CHANDIGARH: Reinforcing its commitment to transparency and responsible resource management, the Punjab Government has launched fresh auctions for mining sites across the state and notified major reforms to the auction framework under the amended Punjab Minor Mineral Rules.
Speaking on the reforms, Mining and Geology Minister Barinder Kumar Goyal said, “Our government is committed to ending opacity in mining and ensuring that natural resources are used for the benefit of the people. By shifting to transparent online auctions, we are protecting state revenue, creating a level playing field for genuine operators, and curbing illegal mining.”
In Phase 1, the government has auctioned 29 new Commercial Mining Sites (CMS) through an open and competitive online bidding process. These auctions, floated in October–November, resulted in 16 successful bids and generated ₹11.61 crore in revenue. Notably, these are the first mining auctions conducted by the state in the last three years.
The Cabinet-approved reforms mark a decisive break from earlier volume-based auction systems, where bidders competed by offering to operationalise the maximum share of a site. In practice, many bidders quoted identical volumes, often 100 percent, leading to selection by draw of lots. Over time, this approach resulted in reduced revenue realisation, proliferation of non-serious bidders, limited investment commitment, and delays in operationalising mines, as environmental clearances were the government’s responsibility.
To address these systemic flaws, the Cabinet has approved a series of structural reforms aligned with best practices followed across India. Auctions will now be based on competitive price bidding, ensuring fair allocation and improved revenue outcomes. Bidders will be required to make upfront payments to demonstrate seriousness, and royalty payments will be collected in advance to ensure steady revenue flows.