Case Study Title: Sand Mining - Challenges of State and District Administration

Problem Statement: The demand for sand in Karnataka is 23 million tons a year. However, the availability of river sand is only 7 million tons. This huge gap between supply and demand led to, large scale to illegal sand mining and transportation businesses, creating an ecosystem of crime, environmental degradation and revenue losses in terms of royalty to the Government.

In July 2011, Karnataka State Government instituted the "New Sand Mining Policy" to curb illegal sand mining. Though the Government was swift in its response in enacting a clear law for regulating the illegal sand mining menace but implementation became a challenge because of the following reasons:

  • Manual system to issue and validate MDPs .
  • No control on the amount of sand being extracted
  • Illegal inter-state transportation without any fear of culpability.

Solution: Rane t4u implemented the SMART (Sand Management in Administration, Regulation & Transportation) system which addressed the above mentioned issues in an effective manner. The solution included;

  • Bringing transparency in issuing Mineral Dispatch Permit (MDP)
  • Ensuring visibility in monitoring the movement of sand transportation vehicles
  • Monitoring the sand reserves at each sand source

After implementing the above mentioned solutions through SMART System, Rane t4u was able to deliver the following benefits;

  • Government was able to monitor all activities pertaining to sand transportation from source to destination.
  • Online issuing of Mineral Dispatch Permit (MDP) led to three-fold increase in issuing MDPs sand revenue and royalty earned thereof.
  • Reduction in illegal sand mining transportation incidents
  • Clarity in sand mining and transportation processes led to savings in the operational cost of mining excavators, transporters and customer.
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