an attempt to defy the EIA Notification of 2006 by breaking the area into pieces of less than 5 hectares to escape the required environmental impact assessment. The CEC submitted a detailed report on the matter, but the report was silent on the issue of illegal mining and its impact on the environment and whether the said notices were an attempt to flout the notification of EIA. The Court observed that minor minerals were brought under the sphere of the EIA Notification of 2006. The MoEF noticed that the collective impact of mining of minor minerals was not taken into consideration. The MoEF constituted a core group wherein the Secretary (Environment and Forests) was the Chairman. The core group was constituted to look into the collective environmental aspects that are associated with the mining of minor minerals. The objectives of the core group were as under:

To take into consideration the collective impact of mining of minor minerals on the environment.

To bring forward safeguards that are required to control the adverse impacts of mining.

Lay down model guidelines that can address the pressing issue of mining as well as environmental concerns.

The following recommendations were then given by the MoEF:

Definition of minerals should be re-examined into major and minor categories.

There should be uniformity in the extent of the area to be granted for the mine lease and the time period of the lease. It was recommended that the minimum size of the mine lease should be 5 hectares and the minimum period of the mine lease should be 5 years.

It may be desirable to adopt a cluster approach in case of smaller mine leases.

Provision for preparation and approval of mine plan in the case of major minerals may appropriately be provided in the rules governing the mining of minor minerals by the respective State Governments.

There is a need to create a separate corpus which may be utilised for reclamation and rehabilitation of mined out areas.

Detailed hydrogeological report should be prepared in respect of any mining operation for minor minerals.

Model mineral concession rules may be framed for minor minerals as well and the minor minerals may be subjected to a simpler regulatory regime.

The States/Union Territories were directed through this judgment 22 to give due weight to the recommendations given by MoEF which are made after due consultation with the State Governments as well as Union Territories. Further it was directed that on the lines of EIA Notification of 2006, even the leases of minor minerals including their renewal for an area of less than 5 hectares be granted by the States/UTs only after getting prior environmental clearance from MoEF.

In Anjani Kumar v. State of U.P. 23 , the following directions were passed by the NGT with respect to sand mining:

Obtaining environmental clearance shall be a condition precedent to carrying on of the mining activity or execution of the lease.

The State Government and all its agencies and instrumentalities would ensure that the protection and replenishment of natural resources including sand is duly provided for in the mining lease.

The State Government and its instrumentalities shall also ensure that the terms and conditions of the mining lease would contain all the relevant clauses to carry out sustainable mining.

The National Green Tribunal, expressed its deep concern with regard to illegal sand mining in Anumolu Gandhi v. State of A.P. 24 The Tribunal has held that:

… it is the duty of the Government to provide complete protection to the natural resources as a trustee of the public at large. All unregulated sand mining that is being conducted without following the prescribed procedure in the State of Andhra Pradesh should be prohibited….

In State of Bihar v. Pawan Kumar 25 , the three-Judge Bench of the Supreme Court observed that:

“… a total ban on legal mining of sand, apart from giving rise to illegal mining, will also cause huge loss to the public exchequer. The following directions are thereby issued:

1. The District Survey Reports for the purpose of mining in the State of Bihar shall be undertaken afresh.

2. The reports shall be prepared by undertaking site visits and also by using modern technology.

3. The draft reports shall be examined by the State Expert Appraisal Committee which shall consider the grant of approval.

4. A strict adherence to the procedure and parameters laid down in the policy laid down in 2020 i.e. Enforcement and Monitoring Guidelines for Sand Mining.”

The Supreme Court in Bajri Lease Lol Holders Welfare Society v. State of Rajasthan 26 held that:

“… unabated illegal mining has resulted in the emergence of the sand mafia who conduct illegal mining in the manner of organised criminal activities and have been involved in brutal attacks against members of local communities, enforcement officials, reporters and social activists who dare object to unlawful sand excavation. Section 21(5) of the Mines and Minerals (Development and Regulation) Act, 1957 empowers the State Government to recover the price of the illegally mined mineral, in addition to recovery of rent, royalty or tax, that the penalty recommended by the Central Empowered Committee for illegal sand mining would be in addition to the penalty that can be imposed by the State Government in terms of Section 21(5) of the Act. The report also mentioned that the compensation/penalty/value of sand needs to be recovered in respect of illegal sand mining as below:

( a ) compensation for environmental damage;

( b ) value of the vehicles to be realised before release;

( c ) recovery of value of the illegally mined sand; and

( d ) the above compensation will be over and above any penalty imposed as per existing rules or provisions.”

Illegal mining

The Supreme Court in the judgment given in Common Cause v. Union of India 27 as:

mining operations undertaken by any person in any area without holding a mining lease and any other mining operation conducted in violation of the terms of the mining scheme, the mining plan, and the mining lease as well as the statutes such as the Environment (Protection) Act, 1986 , the Forest (Conservation) Act, 1980 28 , the Water (Prevention and Control of Pollution) Act, 1974 29 , and the Air (Prevention and Control of Pollution) Act, 1981 30 and the Wild Life Protection Act, 1972 31 .

Even after several suggestions by the courts as well as tribunal, the States have not come up with an effective mechanism to keep a check on illegal sand mining. On the contrary, some of the State Governments have found out ways to mould the legal mandates under the influence of pressure groups.

Compensation in cases of illegal sand mining

There is no law or mechanism by which compensation can be extracted from the miners to remedy the loss done by illegal mining.

Compensation for illegal mining is to be subjected to Sections 21(1) and (5) of the MMDR Act, 1957. Section 21(1) imposes a penalty for contravention of the provisions of sub-section (1) or sub-section (1-A) of Section 4 which requires due compliance with the terms and conditions laid down in reconnaissance permit, or a prospecting licence or a mining lease. Section 21(5) imposes a penalty on any person who without any lawful authority extracts any mineral from any land.

