Himachal Pradesh Plans Mining Overhaul to Unlock Rs 3,000 Crore Revenue

The proposed strategy aims to unify disparate regulatory frameworks currently split between the Forest Corporation and the Mining Department. Sukhu highlighted that while Uttarakhand generates significant revenue from just two major rivers, Himachal’s potential remains largely untapped due to bureaucratic hurdles and friction with federal forest clearance requirements. The government is currently negotiating with the Centre to resolve these regulatory bottlenecks, which previously caused valuable riverbed material to be washed away during monsoon seasons after extraction permits stalled.

Industry Minister Harshwardhan Chauhan noted that the state is drafting a new dredging policy to address the complexities of the Forest Conservation Act. Currently, out of 324 identified sites across the state, forest clearances have been secured for fewer than ten, rendering most auctions ineffective. The opposition, led by Jai Ram Thakur, has raised alarms over potential mismanagement, citing concerns about nocturnal extraction activities and the environmental impact of silt disposal in areas like the Balh Valley. With mining royalty revenue reaching Rs 356 crore in the 2024-25 fiscal year, the administration views this structural reform as the necessary next step to scale state income.