Executive Summary:
This document is the response to Lok Sabha Unstarred Question No. 2861 regarding mining activities in Rajasthan, particularly in the Rajsamand district. It details mineral exploration projects, mining operations, investment incentives, GST considerations, and sustainable mining strategies in the region. The answer was provided on August 6, 2025, by the Minister of Coal and Mines.
Key Points / Main Content:
Mineral Exploration and Mining Activities:
* The Geological Survey of India (GSI) is undertaking 79 mineral exploration projects in Rajasthan, with 6 specifically in the Rajsamand district.
* A Rare Earth Elements (REE) exploration project is also underway in Borana block, Rajsamand district, funded by the National Mineral Exploration Trust (NMET).
* Rajasthan has 3008 mining leases, with 1728 active and 1280 non-active.
* Rajsamand district has 778 mines, 427 are working and 351 are non-working. These include Lead-Zinc, Garnet, Quartz, Feldspar, Mica, and Barytes mines.
Investment Incentives:
* NMET provides incentives to attract private and public sector investment in critical mineral exploration, including in Rajasthan.
* These incentives include 100% funding for mineral exploration projects, reimbursement of exploration expenses up to 50% for Exploration and Composite License holders, and a 25% exploration incentive for G4 projects upgraded to G3 or successfully auctioned.
Goods and Services Tax (GST):
* The GST Council has not recommended any GST relief or rationalization measures to support mining operations.
Sustainable Mining Strategy:
* Infrastructure improvements are being implemented, including construction of village roads, community centers, and schools.
* Environmental safeguards include continuous monitoring of air, water, and noise, tree plantation, water recycling, and the use of electric vehicles.
* Local employment opportunities are being improved through local hiring, skill development programs, and initiatives to increase farming community income.
* District Mineral Foundations (DMFs) channel mining revenues into local development projects focusing on health, education, and drinking water.
GSI Mineral Exploration Projects in Rajsamand District (2025-26):
* Copper exploration in Rajnagar-Morchana-Banai block (G4 stage).
* Copper, REE, and RM exploration in Khempur-Charana block (G4 stage).
* Rare Metals exploration in Deogarh-Anjana-Lasani block (G4 stage).
* Copper exploration in Bhupalsagar and Pasun blocks (G4 stage) (Rajsamand and Chittorgarh districts).
* REE exploration in Ramgarh Kheri Ka Khera block (G4 stage) (Rajsamand, Ajmer and Bhilwara districts).
Impact Analysis:
Government of India (Ministry of Mines):
* Impact: Responsible for overseeing and supporting mineral exploration and mining activities, providing incentives, and ensuring sustainable practices.
* Action Required: Continue to monitor and support mineral exploration projects, assess the effectiveness of investment incentives, and promote sustainable mining strategies.
State Government of Rajasthan:
* Impact: Responsible for facilitating mining operations, ensuring environmental safeguards, and promoting local employment opportunities within the state.
* Action Required: Collaborate with the central government on mineral exploration projects, implement environmental monitoring and protection measures, and support local development initiatives through DMFs.
Mining Companies (Public and Private Sector):
* Impact: Directly involved in mineral exploration and extraction activities, benefiting from investment incentives and subject to environmental regulations.
* Action Required: Take advantage of NMET incentives for exploration, comply with environmental regulations, and contribute to local development through employment and DMF contributions.
Local Communities in Rajsamand:
* Impact: Affected by mining activities through infrastructure development, employment opportunities, environmental impacts, and local development projects funded by DMFs.
* Action Required: Engage with mining companies and government agencies to ensure that their needs and concerns are addressed, participate in skill development programs, and benefit from improved infrastructure and environmental safeguards.
Key Entities Referenced
Rajasthan: A state in India where mineral exploration and mining activities are being undertaken.
Rajsamand district, Rajasthan: A specific district in Rajasthan with significant mineral deposits and mining activities.
Ministry of Mines: The Indian government ministry responsible for the regulation and development of the mining sector.
Geological Survey of India GSI: An attached office of the Ministry of Mines responsible for mineral exploration.
National Mineral Exploration Trust NMET: A trust providing funding for mineral exploration projects.
Goods and Services Tax GST: An indirect tax applied on the supply of goods and services. The document discusses potential GST relief for mining operations.
District Mineral Foundations DMFs: Foundations established under the MMDR Amendment Act, 2015, that channel mining revenues into local development projects.
SHRI G. KISHAN REDDY: The Minister of Coal and Mines.
