The North News
Chandigarh, October 17
Punjab’s mining industry is undergoing its most significant overhaul in years, with the state government betting on policy reforms to expand legal operations, increase supply of raw materials and close the door on illegal mining networks. Mining and Geology Minister Barinder Kumar Goyal said the introduction of Landowner Mining Sites (LMS) and Crusher Mining Sites (CRMS) is already showing tangible results. The amendments, he argued, have not only strengthened legal mining activity but also improved the supply of sand and gravel for infrastructure projects while boosting state revenues through transparent operations.
Under the revised framework, landowners and crusher operators can now directly participate in legal mining — a shift from the earlier system that relied heavily on a small number of commercial sites. “Our efforts are focused on creating a transparent system that encourages legal mining, enhances revenue and safeguards the interests of the people of Punjab,” Goyal said.
According to official data, the Mining Department has received 240 CRMS and 95 LMS applications. Twenty-three crusher site and four landowner site Letters of Intent have already been issued, with more under review. The operational rollout is expected between December 2025 and March 2026 after environmental clearances are obtained.
The government has also restarted commercial auctions for the first time in three years, offering 29 mining sites with a total capacity of 11.58 crore cubic feet of raw material. The process has shifted entirely to online competitive bidding, replacing discretionary allotments and reducing opportunities for graft.
The earlier system, critics say, created scarcity and inflated prices. Crusher owners who held gravel-rich land were unable to use it due to restrictive regulations, leaving a large portion of reserves untapped. This shortage was often filled by material imported from neighbouring states, fuelling smuggling networks.
LMS now allows landowners to mine their own land legally, or to authorise others, by paying state royalties. Combined with CRMS, the reforms are expected to stabilise prices, generate local employment and broaden the supply chain for construction and development.
The government plans to auction nearly 100 additional sites in phases, further embedding the reforms into the state’s mining ecosystem. Goyal said the changes are part of a broader strategy led by Chief Minister Bhagwant Mann to make resource management “transparent, accountable and citizen-friendly.”
