The Punjab government, led by Chief Minister Bhagwant Mann, has taken significant steps to tackle illegal mining by introducing key amendments to the 2023 Mining Policy. The latest decisions, announced by the Punjab Cabinet, aim to ensure fair compensation for landowners, regulate the mining sector, and streamline the leasing process for gravel and sand mining.
Higher Royalty for Landowners
One of the most impactful changes is the increase in royalty rates for landowners. Previously, landowners received only 73 paise per cubic foot for sand and gravel extracted from their land. Under the revised policy, this rate has been significantly increased:
₹3.20 per cubic foot for gravel
₹1.75 per cubic foot for sand
This move ensures that landowners receive fair compensation for their resources, reducing the financial disparity between miners and property owners.
Easier Leasing and Business Opportunities
The Punjab Cabinet has also introduced simplified procedures for leasing mining land and running crusher businesses:
Landowners can now lease their land directly to crusher owners.
If they wish, landowners can obtain an NOC (No Objection Certificate) and operate their own crusher business, giving them greater control over their resources.
For government or panchayat land, the Deputy Commissioner has been authorized to lease land for mining activities, ensuring a structured and regulated process.
Tackling Illegal Mining and Boosting Revenue
With these reforms, the Mann government aims to eliminate illegal mining practices, bring transparency to the sector, and increase state revenue. By offering landowners a fair share in profits, the government hopes to discourage unauthorized mining operations and ensure a legal framework that benefits both individuals and the state.
This policy overhaul marks a progressive step in Punjab’s mining sector, offering better earnings to landowners while tightening regulations to curb exploitation and illegal activities.