State rolls out OTS scheme to clear brick kiln liabilities
PATNA, Sept. 19 -- Bihar's mines and geology department has launched One-Time Settlement (OTS) scheme for 6,000 brick kiln operators, running from September 21 to December 20, 2026, aimed at clearing long-pending liabilities and reviving local construction activity, minister Pramod Kumar said on Friday.
Announcing the policy at Vikas Bhawan, the mines and geology minister said that the scheme offers approximately 6,000 kiln owners a complete waiver on accumulated interest upon payment of the principal amount for the 2024-25 season. Failure to clear dues within the window will result in the reinstatement of original liabilities and full interest penalties, he added.
The brick kiln sector currently carries Rs.289.38 crore in unsettled liabilities out of an original Rs.316.66 crore, consisting of Rs.203 crore in principal royalty and Rs.85 crore in accrued interest, following modest recoveries of Rs.27.28 crore through certificate proceedings and FIRs.
Kumar thanked chief minister Samrat Choudhary for greenlighting the cabinet decision, noting that the initiative directly addresses persistent appeals from the industry.
Alongside the financial relief, the state has also notified the Bihar District Mineral Foundation (Amendment) Rules 2026, overhauling the 2018 framework governing mining cess utilization.
Under the revised norms, the spending ratio of the two percent mineral extraction levy has been restructured, where 70 percent of funds will now be channelled directly into the specific block where quarrying occurs, with the remaining 30 percent allocated across other blocks in the district, shifting from the prior 60:40 formula.
To enhance local accountability and expedite welfare works, members of parliament, MLAs, and MLCs have also been inducted as official foundation members.
Highlighting broader operational strides, Kumar confirmed the successful auctioning of stone-mining zones in Nawada and Sheikhpura, with remaining districts slated to follow shortly.
He added that Union minister of state for coal and mines Satish Chandra Dubey will arrive in Bihar on September 22 for high-level consultations with the Geological Survey of India to accelerate the state's mineral development pipeline.
The scheme is said to be applicable to defaulting consumers in the categories of LIG (Low-Income Group), Domestic, Agriculture, Small Commercial, and LTP (Motive Power).
It is also applicable to consumers whose installations are temporarily or permanently disconnected as of 31-3-2008 for non-payment of outstanding arrears and whose cases have been referred to the Revenue Recovery Court....
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