The move was okayed by the state cabinet on Tuesday, an official said.
After the green signal to the 42nd amendment of the Mining Policy 2017, the fine on illegal mining was hiked from Rs 25,000 per hectare to Rs 5 lakh.
The provision of jail sentence has also been increased from six months to five years.
Although, some concession has been made for mining for home purposes and making clay utensils.
The Bharatiya Janata Party (BJP) in its vision document for the state assembly polls had promised to end the illegal mining.