The Maharashtra state government has revised the base rates under its sand extraction policy to encourage industries that produce eco-friendly sand from overburden, a by-product of coal or iron ore mining. This move aims to reduce pressure on riverbeds and promote sustainable practices.
Revised Rates and Royalty
As per the updated policy, rates and royalties have been fixed for various types of sand and minor minerals extracted from mines operated by companies such as Western Coalfields Limited (WCL) and Manganese Ore India Limited (MOIL). The new rates are as follows:
- Washed sand: Rate of 2,000 per brass with a royalty of 400 per brass.
- Sandy overburden: Rate of 600 per brass with a royalty of 200 per brass.
- Other minor minerals: Rate of 200 per brass with a royalty of 50 per brass.
Both WCL and MOIL have agreed to levy these charges for immediate implementation.
Background and Objectives
A government resolution (GR) regarding this policy was initially issued on April 8, 2025. However, the new rates and provisions specifically target sand overburden with the aim of increasing entrepreneurial participation in the sector. It is believed that this policy will open up opportunities for the construction sector to obtain legitimate and eco-friendly sand, while also helping to curb illegal excavation activities.
This revision is expected to benefit the environment by reducing the dependency on riverbed sand mining, which often leads to ecological damage. The policy encourages the use of overburden material that would otherwise be discarded, turning waste into a valuable resource.
