Rajasthan M-Sand Policy — Incentives for Manufactured Sand Units under RIPS 2024

75% × 10 yrs
SGST investment subsidy for new M-sand units (RIPS 2024 clause 4.1.2)
50%
Reduction in reserve price for overburden dumps
31 Mar 2029
Policy in force till this date (or until a new policy); a unit must produce at least 50% M-sand to qualify
25% → 50%
Mandatory M-sand use in government works, rising by 2028-29
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Video Explanation & Insights

Rajasthan M-Sand Policy: subsidy under RIPS 2024 for crusher set-up

3 videos on this topic

Overview

Why Rajasthan promotes manufactured sand

Manufactured sand — M-sand — is produced by crushing and grading stone and mine overburden, replacing river sand whose extraction has been eroding Rajasthan's rivers. The state's M-Sand Policy was brought in to protect river ecosystems, put the state's vast mineral overburden to use and create industrial employment: river sand is simply loaded and sold, while M-sand is a manufacturing process with crushers, washing, grading and a quality laboratory. The policy targets 20% annual growth in M-sand production to about 30 million tonnes a year by 2028-29, and it backs that target with a mandate: government departments, local bodies, panchayati raj institutions and state-financed organisations must use at least 25% M-sand in construction, rising to 50% by 2028-29.

With the Rising Rajasthan policy revisions, the M-sand package sits alongside RIPS 2024, so a new unit draws state tax and land concessions from the policy and interest and employment support from RIPS, and can add a central capital subsidy on its plant and machinery.

Incentives

What an M-sand unit gets

IncentiveBenefitSource
Industry statusM-sand units continue to enjoy industrial status, so industrial power tariffs and industrial land rules applyM-Sand Policy
State GST (investment subsidy)Reimbursement of 75% of state tax due and deposited, for 10 yearsM-Sand Policy 2024 clause 3(7)(a) via RIPS 2024 clause 4.1.2
Overburden dumpsRoyalty on use of overburden dumps on government land exempted by 50%; DMFT contribution for their use exempted; plots allotted by auction at a reserve price reduced by 50% of dead rent; keenness money reduced by 50%M-Sand Policy 2024 clause 3(2), 3(4)–(6)
Fund raisingOne-time assistance of 50% of the cost of raising capital on an SME platform, up to ₹5 lakhClause 3(7)(c)
Stamp duty and conversion charges75% exemption and 25% reimbursement of stamp duty; 75% exemption and 25% reimbursement of land conversion chargesClause 3(7)(d), (f)
Net worth and turnoverMinimum net-worth and turnover conditions for setting up an M-sand unit waivedPolicy
Electricity duty100% exemption for 7 yearsClause 3(7)(e)
EmploymentReimbursement of 50% of employer's EPF and ESI contribution for 7 years (Rajasthan-domiciled employees)Clause 3(7)(b)
Interest6% interest subsidy on the term loan for crushers and plantRIPS 2024
Capital subsidy — SC/ST promoters25% of plant, machinery and equipment under SCLCSSCentral (NSSH)
Capital subsidy — small projectsPMEGP margin money of 15% to 35% on projects up to ₹50 lakh (35% for women or rural units, 25% rural general / urban women, 15% urban general)Central (KVIC)
SME IPOIncentive on listing expenses under RIPS 2024RIPS 2024
ValidityPolicy in force till 31 March 2029 or until a new policy is announced; incentives for units producing at least 50% M-sandClause 2 / 3
Simplified processes accompany the incentives: a star-rating system for minor-mineral units, a dedicated sand portal, and an environmental-compliance framework. A BIS-certified quality testing laboratory at the unit is required.
Compliance

Quality, waste and water

  • •Quality: M-sand must meet the BIS standard for manufactured fine aggregate, tested in a BIS-certified laboratory at the unit.
  • •Waste: the slurry and fines from washing must be reused — in brick making or agriculture — so that waste to disposal is minimised.
  • •Water: conservation and recycling of process water, with the environmental responsibilities of a mining-linked industry.
  • •Mandate compliance: government and semi-government works must use the minimum share of M-sand, which secures the unit's market.
Process

Setting up an M-sand unit

  1. 1Step 1 — Source: identify the overburden dump or stone source; apply for allotment at the reduced reserve price through the mines department.
  2. 2Step 2 — Project: DPR covering crushers, vertical shaft impactors, washing and grading, laboratory and pollution controls; term loan structured for the RIPS interest subsidy and, where eligible, SCLCSS or PMEGP.
  3. 3Step 3 — Land: purchase or lease with the 75% stamp-duty exemption certificate obtained before registration.
  4. 4Step 4 — Approvals: pollution consent (CTE/CTO), mining-related permissions, factory licence, BIS quality lab.
  5. 5Step 5 — RIPS 2024 application on the RajNivesh portal for SGST reimbursement, electricity duty, employment and interest benefits; subsidy claims filed as they fall due.
FAQs

Rajasthan M-Sand Policy: questions we are asked

Manufactured sand produced by crushing and grading stone or mine overburden, used in place of river sand in construction.

The 75% SGST reimbursement on sales, alongside the reduced reserve price for overburden dumps and the waiver of net-worth and turnover conditions; RIPS 2024 adds interest, employment and stamp-duty benefits.

Not from the state policy itself. SC/ST promoters can claim 25% under SCLCSS; small projects up to ₹50 lakh can use PMEGP margin money of 15–35%.

Government and state-financed construction must use at least 25% M-sand, rising to 50% by 2028-29.

For units set up until 31 March 2029.

The BIS standard for manufactured fine aggregate, verified in a BIS-certified laboratory at the unit.