Under the leadership of Chief Minister Bhagwant Singh Mann, the Punjab government has implemented major reforms in the state’s mining sector through significant amendments to the Punjab Minor Mineral Policy.
The move aims to ensure adequate supply of raw materials, curb illegal mining and corruption, reduce prices for consumers, increase state revenue, and eliminate monopolies.
Following extensive consultations with stakeholders, the Cabinet approved the amendments, which include the introduction of new mining categories, modernization of the auction system, and simplification of regulatory processes. Officials described the changes as a historic shift towards transparency, fairness, and citizen-friendly governance.
Modernized Mining Processes and Transparent Auctions
Speaking on the reforms, Mining and Geology Minister Barinder Kumar Goyal said, “Our government is committed to eliminating the complexities in the mining sector and ensuring that natural resources are utilized for the benefit of the people. By moving towards transparent online auction processes, we are increasing state revenue and curbing illegal mining while ensuring a level playing field for genuine operators.”
Minister Goyal explained that Punjab’s mining sector had long faced a shortage of authorized mining sites, with only around 35 mines operational in the state. The gap between legal supply and growing demand for construction materials had led to illegal mining and unregulated supply chains.
“We are encouraging operators to come forward, disclose existing mining activities, complete necessary documentation, and operate strictly within the regulatory framework,” he said.
The government has also launched its first transparent online auction process in three years, auctioning 29 commercial mining sites in the first phase. The process received 16 successful bids and generated revenue of ₹11.61 crore. Officials confirmed that approximately 100 more sites will be auctioned in a phased manner.
Crusher Mining Sites to Strengthen Local Industry
A major reform under the revised policy is the introduction of Crusher Mining Sites (CRMS) to address material shortages for the crusher industry. Previously, crusher owners with land containing gravel deposits could not legally extract materials, forcing them to rely on other states.
Under the new CRMS framework, land-owning crusher operators can obtain mining leases and extract materials for their operations. This measure is expected to improve raw material availability, accelerate infrastructure projects, reduce dependence on other states, create employment, enhance crusher efficiency, increase state revenue, and lower prices for consumers.
Land-Owner Mining Sites to Empower Farmers and Reduce Monopolies
The government has also introduced Land-Owner Mining Sites (LMS) for sand mining. Previously, landowners faced obstacles in mining their land due to procedural complexities and reluctance from operators. The LMS policy now allows landowners to mine sand themselves or through authorized operators, paying royalties to the state government.
“These reforms will boost legal mining sites, increase supply, enhance state revenue, reduce consumer prices, and create new business opportunities for Punjabis. They will also help eliminate monopolies in the mining sector,” said officials.
Streamlined Approvals and Industry Support
Mining-related approvals, which previously took seven to nine months—or in some cases years—through institutions like the State Environment Impact Assessment Authority (SEIAA), will now be processed on a mission mode, with multiple clearances handled simultaneously to ensure timely decisions without compromising regulatory requirements.
So far, 290 applications under the CRMS and LMS categories have been received, with 26 Letters of Intent issued. Over 200 new mining sites have been identified, and surveys, technical investigations, public consultations, and environmental impact assessments are underway. Most mines are expected to become operational between December 2025 and March 2026.
Officials reiterated that all mining operations must comply with legal procedures and regulatory approvals. “Mining is permitted, but any laxity towards illegal activities will not be tolerated,” they said.
Comprehensive Reforms in Auction System
The Cabinet approved reforms to address deficiencies in the previous auction model, including lottery draws, fake bidders, revenue loss, and delays. The new measures include a price-based bidding system, advance royalty payments, transfer of environmental clearances to bidders, clear dead rent provisions, and extension of lease periods from three to five years.
“These reforms aim to improve availability of raw materials, increase revenue, speed up mine operations, and strengthen transparency,” officials said.
Impact and Future Outlook
The introduction of CRMS and LMS, streamlined approvals, and new auction systems represent a holistic approach to reforming Punjab’s mining sector. The government’s objectives include eliminating illegal mining, improving state revenue, ensuring fair access for operators, and managing natural resources in a clean, transparent, and citizen-centric manner.
Mining and Geology Minister Barinder Kumar Goyal concluded, “These historic reforms mark a new era for Punjab’s mining sector, providing legal clarity, transparency, and growth opportunities for industry and local communities alike.”
