Gujarat Unveils Direct Allotment System for Quarry Leases

Share:
Audio Loading voice…
Gujarat Unveils Direct Allotment System for Quarry Leases

Synopsis

The Gujarat government has introduced a groundbreaking ‘direct allotment’ system, enabling small farmers and landowners to secure quarry leases without e-auction. This move aims to streamline mining sector processes and enhance transparency, according to Minister Rushikesh Patel.

Key Takeaways

Direct allotment system enables small landowners to secure quarry leases without e-auction.
738 out of 1,024 applications have received in-principle approval.
Projected earnings from royalties and auction premiums are Rs 14,792.90 crore over 30 years.
Implementation of a zero tolerance approach to mineral theft, with increased penalties.
Ongoing exploration for critical minerals to support clean energy initiatives.

Gandhinagar, March 17 (NationPress) The government of Gujarat has rolled out a new ‘direct allotment’ system that enables small-scale farmers and private landowners to secure quarry leases without the need for e-auctions. This initiative is part of a larger effort to streamline administrative procedures within the mining sector, as Minister Rushikesh Patel shared with the state Assembly.

During discussions on financial allocations for the Mines and Minerals sector on Tuesday, Patel remarked: "This reform, which was enacted through an amendment on October 12, 2022, allows landowners to obtain quarry leases of up to four hectares via direct application."

He noted that under this system, a total of 1,024 applications had been submitted, with 738 receiving in-principle approval.

According to Patel, the state government is managing Gujarat's mineral resources in a “transparent and scientific manner”, guided by the vision of Prime Minister Narendra Modi and the leadership of Chief Minister Bhupendra Patel.

He explained that the previous system had transitioned to an e-auction format under the Mineral Auction Rules-2015 and the Gujarat Minor Mineral Concession Rules-2017 to enhance transparency in mineral allocation.

The minister reported that 2,622 blocks of minor minerals and 57 blocks of major minerals have been auctioned so far, resulting in significant revenue of Rs 66.84 crore.

Patel projected that the state anticipates earning Rs 4,704.47 crore in royalties and Rs 10,088.43 crore in auction premiums over the next three decades.

Additionally, he outlined ongoing and planned exploration activities, highlighting efforts to locate new deposits of vanadium and titanium in Valsad and Navsari districts.

Exploration for critical minerals and rare earth elements has commenced in Ambadungar, Chhota Udepur, as well as in Dahod and Panchmahal, aimed at supporting the clean energy and high-tech sectors.

A core library for preserving mineral samples collected during drilling is being constructed in Gandhinagar, alongside the establishment of a specialized laboratory for the separation of rare earth elements.

Patel indicated that 189 new mineral blocks are set to be auctioned over the next five years, covering eight essential minerals.

Funding of Rs 22.53 crore has been allocated for the exploration of bauxite, limestone, and lithium in the Gir Somnath, Dwarka, Jamnagar, and Kutch regions.

He added that by February this year, Rs 12.78 crore had been raised under the Gujarat Mineral Exploration Trust to further exploration initiatives.

On enforcement matters, Patel mentioned a “zero tolerance” stance against mineral theft, with penalties for illegal transportation rising from Rs 2,500 to Rs 5,000 per metric tonne, alongside compounding fees ranging from Rs 25,000 to Rs 2,00,000, depending on the vehicle type.

Over 1,04,000 vehicles are currently monitored via GPS tracking.

Patel noted that 8,406 cases have been logged through the GeoMine app, leading to recoveries totaling Rs 107.89 crore.

Vehicles involved in serious irregularities may be held for up to 30 days before any immediate punitive actions are taken.

He highlighted that recoveries from mineral theft increased from Rs 1.71 crore in 2003-04 to Rs 252.09 crore in 2026, which he attributed to stricter enforcement and enhanced transparency.

The Assembly later approved the department’s proposed budget of Rs 366.89 crore.

Point of View

Reflecting a commitment to efficient resource management.
NationPress
7 Jul 2026

Frequently Asked Questions

What is the new direct allotment system introduced by the Gujarat government?
The direct allotment system allows small farmers and private landowners to obtain quarry leases without the need for e-auction, streamlining administrative processes in the mining sector.
How many applications have been received under this new system?
So far, 1,024 applications have been received, with 738 granted in-principle approval.
What are the projected earnings from mineral royalties and auction premiums?
The state expects to earn Rs 4,704.47 crore in royalties and Rs 10,088.43 crore in auction premiums over the next 30 years.
What measures are being taken against mineral theft?
The government has adopted a zero tolerance policy towards mineral theft, with increased penalties and GPS monitoring of over 1,04,000 vehicles.
What ongoing exploration activities are taking place in Gujarat?
Exploration for vanadium and titanium minerals is underway in Valsad and Navsari, as well as for critical minerals in other districts.
Nation Press
The Trail

Connected Dots

Tracing the thread behind this story — newest first.

8 Dots
  1. Latest 5 days ago
  2. 1 month ago
  3. 1 month ago
  4. 2 months ago
  5. 5 months ago
  6. 5 months ago
  7. 7 months ago
  8. 1 year ago
Google Prefer NP
On Google