Rajasthan govt steps up efforts to attract investment in mining sector

The Rajasthan government has announced a slew of measures to attract investment in the mining sector ahead of the ‘Rising Rajasthan’ Global Investment Summit 2024 to be held here from December 9 to 11, said a senior mining department official.

 

The government is also likely to launch the Mineral Policy 2024 and M-Sand Policy 2024 to woo investors and enhance the sector’s growth. It targets increasing the sector’s contribution to Rajasthan’s gross domestic product from 3.4 per cent to 5 per cent by FY30 and up to 8 per cent by FY47, while curbing illegal mining and ensuring environmental protection, the official said.

   

The state government has come up with monetary incentives, proposed the launch of new policies, simplifying departmental clearances and adoption of technology under the Rajasthan Investment Promotion Scheme (RIPS 2024). RIPS is a comprehensive package of attractive incentives for setting up businesses in the state.

 

RIPS 2024 and proposed policy changes announced in the state Budget aim to revitalise the sector, the official added.

 

Under the RIPS 2024 initiative unveiled by Chief Minister Bhajan Lal Sharma at the London investor roadshow a few days ago, metals have been newly incorporated on the list of thrust sectors.

 

“The preceding RIPS 2022 did not have metals on the thrust sector list. The new addition will provide at least a 10 per cent additional incentive to the investors from the metals sector over and above the standard package available as of now,” the official said.

 

Likewise, rare earth elements projects are also entitled to get a 25 per cent additional incentive over and above the standard package by being on the sunrise sectors’ list, the official added.

 

To curb illegal mining, a major problem in the state, the state government now plans to use drones.

 

The official explained that the drone grabs will give insights into the quantum of extracted mineral which will be tallied with the on-paper extraction shown by the lessee, thereby curbing the illegal mining.

 

The government is planning to bring the pre-embedded clearance model in which it would first get all approvals and later put the mine on auction. The lessee would therefore be enabled to start the execution and production immediately after the mine auction, reducing unnecessary time on seeking clearances and also helping them to save on cost, the official said.

 

The mineral-rich state produces 22 major and 36 minor minerals, including unique outputs like lead, zinc, wollastonite, and gypsum. In FY24, the state's mining revenue exceeded Rs 7,460 crore.