Bihar Bars Companies That Surrendered Sand Mining Leases from Fresh Tenders

Patna: The Bihar government has announced that companies which surrendered their sand mining leases earlier will not be allowed to participate in upcoming fresh tenders for sand extraction in the state.

A senior minister in the state government said that 78 companies had surrendered their sand mining leases, claiming that the operations were resulting in massive financial losses. However, the government believes the decision by these firms has adversely affected the state’s revenue.

According to the minister, the surrender of leases by these companies has caused an estimated revenue loss of nearly ₹700 crore to the concerned department. He stated that the government had granted leases to the firms with the expectation that they would operate the mining sites responsibly and contribute to the state’s revenue.

Officials said the government is now taking a strict stand to ensure accountability and stability in the sand mining sector. Companies that abandoned their leases midway will be barred from bidding in the new tender process that will be conducted to allocate sand ghats across the state.

The move is aimed at discouraging companies from withdrawing from contracts after securing them and preventing disruptions in the supply of sand, which is a key material used in construction activities.

The state government is preparing to invite fresh bids for sand mining operations across several districts. Authorities hope that the new tender process will attract reliable operators capable of running the sites efficiently while ensuring steady revenue for the government.

Officials also said the department is working to streamline mining operations and ensure transparency in the allocation of sand mining leases, while maintaining environmental regulations and sustainable extraction practices.