GOVERNMENT OF INDIA
MINISTRY OF MINES
LOK SABHA
UNSTARRED QUESTION No.2861
ANSWERED ON 06.08.2025
MINING ACTIVITY IN RAJASTHAN
2861. SMT. MAHIMA KUMARI MEWAR:
Will the Minister of MINES be pleased to state:
(a) the details of the current status of mineral exploration and mining activities being
undertaken in Rajasthan especially in Rajsamand district along with a list of minerals
being explored or extracted;
(b) the steps being taken to attract private and public sector investment in critical
mineral mining especially Rajsamand in Rajasthan;
(c) whether the Government is considering Goods and Services Tax (GST) relief or
rationalisation measures to support mining operations in districts like Rajsamand
which have significant mineral deposits and if so, the details thereof and if not, the
reasons therefor; and
(d) the steps being taken to improve infrastructure, environmental safeguards and
local employment opportunities in mineral-rich areas of Rajasthan like Rajsamand as
part of a sustainable mining strategy?
ANSWER
THE MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a): The Geological Survey of India (GSI), an attached office of the Ministry of Mines
has taken up 79 mineral exploration projects in different parts of Rajasthan during the
current field season 2025-26. Out of these, six mineral exploration projects have been
taken up in Rajsamand district, Rajasthan. The mineral-wise and location-wise details
of these six projects are given in Annexure. Further, one mineral exploration project
for Rare Earth Elements (REE) & associated minerals (G3) has also been taken up in
Borana block, Rajsamand district through funding by National Mineral Exploration
Trust (NMET).
As regards the status of mining activities in Rajasthan, a total of 3008 mining leases
are located in the State of Rajasthan out of which 1728 are working and 1280 are non-
working. In Rajsamand district, Rajasthan, there are 778 mines out of which, 427
mines are currently working, while 351 are non-working. Among these 778 mines,three are for Lead Zinc (two working and one non-working), one is a Garnet mine
(working), and the remaining 774 mines are related to Quartz, Feldspar (Felspar),
Mica, and Barytes.
(b): In order to attract private and public sector investment in critical mineral
exploration in the country, including Rajasthan, the following incentives are provided
through National Mineral Exploration Trust (NMET):
(i) 100% funding for mineral exploration projects of exploration agencies.
(ii) Support for holders of Exploration Licenses and Composite Licenses
by reimbursing exploration expenses upto 50% of the total expenditure
incurred.
(iii) Exploration incentive of 25% of the approved projects cost of the G4 items
for critical, strategic and deep-seated minerals to the exploration agencies if the
block is successfully auctioned or upgraded to G3 stage.
(c): The Goods and Services Tax (GST) rates and exemptions are prescribed on the
recommendation of the GST Council, a constitutional body having representation of
Centre and the States/Union Territories. The Council has no recommendation on
considering GST relief or rationalisation measures to support mining.
(d): The steps being taken to improve infrastructure, environmental safeguards, and
local employment opportunities in mineral-rich areas of Rajasthan like Rajsamand as
part of a sustainable mining strategy are as follows:
(i) Steps for improvement of infrastructure facilities - construction of Village Roads,
Community Centers, Drains, drinking water, school classrooms, digitization of schools,
renovation etc.
(ii) Steps for environmental safeguards - continuous environmental monitoring of Air,
Water, Noise, Vibration and real-time reporting of the parameters to Central Pollution
Control Board/ State Pollution Control Board, plantation of trees, water recycling
through sewage treatment plant, use of battery electric vehicle with an aim to reduce
carbon footprints of mines, Greenbelt development around the mining lease.
(iii) Steps for local employment opportunities - local manpower employment in the
working mines in Rajsamand district, conducting various skill development programs,
focus on increasing the income of the farming community through sustainable farm
practices, animal health camps conducted in collaboration with Animal Husbandry
Department.Further, the District Mineral Foundations (DMFs) established under the MMDR
Amendment Act, 2015, channel a portion of mining revenues into local development
projects in various districts of Rajasthan, including Rajsamand, focusing on health,
education, drinking water, and livelihood generation.
*****Annexure
The District-wise and Mineral-wise details of mineral exploration projects taken
up by GSI in Rajsamand district, Rajasthan during field season 2025-26
Location of Mineral UNFC
District Mineral
Block/ Area stage
Rajsamand Rajnagar-Morchana-Banai G4 Copper
Rajsamand Khempur-Charana G4 Copper
REE, RM (Rare
Rajsamand Deogarh-Anjana-Lasani G4
Metals)
Rajsamand and
Bhupalsagar G4 Copper
Chittorgarh
Rare Earth Elements
Rajsamand and Udaipur Pasun G4
(REE)
Rajsamand, Ajmer and Ramgarh – Kheri Ka
G4 REE
Bhilwara Khera –Patan