SRINAGAR: Jammu and Kashmir’s mining sector generated nearly Rs 348 crore in revenue over the last three financial years, with the government reporting that about Rs 70.56 lakh remains recoverable, according to details furnished by the Mining Department in the Legislative Assembly.
The figures were provided in response to a question by Wagoora-Kreeri MLA Irfan Hafiz Lone, which sought details of revenue generated from contractors and lease holders engaged in mineral extraction, along with recoverable unrealised amounts and the government’s regulatory measures for the sector.
According to details revenue under various heads including revenue receipts, District Mineral Foundation (DMFT), National Mineral Exploration Trust (NMET), compounding charges, bid amounts and consultancy charges stood at Rs 150.43 crore in 2024-25, Rs 148.38 crore in 2025-26, and Rs 49.19 crore in 2026-27 up to August 2026. Taken together, the receipts total Rs 347.99 crore.
Against this, the department has reported an unrealised recoverable amount of Rs 70.56 lakh, comprising Rs 19.66 lakh for 2024-25, Rs 50,000 for 2025-26 and Rs 50.40 lakh for 2026-27.
The department separately reported substantial collections under royalty and other charges. The total collections of about Rs 105.51 crore during the period covered, comprising approximately Rs 76.11 crore from the Kashmir division and Rs 29.40 crore from Jammu division. The figures include royalty, penalties/compounding charges and other specified receipts.
The Mining Department said mineral extraction in J&K was being regulated through a “sustainable approach” intended to balance environmental protection with the requirement for construction material for roads, tunnels, bridges, railway projects, irrigation works and other infrastructure.
It said extraction was governed by the Jammu and Kashmir Minor Mineral Concession, Storage, Transportation of Minerals and Prevention of Illegal Mining Rules, 2016, along with applicable environmental requirements. Mining activities are required to obtain environmental clearance, consent to establish/operate and other statutory approvals wherever applicable before operations begin.
The government said district-wise District Survey Reports were being prepared and updated to identify mineral resources and facilitate environmentally sustainable extraction. Riverbed mineral extraction, it added, was permitted after taking into account river carrying capacity, morphology, embankments, bridges, roads, irrigation works and prescribed safety or buffer distances.
The department also reported regular inspections and enforcement drives, including seizure of illegally extracted minerals, vehicles and machinery, besides recovery of royalty, penalties and other dues.
To tighten monitoring, the government said it was using GPS/VTD-based tracking, electronic transit passes and digital monitoring systems, while mineral check posts had also been established at strategic locations.
The department said it had recently developed an Integrated Mining Surveillance System (IMSS) and a satellite-based mechanism capable of generating triggers for suspected illegal mining, followed by ground verification and penalties where violations were established.
On the grant of mining leases, the government said minor mineral blocks are first identified through geological surveys, mapping and assessment of reserves, followed by scientific delineation, buffer zones and preparation of geo-referenced site plans.
Before a block is put to e-auction, requisite no-objection certificates and clearances are obtained through the District Level Single Window Committee, headed by the concerned Deputy Commissioner. The minimum reserve bid is then fixed, the competent authority approves the block for auction, and the mineral block is notified for e-auction.
The highest bidder is issued a Letter of Intent by the Director, Geology and Mining, subject to completion of statutory requirements. A formal mining lease is issued only after approval of the mining plan, environmental clearance, consent to operate, requisite NOCs and payment of the bid amount and security deposits.
The government said leased areas were also being monitored through district-level mechanisms. A Multi-Departmental Task Force Cell, headed by the concerned Deputy Commissioner, supervises mining activities and reports irregularities. A Vigilance-cum-Monitoring Flying Squad for the Kashmir division was constituted in 2024, while an order issued in February 2026 constituted a committee to oversee implementation of mining plans, mine closure plans, monitoring and utilisation of forfeited financial assurance.
The department also said that lease holders were registered on its e-market/e-challan portal and that transportation of minerals was being regulated through security-based electronic challans.
The lease position supplied with the reply, however, shows that a substantial number of leases across districts were non-operational, mainly because of pending or expired environmental clearances and consent-to-operate requirements, completion of the permitted five-year period, expiry of leases, surrender or other statutory issues.
The government said such cases were being dealt with under the applicable rules, while mining areas were required to comply with approved mining plans and, wherever applicable, provisions relating to reclamation, restoration and rehabilitation of mined-out areas.
