Rajasthan’s Mining Revenue Collection Strategy for 2025

The state of Rajasthan is enhancing its mining revenue collection efforts. The Mines and Geology Department aims to maximise revenue through daily monitoring. As of March 3, 2025, the department reported a remarkable ₹7,963 crore in revenue, reflecting a 24 per cent annual growth rate. The financial year 2023-24 (FY24) saw a revenue of over ₹7,460 crore. The state is contributor to India’s mineral production, being the sole producer of various key minerals.

Mining Policy Goals

Rajasthan’s mining policy, introduced last year, targets an increase in the mining sector’s contribution to the state’s gross domestic product (GDP). The aim is to elevate this contribution from 3.4 per cent to 5 per cent by FY30. Further projections suggest a rise to 6-8 per cent by FY47. This ambitious plan marks the government’s commitment to harnessing mineral resources for economic growth.

Revenue Collection Strategies

The department has implemented strict measures for revenue collection. Officials are instructed to identify all potential revenue sources. Daily analysis of revenue data is mandated. This proactive approach aims to ensure that no negligence occurs in revenue collection practices. The focus is on both legal compliance and maximising financial returns for the state.

Illegal Mining Prevention

Rajasthan has adopted a ‘zero-tolerance’ policy towards illegal mining. This strategy aims to protect legal miners and enhance employment opportunities in the sector. The government plans to auction mineral blocks of gravel and masonry stone to discourage illegal activities. This approach is expected to create a fairer mining environment and increase state revenues.

Employment Opportunities

The mining sector is poised to generate employment opportunities. By curbing illegal mining and promoting legal operations, the government aims to encourage job creation. Enhanced revenue collection will also allow for reinvestment in the sector, further supporting job growth and economic stability.

Monitoring and Accountability

Continuous monitoring and accountability are central to the department’s strategy. Officials are held responsible for revenue collection outcomes. The emphasis on data analysis ensures that any discrepancies are promptly addressed. This structured approach is vital for maintaining the integrity of the mining sector.

Future Projections

Looking ahead, the department anticipates sustained growth in revenue collection. The mining policy is designed to adapt to changing economic conditions. By 2025, the focus will remain on maximising the potential of Rajasthan’s rich mineral resources. The government is committed to encouraging a transparent and efficient mining environment.

Questions for UPSC:

1. Discuss the impact of mining policies on local economies and employment in Rajasthan.
2. Critically examine the effectiveness of a zero-tolerance policy towards illegal mining in India.
3. Explain the role of mineral resources in the economic development of a state like Rajasthan.
4. With suitable examples, discuss the challenges faced in revenue collection in the mining sector.

Answer Hints:

1. Discuss the impact of mining policies on local economies and employment in Rajasthan.

1. Mining policies aim to increase the sector’s GDP contribution, enhancing local economic growth.
2. Legal mining operations create job opportunities, boosting local employment rates.
3. Revenue from mining can be reinvested in community development and infrastructure.
4. Illegal mining reduction leads to a more stable job market for legal miners.
5. Increased revenue collection can support social programs, further benefiting local communities.

2. Critically examine the effectiveness of a zero-tolerance policy towards illegal mining in India.

1. A zero-tolerance policy aims to deter illegal mining activities through stringent penalties.
2. It promotes confidence among legal miners, ensuring a level playing field.
3. Effective enforcement can reduce environmental degradation caused by illegal operations.
4. Challenges include corruption and lack of resources for proper monitoring and enforcement.
5. Success depends on public awareness and community involvement in reporting illegal activities.

3. Explain the role of mineral resources in the economic development of a state like Rajasthan.

1. Mineral resources contribute to state revenue and GDP growth.
2. They attract investments and encourage the development of related industries.
3. Mining activities create direct and indirect employment opportunities for locals.
4. Revenue generated can fund infrastructure projects and public services.
5. Rajasthan’s unique mineral production enhances its strategic importance in national development.

4. With suitable examples, discuss the challenges faced in revenue collection in the mining sector.

1. Illegal mining activities undermine revenue collection efforts and distort market prices.
2. Corruption among officials can lead to loss of revenue and ineffective enforcement of policies.
3. Inadequate data collection and analysis hinder accurate revenue forecasting and monitoring.
4. Limited resources and technology can restrict the ability to monitor mining activities effectively.
5. Community resistance or lack of awareness about legal mining can complicate compliance and reporting.