Rajasthan Royalty Rates Of Mines and Petroleum 2025: Updated Rates, Policies & Reforms Explained
Rajasthan is India’s mineral treasure trove. With over 58 minerals currently under extraction and plans to expand to 70 by 2047, the state stands tall as a critical resource hub. It contributes significantly to national production of lead, zinc, marble, gypsum, sandstone, and potash, and is the sole producer of wollastonite and selenite in the country. In response to the rising demand for minerals and the pressing need for sustainable mining practices, the Rajasthan government has introduced a series of landmark reforms in 2025. These include a complete overhaul of the royalty structure, new regulatory frameworks, incentives for sustainable alternatives like M-Sand, and digital governance initiatives.
This article provides an exhaustive overview of the latest developments in Rajasthan’s mining and petroleum sector as of July 2025, focusing on royalty rates, revised rules, and the impact of these changes on industry stakeholders.
1. New Royalty Schedule (Effective July 23, 2025)
As per the Rajasthan Gazette Notification dated July 23, 2025, the state government amended Schedule II of the Rajasthan Minor Mineral Concession Rules, 2017. This amendment, titled the Rajasthan Minor Mineral Concession (Third Amendment) Rules, 2025, revises royalty rates for all minor minerals. The revised rates are mineral-specific, categorized by shape, size, and district, and charged on a per-tonne basis.
Key features include:
Introduction of differentiated rates for blocks, slabs, chips, khanda, and waste materials.
Specific provisions for minerals like marble, sandstone, limestone, bajri, and granite based on regional characteristics.
Uniform application across all districts with notable exceptions for heritage areas like Makrana.
Rajasthan Royalty Rates (2025) for Select Minor Minerals
| S. No | Mineral | Form/Category | District/Condition | Royalty (INR/tonne) |
|---|---|---|---|---|
| 1 | Sandstone | Dimensional (Blocks, polished, tiles, etc.) | Bharatpur, Dholpur | ₹320.00 |
| Dimensional (Undressed) | Kota, Bundi, Karauli | ₹220.00 | ||
| Dimensional (Undressed) | All other districts | ₹180.00 | ||
| 2 | Limestone | Dimensional (flooring, roofing) | Kota, Jhalawar | ₹160.00 |
| Dimensional | Jaisalmer | ₹170.00 | ||
| Mineral Waste | Used in industry | Any | ₹45.00 | |
| 3 | Marble | Slabs and tiles ≥ 35 cm width | All districts | ₹550.00 |
| Marble Khanda | Used as masonry stone | Alwar, Jaipur, Jhunjhunu, etc. | ₹55.00 | |
| Khanda (Makrana, Kumari Range) | Used for masonry | Borawad area (Makrana) | Exempted | |
| 4 | Granite | Blocks (>70 cm) | All districts | ₹300.00 |
| Khanda used as masonry | Alwar, Jaipur, Jhunjhunu | ₹55.00 | ||
| 5 | Masonry Stone | For M-Sand, ballast, GSB, crusher dust, etc. | Alwar, Jaipur, Bharatpur, etc. | ₹55.00 |
| Other districts | ₹45.00 | |||
| 6 | Bajri | River sand | All districts | ₹60.00 |
| 7 | Ordinary Earth | For tiles, pottery, etc. | All districts | ₹25.00 |
| For road embankments/fill | All districts | ₹10.00 | ||
| 8 | China Clay | Processed | All districts | ₹625.00 |
| 9 | Salt Petre | Industrial use | All districts | ₹5,500.00 |
| 10 | Quartzite | Blocks / Lumps | All districts | ₹480 / ₹205 |
Lease Extension Deadline (Until September 30, 2025) To ease the regulatory burden and promote legal mining, the Rajasthan government extended the deadline for applying lease renewals under Rules 9(3A) and 10(3A) of the Rajasthan Minor Mineral Concession Rules. More than 2,500 leaseholders are expected to benefit.
3. Digitization and Royalty Collection Reforms (Effective July 1, 2025)
The state has introduced an e-governance initiative to digitalize royalty collection:
Contractors will collect royalties and issue digital receipts (Form-23 and Form-24).
Mandatory GPS-enabled vehicle tracking, RFID scanners at check-posts.
