Gujarat Unveils Direct Allotment System for Quarry Leases
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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.