Bihar to expand stone mining in 6 districts to cut outside reliance
PATNA, July 14 -- State government has opened the door for organised mining of stone chips and aggregates, a sector with an estimated potential to yield revenue of around Rs.2,300 crore, in a major policy shift to lower construction costs, officials said on Monday.
Until now, Bihar depended on states like Uttar Pradesh, Jharkhand, Madhya Pradesh and Rajasthan for stone needs. Due to the arrival of stones from other states, huge transportation costs, entry fees, and toll taxes doubled the price of the stone by the time it reached Bihar. The new move seeks to lower the price. The decision, outlined in recent official notifications, sets clear guidelines for extraction, including identified mining sites, royalty payments and environmental safeguards, aiming to end Bihar's long dependence on supplies from neighbouring states.
Mines and geology minister Pramod Kumar Chandravanshi said the auction process for stone mining leases in Nawada has already begun, with other locations to follow shortly. "The department has identified 44 spots for stone mining," he said. The minister added that the spots are across districts such as Nawada, Rohtas, Aurangabad, Gaya and Sheikhpura. State expects to generate Rs.5,000 crore revenue from resources like brick kilns, stone quarrying, mining of sands, etc., by the end of the current financial year.
Of the 44 new plots earmarked for mining, 17 are in Nawada district alone. Additionally, the mining process will start on 10 plots in Sheikhpura, 9 in Gaya, 4 in Rohtas, 3 in Aurangabad and 1 in Banka. About 520 acres of hill will be mined at these 44 locations.
The settlement of all 44 plots will be done via e-auction on the portal of MSTC, a central government agency.
For years, Bihar's construction industry, from individual house builders to major infrastructure projects, relied heavily on stone aggregates from Jharkhand and Uttar Pradesh. Officials believe tapping local reserves will change the picture substantially.
This dependence on neighbouring states drove up transportation costs, led to supply delays and triggered price fluctuations, particularly during periods of high demand for roads, bridges and buildings under various state government development schemes.
Local production is expected to reduce material costs, expedite projects and generate fresh revenue through royalties and auctions. Industry sources said the move could significantly drop aggregate prices, making housing and public works more affordable.
The policy would also help the state generate jobs in mining and related sectors. Stone mining in Bihar remained largely restricted for years because of environmental concerns, regulatory changes, court orders and drives against illegal operations.
While limited extraction continued in a few areas of Nawada and Sheikhpura even after leases expired, activities at most other sites had been halted for more than five years as new leases remained unsettled. The new framework seeks to overcome these hurdles.
Along with structured leasing, the framework will carry out capacity estimates for each site and place stronger emphasis on legal compliance to check illegal mining, a problem that had plagued the sector earlier, making processes seamless, officials said.
The development aligns with the state's bid to increase self-reliance in the supply of construction materials. As Bihar advances major projects, ready access to stone chips will accelerate work and reduce the environmental impact from long-distance transportation....
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