Driven by geopolitical compulsions and innovation, Rajasthan mining sector scripting success story

Jaipur, July 29 In a remarkable turnaround, Rajasthan’s mining sector has firmly carved a place for itself on the national map by emerging as the top-performing state in India's mining sector. It recently crossed the milestone of auctioning over 100 major mineral blocks.

Also, the state's mining sector has simultaneously emerged as one of the top five revenue-generating departments. With royalty collections touching Rs 9,228 crore in FY 2024–25, a 24 per cent year-on-year increase, the mining department is now a key driver of the state’s economy, alongside GST, VAT on fuel, and excise duties.

Once considered an underperformer despite being among India’s top three mineral-producing states (alongside Odisha and Chhattisgarh), Rajasthan is now seeing an unprecedented transformation.

So, what sparked this transformation?

“Strategic reforms, Artificial Intelligence-led exploration, and rising geopolitical compulsions surrounding critical and Rare Earth minerals have opened up new growth avenues, placing Rajasthan prominently on the national and global mineral map,” said T. Ravikant, Principal Secretary, Mines and Geology, in an exclusive interview with IANS.

A few years ago, despite its geological wealth, Rajasthan had done little to tap its full potential. However, the state’s approach has changed dramatically.

According to Ravikant, Rajasthan has now auctioned 64 major mineral blocks in just 18 months — compared to only 39 blocks over the previous eight years following the 2016-17 Central Government policy mandating auctions.

In total, 103 major mineral blocks have been auctioned in Rajasthan since 2016, making it the leading state in the country in this domain.

Speaking on key innovations driving growth, he said, the establishment of the Rajasthan State Mineral Exploration Trust (RSMET) in 2022 was the game changer which laid the foundation for scientific exploration.

In another first, Rajasthan adopted AI and Machine Learning for mineral mapping in 2025, a move expected to reduce time, cost, and human labour while increasing accuracy.

“Many of these innovations have contributed to the sector’s rapid rise,” said Ravikant.

He further shared the significance of critical minerals and their strategic importance. "Rajasthan’s mineral wealth includes 22 major and 36 minor minerals. It is India’s sole producer of lead, zinc, wollastonite, selenite, calcite, and gypsum. Notably, over 95 per cent of India’s potash reserves lie in Rajasthan, but remained untapped for years. India imported potash worth over Rs 8,000 crore in FY25. Now, we’ve finally begun auctioning potash blocks, marking a major policy shift,” Ravikant said.

Rare Earth minerals are crucial for electronics, Defence, and clean energy and have also come into focus, he added.

"Despite India having the world’s third-largest Rare Earth reserves, much of Rajasthan’s potential had gone unexplored until now. Significant deposits have recently been discovered in Bhati Kheda (Siwana tehsil, Balotra), while survey work is underway in Barmer, Jalore, and other western regions.

“These developments are vital at a time when China controls 90 per cent of global Rare Earth production. Geopolitical compulsions are clearly reshaping the sector,” said Ravikant.

Speaking on the desert state's comparison with Odisha, he said, "While Odisha still leads in revenue from high-value minerals like bauxite — earning around Rs 50,000 crore annually — Rajasthan dominates in minor minerals like masonry stone."

"We face tough competition from states like Odisha, Madhya Pradesh, and Jharkhand,” Ravikant acknowledged.

“But with tighter regulations, increased transparency, and the Chief Minister’s direct oversight, Rajasthan is well-positioned to scale further heights. Illegal mining, more controlled in Odisha due to corporate leases, remains a challenge in Rajasthan. Still, we’re opening doors to new players under stricter governance frameworks,” he added.

In just two years, mining’s contribution to Rajasthan’s GSDP has surged to a leading revenue source.

Surveys are underway for other strategic minerals like tungsten in Nagaur and uranium in Sikar under the Central Government’s purview.

"With its rich mineral landscape finally receiving the attention it deserves, Rajasthan is fast emerging as a mining powerhouse — one that not only boosts economic growth but also serves India’s strategic and national security interests," said Ravikant.

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