Patna: The Bihar Mines and Geology Department has introduced a One-Time Settlement (OTS) scheme for brick kilns, offering relief from accumulated interest on outstanding dues for the 2024-25 brick-kiln season.
Under the scheme, brick-kiln owners will have to pay their outstanding principal dues, while the interest component will be waived by the state government. The scheme will remain open for three months, from September 21 to December 20, 2026, and is expected to benefit people associated with around 6,000 brick kilns across Bihar.
₹289.38 Crore Still Outstanding
Mines and Geology Minister Pramod Kumar said the total dues raised against brick-kiln owners stood at ₹316.66 crore.
Of this amount, ₹226.40 crore was outstanding royalty, while ₹90.26 crore represented accumulated interest. District Mining Officers have already recovered ₹27.28 crore through certificate proceedings and FIR-related recovery action.
This leaves ₹289.38 crore still outstanding, including around ₹203 crore in principal and ₹85 crore in interest.
The OTS scheme will allow eligible kiln owners to settle the principal amount without paying the accumulated interest.
Read Also: Bihar Tightens Wildlife Trafficking Watch, Maps Sensitive Routes Across Rail, Road and Air
Three-Month Window From September 21
The settlement window will begin on September 21, 2026, and close on December 20, 2026.
Brick-kiln owners will have to deposit the entire eligible principal amount within this period to avail the interest waiver. Those who fail to settle their dues during the OTS period will have to pay the outstanding amount under the earlier system, including the applicable interest.
The minister urged kiln owners to use the settlement window and clear their dues within the stipulated period.
Government Links Relief With Revenue Recovery
The state government has described the scheme as a measure that can provide relief to the brick-kiln sector while improving recovery of government dues.
According to Minister Pramod Kumar, brick-kiln operators had been seeking an arrangement that would allow them to clear their accumulated liabilities through a lump-sum payment.
The OTS provides such a settlement mechanism while allowing the government to recover the principal amount that remains due.
The minister also said the initiative could help brick-kiln operators restart their businesses without carrying forward the burden of accumulated interest.
Changes in District Mineral Foundation Rules
Alongside the OTS announcement, the Mines and Geology Department has also approved changes through the Bihar District Mineral Foundation (Amendment) Rules, 2026.
The District Mineral Foundation (DMF) receives a contribution from districts where minerals such as stone and sand are extracted. The amended rules change how the collected funds will be distributed within mining districts.
Earlier, 60% of DMF funds were earmarked for the block from which minerals were extracted, while 40% could be spent in other blocks of the district.
Under the amended arrangement, 70% will now be spent in the mineral-producing block, while the remaining 30% will be available for other blocks of the district.
Elected Representatives to Join DMF
Another major change is the inclusion of elected representatives in the District Mineral Foundation.
Members of Parliament, Members of the Legislative Assembly and Members of the Legislative Council from the concerned districts, who were not previously members under the arrangement described by the department, will now be included in the DMF.
The department said their participation is expected to increase transparency and support faster implementation of development and welfare-related works in mining-affected areas.
Mining Auctions and Mineral Sector Push
The minister also said that auctions of stone-mining areas have been completed in Nawada and Sheikhpura. Auctions in other districts are expected to be taken forward as quickly as possible.
The department is also looking to accelerate work in Bihar’s wider mineral sector.
Union Minister of State for Coal and Mines Satish Chandra Dubey is scheduled to visit Bihar on September 22, when a meeting with the Geological Survey of India (GSI) is planned.
The discussions are expected to focus on moving mineral-sector activities forward and speeding up related work in the state.
What the OTS Means for Brick Kilns
For brick-kiln owners with outstanding dues from the 2024-25 season, the OTS creates a limited opportunity to settle their principal liability without paying the accumulated interest.
The three-month deadline makes timely payment important. At the same time, the government expects the scheme to improve recovery of long-pending dues and bring greater clarity to outstanding accounts.
The changes to the DMF rules add another dimension to the department’s current focus, directing a larger share of mining-linked funds towards the areas where mineral extraction actually takes place.
Together, the measures cover both revenue recovery from brick kilns and development spending in mining-affected areas, making them significant for Bihar’s minerals and allied economic activities.
Read Also: Bihta Airport Flight Operations: Bihar Orders Swift Action to Clear Key Hurdles