The topic of compensation for illegal mining was untouched till the decision of the NGT (Principal Bench), New Delhi by order dated 5-4-2019 in National Green Tribunal Bar Association v. Virender Singh (State of Gujarat) 32 , a case related to illegal sand mining from riverbeds in different States, constituted a committee which comprised of representatives of Ministry of Environment, Forest and Climate Change, Government of India (MoEF&CC), Central Pollution Control Board (CPCB), Indian Institute of Forest Management, Bhopal (IIFM), Institute of Economic Growth, New Delhi (IEG) and Madras School of Economics (MSE). The Committee was constituted with an objective to:

57 . … prepare a scale of compensation, after including the components mentioned in the order, which can be adopted in the whole of country…. The nodal agency for compliance and contribution is CPCB. The Committee may also take professional service of an expert/institution in the matter if it so desires. 33

In view of this order of the NGT, the Committee prepared a report to suggest a scale of compensation to deal with cases of illegal sand mining in the whole of the country.

The Committee suggested that owing to the reality of ongoing economic activities causing ecological damages implies that the adoption of the polluter pays principle can be a way ahead for raising the resources for undertaking restoration activity to the maximum extent possible. Ideally, the compensation can be determined by making an independent assessment of each river or water body, but till the time such extensive research is being done, the Committee suggested that two approaches can be used to determine compensation. The two approaches are:

Direct compensation . ——The compensation under this approach is based on three distinct criteria:

( i ) Exceedance factor: The amount of penalty charged should be in proportion to the extent of the illegal extraction of material.

( ii ) Risk factor: It reflects the severity of the ecological damages. Risk factor accounts for the extent of severity of damages.

( iii ) Deterrence factor: The greater the extent of extraction, the greater the likelihood of cumulative adverse impact. This factor holds the miners accountable in a way that deters them.

Net payment value (NPV) approach. ——Total benefits from the activity of sand mining (as represented by the market value of the extracted amount) are deducted from the total ecological costs imposed by the activity.

The above two approaches are interim recommendations for compensation to be charged.

Even after these recommendations of the Committee, the compensation is being charged in their contravention. Recently in Radhamohan Singh v. State of Odisha 34 , the penalty was imposed arbitrarily as an exorbitant lump sum amount without taking into consideration any parameters that determine the compensation. The approaches recommended by the Committee were interim direction and not to be regarded as binding precedent for each and every future case. It is imperative to point out there should be appropriate law, principles on the basis of which quantum of compensation should be derived.

Sand mining over the world

International and regional frameworks are in place to prevent illegal sand mining, however, despite their existence, they have not been able to prevent this menace. There is a lack of any stringent law on the point and accountability of the wrongdoers. Currently, 200 above international treaties exist that are signed between countries, and their main aim is to restrict and regulate mining activities while keeping in mind environmental concerns. The two most important international treaties that govern sand mining are:

UN Convention on the Law of the Sea (UNCLOS)

Adopted on 10-12-1982, this Convention has been ratified by 162 countries now. It lays down the rules that adhere to the usage of maritime resources. Part XII of the Convention deals with the protection and preservation of marine ecosystems and aquatic wildlife.

Articles 208 and 214 of the Convention impose a duty on the States to create and enforce laws and regulations that help in preventing, reducing, and controlling pollution in the marine environment that has been caused by activities like sand mining. 35

Article 194(2) of the Convention directs the State to take necessary steps to ensure that the mining and extraction activities undertaken by them are not carried out in a manner that would result in damage to other States and their environment. 36

Convention on Biological Diversity (CBD)

Adopted on 22-5-1992, this Convention was enforced on 29-12-1993 and its aim is to encourage teamwork among countries to defend and protect biodiversity in marine environments while putting in the efforts that are required for the restoration of tarnished ecosystems.

Article 3 of the Convention states that the States could still retain and pursue the right to exploit their resources, but they will be obligated to do so in a responsible manner and ensure that they do not cause any damage to the environment that comes within their jurisdiction, or in the jurisdiction of other States. 37

Articles 5, 6 and 7 of the Convention seek cooperation among States to bring forward conservation strategies and programmes for safeguarding sustainable use of natural resources, while on the same hand identifying, monitoring, and restoring those environments which have been drastically damaged as a result of incessant mining. 38 Article 7, in particular obligates the member States to identify, monitor and assess the impact of sand mining and other activities on the environment. 39

Sand mining in a few countries

Way forward.

Excess of anything can lead to a disaster, so is the case with sand mining which has caused severe adverse effects. The UNEP has outlined the following recommendations to avert a sand crisis –

sand mining business plan in india

Fig. 3: Recommendations to avert sand crisis Source: UNEP 40

Another way to avert the sand crisis would be to bring in alternatives that can easily replace sand and not hinder the development process. Some of the alternatives are:

Manufactured sand

Manufactured sand (hereinafter referred to as the “M-sand”) is a form of manmade sand that is made by crushing hard stones into a fine powder, which is then washed and finely graded. M-sand is widely used as a replacement of ordinary sand for construction purposes. The construction industry is growing on a fast pace which has led to a great increase in the demand for sand. To meet the ever-increasing demand, the sand is being extensively exploited. M-sand does not comprise of any impurities such as clay, dust, and silt coatings. The physical properties of M-sand such as its shape, surface texture, and consistency make it suitable for construction work. Using M-sand for construction purposes has results like increase in durability, more strength, and reduction in segregation, permeability, increased workability, and is economical as a construction material. An added advantage is that M-sand is more eco-friendly than ordinary sand.

However, M-sand also comes with its flaws. It requires more water due to its shape and texture which thereby increases its overall costs. Also, M-sand contains a lot of micro fine particles that affect the strength and workability of concrete.

Copper slag

The extraction of copper metal in refineries results in the production of waste material which is also known as copper slag. Currently, approximately 33 million tonnes of copper slag is generated annually all over the world. India contributes 6-6.5 million tonnes to this total. A publication titled Cement and Concrete Composites and Construction and Building Materials in 2006 41 gave certain recommendations on the replacement of sand in the construction field. Sand can be replaced by 50 per cent copper slag to obtain concrete that has good strength and durability. A study was undertaken by the Central Road Research Institute (CRRI) which bears proof of the fact that copper slag can become a replacement for sand.

In Singapore, copper slag has been substituted for sand in the production of concrete. The “ready mixed concrete” companies use it. The use of copper slag as a substitute for sand has opened the door to the incorporation of more recycled/waste materials in concrete production.

Granulated blast furnace slag (GBFS)

Granulated blast furnace slag is a waste product that is produced during the processes carried out in the steel industry. This waste product can be upcycled to be used as cement. The working group on cement industry informed that approximately 10 million tonnes of blast furnace slag are currently being produced in India from the iron and steel industry. M.C. Nataraja reported in a study published in the International Journal of Structure and Civil Engineering Research in May 2013 42 , that according to the obtained data, the replacement of sand with granulated blast furnace increases the strength of cement mortar. Use of GBFS in the construction field up to 75 per cent is acceptable.

