
Rajasthan M-Sand Policy — Incentives for Manufactured Sand Units under RIPS 2024
Video Explanation & Insights
Rajasthan M-Sand Policy: subsidy under RIPS 2024 for crusher set-up
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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.
What an M-sand unit gets
| Incentive | Benefit | Source |
|---|---|---|
| Industry status | M-sand units continue to enjoy industrial status, so industrial power tariffs and industrial land rules apply | M-Sand Policy |
| State GST (investment subsidy) | Reimbursement of 75% of state tax due and deposited, for 10 years | M-Sand Policy 2024 clause 3(7)(a) via RIPS 2024 clause 4.1.2 |
| Overburden dumps | Royalty 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 raising | One-time assistance of 50% of the cost of raising capital on an SME platform, up to ₹5 lakh | Clause 3(7)(c) |
| Stamp duty and conversion charges | 75% exemption and 25% reimbursement of stamp duty; 75% exemption and 25% reimbursement of land conversion charges | Clause 3(7)(d), (f) |
| Net worth and turnover | Minimum net-worth and turnover conditions for setting up an M-sand unit waived | Policy |
| Electricity duty | 100% exemption for 7 years | Clause 3(7)(e) |
| Employment | Reimbursement of 50% of employer's EPF and ESI contribution for 7 years (Rajasthan-domiciled employees) | Clause 3(7)(b) |
| Interest | 6% interest subsidy on the term loan for crushers and plant | RIPS 2024 |
| Capital subsidy — SC/ST promoters | 25% of plant, machinery and equipment under SCLCSS | Central (NSSH) |
| Capital subsidy — small projects | PMEGP 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 IPO | Incentive on listing expenses under RIPS 2024 | RIPS 2024 |
| Validity | Policy in force till 31 March 2029 or until a new policy is announced; incentives for units producing at least 50% M-sand | Clause 2 / 3 |
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.
Setting up an M-sand unit
- 1Step 1 — Source: identify the overburden dump or stone source; apply for allotment at the reduced reserve price through the mines department.
- 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.
- 3Step 3 — Land: purchase or lease with the 75% stamp-duty exemption certificate obtained before registration.
- 4Step 4 — Approvals: pollution consent (CTE/CTO), mining-related permissions, factory licence, BIS quality lab.
- 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.
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.