Jharkhand has imposed a Rs. 1,200 user charge per mineral transport trip via road, effective from 13th May 2025. The move may raise construction material prices and faces opposition from stone traders citing legal and operational concerns.
he Jharkhand Road Construction Department has implemented a new user charge of Rs. 1,200 per mineral transport trip via road, effective from 13th May 2025. The charge is being levied as per the Jharkhand Highway Fee (Determination of Rates and Collection) Amendment Rules, 2025 and is already being collected. This fee has been integrated into the transport challans issued by the Department of Mines, ensuring that for every challan generated, Rs. 1,200 is collected as a composition user charge by the Road Construction Department.
Daily Revenue of Rs. 3 Crore Expected
On average, 25,000 challans are issued daily in Jharkhand for the transport of minerals such as coal, iron ore, bauxite, stone, and sand. This is expected to generate approximately Rs. 3 crore in daily revenue for the state. The new charge applies to all vehicles transporting more than nine tonnes of minerals, which may lead to an increase in the cost of essential construction materials like coal, stone, and sand.
Strong Opposition from Stone Traders
The move has sparked protests from the Jharkhand Stone Traders’ Association. Its secretary, Pankaj Kumar Singh, has objected to linking the user charge with both the GeM (Government e-Marketplace) portal and transport challans. He stated that the matter is already under judicial consideration and could potentially amount to contempt of court. Singh said that the GeM portal was introduced to prevent illegal mining, not to facilitate toll tax collection by the Road Construction Department. He further added that the association will soon challenge the decision in court.
Strict Penalty for Non-Payment
According to the rules, failure to pay the user charge during mineral transportation will result in a penalty equal to the charge itself. This means transporters would have to pay Rs. 2,400 per trip, Rs. 1200 as the original charge and an additional Rs. 1200 as fine.
Official Directives in Place
Following a formal request by the Road Construction Department, Mining Director Rahul Sinha on 24th June issued instructions for integrating the user charge with the GeM portal, making it mandatory for mineral transporters to comply through the online system. As the policy rolls out, stakeholders are divided, while the government expects significant revenue growth, businesses fear rising material costs and legal hurdles.
Also Read
KNR Constructions Secures Rs. 4800 Crore Coal Mining Project in Jharkhand
Hindalco’s Journey: From a Vision in 1958 to a Global Metals Powerhouse
Centre Approved Rs. 5940 Crore Jharia Master Plan for Safer, Fire-Free Future
Coal Ministry Seeks Experts to Review Key Schemes Ahead of FY26 Deadline