Coal combustion leaves behind a material at the bottom of furnaces which is known as bottom ash. It is coarse, granular, and incombustible in nature. India is currently generating around 100 million tonnes of coal ash. Out of this total, approximately 15-20 per cent is bottom ash and the rest constitutes fly ash. The mechanical properties of special concrete that constitutes of 30 per cent replacement of natural sand bottom ash has an optimum usage in concrete that delivers good strength. 43

Quarry dust

Quarry dust is a product that occurs as a result of the crushing process which is a concentrated material to be used as aggregates for concrete purposes. Waste material-quarry dust constitutes about 20 to 25 per cent of the total production that is undertaken in each crusher unit. Chandana Sukesh in his study published in the International Journal of Innovative Technology and Exploring Engineering in May 2013 says that:

the ideal percentage of the replacement of sand with the quarry dust is 55 per cent to 75 per cent in case of compressive strength. If combined with fly ash (another industrial waste), 100 per cent replacement of sand can be achieved. The use of fly ash in concrete is desirable because of benefits such as useful disposal of a by-product, increased workability, reduction of cement consumption, increased sulfate resistance, increased resistance to alkali-silica reaction and decreased permeability”. 44

Foundry sand

Foundry sand is a by-product of the production of both ferrous and non-ferrous metal casting industries. It is a high-quality silica sand. According to the 42nd Census of World Casting Production of 2007, India comes fourth in terms of total foundry sand production i.e. 7.8 million tonnes. Foundry sand has very high silica content and is regularly disposed of by the metal industry. Presently, there is no mechanism in place for its efficient disposal, but international studies point out that up to 30 per cent foundry sand can be used for the economical and sustainable development of concrete that is used for construction purposes.

Construction and demolition waste

The amount of construction and demolition (C&D) that is generated in India has not been accounted for. The Municipal Corporation of Delhi says it is collecting 4000 tonnes of C&D waste daily from the city which amounts to almost 1.5 million tonnes of waste annually in the city of Delhi alone. Recycled sand aggregate from C&D waste can be used as a replacement to the ordinary sand as it is said to have 10-15 per cent lesser strength than normal concrete and can be safely incorporated in non-structural applications like flooring and filling.

Suggestions and recommendations

The author puts forward the following suggestions for the implementation of sand mining regulations in India:

I3MS stands for integrated mines and mineral management system. This portal was developed by Odisha Government to enable the Department of Steel and Mines officials to regulate mining activities through electronic mode. It provides complete details like the name of the lessee, the location of the leased land, the area of the land, and the mineral being extracted. A similar system should be developed for minor minerals like sand to keep a check on sand mining throughout the country. Such a system will provide uniformity in the matters of sand mining.

State Government is duty-bound to make regulations regarding sand mining. Some of them have diligently made regulations to govern sand mining in their state. However, some States are still lagging and have not brought forward any regulations to regulate sand mining.

Illegal sand mining is all the rage these days. To control this, the vehicles that are used in the sand mining process should be pre-registered on the portal and they should be GPS enabled so that it is easier to keep a track of them. A transit pass may be issued by the authorities to the lessee/contractor/permit holder/mineral dealer for lawful transportation and dispatch of excavated sand.

Section 20-A 45 of the MMDR Act, 1957 which was incorporated by 2015 Amendment to the Act, gives to the Central Government the power to issue directions to the State Governments, for the efficient conservation of mineral resources, or on any policy matter that affects the national interest, and for the scientific and sustainable development and to prevent exploitation of mineral resources. The Central Government should exercise this power to control the menace of illegal sand mining and bring minimum standards and regulations in sand mining activities.

Sand has been wrongly categorised as a minor mineral under Section 3( e ) of the MMDR Act, 1957. Sand mining is done on riverbeds and rivers cross several States thus sand mining should not be solely regulated by the State Governments. Sand should be brought under the category of major minerals and the Centre should regulate all operations relating to sand mining. The Centre should frame guidelines that uniformly apply to sand mining in all the States.

Section 23-C of the MMDR Act, 1957, gives power to the State Government to make rules for avoiding illegal mining, transportation, and storage of minerals. The State Government should exercise this power to control illegal sand mining and bring in regulations to curb the same.

The end consumer who is purchasing sand should be able to produce a bill for the same otherwise the dealing would be termed illegal.

The legal regime presently in place in several States regulates sand as a minor mineral. Stringent provisions are in place that require the mining industry to ensure that their activities are not harmful to the environment. The regulatory authorities keep a check on the effect on the environment of both proposed and existing sand mining projects. The State authorities have the power to close certain areas where sand mining is being conducted, delineate the maximum amount of sand that can be extracted from a particular area and monitor the overall impact that mining has on the environment. Despite such a strong legal framework, the sand mining sector has largely been left unregulated.

The authorities at the State level have failed to enforce laws and it is a common practice by mining authorities to grant mining leases or permission without any regard to environmental factors. Therefore, it is important aspect to regulate sand mining and bring about a law for ousting sand mafias from sand mining.

Quarrying of river sand is an important economic activity as river sand is the most vital raw material for the expansion of infrastructure and the construction industry. However, extreme sand and gravel mining led to the deprivation of rivers. The reduction of sand in the riverbed causes the deepening of rivers which results in the destruction of aquatic life.

It is extremely necessary to have an effective framework that regulates sand mining and considers the environmental issues associated with it. Sand mining leads to a negative impact on biodiversity. It causes loss of aquatic habitat and also destabilises the soil bed structure of riverbanks and leaves behind deserted islands. These technical, scientific, and environmental matters should be taken note of, and Governments should come up with rules and regulations that can keep a check on illegal sand mining. On the technological front, India is on a high rise, and a lot of development has taken come forward in remote monitoring and surveillance in the field of mining. Hence, it is fair to take advantage of the technological progression and use it to keep an effective check on mining activities, especially sand mining.

†Advocate-on-Record, Supreme Court of India. Author can be reached at [email protected] .

