Chandigarh, March 16 Punjab Mining and Geology Minister Barinder Kumar Goyal on Monday countered the opposition's criticism of the Rs 20,000 crore revenue projections for mining, saying the estimate is based on the immense potential of potash mineral reserves identified in the state.
Responding to the query regarding the possibility of generating nearly Rs 20,000 crore from mining activities, Goyal questioned why revenue collections had failed to cross Rs 120 crore during the previous Congress regime, while asserting that ongoing reforms and policy initiatives are aimed at substantially enhancing the state's income from the sector.
He reiterated that the Bhagwant Mann government's sustained efforts towards potash exploration and progressive mining reforms hold the potential to generate revenue exceeding Rs 20,000 crore for Punjab.
Clarifying the earlier statement regarding the projected mining revenue, the minister said in the Punjab Vidhan Sabha that the estimate was based on the immense potential of potash mineral reserves identified in parts of Punjab adjoining Rajasthan, particularly in districts such as Fazilka and Sri Muktsar Sahib.
He explained that potash is a critical fertiliser mineral of which nearly 96 per cent is imported in the country and earlier indications of its presence in Punjab were not pursued through systematic exploration by previous governments.
He informed that the state government consistently raised the issue with the Union government and central agencies.
The matter was strongly taken up during meetings of mining ministers at national forums and through repeated official communications seeking accelerated exploration in Punjab, he said.
He stated that ever since the formation of the Mann government, consistent and sustained efforts have been undertaken in this sector.
During the meeting of mining ministers of all states held last year at Konark in Odisha under the leadership of the Union Mining Minister G. Kishan Reddy, he had raised the issue that while the Centre frequently speaks about critical minerals, the most significant among them, potash, was not receiving due attention or action.
He pointed out that while drilling had been conducted at nearly 200 locations in Rajasthan, only nine sites had been drilled in Punjab, which clearly indicated discriminatory treatment.
Taking note of the concern, the Union Mining Minister had directed officials to visit Punjab and assess the situation on the ground. Subsequently, the department pursued the matter through a series of official communications.
He also met Reddy again in New Delhi to reiterate the demand. Later, on January 10, during a meeting in Gandhinagar, Gujarat, he once more took up the issue with the Union Minister, who then instructed senior officials to expedite the process, leading to further progress in the matter.
Following these efforts, fresh drilling and survey initiatives have now been undertaken. Geological exploration covering nearly 48 kilometres in the Fazilka area has been approved with an estimated cost of about Rs 19 crore, and further drilling points are being examined to expedite the process.
Goyal stated that preliminary assessments of potash samples collected during the exploration process have shown encouraging quality which strengthens the state's confidence regarding future mining prospects.
He added that while powers related to mineral exploration and auction rest with the Union government, the royalty benefits from extraction will accrue to the state exchequer, thereby strengthening Punjab's financial resources once commercial mining begins.
Responding to concerns regarding mining activities, the minister also said there is often confusion between illegal mining and desilting operations undertaken for river rejuvenation, flood prevention and infrastructure development works.
He informed that large-scale desilting and strengthening works have been initiated at vulnerable river sites identified after recent floods, with nearly 180 locations taken up for protective measures at an estimated cost of around Rs 500 crore.
He added that during earlier governments, the mining revenue never crossed Rs 120 crore whereas it stood at Rs 234 crore when the present government assumed office in 2022 and has now increased to nearly Rs.800 crore.