In a directive issued last month, Union Mines Ministry asked the state governments to take all the necessary steps to ensure that the process of granting mineral concessions for minor minerals is "fair, transparent and non-discriminatory," sources said.
The move is aimed at checking illegal mining activities related to minor minerals especially sand, they added.
The Centre in the directive has also asked the states to review the mechanism relating to grant of mining leases for minor minerals and take steps to ensure compliance of the principles laid down by the Supreme Court, they said.
Justice M B Shah Commission in 2014 had reported illegal mining worth over Rs 22,000 crore in Jharkhand, unlawful ore exports to the tune Rs 2,747 crore from Goa and blatant encroachment in Odisha.