1. Marco Hernandez, Simon Scarr and Katy Daigle, “The Messy Business of Sand Mining Explained”, Reuters Graphics (18-2-2021) < https://graphics.reuters.com/GLOBAL-ENVIRONMENT/SAND/ygdpzekyavw/ >.

2. Science of the Total Environment Vol. 838, Part 1, 10-9-2022, 155877, < https://doi.org/10.1016/j.scitotenv.2022.155877 >.

3. The South Asia Network on Dams, Rivers and People (SANDRP) Report, April 2022.

4. Proloy Bagchi, “Unregulated Sand Mining Threatens Indian Rivers”, Environment, Boloji.com (14-2-2010).

5. Mines and Minerals (Development and Regulation) Act, 1957, S. 3 .

6. Mineral Concession Rules, 1960, R. 70 .

7. Mines and Minerals (Development and Regulation) Act, 1957, S. 15 .

8. Mines and Minerals (Development and Regulation) Act, 1957, S. 23-C .

9. Press Information Bureau, Recent Initiatives of Mines Ministry to Check Illegal Mining, Press Release dated 28-3-2022. < https://pib.gov.in/Pressreleaseshare.aspx?PRID=1810555 >.

10. Mines and Minerals (Development and Regulation) Act, 1957, S. 4.

11. Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015 .

12. Mines and Minerals (Development and Regulation) Act, 1957, S. 21 .

13. Environment (Protection) Act, 1986 .

14. Environment Impact Assessment Notification, 2006, S.O. 1533(E) dated 14-9-2006.

15. Penal Code, 1860, Ss. 378 and 379 .

16. Ministry of Environment, Forest and Climate Change, Sustainable Sand Mining Management Guidelines, 2016 < http://environmentclearance.nic.in/writereaddata/SandMiningManagementGuidelines2020.pdf >.

17. Ministry of Environment, Forest and Climate change, Enforcement & Monitoring Guidelines for Sand Mining (29-1-2020).

18. 2017 SCC OnLine Mad 31686 .

19. 2009 SCC OnLine Ker 1601 .

20. 2004 SCC OnLine Ker 510 .

21. (2012) 4 SCC 629 .

22. Deepak Kumar v. State of Haryana , (2012) 4 SCC 629 .

23. 2017 SCC OnLine NGT 979 .

24. 2019 SCC OnLine NGT 1712 .

25. (2022) 3 SCC 102 .

26. 2019 SCC OnLine Raj 2754 .

27. (2017) 9 SCC 499 .

28. Forest (Conservation) Act, 1980 .

29. Water (Prevention and Control of Pollution) Act, 1974 .

30. Air (Prevention and Control of Pollution) Act, 1981 .

31. Wild Life Protection Act, 1972 .

32. 2019 SCC OnLine NGT 1488 .

33. National Green Tribunal Bar Assn . v . Virender Singh (State of Gujarat) , 2019 SCC OnLine NGT 1488 .

34. 2022 SCC OnLine NGT 277 .

35. UN Convention on Law of the Sea,1982, Arts. 208 and 214 .

36. UN Convention on Law of the Sea, 1982, Art. 194(2).

37. Convention on Biological Diversity, Art. 3 .

38. Convention on Biological Diversity, Arts. 5, 6 and 7 .

39. Convention on Biological Diversity, Art. 7 .

40. United Nations Environment Programme, Sand and Sustainability: 10 Strategic Recommendations to Avert a Crisis, UNEP Publications, < https://wedocs.unep.org/20.500.11822/38362 >.

41. Cement and Concrete Composites and Construction and Building Materials in 2006 < https://www.sciencedirect.com/journal/cement-and-concrete-composites >.

42. M.C. Nataraja, P.G. Dileep Kumar, A.S. Manu, and M.C. Sanjay, “Use of Granulated Blast Furnace Slag as Fine Aggregate in Cement Mortar”, International Journal of Structural and Civil Engineering Research (May 2013), Vol. 2(2), 59-68.

43. International Journal of Sustainable Construction Engineering and Technology.

44. Chandana Sukesh, Katakam Bala Krishna, Sri Lakshmi Sai Teja and S. Kanakambara Rao, “Partial Replacement of Sand with Quarry Dust in Concrete”, International Journal of Innovative Technology and Exploring Engineering (2013), Vol. 2(6), 254-258.

45. Mines and Minerals (Development and Regulation) Act, 1957, S. 20-A .

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sand mining business plan in india

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Why the supreme court order on sand mining is a relief for rajasthan, the past few years had seen rampant illegal sand mining in rajasthan, stoking corruption and violence.

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Why the Supreme Court order on sand mining is a relief for Rajasthan

In an instance of violence, on November 12, an angry mob tried to burn alive a tractor driver and his three accomplices allegedly involved in illegal sand mining after they had accidentally mowed down two brothers travelling on a bike to a school in Dholpur. The men were rescued by the police.

The lifting of the ban is a major relief for the state government, people and stakeholders of the mining industry. It is expected to reduce sand prices by a third—from Rs 12,000 a trolley to Rs 8,000—and double the annual revenue of the Rajasthan government from mining to Rs 500 crore. Chief Minister Ashok Gehlot has often conceded that the ban on mining has given rise to corruption in the government system.

The apex court expressed concern about the damage to environment from illegal mining. “Unabated illegal mining has resulted in the emergence of sand mafia, who have been conducting illegal mining in the manner of organised criminal activities and have been involved in brutal attacks against members of local communities, enforcement officials, reporters and social activists objecting to unlawful sand excavation,” the bench said. The SC said the statistics provided by the Rajasthan government highlighted the magnitude of the problem as about 2,411 FIRs related to illegal mining had been registered in Rajasthan between November 16, 2017 and January 30, 2020.

The ban on sand mining in the state had followed partial bans and rigid conditions that changed from time to time since 2012. But the implementing departments at the state and central government levels were seen as dragging their feet on finding a long-term solution to the problem.

The intention of the apex court was to save rivers when it first took up cases related to illegal mining and delivered a verdict in 2012 in the case Deepak Kumar vs Government of Haryana . It ordered implementation of reports of a core group constituted in 2009 by the ministry of environment, forest and climate change (MoEFCC); the model guidelines on ‘Environmental Aspects of Quarrying of Minor Minerals’ formulated in 2010 for sustainable mining of minor minerals; and the draft rules titled ‘Minor Minerals Conservation and Development Rules, 2010’.

