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

75%
SGST reimbursement on M-sand sales
50%
Reduction in reserve price for overburden dumps
31 Mar 2029
Incentives available for units set up till this date
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 GSTReimbursement of 75% of SGST paid on M-sand salesPolicy / RIPS 2024
Overburden dumpsReserve price for allotment of overburden dumps reduced by 50%; royalty exemption on use of overburdenPolicy
Net worth and turnoverMinimum net-worth and turnover conditions for setting up an M-sand unit waivedPolicy
Stamp duty75% exemption at purchase or lease of land for the unit, with 25% reimbursed after set-upRIPS 2024
Electricity dutyExemption for the eligible periodRIPS 2024
EmploymentReimbursement of 50% of employer's PF and ESI contribution for seven yearsRIPS 2024
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
ValidityUnits set up until 31 March 2029Policy
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.