E-lottery, price cap introduced under new minor mineral leasing rules in Odisha

The Odisha government has notified new rules for the leasing of minor minerals, replacing the existing auction-based system for sand and stone quarries with an e-lottery mechanism. The policy shift is aimed at curbing cartelisation, enhancing transparency, and strengthening control over mining mafias, while also protecting consumers from inflated mineral prices.

Under the revised framework, leases for minor minerals will no longer be awarded through auctions. Instead, eligible applicants will be selected through a computerised e-lottery system by paying a government-fixed additional charge. Applications must be submitted online through the MSTC portal using Form-C.

Applicants are required to pay a non-refundable application fee of ₹10,000 and deposit 10 per cent of the lease value as Earnest Money Deposit (EMD). In addition, applicants must submit an affidavit declaring details of all family members.

To ensure strict scrutiny, a district-level technical scrutiny committee has been constituted to examine applications in detail. The entire leasing process has been digitised to eliminate human intervention, reduce scope for manipulation, and ensure fairness.

In a major first, the government has also introduced a Maximum Sale Price (MSP) for sand and stone to curb arbitrary price hikes in the market. Under the new rules, leaseholders will not be permitted to sell minerals above the government-fixed MSP.

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The revised policy also allows leaseholders who had earlier secured mining rights through auctions to opt for migration to the new e-lottery system, subject to prescribed conditions.

Officials said the new minor mineral policy is expected to streamline mineral administration, break monopolistic practices, and ensure the availability of sand and stone at reasonable prices, while reinforcing regulatory oversight over the sector.