M-Sand, or manufactured sand, is an artificial sand produced by crushing stones and granite. It serves as a sustainable alternative to river sand, minimizing the environmental impact caused by excessive sand mining. Uttar Pradesh is introducing a policy to provide industry status and MSME-related benefits to M-Sand manufacturers, promoting its usage in construction.
The Uttar Pradesh government, led by Chief Minister Yogi Adityanath, is set to introduce a new policy that will provide industry status to all entrepreneurs involved in the manufacturing of M-Sand, also known as manufactured sand. M-Sand is an artificial sand created by crushing large stones and granite, primarily used in construction projects. This move comes as the state aims to address the environmental impact caused by excessive sand mining and promote the use of sustainable alternatives to river sand.
Under the proposed policy, the government plans to extend the benefits enjoyed by micro, small, and medium enterprises (MSMEs) to M-Sand manufacturing enterprises. This includes fixed power costs and mineral royalties, which are charges imposed by local authorities or the state/central government on the quantity of minerals extracted or the income generated from their sale.
To further incentivize M-Sand units, the policy draft also includes provisions for the capital subsidy, stamp duty exemption, and interest exemption. Micro-enterprises in the Bundelkhand and Purvanchal regions would be eligible for a 25% capital subsidy, while small and medium units would receive 20% and 15% respectively. In the Madhyanchal and Paschimanchal regions, micro-units would receive a 20% capital subsidy, small enterprises 15%, and medium units 10%.
Stamp duty exemptions are also planned, with a 100% exemption for enterprises in Bundelkhand and Purvanchal, and a 75% exemption for those in Madhyanchal and Paschimanchal. Additionally, the policy aims to provide interest subsidies of up to 50% for micro-enterprises, capped at INR 25 lakhs, over five years.
The draft policy, which aims to curb illegal river sand mining, will be implemented after considering feedback from stakeholders and receiving approval from the cabinet. The Directorate General of Geology and Mining in Uttar Pradesh has already engaged with stakeholders to discuss the policy draft and gather their inputs.
Vipin Kumar Jain, Additional Director at the Directorate of Geology and Mining, highlighted that the policy includes granting industry status to M-Sand units, ensuring they receive the benefits associated with industry status from the Directorate of Industry and Enterprise Promotion in Uttar Pradesh. Additionally, provisions have been proposed to provide the benefits outlined in the MSME Promotion Policy 2022.
The move to promote M-Sand manufacturing and provide support to the sector aligns with the government’s goal of boosting the MSME sector and fostering ease of doing business in the state. It also reflects the government’s commitment to sustainable development and addressing environmental concerns associated with sand mining.
In recent years, incidents related to riverbed mining have caused casualties in Uttar Pradesh. As per a report by the South Asia Network on Dams, Rivers, and People, a network of organizations working on water-related issues, 46 people lost their lives in riverbed mining-related incidents between April 2022 and February 2024 in the state.
By introducing the new policy and incentivizing M-Sand production, the Uttar Pradesh government aims to not only promote sustainable construction practices but also create a conducive environment for entrepreneurs in the sector, fostering economic growth and job creation.
