Bihar has implemented a policy to disallow companies that have relinquished their sand mining leases from participating in any future bidding processes for such operations. This move affects approximately 78 firms that had returned leases, citing substantial financial difficulties. The state government, through Deputy Chief Minister Vijay Kumar Sinha, who also heads the mines and geology department, has indicated that these entities will be blacklisted, regardless of whether they attempt to re-enter the bidding under different company names.
The administration's stated aim behind this stringent measure is to curb illegal mining and transportation of sand, thereby bolstering state revenue. Officials project an income of ₹200 to ₹300 crore in March alone from sand mining, with an additional ₹500 to ₹600 crore expected from other departmental activities. The security deposits of the defaulting companies are also subject to seizure as part of the necessary actions.
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Beyond the blacklisting, the Bihar government is intensifying its efforts to regulate the sand mining sector. Internet-enabled CCTV cameras have been installed at all operational sand ghats, and approximately 400 police personnel have been deployed to monitor and prevent illicit activities. This surveillance extends to border checkpoints and mining sites, with the objective of real-time tracking of mineral movement.
Background and Context
The decision to bar companies that surrendered leases follows a trend where numerous firms found themselves unable to meet financial obligations. Reports indicate that 37 settlement holders recently surrendered their leases, apparently due to bidding beyond their estimated revenue capacities. Deputy Chief Minister Sinha acknowledged this, noting that some companies had bid excessively in recent auctions.
In a related development, the Bihar government is exploring measures to ensure an adequate supply of sand for ongoing development projects. The Mines and Geology Department, currently managing 180 sand ghats and 18 white sand ghats, is considering granting direct mining leases to concerned government departments if required. This approach aims to prevent disruptions to construction work and maintain the momentum of development initiatives across the state. The implementation of these policies signals a shift towards tighter control and revenue maximization within the state's mining sector.
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