However, the condition of getting environmental clearance from MOEFCC, which demanded a replenishment study of river (from where sand was to be extracted), created most of the problems. There was no designated agency and standard procedure to carry out studies as to how sand is replenished in Rajasthan’s rivers; also any study meant for mountains could not necessarily apply to a state with little rain and few perennial rivers. The Rajasthan government granted temporary mining permits, awaiting completion and approval of replenishment studies.

Initially, the Supreme Court allowed such permits but the sand produced legally was not enough to meet the state’s needs. A scarcity of sand had started building up, leading to prices escalating and illegal mining. Further, the CEC found that the state government circumvented the total ban by allowing sand mining on farmers’ land. But most such permits were given too close to rivers. Since the agricultural lands do not have deposits of quality sand suitable for construction, such permit holders actually excavated sand from the river bed instead of restricting the mining to their leasehold areas—in violation of the mining plan.

Now the apex court has prohibited such permits. It has ordered that MoEFCC issue environmental clearance in respect to all valid permission-holding miners within three months, without insisting on submission of the scientific replenishment study report as a pre-condition for the grant of the clearance. The replenishment study will be undertaken during the course of mining.

sand mining business plan in india

India Sand Watch platform launched to monitor sandmining in India

sand mining business plan in india

Technology and activism join hands to monitor sandmining in India

A West Bengal-based non-profit organisation has launched a new platform ­– India Sand Watch that aims at monitoring  legal and illegal sand mining operations in the country.

Sand mining is becoming a big business with sand increasingly being an essential component in the construction industry in India. The sand mining industry was valued at INR 150 billion (USD 2 billion) in 2019 and the sand market is expected to grow at a compound annual rate of 6.2 percent between 2023 and 2028 in India.

There are no official estimates of how much sand is being mined in India, and how much of it is legal or illegal and the nor of the share of legal versus illegal extraction within the industry. Since sand from deserts and the seabed is not suitable due to its shape and strength, it is the rivers that are in the line of fire with major rivers like the Ganga, Yamuna, Narmada, Jhelum and Brahmaputra being dredged to extract sand for concrete. As if this is not enough, sand is also being extracted from smaller tributaries such as the Sone in Bihar and the Rambi Ara in Jammu and Kashmir, and smaller rivers like the Gaula in Uttarakhand. 

This is spelling doom for the health of rivers in the country by leading to eroded riverbanks and loss of biodiversity to disrupted sedimentation processes and altered river courses. A total of 124 people in India’s eastern states have died in accidents and violence related to sand mining.

Created by Kolkata’s Veditum India Foundation, India Sand Watch aims at becoming a one-stop destination for information on sand mining in the country and at helping people find sandmining locations, their legal status, their impacts on local communities and rivers, as well as any related legal aspects ( Third Pole ).

Centre of excellence on membrane technologies for desalination, water recycling and brine management launched

The Indian Institute of Technology (IIT) Bombay, has launched a new Centre of Excellence on membrane technologies for desalination, water recycling and brine management along with the unveiling of the Centre’s new advanced instrumentation facility, as well as the website. The Centre aims at creating techniques and technologies for desalination, water reuse, and sustainable treatment, with the active participation of researchers from India and throughout the world. It will also aid the incubation and commercialisation of developed technology and products.

This marks a significant step towards ensuring safe, reliable and sustainable potable water sources for rural and urban India for industrial as well as domestic applications by using innovative membrane technologies. as the growing population, climate change, and rise in water shortages have increased the need for non-traditional freshwater sources.  In the future, seawater and wastewater will also be used to achieve the needed freshwater purity that is when desalination plants will be in demand.

Five IITs namely IIT Kharagpur, IIT Tirupati, IIT Bombay, IIT Delhi, and IIT Hyderabad will collaborate with diverse sectors, NGOs, and other stakeholders to develop various desalination, water recycling technologies and brine management ( News 18 ). 

Rock outcrops harbour unique biodiversity and need to be conserved, say studies

The northern Western Ghats and Konkan region of Maharashtra are composed entirely of Deccan flood basalts, except in the southernmost tip of the Konkan. Basalt is an igneous rock formed from the cooling of the Deccan Trap lava flows, which forms the base rock of the western part of Maharashtra. This in many areas, has hard layers near the soil surface which have very scanty soil cover and are often marked on topographic maps as rocky scrub, stony waste or sheetrock.

This geographical region lacks forest cover or enough vegetation and they have thus been classified as barren rocky or stony waste areas on the Wastelands Atlas of India. However, recent studies have found that this description completely overlooks the high biodiversity value some of these open natural ecosystems like rock outcrops hold. For example, rocky outcrops harbour unique life forms such as smaller crustaceans and insects and larger animals like snakes, crickets, grasshoppers that are unique and typical only to the rocky outcrops in the region.

Land use changes are threatening the survival of these unique animals. Availability of water is also found to be crucial for the survival of rock pool-dependent animals and change in rainfall patterns can have a lasting impact on these communities.

While habitat-level factors and evolutionary processes are important in shaping the diversity in this region, conservation efforts focused on the entire landscape are crucial to conserve the unique biodiversity in the region, warn the studies. ( Mongabay, India )

Start-ups are helping 35 cities in India reach their water security goals

Seventy six start-ups  selected under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 have started working with 35 cities towards their water security goals. After launching the “India Water Pitch-Pilot-Scale Start-Up Challenge” in March last year, the Union Housing and Urban Affairs Ministry, along with the Administrative Staff College of India (ASCI) as its partner, had in September 2022 selected 76 start-ups. 

The selected start-ups are being given Rs 20 lakh and have been assigned to work with cities, either with municipal corporations or the water boards. The start-ups have begun their work on the ground that involves using satellite data and heat sensing for detecting underground leaks to deploying robots to revive defunct borewells with some results being seen during this monsoon season ( The Indian Express ).

Ruza, a traditional water harvesting system in the Northeast can provide an answer to water woes in hilly regions

Ruza, a traditional water harvesting system practised in Kikruma, a rainshadow village in Nagaland’s Phek district could provide an answer to the water woes of rain deficient hilly regions, say experts. This unique indigenous system of irrigation and agricultural practice, popularly known as Zabo, is a time-tested unique water management practice that has been yielding good harvests for nearly a century. Ruza involves impounding run-off water in ponds, using gravity-based irrigation. The water harvesting ponds are located at a higher elevation and are connected to the fields at the lower elevations through narrow drains. 

