Rajasthan hikes royalties on minor minerals by up to 30% after 4 years

The state government has increased the royalties on minor minerals by 10–30 per cent per tonne. These rates have been revised after four years, an official from the Mining Department said. “Before this, royalties on minor minerals were increased in 2021,” he added.

 

Royalties on minor minerals can be increased only after three years. “This increase will have a direct impact on people, because products like sandstone, bajri (sand), masonry stone, and limestone will become costlier,” a trade expert said.

 

The Mines Department had sent a proposal to increase the royalties on minor minerals to the state government a few days ago. The proposal was approved, and a notification in this regard has been issued. 

 

Meanwhile, the Mines Department has earned revenues of ₹1,670 crore in the last two and a half months of 2025–26.

The Principal Secretary to the Mines and Geology Department, T. Ravikant, has given instructions to increase revenue in the mining sector and has emphasised the need to formulate a strategy for achieving 100 per cent of the set target. He said that, in the current financial year royalties had yielded  ₹1,670 crore.

 

The Mines Department has fixed a revenue collection target of over ₹12,950 crore for FY26. It was among the top revenue-earning departments in FY25, with the highest growth rate of 23.65 per cent and revenue exceeding ₹9,228 crore.

 

Ravikant said that achieving 100 per cent of the revenue targets should be the first priority of departmental officers. “Any kind of loss or negligence will not be tolerated at any level in revenue collection,” he stated.

 

In a move to enhance transparency he has directed that all applications related to mining be made online, so that no visits are required. 

 

He said that the department has made arrangements for the online approval of mining plans. Similarly, by making the entire process of lease information and the demand system online, mine holders are now experiencing significant relief, along with savings in time and money.

 

He said, under the direction of Chief Minister Bhajan Lal Sharma, the use of artificial intelligence and machine learning systems is now being started for mineral exploration on a pilot basis. It will be expanded further after analysing the results of the pilot project.

 

Rajasthan produces 22 major minerals and 36 minor minerals. It is India’s sole producer of 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.