Rajasthan govt to launch new mineral policy to attract investment

The Rajasthan government will unveil a new mineral policy for the state to create a conducive investment climate, and attract significant domestic and foreign investments in the sector to enhance its growth, said an official of the state mining department.

Another official of the department said a policy was considered crucial to boost the mining sector’s contribution in Rajasthan’s gross state domestic product (GSDP) to 5 per cent by 2029-30 (FY30) and 6-8 per cent by FY47. The sector currently contributes 3.4 per cent in the GSDP. “The policy would promote sectoral growth and ensure a reliable supply of minerals,” he added.

The total revenue from minerals in Rajasthan was estimated at over Rs 7,460 crore in FY24.

Principal Secretary in the state’s mines and petroleum department T Ravikant said the policy, whose draft has been prepared, ensures that mining activities in Rajasthan remain environmentally sustainable, promote equitable sharing of benefits with communities affected by mining and maintain a high level of trust among all stakeholders.

The policy focuses on strengthening fair market practices by curbing illegal mining activities and optimising revenue generation.

Ravikant said the new policy will maximise economic benefits by harnessing the full potential of the state’s mineral resources.

The draft policy states that it “aims to foster a highly transparent, efficient, and sustainable mining environment through comprehensive reforms. These reforms are designed to accelerate mineral exploration, streamline auction processes, simplify procedures, enhance investment, and strengthen departmental structures, ensuring that the interests of all stakeholders are effectively addressed and promoting the long-term growth and sustainable development of the mineral sector in the state.”

To ensure sustainable mining practices, the policy includes provisions for minimising environmental impact through effective waste management, site reclamation, and protection of ecosystems and natural resources.

According to the draft policy, Rajasthan is one of India’s most mineral-rich states. About 22 major minerals and 36 minor minerals are produced in the state. It is also the country’s sole producer of lead, zinc, wollastonite, selenite, calcite, and gypsum.