LMS AND CRMS POLICY BOOSTS LEGAL MINING, REVENUE COLLECTION AND RAW MATERIAL SUPPLY
SAYS, NEW AUCTIONS STRENGTHEN TRANSPARENCY AND FAIR COMPETITION
Chandigarh, October 17:
Punjab Mining and Geology Minister Sh. Barinder Kumar Goyal, on Thursday, said that the amendments made in the State’s Mining Policy have started delivering visible results, strengthening legal mining activity, improving supply of sand and gravel and enhancing state revenue through transparent operations.
The Cabinet Minister said that the introduction of Landowner Mining Sites (LMS) and Crusher Mining Sites (CRMS) has transformed the mining sector by empowering landowners and crusher operators while reducing dependence on raw material from other states. The initiative has also helped curb illegal mining by bringing more stakeholders into the legal framework.
Since the rollout of the amended policy, the department has received over 240 CRMS applications and 95 LMS applications. Out of these, 23 CRMS and 4 LMS Letters of Intent have already been issued and the remaining applications are being processed for inclusion in the District Survey Reports. These sites are expected to become operational between December 2025 and March 2026 after completion of environmental clearances.
Sh. Goyal said that the implementation of LMS and CRMS has led to an increased availability of raw materials in the market, ensuring a steady supply for construction and development projects. The move has also provided local employment opportunities and is contributing to higher royalty income for the State.
The Mining and Geology Minister also highlighted that the Punjab Government has launched fresh online auctions for 29 Commercial Mining Sites containing 11.58 crore cubic feet of raw material, marking the first auction exercise in the last three years. The process has been made fully transparent through competitive online bidding, eliminating discretionary allotments and ensuring equal opportunity for all genuine participants.
He said that the introduction of price-based bidding, advance royalty payments and extended lease periods has modernised the auction process and improved operational efficiency. Responsibility for obtaining environmental clearances now rests with bidders, enabling faster project implementation and accountability, he added.
The Cabinet Minister informed that nearly 100 additional sites will be brought under auction in a phased manner to further increase the legal supply of raw material and strengthen the mining ecosystem. He said these policy reforms are aimed at making Punjab’s mining operations transparent, accountable and citizen-friendly.
Sh. Goyal reaffirmed that the Punjab Government under Chief Minister S. Bhagwant Singh Mann is committed to ensuring fair and sustainable resource management. “Our efforts are focused on creating a transparent system that encourages legal mining, enhances revenue and safeguards the interests of the people of Punjab,” the Cabinet Minister categorically added.
Sh. Barinder Kumar Goyal said that earlier, gravel mining in Punjab was confined to Commercial Mining Sites (CMS) allotted by the Department, mainly through a draw of lots. Crusher owners relied heavily on these limited CMS sites or imported raw materials from other states, leading to an acute shortage and inflated costs. Many crusher owners, despite possessing gravel-rich land, were unable to utilize it as permissions were restricted. Their long-pending demand to extract gravel from their own property remained unresolved, leaving a significant portion of Punjab’s gravel reserves untapped.
Now, with the Punjab Government’s approval of key amendments introducing Crusher Mining Sites (CRMS), the landscape of gravel mining is changing. Crusher owners with gravel-bearing land can now apply for a mining lease, reducing dependence on other states and curbing illegal transportation. This move is set to boost business opportunities and employment within Punjab while ensuring better availability of crushed sand and bajri for developmental projects. The expanded supply chain will likely stabilize market prices and enhance the state’s revenue streams, he added.
He informed that similarly, sand mining operations were limited to Commercial Mining Sites (CMS) and Public Mining Sites (PMS). This restrictive model caused a persistent gap between demand and supply as many landowners were hesitant to grant consent for mining on their land by external parties. The government frequently received requests from these landowners seeking the right to mine their own lands, creating a strong case for policy revision.
Through the introduction of Landowner Mining Sites (LMS), the Punjab Government has unlocked new potential in sand mining. Landowners can now legally mine their property or authorize someone to do so by paying only the prescribed royalty to the state. This reform will expand the number of operational sites, enhance the availability of sand, generate employment and ensure competitive market prices. The inclusion of LMS will also deter monopolistic control, promoting fair participation as every eligible landowner can now access mining rights.