Zabo is a small pit dug within a paddy patch, ideally used for rearing fish. However, Ruza is a larger pond spreading to about 0.2 hectares, used for storing run-off water. The forest lands are the main catchment areas. The village residents cut channels in the forests and in catchment areas to channelise the rainwater to the ponds. Water flowing through the several steep village roads is also impounded by constructing speed breakers or placing stones and directed to the Ruza.

The Ruza or harvesting ponds are located at a higher elevation. These are connected to the paddy fields at the lower elevations through narrow drains, which are blocked with stones and earth until it is time to irrigate the fields.There are over 200 harvesting ponds in Kikruma and each is shared by multiple farmers to irrigate the adjoining fields.

The Ruza system is a communal practice and the water is shared among families and an integrated form of farming comprising forestry, horticulture, agriculture, fishery and animal husbandry is practised in the region. Adopting Ruza in other hilly terrains with limited rainfall could be a feasible and sustainable alternative in the agricultural sector, say experts ( Mongabay, India ).

This is a roundup of important news updates from August 1st to August 15th, 2023. 

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Sand Mining: Overview and Sources in India

Home » Sand Mining: Overview and Sources in India

  • December 27, 2023
  • GS-2 Governance

Recently, Bihar police arrested sand smugglers in a major crackdown against illegal sand mining.

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Dimensions of the Article:

Factors, Consequences, and Challenges in Sand Mining

Initiatives to prevent sand mining in india.

Definition:  Sand mining involves the extraction of primary natural sand and sand resources, including mineral sands and aggregates, from various natural environments such as terrestrial, riverine, coastal, or marine areas. The extracted materials are often valuable minerals, metals, crushed stone, sand, and gravel, which are then processed for various purposes.

Threats and Impacts:

Sand mining, driven by various factors, poses serious threats to ecosystems and communities.

Sources of Sand in India:

Sustainable Sand Mining Management Guidelines (SSMMG) 2016 identify the following sources of sand in India:

  • River:  From riverbeds and flood plains.
  • Lakes and Reservoirs:  Extraction from water bodies.
  • Agricultural Fields:  Sand sourced from fields.
  • Coastal/Marine:  Sand extracted from coastal and marine areas.
  • Palaeo-channels:  Historical river channels.
  • Manufactured Sand (M-Sand):  Artificially produced sand.

Factors Contributing to Illegal Sand Mining:

  • Inadequate Regulations and Enforcement:  Weak regulatory frameworks and enforcement mechanisms.
  • Construction Industry Demand:  High demand for sand in the construction industry.
  • Population Growth and Urbanization:  Rapid urbanization and population growth drive construction needs.
  • Corruption and Sand Mafias:  Influence of organized sand mafias and corrupt practices.
  • Collusion with Authorities:  Collusion between authorities and illegal operators.
  • Limited Adoption of Alternatives:  Insufficient adoption of sustainable alternatives like M-sand.
  • Ineffective Implementation of EIAs:  Lack of effective Environmental Impact Assessments (EIAs).
  • Limited Public Awareness:  Insufficient public awareness and monitoring mechanisms.

Consequences of Sand Mining:

  • Altered Riverbeds:  Changes in riverbeds, increased erosion, and disruption of habitats.
  • Stream Channel Instability:  Loss of stability in stream channels, threatening native species.
  • Flooding and Sedimentation:  Increased flooding and sedimentation in rivers and coastal areas.
  • Impact on Aquatic Ecosystems:  Altered flow patterns and sediment loads negatively affect aquatic ecosystems.
  • Groundwater Table Depletion : Deep pits from mining can cause a drop in the groundwater table.
  • Water Scarcity:  Affects local drinking water wells, contributing to water scarcity.
  • Habitat Disruption and Biodiversity Loss : Disruption of habitats leads to significant biodiversity loss.

Challenges:

  • Inadequate regulations, corruption, and lack of awareness contribute to the persistence of illegal sand mining, exacerbating environmental and societal consequences.

Mines and Mineral Development and Regulation Act, 1957 (MMDR Act):

  • Legal Classification:  Sand is categorized as a “minor mineral” under the MMDR Act.
  • State Control:  Administrative authority over minor minerals, including sand, rests with state governments.
  • Preventing Illegal Mining:  Section 3(e) of the MMDR Act focuses on preventing illegal mining, empowering the government to implement measures against illicit practices.
  • Recent Amendment:  The Mines and Minerals (Development and Regulation) Amendment Act, 2023, further strengthens regulations.

2006 Environment Impact Assessment (EIA):

  • Approval Mandate:  The Supreme Court mandates approval for all sand mining activities, even in areas under 5 hectares.
  • Ecosystem Protection:  Aimed at addressing the severe environmental impact of sand mining on ecosystems, including plants, animals, and rivers.

Sustainable Sand Management Guidelines (SSMG) 2016:

  • Issued by MoEFCC : Guidelines issued by the Ministry of Environment, Forests, and Climate Change (MoEFCC).
  • Environmentally sustainable and socially responsible mining.
  • Conservation of river equilibrium and natural environment.
  • Prevention of pollution in river water.
  • Avoidance of groundwater depletion.

Enforcement and Monitoring Guidelines for Sand Mining 2020:

  • Uniform Monitoring Protocol:  Provides a consistent protocol for monitoring sand mining activities across India.
  • Identification of sand mineral sources.
  • Dispatch procedures.
  • End-use monitoring.
  • Technology Integration:  Recommends the use of advanced surveillance technologies like drones and night vision for effective monitoring.

-Source: Indian Express

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Sand Mining

Last updated on November 3, 2023 by ClearIAS Team

sand mining

Sand mining is the extraction of sand from various sources, such as rivers, beaches, and seabeds, for use in construction, manufacturing, and other industries. Read here to learn more about it.

While sand is a valuable and essential resource, unregulated or unsustainable sand mining can have severe environmental, social, and economic consequences.

For the first time, the report Convergence of Wildlife Crime with Other Forms of Organized Crime: A 2023 Review , by the nonprofit Wildlife Justice Commission (WJC) has noted sand mining as a form of environmental crime .

