Autobayng News Team
Rajasthan outlines new policies to boost mining and petroleum investment at ET Rajasthan Business Summit.“>
At the Economic Times Rajasthan Business Summit, T Ravikant, Principal Secretary of the Mines & Petroleum Department, laid out the state’s strategies to boost investment and production in the mining and petroleum sectors.
Rajasthan possesses 82 minerals, with 58 commercially exploited, the highest number in India. Its diverse geology, from the Aravalli hills to the Thar desert, provides a favorable environment for mineral extraction. To support investors, the government has implemented the Mineral Policy 2024, M-SAN Policy 2024, and CGD Policy 2025, aimed at simplifying procedures and reducing regulatory delays.
Investment Achievements
During the previous Rising Rajasthan Investment Summit, the state signed over 300 MoUs, covering investments exceeding ₹1 lakh crore. These investments were concentrated in three major sectors: Petroleum, mining and compressed natural gas. The state has also taken steps to further improve the ease of doing business for investors in these sectors.The CGD sector currently serves 4.5 lakh household connections, short of the target of 80 lakh by 2030. The CGD Policy standardises rates, introduces time-bound approvals, and includes auto-approval provisions in case of delays. Over 600 CNG stations are operational, with plans to increase to 1,000 in the next four to five years. The policy aims to accelerate the rollout of household connections and expand the overall infrastructure for natural gas distribution.Crude production in Rajasthan has declined due to aging wells. New refinery infrastructure and ongoing natural gas production from ONGC and IOC wells are expected to improve output. The development of the Rajasthan Petro Zone is intended to enhance downstream processing and create further investment opportunities in the petroleum sector. These initiatives are expected to strengthen energy security and generate additional economic activity in the state.
Mining Production and Exploration
Mineral production is below potential due to inactive mines, limited adoption of scientific mining practices, and insufficient processing facilities. Currently, only 0.68 per cent of the state’s area is under active mining. The government plans to operationalize more leases and improve extraction efficiency.Technologies such as artificial intelligence (AI) and machine learning (ML) are being piloted in collaboration with IIT-Hyderabad and IIT-ISM Dhanbad to identify associated minerals in already explored areas. The state is also focusing on assessing and commercially exploiting mineral dumps, which contain significant quantities of valuable and strategic minerals previously unutilized.The department aims to increase mineral and petroleum production, expand CGD coverage, and strengthen downstream processing. Key strategies include enhancing exploration, improving operational efficiency, adopting advanced technology, and ensuring streamlined policy implementation. These measures are designed to attract new investment, improve resource utilization, and position Rajasthan as a leading state for mining and energy development in the coming decade.By combining policy reforms, technological adoption, and infrastructure expansion, Rajasthan aims to maximize the potential of its mining and petroleum sectors, support sustainable economic growth, and create a favorable environment for both domestic and global investors.
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