Photo Source; Babushahi Bureau
Punjab resumes mining auctions after 3 years, revises bidding rules
Babushahi Bureau
Chandigarh, January 11, 2026: The Punjab government has initiated fresh auctions of mining sites across the state and notified significant changes to the auction framework under the amended Punjab Minor Mineral Rules, marking the first such exercise in nearly three years.
In the first phase, the government auctioned 29 Commercial Mining Sites (CMS) through an online bidding process floated during October–November. Of these, 16 sites were successfully bid, generating ₹11.61 crore in revenue, officials said.
The new framework replaces the earlier volume-based auction system, under which bidders competed by offering to operationalise the maximum share of a site. That system often resulted in identical bids and selection by draw of lots, leading to lower revenue realisation, delays in operations, and limited accountability, as environmental clearances were the government’s responsibility.
Under the revised rules, competitive price bidding has been introduced. Bidders are now required to make upfront payments, while royalty will be collected in advance.
The responsibility for obtaining environmental clearances has been shifted to bidders, a move expected to reduce delays in operationalising mines. The rules also introduce dead rent provisions to discourage speculative bidding and extend lease tenures from three to five years.
Officials said that nearly 100 additional mining sites will be auctioned in phases in the coming months. The changes are expected to expand legal availability of raw materials and alter the structure of mining operations in the state.
The government stated that the amendments, along with the introduction of CRMS and LMS mechanisms, amount to a broad restructuring of Punjab’s mining sector, aimed at addressing regulatory gaps and increasing state revenue.