Table of Contents

Sand mining

Sand, a raw material and second-most-used resource in the world is used to make concrete, asphalt, and glass. About 40-50 billion tonnes of sand resources are exploited each year, but their extraction is managed and governed poorly in many countries, the report stated.

  • The sand is extracted from rivers, coastal or marine ecosystems and has enormous environmental impacts mining causes erosion and directly affects communities and their livelihoods.
  • Indiscriminate extraction negatively impacts aquifers, reduces protection against storm surges, shrinks deltas, freshwater and marine fisheries, land-use changes, and biodiversity.

Despite the scale of the issue, no global treaties governing sand extraction are in effect and the environmental damage is reportedly perpetuated by illegal sand-mining operations, organized and operated by violent sand mafias.

Sand-mining killings from Indonesia, Kenya, Gambia, South Africa, and Mexico have been reported.

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Methods of Sand Mining

  • Riverbed Mining: This is the most common form of sand mining and involves the extraction of sand directly from riverbeds and floodplains. It often leads to the erosion of riverbanks and can have a significant impact on river ecosystems.
  • Beach Mining: Sand is often mined from beaches, especially in coastal areas with high tourism and construction demands. This can lead to the erosion of beaches, which threatens coastal communities and ecosystems.
  • Dredging: Dredging is the process of removing sand from the seabed or ocean floor using specialized equipment, such as dredgers. It is typically used for large-scale projects, such as harbor expansion.
  • In-Stream Mining: In-stream mining involves extracting sand from the river channel itself. This can disrupt the natural flow of rivers and harm aquatic life.

Environmental and Social Impacts

  • Habitat Destruction: Sand extraction can destroy river and beach habitats, which are critical for various aquatic species and nesting sea turtles.
  • Erosion: The removal of sand from riverbeds and beaches can lead to increased erosion and a higher risk of flooding in adjacent areas.
  • Water Quality: Sand extraction can cause the sedimentation of rivers and streams, leading to reduced water quality and impacting aquatic ecosystems.
  • Threat to Biodiversity: Many species depend on healthy river and coastal ecosystems. Sand extraction can disrupt their habitats and lead to declines in biodiversity.
  • Livelihoods: Coastal communities often rely on tourism and fishing, and sand mining can negatively affect these industries. It can also displace local communities.
  • Health and Safety: Sand extraction is often labor-intensive and can expose workers to hazardous conditions and respiratory issues due to dust and airborne particles.

Illegal sand mining

Illegal sand mining, also known as sand theft or sand poaching, refers to the unlawful extraction of sand from rivers, beaches, or other natural environments. It is a widespread environmental problem with significant ecological, social, and economic consequences.

Illegal sand extraction can have severe environmental consequences.

  • It disrupts river ecosystems, leading to erosion, loss of habitat for aquatic life, and alterations in river flow patterns.
  • It can also lead to the degradation of coastal areas, impacting coastal ecosystems and increasing the risk of erosion and flooding.
  • Sand is a finite and non-renewable resource, and illegal mining contributes to the depletion of this resource.
  • The excessive removal of sand can result in the loss of valuable sediment that helps maintain beaches, riverbanks, and deltas.
  • The extraction of sand from rivers can disturb aquatic ecosystems, harm fish breeding grounds, and contribute to the decline of aquatic species. This disruption can have cascading effects on local biodiversity.

Illegal sand extraction can have negative social and economic impacts on local communities.

  • It can lead to the displacement of communities that depend on riverbanks for their livelihoods, such as fishing and agriculture.
  • It can also exacerbate conflicts between various stakeholders, including sand miners, local communities, and government authorities.
  • Sand mining often involves hazardous working conditions, with workers at risk of accidents, injuries, and exposure to harmful substances. Unregulated mining operations can pose health and safety risks to workers and nearby communities.
  • The removal of sand from riverbeds can undermine the stability of bridges, embankments, and other infrastructure, leading to structural damage and maintenance costs.

The illegal sand trade often involves smuggling sand across borders and the operation of a black market. This can contribute to organized crime , money laundering , and corruption.

In India, sand extraction grew after the rapid urbanization brought on by the economic liberalization in the 1990s.

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Even though the country has sand mining laws in place, a lack of proper implementation and monitoring means that the riverbeds are constantly threatened.

Locals have complained about the impact of sand extraction on the migratory birds and fishes visiting River Yamuna.

Read Impact of sand mining on Indian Rivers (Down to Earth) for the grim picture.

Regulation and Control

Efforts to regulate and control sand extraction vary by region and country. Some common approaches include:

  • Licensing and Permitting: Requiring sand mining operations to obtain licenses or permits, which may include environmental impact assessments.
  • Zoning and Land Use Planning: Designating specific areas for sand extraction and excluding sensitive habitats.
  • Environmental Laws: Enforcing laws that protect natural resources, water quality, and ecosystems.
  • Monitoring and Enforcement: Regular monitoring and inspections to ensure compliance with regulations.

Sand is a minor mineral under Section 3(e) of the Mines and Minerals (Development & Regulation) Act, 1957 (MMDR Act) .

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  • Section 15 of the MMDR Act empowers the State Governments to make rules for regulating the grant of quarry leases, mining leases, or other mineral concessions in respect of minor minerals and for purposes connected therewith.
  • Hence, the regulation of minor minerals comes under the legislative and administrative domain of the State Governments.
  • Further, Section 23C of the MMDR Act empowers the State Governments to make rules for preventing illegal mining, transportation and storage of minerals and for the purposes connected therewith.

Ministry of Mines has prepared a ‘Sand Mining Framework’ in consultation with Mining Departments of the States incorporating best practices amongst States with the objectives of sustainability, availability, affordability, and transparency in sand mining.

  • The ‘Sand Mining Framework’ has been circulated to all the State Governments for necessary action.
  • Moreover, the Ministry of Environment, Forest & Climate Change has issued Sustainable Sand Mining Management Guidelines, 2016, which, inter-alia, addresses the issues relating to the regulation of sand mining.

According to the 2020 Sand Mining Regulations, the permission to extract sand given to any mining contractor would be audited mandatorily every two years based on the replenishment rate of sand and gravel after every monsoon. Further mining can be done only after this.

Way forward

To address the negative impacts of sand mining, various sustainable alternatives are being explored.

Researchers are investigating the use of alternative materials like recycled construction waste and crushed rock. Along with innovations, implementing environmentally friendly quarrying practices, such as reclamation and reforestation should be practiced.

