15 June, 2026 – Ropar : The mining sector of Punjab presents a striking contradiction. While the state’s mining revenue has reportedly increased from Rs 250 crore to Rs 600 crore in the last financial year, recent studies, enforcement actions and investigations suggest that the value of illegally extracted minerals from the state’s riverbeds could run into several thousand crores.
The latest findings have emerged from Ropar district, where scientific studies, large-scale seizures and Enforcement Directorate (ED) investigations have exposed what appears to be a vast underground economy centred on the illegal extraction of sand, gravel and other minerals.
A scientific study conducted by Punjab Engineering College (PEC) under the directions of the National Green Tribunal (NGT) estimated that nearly 3.41 million cubic metres of material were extracted from a one-kilometre stretch around the Swan river bridge in Nangal subdivision over the past two decades.
Using conservative market rates of Rs 800 to Rs 1,500 per cubic metre, the study valued the extracted material between Rs 2,700 crore and Rs 5,100 crore. The assessment relates to only a limited section of a single river, raising questions about the cumulative value of illegal mining across Punjab.
The study found that extraction accelerated sharply after 2013, with annual removal increasing from about 57,000 cubic metres to nearly 2.42 lakh cubic metres. It also documented riverbed lowering of up to 40 m in some areas, posing risks to bridges and flood-control infrastructure.
Enforcement agencies have also uncovered evidence of large-scale illegal operations. In one of the biggest anti-illegal mining drives in recent years, the authorities seized seven poclain machines and eight tippers from the Swan and Sutlej riverbeds in Nangal subdivision.
Officials alleged the use of fake registration numbers, concealed ownership structures and unregistered heavy machinery. Most of the seized excavators reportedly had no registration numbers, while one tipper was allegedly operating with a registration plate belonging to a scooter.
According to the Mining Department estimates, a single poclain machine can fill about 20 tippers during one night’s operation. With seven machines allegedly operating simultaneously, around 140 tipper loads could be extracted in a night. At an estimated market value of Rs 20,000 per tipper load sold to nearby stone crushers, the minerals removed in a single night could be worth nearly Rs 28 lakh.
The money trail has also attracted the attention of central agencies. Last year, the ED attached 250 kanal land in Ropar, Hoshiarpur and Ludhiana districts after concluding that the properties had been acquired using proceeds of illegal mining.
The attachment followed an investigation linked to a 2023 FIR registered by the Nangal police. According to the ED, the accused used fake GST invoices and bogus mining slips to project illegal mining proceeds as legitimate income. Properties with a registered value of Rs 4.10 crore were attached, though officials said their market value was substantially higher.
Investigators also alleged that mining operators collected daily payments from crushers and contractors involved in both legal and illegal extraction activities. The findings have reinforced concerns that illegal mining is sustained by a well-organised network involving transporters, machinery owners, crushers and financiers.
The developments have revived debate over claims made during the 2022 Assembly elections that Punjab could generate up to Rs 20,000 crore from the mining sector, if illegal extraction was effectively curbed.
Whether that figure is achievable remains uncertain. However, the evidence emerging from Ropar suggests that the gap between official mining revenue and the value of minerals being extracted from Punjab’s riverbeds may be far larger than previously acknowledged.
As investigations continue, policymakers face a key question: How much of Punjab’s mineral wealth is bypassing the public exchequer and flowing into private hands?
The Tribune