Rajasthan to Launch New Mining Policies for Investment Growth

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The Rajasthan government has introduced a series of policies and incentives to revitalize the mining industry. These initiatives are set to be a major highlight at the upcoming ‘Rising Rajasthan’ Global Investment Summit 2024, scheduled from December 9 to 11 in Jaipur. Key announcements include the anticipated launch of the Mineral Policy 2024 and the M-Sand Policy 2024. Aimed at fostering sustainable growth and investment, these policies are designed to expand the mining sector’s contribution to the state’s GDP, targeting an increase from the current 3.4% to 5% by FY2030 and a long-term goal of 8% by FY2047. These efforts also prioritize tackling illegal mining practices and promoting environmental stewardship within the industry.

Under the new Rajasthan Investment Promotion Scheme (RIPS 2024), unveiled by Chief Minister Bhajan Lal Sharma, the state is rolling out incentives aimed at making the region more investor-friendly. RIPS 2024 introduces streamlined procedures, enhances technology adoption, and offers financial incentives for setting up businesses in Rajasthan. Notably, the scheme has expanded its list of “thrust sectors” to include metals—a sector that was previously not emphasized in the RIPS 2022 initiative.

“The inclusion of metals in RIPS 2024 provides an additional 10% incentive for investors in the metals sector beyond the standard benefits. This added incentive underscores Rajasthan’s commitment to developing a competitive, resource-driven economy,” said a senior official from the state mining department. Additionally, the policy offers rare earth elements projects a 25% bonus incentive under the “sunrise sectors” category, further enhancing Rajasthan’s attractiveness as a mining investment destination.

The state government is also pioneering innovative approaches to tackle illegal mining, a persistent challenge. Drones are being deployed to monitor extraction sites, allowing authorities to cross-reference actual mineral extraction with reported figures. This technology-based solution aims to bring transparency and accountability, reducing unauthorized mining activities across the state.

Another major reform is the adoption of a pre-embedded clearance model for mine auctions. By securing all necessary clearances before auctioning mines, the state aims to enable lessees to commence operations immediately after securing the mine. This approach is expected to reduce delays and operational costs, further encouraging investment in Rajasthan’s mineral sector.

Also Read | NLC India Forms Two Power JVs with Rajasthan for Sustainable Growth

With a diverse mineral portfolio, including 22 major and 36 minor minerals like lead, zinc, wollastonite, and gypsum, Rajasthan remains one of India’s most mineral-rich states. In FY2024 alone, the state’s mining revenue surpassed ₹7,460 crore, reflecting the potential for significant sectoral growth with the right policy support and investor engagement.

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