Rajasthan govt taps rich mineral reserves to drive economic growth

Rajasthan's intensified focus on mining comes on the back of strong performance by the state's department of mines and geology

Ahead of the first offshore mineral auctions, the central government has introduced royalty rates for construction sand, polymetallic nodules, and overburden or waste—key minerals to be extracted through offshore mining. The royalty rate for dolomite — Representative Picture

Anil Sharma Jaipur

2 min read Last Updated : Apr 29 2025 | 6:12 PM IST

The Rajasthan government is speeding up mining operations in the state to unlock greater economic gains from its rich mineral reserves. The state currently produces 22 major and 36 minor minerals, and is the only state to produce lead, zinc, wollastonite, selenite, calcite, and gypsum.

Under its 2024 mining policy, the Bhajan Lal Sharma-led government aims to raise the mining sector’s contribution to the gross state domestic product (GSDP) from the current 3.4 per cent to 5 per cent by 2029-30 (FY30), and further to 6-8 per cent by FY47.

“We have requested letter-of-intent (LoI) holders to submit necessary documents to concerned institutions within the stipulated time limit to obtain necessary permissions, including mining approval, pasture no-objection certificate (NoC), (and) environmental clearance so that auction blocks can be brought into operation,” said T Ravikant, principal secretary (mines and petroleum), Rajasthan.

He said that many LoI holders are lagging in securing key approvals, stalling the operationalisation of allocated mines and urged immediate action, particularly the submission of mining plans to the Indian Bureau of Mines (IBM).

According to the department, around 15 LoI holders are yet to submit their mining plans to IBM, and 12 are yet to apply for pasture NoCs. The situation is reportedly similar with environmental clearances.

“We have asked the directorate of mines to call concerned LoI holders to the headquarters and hold one-on-one meetings to apprise them of the necessary guidance and information about the rules, so that the doubts of the LoI holders can be resolved,” Ravikant said.

Rajasthan’s intensified focus on mining comes on the back of strong performance by the state’s department of mines and geology. In FY25, the department recorded the highest revenue growth among all state departments, collecting over ~9,228 crore — a year-on-year increase of 23.65 per cent.

Notably, in just the first fortnight of FY26, the department generated nearly ~250 crore in revenue, reflecting sustained momentum in the sector.