Cash-strapped Himachal Pradesh plans a new mining department and dredging policy to boost revenue, CM Sukhvinder Singh Sukhu announced. The move aims to streamline operations and could generate up to Rs 3,000 crore for the state.
New Mining Department and Dredging Policy Announced
Cash-strapped Himachal Pradesh is looking to tap its mining potential to boost state revenue, with Chief Minister Sukhvinder Singh Sukhu on Thursday announcing plans to create a separate department to oversee mining activities and a new policy for dredging riverbeds.
Responding to a question raised by BJP MLA Surender Shourie in the Himachal Pradesh Legislative Assembly on dredging of the Beas river and its tributaries, Sukhu said the proposed department would bring all mining-related activities under one umbrella and could generate revenue of up to Rs 3,000 crore for the state. “Dredging operations are currently being undertaken through the Forest Corporation,” Sukhu said, adding that the government plans to establish an independent department to streamline mining-related activities.
The Chief Minister said Uttarakhand, despite having only two major rivers, generates around Rs 300 crore to Rs 400 crore from mining, and Himachal Pradesh has the potential to generate substantially higher revenue from the sector. He said the government was also in discussions with the Centre over regulatory changes required to facilitate dredging and mining operations.
Regulatory and Administrative Hurdles
Sukhu said that after the 2023 disaster, Union Minister for Road Transport and Highways Nitin Gadkari had suggested dredging rivers to remove accumulated material from riverbeds. Subsequently, the Industries Department permitted dredging, but the state could not obtain the requisite mining permission to extract the material after dredging. As a result, a large quantity of the extracted riverbed material was washed away during the following monsoon, he said.
The Chief Minister said discussions with the Centre subsequently led to the identification of three sites in Kullu. After obtaining dredging clearance, the contractor applied for M-Forms from the Mining Department but was issued W-Forms instead. He said Gadkari had recently suggested waiving royalty on material extracted during dredging, but the state government maintained that collecting royalty was its right. Sukhu said the government wanted to streamline the separate systems governing dredging and mining. He added that tenders floated earlier for desilting dams, including BBMB and Pong, were cancelled and the work was subsequently taken up through the Forest Corporation. At present, dredging through the Forest Corporation is generating around Rs 100 crore to Rs 200 crore in revenue for the state, while mining itself is not generating substantial revenue, the Chief Minister said.
Challenges with Clearances and Auctions
Industries Minister Harshwardhan Chauhan clarified that dredging and mining were two separate processes and said the government would formulate a new dredging policy. He said that under court rulings, material extracted through dredging can be auctioned but cannot be sold directly. The major hurdle, he said, was obtaining clearances under the Forest Conservation Act.
Chauhan said 44 sites in Kullu had been auctioned, but Divisional Forest Officers denied permission to extract material at several locations in the absence of forest clearances. Across the state, there are around 324 identified sites, but forest clearance has so far been obtained for only five or six sites, he said. He added that the Union Minister had convened a joint meeting to address the issue of clearances.
Kullu Auction Status
The Industries Minister said 19 sites along the Beas river in Kullu had been auctioned in 2018, but 15 were subsequently cancelled because the required clearances under the Forest Conservation Act, 1980, could not be obtained. The successful bidders for the remaining four sites are currently pursuing the clearance process. He said the Forest Department was currently undertaking dredging at three sites along the Beas in Kullu, while seven sites had been identified in the Banjar area for dredging and mining.
Financials of Post-Flood Dredging
Chauhan also provided details of expenditure and revenue from dredging following the 2023 floods. Around Rs 1.22 crore was spent on dredging at six locations in the Manali subdivision, Rs 5.72 crore in Kullu and Rs 2.98 crore in Banjar during 2024. Auctions for dredging in 2024 fetched around Rs 2.24 crore, while the government received approximately Rs 50 lakh in revenue. However, much of the accumulated material was subsequently washed away by rains in 2025, he said.
Opposition Raises Concerns, Alleges Scam
Raising the issue in the Assembly, Shourie sought details of revenue generated by the government from dredging and mining activities and the status of material extracted from riverbeds. BJP MLA Vikram Thakur questioned why the work had been assigned to the Forest Corporation and sought details of M-Forms issued by the Mining Department.
Leader of Opposition Jai Ram Thakur alleged that machinery was being used to extract material from the Beas River during night hours and questioned where the extracted material was being taken and how much revenue had been generated by the government.
Thakur termed the issue serious, expressed suspicion of a scam and demanded that complete details of dredging and mining activities be placed before the House. Sundernagar MLA Rakesh Jambal also raised concerns over the disposal of silt generated through dredging, saying that dumping it into Suket Khad was creating problems in the Balh Valley.
Government Responds to Concerns
Responding to the concern, Chauhan said silt continuously accumulates at dam sites, and not all material extracted through dredging is usable. He added that hydroelectric companies would have to make their own arrangements for extraction and disposal of such material.
Chauhan further said royalty revenue from mining in Himachal Pradesh stood at Rs 356 crore in the 2024-25 financial year, compared with around Rs 240 crore during the previous government’s tenure. He attributed the increase in revenue to the implementation of the state’s new mining policy. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)