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Odisha Clamps Down On Quarry Permits To Plug Revenue Losses, Curb Illegal Mining

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Odisha Clamps Down On Quarry Permits To Plug Revenue Losses, Curb Illegal Mining

by OB Bureau
August 4, 2026
in Odisha, Policy & Politics
Reading Time: 2 mins read
Odisha Clamps Down On Quarry Permits To Plug Revenue Losses, Curb Illegal Mining
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Bhubaneswar: In a major crackdown aimed at curbing illegal mining and safeguarding state revenue, the Odisha Steel and Mines Department has issued an urgent directive tightening the rules for granting minor mineral quarry permits, restricting them strictly to central, state governments, and public-purpose projects.

In an urgent communication dated August 3, Additional Chief Secretary Deoranjan Kumar Singh warned that any administrative deviation or negligence in enforcing these norms will result in exemplary disciplinary action against the officials concerned.

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The directive reinforces the legal framework established under Rule 35 of the Odisha Minor Mineral Concession (Amendment) Rules, 2025, which explicitly prohibits the allocation of quarry permits for for private or non-government projects. The order further clarifies that statutory power to grant Form-R quarry permits rests exclusively with designated Mining Officers for non-forest areas and Divisional Forest Officers (DFOs) for forest land.

The rules were notified on November 28, 2025, primarily to facilitate the timely supply of sand, stone, morrum and other minor minerals essential for infrastructure development of national and state importance.

The move follows findings of misconduct, including unauthorised grant of permits for non-government works, and attempts by unscrupulous individuals to secure them by posing as proponents of public sector projects. District administration officials have been instructed to rigorously screen all incoming applications and reject fraudulent or ineligible candidates at the initial stage.

A single permit may cover the entire sanctioned requirement of a project or a specific phase and remains valid for a maximum of two years or until project completion or phase closure, whichever occurs earlier. Any extension beyond this period requires prior approval from the state government.

Furthermore, applicants must clear all statutory advance dues, including royalty, surface rent, District Mineral Foundation (DMF) and Environmental Management Fund contributions, alongside compensatory afforestation fees where forest diversion is involved.

By enforcing strict compliance, the state seeks to maintain an uninterrupted supply of essential minerals at fixed statutory rates to accelerate vital infrastructure projects while protecting public interest and revenue. Copies of the notification have been circulated across key line departments, including Works, Water Resources, Rural Development, and Housing & Urban Development, to ensure seamless compliance statewide.

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