Patna: The Bihar government has strengthened regulations governing sand mining, making it mandatory for leaseholders to pay additional royalty if mining activity exceeds approved limits.
The Department of Mines and Geology has instructed all districts to begin calculating additional royalty liabilities under the revised framework. Officials said the changes are expected to improve monitoring of mining operations and increase state revenue.
Excess extraction to attract additional payments
Under the new system, the quantity of sand extracted from each mining site will be assessed on an annual basis.
If the royalty payable on the actual quantity extracted exceeds the amount determined at the time of settlement, the leaseholder will be required to pay the difference as additional royalty.
The government said the measure would enable more accurate assessment of mineral extraction and help prevent losses arising from underreporting or excess mining.
Changes introduced under 2026 amended rules
The revised provisions have been introduced through the Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation and Storage) Amendment Rules, 2026, which came into effect on May 6.
The amended rules include changes related to security deposits, royalty rates and operational conditions for sand mining leases.
Government targets illegal mining and revenue leakage
Officials in the mining department said the revised framework is intended to curb illegal extraction and discourage attempts to pay lower royalty than what is due.
The department believes the changes will improve accountability in the sand mining sector and provide a clearer picture of actual mining activity across the state.
Industry observers said the new system could strengthen regulatory oversight by linking royalty payments more closely to the volume of minerals extracted.
District magistrates asked to complete assessments
The Department of Mines and Geology has written to district magistrates across Bihar, directing them to complete calculations of additional royalty dues at the earliest.
Where excess liability is established, authorities will recover the amount from the concerned leaseholder and deposit it under the mining revenue head.
The department said implementation of the process will also be monitored at the state headquarters level.
Focus on transparency and monitoring
The government expects the revised rules to improve transparency in mining operations, strengthen enforcement mechanisms and enhance revenue collection.
For sand mining operators, the changes mean that extraction beyond approved levels could now result in additional financial obligations based on annual assessments.
