Rajasthan’s mining department has annulled auctions for 22 sand blocks after companies failed to pay the bid amounts. This decision comes as part of a broader effort to curb illegal mining activities and streamline the auction process, with fresh tenders now being issued.
Sources within the Directorate of Mines and Geology (DMG) indicated that sand mafias have been using unconventional tactics to disrupt the auction process. Some companies placed high bids but did not deposit the full amounts, resulting in the forfeiture of their payments. This loophole allowed illegal sand mining to flourish, undermining the government’s efforts to regulate the sector. To address these issues, the mining department has floated new tenders and submitted proposals to the DMG aimed at improving the auction system and eliminating illegal practices. The focus is on proper allocation of sand blocks to avoid disruptions from criminal elements. A notable example of this issue was in the Bhilwara, Jahazpur, and Bijolia regions, where no legal leases were granted for sand mining in the Banas River. To resolve the shortage of legally sourced sand, the mining department initiated auctions for around three dozen sand blocks. However, despite receiving letters of intent for 13 blocks, the remaining 22 blocks were awarded to companies that placed exorbitant bids but failed to pay. The highest bids reached Rs 150 crore per block, but these companies did not follow through with the payments. As a result, the government confiscated earnest money deposits amounting to Rs 8.80 crore. While this added revenue to the state, it did not resolve the issue of providing affordable sand to the public. The auctioned blocks include areas such as Jawasiya, Sayla, Bararod, Kherabad, and Kanyakhedi in Hamirgarh; Gegaka Kheda, Kared, Bhakliyan, and Sopura in Sawai Pur; Kesarpura, Bharanikalan, Rawatkheda, and Shakkarpura in Jahazpur; and Ramgarh, Gendliyan, and Hurda. Two companies dominated the bidding process, offering Rs 150 crore for four blocks.
Additionally, the department has issued letters of intent for 13 other blocks, but mining will not begin until environmental clearances are obtained. Once these clearances are granted, mining activities can commence, potentially ensuring a more stable and affordable supply of sand for the public.
