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Bihar's Deputy Chief Minister has issued a stern warning to companies that relinquish their sand mining leases due to financial failures. These firms will face blacklisting from any upcoming tenders, a decisive action taken after a staggering Rs 700 crore revenue dip. To further tighten regulations, policy amendments will ensure that no company can evade penalties by simply rebranding.
Patna: Deputy CM-cum-mines and geology minister Vijay Kumar Sinha on Thursday said companies that surrendered sand mining leases in Bihar would not be allowed to participate in fresh tenders for those sites.Addressing a press conference, Sinha said several firms had surrendered leases for 78 sand ghats, resulting in an estimated revenue loss of around Rs 700 crore to the mines and geology department. According to him, the companies cited heavy financial losses as the reason for giving up the leases.Sinha said these companies would be barred from bidding again when fresh tenders are floated for the 78 ghats. He added that the restriction would remain in force even if the firms attempt to participate under changed names or through newly renamed companies.
The minister said the state govt was preparing to amend its policy to formally blacklist such companies.Sinha alleged that the firms had originally secured the sand mining leases by quoting excessively high bid amounts. According to him, they did so with the intention of making quick profits through illegal mining.However, he said the department’s strict action against illegal mining and vehicle overloading made it difficult for them to continue operations, forcing them to surrender the leases.
He added that the companies and individuals involved would be identified and further action would be taken against them. Their security deposits would also be seized.At the same programme, Sinha transferred Rs 3.70 lakh to the bank accounts of 71 informants under the department’s “Bihari Yoddha Purashkar” initiative aimed at curbing illegal mining and overloading.Under the scheme, informants who provide information about illegal mining, transportation and overloading by tractors receive Rs 5,000, while those reporting illegal movement by trucks are given Rs 10,000.Sinha said Chief Minister Nitish Kumar had launched the initiative to encourage public participation in curbing illegal mining, transportation and overloading and to assist authorities in identifying offenders.He said the identities of these “Yoddhas” are kept confidential for safety reasons.Sinha also claimed that Bihar is the first state in the country to introduce such a measure and credited informants with playing an important role in curbing illegal mining and vehicle overloading.Highlighting the department’s revenue performance, the minister said collections had increased from Rs 1,600 crore in 2021-22 to Rs 3,536 crore in 2024-25, more than doubling during the period.He expressed confidence that the department would comfortably achieve its revenue target of Rs 3,800 crore in 2025-26, noting that more than Rs 3,000 crore had already been collected so far.Sinha added that the department expected to collect another Rs 200 crore to Rs 300 crore in March, besides Rs 500 crore to Rs 600 crore expected from other work departments.

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