Punjab budget to further strengthen irrigation network & ensure transparent mining regime : Goyal
Chandigarh- Describing the Budget presented by Chief Minister Bhagwant Singh Mann led Punjab government as progressive and farmer-centric, Water Resources and Mining Minister Barinder Kumar Goyal today said that the financial roadmap would further accelerate irrigation reforms and bring greater transparency and efficiency in the mining sector across the state.
Appreciating the focus on strengthening water management infrastructure in the budget, the Cabinet Minister said that the government has achieved a historic milestone by doubling canal irrigation capacity within three years. Canal irrigation coverage which stood at 2.23 million acres in 2022 will expand to 5.3 million acres by April 2026.
Barinder Kumar Goyal said the government has proposed a budgetary outlay of Rs.2971 crore for the Water Resources sector in 2026-27, with a strong focus on expanding canal irrigation and strengthening last-mile connectivity through pipelines and brick-lined watercourses. These initiatives are expected to restore irrigation coverage to around five lakh hectares, taking the total area under canal irrigation close to 70 lakh acres, which is nearly 90 percent of the designed canal irrigated area.
The Cabinet Minister informed that the government has undertaken the remodelling of the Mahorana Distributary and construction of the Malerkotla Minor at a cost of Rs.288 crore to address the long-pending irrigation demands of farmers in the Malerkotla region. The project will provide canal water for the first time to 55 villages covering nearly 44,000 acres, while Rs.190 crore has been earmarked for this initiative in 2026-27.
He said that similarly, the Kathgarh Lift Scheme Stage-II has also been announced in the budget to bring canal water for the first time to the semi-hilly and water-scarce region of Shaheed Bhagat Singh Nagar (Nawanshahr) district, for which the government has made a provision of Rs.107 crore. Through this project, water will be lifted from the Bist Doab Canal to provide irrigation facilities to nearly 5,500 acres of command area across 24 villages. This initiative will reduce dependence on groundwater and is also expected to result in significant power savings, he added.
Barinder Kumar Goyal said systematic cleaning, lining and modernization of canals and watercourses has led to a significant increase in surface water utilisation which has now reached 6.6 million acre feet registering a 13 percent rise. In a major breakthrough, canal water has reached 1,365 locations for the first time, reviving villages that had remained deprived of canal irrigation for nearly 20 to 50 years.
The Water Resources Minister said the government has also taken decisive steps to strengthen flood resilience in the state. After the 2025 floods, a scientific assessment of major rivers identified 371 flood protection and mitigation projects worth over Rs.1500 crore. Out of these, 142 projects amounting to Rs.489 crore are targeted for completion by March 31, 2026 while the remaining works will be undertaken during 2026-27.
Highlighting ongoing drainage improvement measures, Barinder Kumar Goyal said flood protection and drain desilting works worth Rs.65 crore have been executed during the current year. Nearly 3,000 kilometres of drains across several districts have been cleaned which has substantially improved drainage capacity. He added that execution through departmental machinery resulted in around 60 percent savings of public funds.
The Minister further informed that the government has launched a comprehensive programme for rehabilitation and lining of canals during the current financial year. Works worth Rs.1153 crore have already been undertaken with the aim of bringing four lakh hectares under improved irrigation coverage.
Giving details about major infrastructure projects, he said the Ferozepur Feeder strengthening project is being implemented to enhance the carrying capacity of the canal system from 11,245 cusecs to 13,845 cusecs. During 2025-26, 17 kilometres of canal lining has been completed at a cost of Rs.195 crore, which will ensure better water supply to tail-end regions including Abohar and Fazilka and enable the state to utilise its full share of canal water.
Highlighting reforms in the mining sector, the Minister said Punjab has secured first rank in the State Mining Readiness Index announced by the Ministry of Mines, Government of India, reflecting the success of transparent governance and scientific mining practices adopted by the state government.
He said the Mann government has strengthened the regulatory framework through key legislative and policy reforms, enabling registration and regulation of crusher units and mineral dealers while ensuring digital monitoring of the minor mineral value chain from extraction to consumption.
The Minister added that amendments in the Punjab Minor Mineral Rules have created new categories such as Crusher Mining Sites and Landowner Mining Sites, facilitating transparent and time-bound contracts and allowing landowners to undertake regulated mining operations on their land.
Barinder Kumar Goyal further said strong enforcement measures, establishment of check posts at border areas and introduction of a modernised auction process have significantly boosted revenue generation in the mining sector. As a result, the state’s mining revenue has more than doubled within a year from Rs.260 crore to over Rs.500 crore.