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HomeLatestPunjab changes mining rules to cut sand and gravel rates for all

Punjab changes mining rules to cut sand and gravel rates for all

In a bid to decentralise mining operations and slash soaring construction costs, the Punjab government has approved a significant amendment to its minor mineral policy, allowing private landowners to apply for mining leases on their property. This regulatory pivot, cleared by the state cabinet under the leadership of the Chief Minister, is aimed at dismantling monopolistic practices, curbing illegal extraction, and infusing transparency into the sector.

With the decision now empowering landholders to sell extracted sand and gravel at notified government rates, the supply bottlenecks that had plagued infrastructure projects across the state could see meaningful relief in the months ahead. This amendment introduces two crucial operational frameworks—Landowner Mining Sites (LMS) and Crusher Mining Sites (CRMS)—designed to plug systemic gaps that have long allowed middlemen and unauthorised players to profit from opaque practices. By enabling legitimate landowners and crusher operators with gravel-bearing land to secure official leases, the policy seeks to realign the supply chain, cut down on inter-state smuggling of materials, and lower end-user prices. According to government estimates, the revised royalty on sand is now ₹1.75 per cubic foot, with a pit-head price of ₹7 per cubic foot, while gravel royalty has been pegged at ₹3.15 per cubic foot with a pit-head price of ₹9. These price corrections are expected to reflect positively in the retail market, providing financial relief to builders and individual home owners alike.

What distinguishes the revised policy from previous iterations is its people-first approach. Previously, numerous mining sites remained dormant due to the reluctance of landowners to allow external parties access to their land for extraction. The LMS model addresses this trust deficit, offering landowners direct participation and income opportunities while ensuring that environmental and regulatory standards are maintained. Moreover, the decision to empower district collectors with the authority to issue No Objection Certificates (NOCs) for government and panchayat lands is being seen as a strategic move to expedite site clearances and avoid bureaucratic delays that typically stall public infrastructure projects.

In a separate but socially resonant decision, the state cabinet also gave a green light to broaden the scope of the Mukhya Mantri Teerth Yatra Scheme. Citizens aged 50 and above can now undertake fully-funded pilgrimages to major religious destinations. The government has earmarked ₹100 crore for the programme, ensuring air-conditioned travel, boarding, and meals. This initiative, set to roll out in May with registrations opening in late April, underscores the administration’s attempt to blend spiritual welfare with social equity. Together, these policy measures reflect a governance style that is at once pragmatic and people-centric—driving economic reform while also attending to the emotional and cultural aspirations of its populace.

Punjab changes mining rules to cut sand and gravel rates for all

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