The Bihar government has made it compulsory for all commercial vehicles carrying minor minerals, including sand, stones, stone chips, moorum, and stone dust, from other states to obtain a Transit Pass (TP) before crossing its borders.
Last week, the Bihar Mines and Geology Department, led by Deputy Chief Minister Vijay Kumar Sinha, enforced a new regulatory regime aimed at formalising the cross-border trade of construction materials.
Under Rule 41 of the Bihar Minerals (Prevention of Illegal Mining, Transportation and Storage) Rules, 2019, all incoming minor minerals must now be digitally logged at the border. The arrangement requires any commercial vehicle entering Bihar with minor minerals to obtain a TP. The move is intended to plug revenue leakages, curb illegal mining, and digitise the tracking of raw materials.
The state has implemented a specific regulatory fee structure based on the transport challan issued by the originating state:
By Weight: If the challan mentions the weight of the mineral, the fee is Rs 60 per metric ton.
By Volume: If the challan mentions the volume, the fee is Rs 85 per cubic metre.
To enforce this, border district administrations will install CCTV cameras at entry points. A system integrator will digitally monitor mineral-laden vehicles to ensure taxes are paid and to prevent the reuse of a single challan for multiple trips.
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Why the reliance on imports, and where do they come from?
In recent years, Bihar has witnessed an unprecedented infrastructure push, including the Patna Metro, new expressways, and mega-bridges, apart from rising consumer needs. To feed this appetite, Bihar relies heavily on its neighbours. While the state produces sand, it lacks sufficient stone quarries for aggregates like stone chips and moorum, which are essential for concrete. Consequently, Bihar relies on the quarrying hubs of Pakur and Sahibganj in Jharkhand.
Logistics also play a role. Due to the high cost of heavy transport, construction projects in north or west Bihar often find it more cost-effective to import sand from Uttar Pradesh than to transport it from south Bihar. Similarly, quarries in West Bengal frequently supply stone and sand to eastern districts like Bhagalpur and Araria.
Does Bihar have its own minerals?
When Bihar was bifurcated in 2000, the majority of the region’s major mineral wealth, such as coal, iron ore, and uranium, went to Jharkhand. Bihar was left primarily with minor minerals. In 2012–13, these minerals accounted for around Rs 125 crore in output value. By 2020–21, official data put this value at approximately Rs 4,272 crore. However, local supplies, primarily stone from southern districts like Rohtas and Gaya, remain far below the state’s total construction demand.
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Does Bihar export any mineral?
Yes, though on a smaller scale. Bihar’s most prized geological asset is the high-quality, yellow Sone (Son) River sand from the Koilwar region. This sand is highly sought-after across North India. However, sand mining is strictly regulated by the National Green Tribunal (NGT), which limits extraction to a depth of 3 metres and enforces a four-month monsoon ban to allow riverbeds to replenish.
These constraints, combined with crackdowns on the “sand mafia,” often result in domestic shortages in the state. This has fueled a lucrative trade of sand, both legal and illegal, within the state and across borders. The new TP regime could help authorities track and tax these movements more effectively.
Is this system unique to Bihar?
No. While Article 301 of the Constitution mandates that trade and commerce across India shall be free, the judiciary has historically allowed states to charge regulatory fees for monitoring environmental impact and infrastructure maintenance.
Digital permits have become a standard tool to curb mining syndicates. Uttar Pradesh operates the “e-Ravanna” portal, and Jharkhand uses the JIMMS platform for e-permits. Rajasthan has similarly issued millions of e-transit passes since 2019. Bihar is now trying to catch up by replacing an opaque, unregulated flow with a formal digital registry.
What are the broader impacts of this rule?
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The state expects to add crores of rupees to the exchequer annually by taxing minerals that were previously “secretly absorbed” into the construction sector. Mandatory digital passes and CCTV checks aim to dismantle the black market by making it difficult to use fake or duplicate challans.
However, the transit fee will likely be passed down the supply chain, leading to a modest uptick in material prices for consumers and public projects. Ultimately, the system’s success hinges on enforcement, as any collusion between transporters and enforcement staff could undermine the revenue and regulatory goals of the state.
