MINES AND MINERALS

India Landscape
Rajasthan Landscape
Policies & Incentives
EODB
Opportunities

INDIA LANDSCAPE

National Strategic Priority

The government plans to monetise assets consisting of 160 projects worth USD 3,424 mn in the mining sector over FY 2022-25
358 Mineral Exploration Projects taken up by Geological Survey of India in FY 2024 till December
51 mineral exploration projects worth USD 5 mn approved by NME
Government of India has released a list of 30 minerals critical for both national and economic security, part of its vision for Atmanirbhar Bharat
Launch of first ever auction process for Critical and Strategic Minerals for India

Sector Performance at the National Level

Largest producer of sponge iron
Second Largest crude steel and coal producer in the world
Fourth Largest in producer of zinc slabs
Fourth Largest of iron in FY 2022 producing about 200 mn tonnes every year and accounts for 9.6% of total iron are produced around the globe
USD 25+ bn in FDI inflows in the sector
USD 17.1 bn Production linked Incentive (PLI) Scheme in speciality steel
The mining and quarrying sector accounted for about 2.4% of GVA
1,319 mines (excluding atomic, fuel, and minor minerals), of which reporting mines for metallic minerals were estimated at 545 and non-metallic minerals at 774
Total value of export of MCDR minerals in FY 2023 was USD 3.9 bn
World's second largest coal producer, and the sixth largest mica and bauxite producer
Third largest lime producer and fourth largest iron ore producer in the world
The index of mineral production of mining and quarrying sector for the month of December 2023 was 5% higher when compared to that of 2022

Rajasthan Landscape

Sector Performance:

19% increase in the total value of mineral production for FY 2022
In FY 2022, Rajasthan accounted for the entire production lead (0.3mn tonnes) and zinc concentrates (11.5 mn tonnes) in India
Copper concentrate production reached 0.1 mn tons, with Rajasthan contributing a significant 43.1% of the total output
In FY 2021, Rajasthan ranked second in the value of minor minerals, contributing 19% with an estimated production value of USD 9,424 mn
Third largest mineral producing state
Rajasthan accounted for the entire production of lead concentrate and zinc concentrate during FY 2022
The production of copper concentrate was 114.42 thousand tonnes in FY 2022, out of which Rajasthan accounted for ~43% of the total output
The production of phosphorite was 1395 thousand tons in FY 2022, out of which Rajasthan contributed ~92% of the total output
Rajasthan is among the top producer of limestone, copper ore, silver, rock phosphate, and gypsum, in addition to being the only producer of zinc and lead in the nation and the greatest producer of marble

Rajasthan: Value Proposition for Mines & Minerals Investors

100% FDI is allowed under 'Automatic' route for mining and exploration of metal and non-metal ores including diamond, gold, silver and precious ores.
100% FDI is allowed under 'Government' route for mining and separation of titanium bearing minerals and its ores, its value addition and integrated activities

As of 2019, the State possesses substantial share of the total resources of potash, lead & zinc ore, wollastonite, silver ore, gypsum, ochre, bentonite, fuller's earth, diatomite, feldspar
Rajasthan boasts of being the top producer of limestone, copper ore, silver, rock phosphate, and gypsum, in addition to being the only producer of zinc and lead in the nation and the greatest producer of marble
The state, particularly the Barmer region, is a significant contributor to India's crude oil production
Rajasthan also ranks second in natural gas production, with substantial reserves and ongoing extraction activities

As of 2023, the mines department has developed infrastructure facilities for geo-physical exploration, petrology and remote sensing in this state.
Rajasthan has 415+ well developed industrial areas with 10k hectares of industrial land available (#4 in India).
Major locations in Rajasthan where mining is undertaken are Khetri, Rampura Agucha, Zawar, Kayad etc.

The State has excellent connectivity to domestic and export markets via multiple modes of transportation. It features the third largest network of national highways, with 20 major routes, and more than 58% of its area lies within the Delhi Mumbai Industrial Corridor (DMIC). Additionally, the State has the third largest rail network in India, enhancing its strategic accessibility.

Highly skilled young talent emerging from institutes such as Rajasthan Technical University offering various programs such as mining engineering in this sector.

Policies & Incentives

Rajasthan Investment Promotion Scheme (RIPS) 2022

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Asset Creation Incentives (ACI)

Capital Subsidy of up to 28% over 10 years, OR
Turnover Linked Incentives (TLI) of up to 2% for 10 years, OR
Investment subsidy (Net SGST reimbursement) up to 75% for 7 years

Exemptions

100% exemption on electricity duty for 7 years
100% stamp duty and conversion charge exemption
100% exemption in land tax

Special incentives

Employment booster of up to 15% on chosen ACI
Additional incentives: Green incentives, Freight subsidy, Cluster incentives, Training and Skilling incentive

Additional incentives
(For manufacturing thrust sectors)

10% thrust booster on top of ACI chosen, OR
5% interest subsidy for 5 years, OR
20% anchor booster on top of ACI chosen to first 3 units in a region / sector
100% banking, wheeling, and transmission charges waived off / reimbursed for captive power plants set up by anchor enterprises
Policy allows phasing of investment without loss in benefits

Customized Packages

Additional flexibility for investors to design own ACI mix through customized packages for investment over INR 500 crore. In case of investments greater than INR 1000 Cr. and greater than 800 employment generation, the State reserves the right to grant customization on a higher NPV of the Asset Creation Incentive up to up to 20% of the NPV of the chosen Asset Creation Incentive as part of the manufacturing/ services standard package on a case-to-case basis.

Rajasthan Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Act, 2019

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MSMEs are exempted from approvals and inspections under any Rajasthan Law for 5 years

Rajasthan Mineral Policy, 2015

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Aims to foster sustainable mineral extraction
Ensures safety, conservation, cost-effectiveness, and social responsibility
Encouraging transparency in granting mineral concessions
Seeks to boost investment in mineral-based industries through a conducive regulatory and fiscal framework

Rajasthan M-Sand (Manufactured Sand) Policy

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The policy focuses on promoting the use of M-Sand as a sustainable alternative to river sand in construction activities

Incentives and Subsidies

Financial assistance for setting up M-Sand manufacturing units.
Tax benefits and simplified regulatory procedures.

Promotion of M-Sand Production

Encouragement for establishing M-Sand units to reduce dependency on river sand.
Creation of awareness and training programs for stakeholders.

Collaboration with Industry

Partnership with industry bodies, construction associations, and stakeholders to promote M-Sand use in construction.

Sustainable Development Goals

Alignment of the M-Sand policy with resource conservation and environmental protection objectives.

Ease of Doing Business

RajNivesh portal provides a single point, online interface and a time-bound clearance system by acting as a one-stop information / registration / approval / tracking centre for clearances & approvals
The platform integrates 120+ services across 15 departments, emphasizing the state's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development

100% FDI allowed under automatic route in the sector