Punjab starts online auctions for commercial mining sites and reforms minor mineral rules

Punjab launched fresh online auctions for mining sites across the state and introduced cabinet-approved reforms to the auction framework under the amended Punjab Minor Mineral Rules.
Punjab starts online auctions for commercial mining sites and reforms minor mineral rules
A What happened
Punjab launched fresh auctions for mining sites across the state and notified major reforms to the auction framework under the amended Punjab Minor Mineral Rules. In Phase 1, the government auctioned 29 new Commercial Mining Sites through an open online bidding process, resulting in 16 successful bids and Rs 11.61 crore in revenue. Mining and Geology Minister Barinder Kumar Goyal said the shift to transparent online auctions aims to protect state revenue, create a level-playing field for genuine operators, and curb illegal mining. The government said nearly 100 additional sites will be brought to auction in staggered phases.

Key insights

  • 1

    Auction design shifted from volume-based selection to price bidding: The cabinet-approved reforms replace volume-based auctions that could end in draw-of-lots selection with competitive price bidding, along with upfront payments and advance royalty collection.

  • 2

    Environmental clearance responsibility moved to bidders: Responsibility for obtaining environmental clearances was shifted from the government to bidders, and the change is expected to reduce delays in making mines operational.

  • 3

    Dead rent and longer leases introduced to discourage speculation: Dead rent provisions were introduced to ensure minimum payments even if mines are not operationalised, and lease tenures were extended from three years to five years.

Takeaways

Punjab is running online auctions for commercial mining sites under revised rules that the government says will improve transparency, curb illegal mining, and raise revenues.

Topics

World & Politics Policy & Regulation Business & Markets Energy & Commodities

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