Rajasthan’s Mining Sector Records Major Leap in Two Years

Jaipur, Dec 2025 : In the two years of the state government, Rajasthan’s mining sector—under Chief Minister Bhajanlal Sharma’s leadership—has achieved exceptional progress through mineral exploration, auctions, policy simplification, and technological innovation. Rajasthan now ranks second in the country in the mining sector as well as in major mineral block auctions. The sector has generated a record revenue of ₹17,778 crore during the new government’s tenure. Rajasthan has also become the first state to begin auctioning eight pre-embedded mineral blocks after obtaining all required clearances. The state is now set to introduce innovations like the use of Artificial Intelligence and Machine Learning (AIML) for mineral exploration and identifying strategic and critical minerals in dumps and tailings.

In the two years of the government, structured efforts were made to position Rajasthan as a leading mining state. Key reforms include the introduction of the investor-friendly and simplified Rajasthan Mineral Policy 2024, Rajasthan M-Sand Policy 2024, and the Rajasthan City Gas Distribution Policy 2025. Provisions for support have also been made under the Rajasthan Investment Promotion Scheme (RIPS). A total of 112 major mineral blocks have been successfully auctioned so far, of which 73 were auctioned during the current government’s two-year tenure. Additionally, a record 1,209 minor mineral blocks have also been auctioned.

Under the new mineral policy, the aim is to increase the mining sector’s share in the state’s GDP from the current 3.4% to 5% by 2029–30 and further to 6–8% by 2046–47. The government is working toward increasing annual mining revenue to ₹1 lakh crore and expanding direct and indirect employment in the mining sector from the current 35 lakh to one crore. The policy emphasizes sustainable mining, strategic and critical mineral exploration, environmental protection, social responsibility, and good governance.

With the state government’s innovations and the Centre’s Critical Mineral Mission, Rajasthan has become a key contributor. The state holds significant deposits of rare earth elements, lithium, tungsten, niobium, tin, zirconium, rubidium, graphite, and phosphorite. Rare Earth Element (REE) reserves have been identified in Barmer’s Siwana Ring, Jalore, and Nagaur. Potash deposits have been found in the Hanumangarh–Sriganganagar belt, and tungsten reserves in Nagaur. The central government has also initiated the e-auction process for these minerals.

To expedite operations in auctioned mines, a Post-Auction Facilitation Cell has been set up to coordinate between LOI holders and concerned departments. Rajasthan was honoured by the central government at Konark and has secured second place in the State Mining Readiness Index. Five mines from the state received awards under the Centre’s Star Rating system.

Efforts are underway to make the mining sector paperless and technology-driven. Modules for mobile-based inspection apps, e-Ravanna, e-payment, contractor registration, LIS, mining plans, departmental dues, and no-dues certificates are being rolled out. Automation of weighbridges and a vehicle tracking system are also being implemented in phases.

During Rising Rajasthan 2024, about ₹1 lakh crore worth of 303 MoUs were approved in the mining and petroleum sector, of which ground-breaking has already begun for projects worth ₹35,000 crore. The government continues active engagement with investors to accelerate project implementation.