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Chandigarh: In a significant policy shift aimed at enhancing transparency and accelerating operations, the Punjab Government has resumed mining auctions after a gap of three years and rolled out sweeping reforms to the auction framework under the amended Punjab Minor Mineral Rules.

Announcing the reforms, Mining and Geology Minister Barinder Kumar Goyal said the move marks a decisive break from opaque practices of the past. “By shifting to transparent online auctions, we are protecting state revenue, creating a level playing field for genuine operators, and curbing illegal mining,” he said, adding that natural resources must be managed in a way that directly benefits the people of Punjab.

First Auctions in Three Years Yield ₹11.61 Crore.

As part of Phase 1, the government has auctioned 29 Commercial Mining Sites (CMS) through an open and competitive online bidding process. These auctions, floated during October–November, resulted in 16 successful bids, generating ₹11.61 crore in revenue for the state.

Officials noted that these are the first mining auctions conducted in Punjab in the last three years, signalling the government’s intent to revive stalled legal mining activity and improve the supply of construction raw materials.

Why the System Was Overhauled

The Cabinet-approved reforms replace the earlier volume-based bidding system, under which bidders competed by offering to operationalise a maximum percentage of a mining site. In practice, many bidders quoted identical volumes—often 100 per cent—forcing authorities to allocate sites by lot.

Over time, this system led to poor revenue realisation, entry of non-serious bidders, weak investment commitment and prolonged delays, particularly as responsibility for obtaining environmental clearances rested with the government.

Key Features of the New Auction Framework

Under the revamped policy:

• Competitive price-based bidding will determine allocation, ensuring better revenue outcomes.

• Upfront payments have been mandated to filter out speculative and non-serious bidders.

• Advance royalty collection will ensure steady, predictable revenue for the state.

• Responsibility for securing Environmental Clearances (ECs) has been shifted to bidders, a step expected to reduce operational delays significantly.

• Dead rent provisions have been introduced to prevent lease hoarding and ensure minimum payments, even if a mine is not operationalised.

• The lease tenure has been extended from 3 years to 5 years, providing greater certainty and encouraging long-term planning and investment.

Nearly 100 More Sites in the Pipeline

While 29 sites have been auctioned in the first phase, the government has clarified that nearly 100 additional mining sites will be brought under the hammer in staggered phases in the coming months. Officials said the reforms are expected to expand the legal supply, accelerate the operationalisation of mines, strengthen regulatory clarity, and substantially enhance state revenues, while also serving as a deterrent to illegal mining.

Restoring Trust in Mining Governance

The Punjab Government emphasised that the combined impact of policy amendments, introduction of CRMS/LMS, and the shift to transparent online auctions represents a comprehensive overhaul of the mining sector. “These changes are designed to eliminate opacity, prevent monopolistic practices, curb illegal mining, and ensure that Punjab’s natural resources are utilised responsibly and for public benefit,” the government said, asserting that the new framework would help restore public confidence in mining governance across the state.