New Sand Mining Policy -2014 for the State of
Telangana

12-December, 2014

In the reference 1st read above, the subject matter “auctioning
of sand” was transferred from Panchayat Raj Department to
Industries and Commerce Department. Subsequently, suitable
amendments to APMMC Rules 1966 were issued in respect of auctioning
of sand and for regulation of sand quarrying in the State of Andhra
Pradesh vide reference 2nd read above.

2. As per the orders issued in the reference 2nd read above,
sand reaches were auctioned to the highest bidder. Subsequently, in
view of the Supreme Court ruling in the case of Deepak Kumar vs
State of Haryana and also since under the auction system,
Government was not able to control the price or the leakage of
revenues, orders were issued in the reference 3rd read above for
allotment of sand reaches by draw of lots from eligible applicants,
as amended relevant rules from time to time vide references 4th to
6th read above. However, this system also did not work well as
there was a lot of leakage of revenue and Government did not get a
boost as expected. Therefore, the Government felt that there is
every need to review and revise the existing Sand Policy.

3. Accordingly, the Government after careful examination and
consideration of the matter in detail, hereby introduces the New
Sand Mining Policy-2014 for the State of Telangana. The Salient
features of the New Sand Mining Policy-2014 are as follows:-

(i) Sand is available in the State from (3) sources, viz., 1)
Rivers and streams, 2) De-silting of Reservoirs and 3) De-casting
of Private Patta Lands

(ii) The Sand available from Rivers and streams is categorized
into I to V order depending on size and capacity. In I-order
streams, the source is small village stream or vagu while V-order
would be large rivers like Krishna and the Godavari.

(iii) Sand in I and II order streams will be left to the Local
Body and Villagers for domestic needs, Government sponsored weaker
section Housing schemes for which no seigniorage charges are
collected. Extraction of sand from said order streams for
construction of Local Body buildings like schools, community halls
etc., will be allowed subject to payment of Seigniorage Fee by the
consuming agency. The excavation and transportation of sand shall
be manual and no mechanical means be allowed and no sand be
transported outside the local jurisdiction.

(iv) Sand in III, IV and V order streams will be allowed for
exploitation subject to WALTA Rules and Regulations.

(v) A preliminary identification of sand available in III, IV
and V order streams will be done by the Mines and Geology
Department in consultation with the Irrigation, Ground Water and
Revenue Departments. These reaches will include left banks of
Tungabhadra River, Krishna River including project backwaters, the
Godavari river and its tributaries and all project de-siltation
areas.

(vi) Based on preliminary identification, the District Level
Committee under the Chairmanship of Joint Collector will meet and
cause inspection of all stretches and give a feasible area report
based on WALTA criterion. The feasible areas will be allotted to
the Telangana State Mineral Development Corporation Limited (TSMDC)
for excavation, regulation and supply of sand. The TSMDC will then
obtain all statutory clearances like EC, Mining Plan, Environment
Management Plan, CFE and CFO. Once PCB clearance is obtained
extraction of sand can start.

(vii) Sand available by way of de-silting of reservoirs will
also be allowed to be exploitation. The same shall be identified in
consultation with the Irrigation Department.

(viii) The feasible sand reaches identified in the III, IV and V
order streams as well as sand available under de-silting of
reservoirs will be handed over to the TSMDC for extraction.

(ix) The TSMDC will appoint raising contractors for the sand
reaches identified under a strict competitive bidding process. The
sand so excavated will be moved to stockyards managed by the TSMDC.
The stockyards can be near the sand reach. Additional stockyards
near urban habitations, especially the

Municipal Corporations can also be created.

(x) Sale of sand to all consumers, small, medium or large, will
be from these stockyards. Sale of sand from these stockyards will
be controlled by electronic surveillance (CCTVs) and electronic
documentation linked to a central documentation monitoring
facility. The way-bills for transportation of sand will have the
security seal of the TSMDC and will be stamped with date and time.
The vehicles will be tracked by way of GPS. Any sand lorry found
without TSMDC way-bill will be illegal and the vehicle should be
seized.

(xi) The intention of the Government is to ensure adequate
quantity of the right quality of sand is available at a reasonable
price to the people of the State.

(xii) Sand mining in tribal areas will be governed by the
provisions of the Panchayats Extension to Scheduled Areas (PESA)
Act of 1996, PESA Rules of 2011 and the WALTA Act Rules of
2004.

(xiii) The present system for sand permits in Patta lands shall
continue, but with more rigorous vigilance and inspections. The
demarcation of Patta lands has to be done very accurately and
further ensured that no mining takes place outside the Patta lands.
If ad valorem rate of seigniorage is imposed, the TSMDC rate will
be the bench mark for seigniorage charges for Patta lands also.

(xiv) The Government shall fix the rates and revise the rates of
Siegniorage Fee as per the situation/demand warrants.

(xv) Rock sand is a good alternative to natural sand.
Availability of rock sand will reduce the pressure on natural sand
which is not found abundantly in the State of Telangana. The
technical viability of Rock Sand has been established without
doubt. In fact L&T has been using rock sand for the Hyderabad
Metro-Rail Project.

(xvi) Rock sand manufactured can be accorded industry status as
long as the unit manufactures 100% rock sand. Right now only 20% of
the capacity is being used for manufacture of Rock Sand. VAT and
power subsidy can be extended prospectively. Regular incentives can
be given for new units.

(xvii) In addition, preference in quarry lease allotment will be
given for units manufacturing Rock Sand. Existing Stone Crushers
can be accorded ancillary status provided the crusher rock sand is
certified by ISO/NAC/NCCMB.

(xvii) Government Departments shall be mandated to use at least
50% of Rock Sand in Government constructions.

4. In accordance with the New Sand Mining Policy-2014 necessary
Rules under Section 15(1) of M&M (D&R) Act, 1957 will be
issued separately.

5. All notifications/orders issued earlier for allotment of sand
reaches, if any shall be regulated in accordance with the New Sand
Mining Policy-2014.

6. The Government may review the Sand Policy in future as and
when required from time to time and issue the Guidelines/amendments
accordingly.

7. The policy shall come into force with immediate effect.

8. The Director of Mines and Geology, Hyderabad shall take
further necessary action in the matter accordingly and make
necessary arrangements for wide publicity of the policy.

[BY ORDER AND IN THE NAME OF THE GOVERNOR OF
TELANGANA]

K. PRADEEP CHANDRA

SPECIAL CHIEF SECRETARY TO GOVERNMENT AND

COMMISSIONER FOR INDUSTRIAL PROMOTION

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