Srinagar, Mar 21: Mineral extraction continues to be a major economic driver for Jammu and Kashmir, with the government generating over Rs 400 crore in revenue over the past three years.
Amid concerns over illegal mining and non-local contractors, the administration has emphasized strict enforcement measures and a transparent bidding process to ensure fair allocation of mining leases.
The figures were disclosed in response to an Un-Starred Assembly Question by MLA Mubarak Gul.
In a written reply, the government said a total revenue of Rs 407.54 crore from mineral extraction over the past three years and efforts are on to regulate mining activities and curbing illegal operations.
The mineral extraction stood at Rs101.16 crore in 2022-23, Rs 175.46 crore in 2023-24, and Rs 130.92 crore in 2024-25. The corresponding royalty collected was Rs 73.86 crore, Rs137.03 crore, and Rs 92.61 crore, respectively.
It further said that extracted minerals include limestone, gypsum, river bed material (RBM), nallah bajri, quarry stones/masonry stone, brick kiln material, and ordinary earth.
“The mining blocks allocated for these minerals include 19 blocks for limestone, 13 for gypsum, 202 for RBM, 24 for quarry stones, 430 for brick kilns, and 1,650 for ordinary earth,” reads the reply.
To prevent illegal mining, strict penalties are being imposed under Section 21(4) & (5) of the Mines & Minerals (Development & Regulation) Act, 1957.
“Additionally, Vigilance & Monitoring Squads for Jammu and Kashmir Divisions were created under Order No. 107-IK(DGM) of 2024 to enhance enforcement against illegal extraction and transportation of minor minerals in the Union Territory,” it said.
As part of its regulatory measures, the government has set up 22 mineral check posts at key entry and exit points to monitor mineral transportation.
In August 2022, an e-Challan/e-Marketplace Portal was launched to streamline the sale and purchase of minerals at notified rates, ensuring greater transparency in the sector.
Furthermore, the Bhaskaracharya Institute for Space Applications and Geo-informatics (BISAG) is assisting in developing a Mine Surveillance System, which generates alerts for illegal mining activities.
The system will identify illegalities occurring in and around lease areas, followed by verification through a mobile app and imposition of penalties accordingly. The government is also considering introducing Point of Sale (PoS) machines for on-the-spot penalty collection, similar to traffic enforcement mechanisms.
Addressing concerns regarding the awarding of mining contracts to non-locals, the government in its reply clarified that all leases are allocated to the highest bidders through e-Auction.
The process follows the guidelines set in the Mines & Minerals (Development & Regulation) Act, 1957, and J&K Mineral Rules under SRO-105 of 2016. Out of the 202 mining leases issued in Jammu and Kashmir, 144 have been granted to local contractors, while 58 have been awarded to non-locals.
“Department reiterated that all contracts have been awarded fairly through competitive bidding, ensuring transparency and compliance with legal provisions,” it said.