Real-time monitoring using integrated DMG-OMS (Online Management System) portal.
Use of e-rawanna for seized minerals like Bajri.
These measures aim to curb illegal mining and bring transparency in transportation and billing.
4. Service Tax Relief for Petroleum Royalties
In a major legal development, the Appellate Tribunal (CESTAT, New Delhi) ruled that royalties and dead rent collected by the Rajasthan Petroleum Department prior to April 1, 2016, are not liable for service tax. This verdict relieved the department of a ₹6,315 crore demand, paving the way for legal clarity in revenue collection.
5. Major Mineral Block Auctions & Revenue Targets
Rajasthan conducted e-auctions of 22 major mineral blocks (14 mining leases + 8 composite licenses) in mid-2025.
These auctions covered limestone, siliceous earth, base metals, and others.
Revenue target for FY2026: ₹12,950 crore from mining alone.
FY2025 collection: ₹9,228 crore (23.7% YoY growth), making DMG the top revenue contributor for the state.
6. Barmer Refinery Update
HPCL Rajasthan Refinery Limited (HRRL) started operations with 9 MMTPA crude processing capacity in January 2025.
Aiming for full-scale operations by December 2025.
Integrated petrochemical complex projected to meet major domestic demand for PP, PE, and aromatics.
7. Aravalli Environmental Controversy
Haryana filed a petition in the Supreme Court seeking to halt all mining within 5 km of the Aravalli border inside Rajasthan, citing ecological damage. The case could lead to new regulations or buffer zone restrictions.
Rajasthan M-Sand Policy 2024: Expanded Benefits in 2025
M-Sand (Manufactured Sand) is positioned as a sustainable alternative to river sand (Bajri). The policy was updated in 2024, but its major benefits rolled into effect through 2025:
Mandatory Use in Government Projects: Minimum 25% of sand used in government construction must be M-Sand, increasing to 50% by FY2028-29.
Royalty Relief: 50% royalty exemption for units using overburden from Government land.
DMFT Exemption: Contribution to District Mineral Foundation Trust waived.
Ease of Entry: Waiver of experience, reduced keenness money, and increased plot reservation per district.
Quality Control: BIS certification required (IS 383:2016, IS 1542:1992).
Waste Reuse: Mandated water recycling and zero-discharge policy for M-Sand units.
Comparison Table: Old vs. New Royalty Structure
| Mineral/Material | Old Royalty (2024) | New Royalty (2025) | % Change / Remarks |
| Marble (Slabs ≥35 cm) | ₹450/tonne | ₹550/tonne | ↑ 22%; Higher market alignment |
| Granite (Block >70 cm) | ₹250/tonne | ₹300/tonne | ↑ 20%; Rising export demand |
| Masonry Stone (Alwar) | ₹45/tonne | ₹55/tonne | ↑ 22%; Curb overuse, boost revenue |
| Bajri (River Sand) | ₹50/tonne | ₹60/tonne | ↑ 20%; Supports sand conservation efforts |
| M-Sand (Overburden use) | ₹100% royalty | 50% exemption | ↓ 50%; Promotes circular economy |
| China Clay (Processed) | ₹500/tonne | ₹625/tonne | ↑ 25%; Industrial demand & quality costs |
| Salt Petre | ₹4,000/tonne | ₹5,500/tonne | ↑ 37.5%; Rare, high-value mineral |
| Other Minerals (Unlisted) | Variable | 20% of pit mouth | Standardized; Increases transparency |
Conclusion
The year 2025 marks a transformative era for Rajasthan’s mining and petroleum sectors. The integration of digital systems, the push for sustainability via M-Sand, and the revised royalty regime represent a shift towards a more accountable, efficient, and environmentally responsible model. These reforms are not just regulatory in nature—they reflect Rajasthan’s long-term vision of becoming a national leader in mineral resource governance and sustainable industrial development.
Stakeholders are advised to familiarize themselves with the new royalty rates, policy incentives, and digital compliance norms to align their operations with the state’s evolving legal and environmental landscape.
For More Information: Department of Mines & Geology, Rajasthan
Website: https://mines.rajasthan.gov.in
Phone: +91 294 2413346