In a significant move to overhaul its mining sector, the Punjab Cabinet has given its nod to crucial amendments in the state's Minor Mineral Policy. The reforms aim to tackle a host of persistent issues including severe shortages of raw materials, rampant illegal mining, corruption, and high prices, while simultaneously boosting state revenues and preventing monopolies.
Key Reforms: New Categories and Online Auctions
The revamped policy, finalised after extensive discussions with various stakeholders, introduces innovative mining categories and modernises the auction process. Mines and Geology Minister Barinder Kumar Goyal emphasised that a shift to online auctions and formalising supply chains will safeguard state income, ensure fair competition, and effectively curb illegal mining activities.
A pivotal change is the creation of Crusher Mining Sites (CRMS). This provision allows owners of stone crushers who have gravel-bearing land to secure mining leases for their own operational use. This step is anticipated to significantly increase the supply of essential materials like crushed sand and bajri, reduce Punjab's reliance on other states for these resources, cut down costs, and generate more employment and revenue within the state.
Empowering Landowners and Streamlining Approvals
For sand mining, the policy introduces Landowner Mining Sites (LMS). This enables landowners to legally extract sand from their own property upon payment of the due royalty to the government. The objective is to expand the number of legal mining sites, which should increase revenue collection, reduce prices for end consumers, and break any monopolistic control over sand supply.
Furthermore, the government has taken steps to drastically simplify and expedite the process for obtaining environmental and other regulatory clearances. These approvals, which previously caused delays stretching for several months, have now been streamlined to accelerate project commencement.
On-Ground Impact and Future Projections
The initial response to these new provisions has been positive. Authorities have already received 290 applications under the CRMS and LMS schemes, with 26 Letters of Intent issued so far. Additionally, the state has identified over 200 new potential mining sites. A majority of these sites are projected to become operational between December 2025 and March 2026.
In another landmark development, Punjab recently conducted its first mining auctions in three years. The Phase 1 online auction of 29 sites fetched the state exchequer Rs 11.61 crore. The Cabinet has also approved a shift to a price-based bidding model, made upfront and advance royalty payments mandatory, extended lease tenures, and implemented stricter regulations to prevent speculative holding of mining blocks.
Officials state that these combined measures represent a comprehensive overhaul of Punjab's mining framework. The ultimate goals are to ensure all operations are legal, maintain an adequate supply of construction materials at reasonable prices, and establish a system of transparent and citizen-centric governance in the sector.