Promoting responsible consumption and construction practices to reduce the demand for sand is also significant.

Overall, sand mining is a complex issue with economic, environmental, and social dimensions. Balancing the need for sand with responsible and sustainable mining practices is essential to mitigate its negative impacts and protect the environment and communities that depend on it.

-Article by Swathi Satish

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sand mining business plan in india

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    The India sand market attained 1,006.22 million tons in 2023. The market for sand in India is increasing at the rate of 6.50% annually in the forecast period of 2024-2032. ... government initiatives to prevent river sand mining and switching toward manufactured or crushed sand is expected to drive the market forward in the forecast period as ...

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    Develop a detailed business plan outlining your business goals, target market, funding requirements, production process, and marketing strategy. A well-structured plan will serve as a roadmap for your sand manufacturing business. 3. Legal and Regulatory Compliance. Check the legal requirements and regulations governing sand mining and ...

  6. PDF Ministry of Environment, Forest and Climate Change

    14 Management Plan 28 15 Marine Sand Mining and Impact on Marine Biodiversity 33 16 Reducing Consumption of Sand 34 17 The Report of the Committee headed by Secretary, MoEF - 2010 35 ... GOVERNMENT OF INDIA SUSTAINABLE SAND MINING MANAGEMENT GUIDELINES - 2016 11 Mining within or near riverbed has a direct impact on the stream's physical ...

  7. Riverbed Mining India 2021 Overview: Govts' Changing ...

    The state government incurs an average annual loss of up to Rs 700 crore due to illegal sand mining, M&G department Minister Janak Ram said. As per the details available on the official website of the M&G department, sand mining is the biggest source of revenue for the state government generating Rs 428.06 crore revenue in 2015-2016 and Rs 457.65 crore in 2016-2017.

  8. Sand Mining in India, Illegal Mining, Causes and Effect

    Illegal Sand Mining. Illegal sand mining in India is a crime under Sections 378 and 379 of the Penal Code, 1860. This is because natural resources are public property, and the state is its trustee. Illegal sand mining can have negative social and economic impacts on local communities. It can lead to the displacement of communities that depend ...

  9. Sand Mining in India and its Evaluation using Swot Analysis- A Review

    Sand mining has some economic and social benefits, including the creation of jobs and revenue, as well as the enhancement of the local economy. But after water, Sand is now the second most ...

  10. New platform unites tech and activism to monitor sand mining in India

    Sand is a classified as a 'minor mineral' in India, which means that unlike 'major minerals' such as coal, iron or bauxite, the power to grant sand mining licenses lies with state governments. Mining is regulated under the 1957 Mines and Minerals (Development and Regulation) Act, which is designed to ensure that resources are mined in a 'sustainable manner'.

  11. The messy business of sand mining explained

    In India, 193 people died in accidents related to sand mining operations or sites in 2019-2020, according to a January report by the rights group South Asia Network on Dams, Rivers and People.

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    A report on ABC Foreign Correspondents states that "… the sand mining business in India offers employment to over 35 million people and it is valued at over $126 billion per annum. In the year 2015-2016, there were over 19,000 cases of illegal minor minerals including sand in the country….".

  13. Why the Supreme Court order on sand mining is a relief ...

    Jaipur, UPDATED: Nov 15, 2021 23:35 IST. The Supreme Court on November 11 lifted its total ban on sand mining in Rajasthan—imposed in 2017 —and has allowed licensed mining of riverbed sand. A three-member bench, of Justices L. Nageswara Rao, Sanjiv Khanna and B.R. Gavai, agreed with the Central Empowered Committee (CEC) that the total ban ...

  14. PDF Enforcement & Monitoring Guidelines for Sand Mining

    Enforcement & Monitoring Guidelines for Sand Mining Page | 5 in sustainable sand mining guidelines as well as notification dated 15.01.2016 ought to be scrupulously followed."…It is a known fact that in spite of the above-suggested guidelines being in existence, on the ground level, illegal mining is still going on.

  15. India Sand Watch platform launched to monitor sandmining in India

    Sand mining is becoming a big business with sand increasingly being an essential component in the construction industry in India. The sand mining industry was valued at INR 150 billion (USD 2 billion) in 2019 and the sand market is expected to grow at a compound annual rate of 6.2 percent between 2023 and 2028 in India. ...

  16. Sand Mining: Overview and Sources in India

    Sand mining, driven by various factors, poses serious threats to ecosystems and communities. Sources of Sand in India: Sustainable Sand Mining Management Guidelines (SSMMG) 2016 identify the following sources of sand in India: River: From riverbeds and flood plains. Lakes and Reservoirs: Extraction from water bodies.

  17. (PDF) River Sand Mining Modelling and Sustainable Practice, The

    River Sand Mining Modelling and Sustainable Practice, The Kangsabati River, India. January 2021. DOI: 10.1007/978-3-030-72296-8. ISBN: 978-3-030-72295-1. Authors:

  18. PDF SAND MAFIAS IN INDIA

    This paper looks at patterns of sand mining in India and the impact that it may have on governance, security, the environment and the growth of entrenched criminal networks. The conclusions suggest that civil administration is retreating before a mafia-like nexus of political, business and bureaucratic interests, which connive to flout judicial

  19. Sand Mining

    Sand mining is the extraction of sand from various sources, such as rivers, beaches, and seabeds, for use in construction, manufacturing, and other industries. Read here to learn more about it. While sand is a valuable and essential resource, unregulated or unsustainable sand mining can have severe environmental, social, and economic consequences.

  20. PDF India Rivers Week 2020 Is Sand Mining Killing our Rivers?

    India Rivers Forum is organising India Rivers Week (IRW) 2020, a series of dialogues (online webinars) with a focus on the theme: "Is Sand mining killing our Rivers?". This will include four regional dialogues focusing on East (including North East), West, North and South India and the final one focusing on sand mining as a national issue.

  21. Environmental Clearance Process for Mining Projects in India

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  22. Sand Mining in India

    Amruta Patil. Apr 7, 2024. According to the sand mining framework, India requires 70 million tonnes of sand per year, with demand increasing by 7% each year. Sand mining is the process of removing sand and gravel from the ground. In India, sand mining is largely related to construction activities. Sand is becoming a high-value commodity as a ...

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