Punjab cabinet clears sweeping mining policy reforms to boost supply and curb illegal mining

NEW DELHI: The Punjab Cabinet has approved amendments to the Punjab Minor Mineral Policy to address raw material shortages, curb illegal mining and corruption, reduce prices, boost state revenues, and prevent monopolistic practices.The reforms, finalised after extensive stakeholder consultations, introduce new mining categories, modernise auction mechanisms, and streamline regulatory approvals to enhance transparency and efficiency. Mines and geology minister Barinder Kumar Goyal said the shift to online auctions and legalised supply chains would protect state revenue, create a level playing field, and curb illegal mining.A key change is the introduction of Crusher Mining Sites (CRMS), allowing crusher owners with gravel-bearing land to obtain mining leases for their own use.

This is expected to increase the supply of crushed sand and bajri, reduce dependence on other states, lower costs, and boost employment and revenues.In sand mining, the policy introduces Landowner Mining Sites (LMS), enabling landowners to mine sand from their own land on payment of royalty. The move aims to expand legal mining sites, raise revenues, lower consumer prices, and prevent monopolisation.The government has also streamlined environmental and regulatory approvals, reducing delays that earlier stretched for months.

So far, 290 applications have been received under CRMS and LMS, with 26 Letters of Intent issued. Over 200 new mining sites have been identified, most of which are expected to become operational between December 2025 and March 2026.Additionally, Punjab has conducted its first mining auctions in three years. In Phase 1, 29 sites were auctioned online, yielding Rs 11.61 cr. The Cabinet has approved a shift to price-based bidding, mandatory upfront and advance royalty payments, longer lease tenures, and stricter rules to prevent speculative holding.Officials said the combined measures mark a comprehensive overhaul of Punjab’s mining sector, aimed at ensuring legal operations, adequate supply, and transparent, citizen-centric governance.