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Geography

Rajasthan Mineral Policy 2024 and Governance Framework

Mineral Resources of Rajasthan: Types, Distribution, Industrial Uses

Paper II · Unit 3 Section 7 of 14 0 PYQs 38 min

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Rajasthan Mineral Policy 2024 and Governance Framework

The Rajasthan Mineral Policy 2024 is a landmark policy document replacing earlier mineral policies, aimed at sustainable, transparent, and inclusive mineral development.

6.1 Key Targets

  • Expand active mineral extraction from 58 to 70 minerals by 2047
  • Increase mining concession area to 2% of the state's land by 2047 (currently < 1%)
  • Generate direct and indirect employment for 1 crore people by 2047
  • Auction 50 major mineral blocks with pre-embedded environmental clearances
  • Establish a State Mining Company for value addition and research

6.2 Technology and Governance

  • E-auctions for all major mineral leases (replacing discretionary grant)
  • GPS-based tracking and geo-fencing on mining vehicles to prevent illegal transport
  • AI-driven monitoring of mine operations for ESG compliance
  • Zero-waste mining and eco-restoration mandates

6.3 Critical Minerals Focus

The policy explicitly targets lithium, rare earth elements (REE), cobalt, and other critical minerals for clean energy. This aligns with India's National Critical Minerals Mission (2024) under Ministry of Mines, which listed 30 critical minerals — several with Rajasthan potential.

6.4 M-Sand Policy 2024

The Rajasthan M-Sand Policy 2024 promotes Manufactured Sand (M-Sand) as a substitute for river sand (bajri). Key features:

  • 50% royalty exemption for overburden utilization
  • 75% state tax reimbursement for 10 years
  • 100% electricity duty exemption for 7 years
  • 75% stamp duty exemption
  • M-Sand usage in government projects to reach 50% by 2028-29

6.5 District Mineral Foundation Trust (DMFT)

Under the MMDR Act (amended 2015), every mining-affected district must have a District Mineral Foundation Trust funded by a share of royalty. Status as of December 2024:

Indicator Value
Financial sanctions issued 19,289 works
Total sanctioned amount ₹7,952.74 crore
Works completed 11,684
Total expenditure ₹5,085.90 crore

Source: Rajasthan Economic Review 2025-26, Table 5.6

DMFT funds are spent on health, education, drinking water, and roads in mining-affected areas under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).

6.6 Illegal Mining Control

The Mines and Geology department registered 6,956 cases of illegal mining, lodged 588 FIRs, seized 5,446 vehicles/machines, and recovered ₹50.20 crore in penalties up to December 2024 (Rajasthan Economic Review 2025-26, Table 5.8).