Mining policy revamp

Punjab’s latest amendments to the state sand and gravel mining policy mark a significant shift in its approach to mineral extraction. By allowing private landowners and panchayats to mine sand and gravel directly, the government hopes to increase supply, stabilise prices and curb illegal mining. But will these changes genuinely root out corruption, or are they merely a reshuffling of power? One of the most striking aspects of the amendment is the expansion of mining rights. Private landowners can now extract and sell sand and gravel while panchayats will gain similar privileges under district administration oversight. The government justifies this by arguing that increasing legal sources of sand will naturally undercut the black market. However, without proper checks and balances, there is danger of the new system enabling local power structures to simply shift corruption to a decentralised model. This will render regulation even more difficult.

The increase in royalty — from 73 paise to Rs 1.75 per cubic foot for sand and Rs 3.20 for gravel — is expected to boost state revenue beyond the current Rs 350 crore annually. But with mining now open to individual landowners, ensuring compliance will be challenging. Will local authorities have the capacity to monitor small-scale mining operations effectively? Or, will this become another avenue for underreporting and tax evasion?

Punjab has long struggled with illegal sand mining, often linked to politically connected mafias. The real test of this policy will lie in its enforcement. If it is not accompanied by stringent monitoring and technological tracking — such as satellite surveillance and digital permits — illegal mining could persist under new disguises. For now, the policy appears ambitious. But the fear of it being another temporary distraction from Punjab’s deeper corruption problem is real.

Editorials