Chouhan said the Madhya Pradesh State Mining Corporation Limited (MPSMCL) will also carry out marketing of sand which will be mined by labourers arranged through self-help groups (SHGs).
While the state government on Monday imposed a total ban on mining on the Narmada riverbed, it disallowed the use of machines for mining in all rivers across the state.
"The system of sand mining through contract will be changed. Madhya Pradesh State Mining Corporation Limited will now control mining in the state. It will also fix (mining) rates and (will) make sand available at reasonable rates for construction of houses for the poor," Chouhan said while addressing a function at his residence here.
"The money that was earlier used to be pocketed by a few contractors will now be shared by the families of poor labourers. Women and youth self-help groups will carry out mining work through labourers," he added.
While banning mining on the Narmada riverbed, Chouhan had said an expert committee would make recommendations after carrying out scientific study to avoid any ecological damage to the river.
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