Amarinder said he discussed the issue of resignation, which the minister had submitted 10 days ago, with Congress president Rahul Gandhi today and then decided to accept the same.
"The resignation of Rana Gurjit Singh has been accepted," he told reporters here after his meeting with Gandhi.
The chief minister said he would be now forward the resignation to the governor for necessary action.
Amarinder said he also discussed with the party chief the issue of reorganising the Punjab Congress as also the expansion of his Cabinet.
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He had tendered his resignation after being accused of illegally bagging sand mining contracts. It was alleged that he acquired sand and gravel mining contracts through "benami transactions in the names of his cook and office staff".
The chief minister said a restructuring of the Punjab unit of the party, especially in the context of the 2019 Lok Sabha elections, would take place soon.
The new appointments would be a mix of youth and talent, with merit being the key criteria in the selection of the new ministers, he said.
Punjab Congress chief Sunil Jakhar and AICC Secretary incharge of the state Asha kumari and party secretary Harish Chaudhry were also present at the meeting of the chief minister with Gandhi.