Rajasthan: Minerals and energy

Rajasthan is one of India’s richest states in mineral resources, hosting nearly 82 varieties of minerals, with 57 currently under commercial production. It holds a dominant position in the stone industry and, per the Economic Review 2025-26, is a national leader in solar power generation. This note covers mining, petroleum and power.

Mineral Resources and Production

• Rajasthan has the occurrence of nearly 82 varieties of minerals, of which 57 are under commercial production.
• The state is a leading producer of limestone, lead-zinc, wollastonite, garnet, barytes, silica sand, granite, marble, and copper.
• It contributes significantly to national production of coal, lignite, and gypsum.
• Rajasthan holds a dominant position in the stone industry, particularly in marble, sandstone, and granite.
• In 2024-25, a total of 34 major mineral blocks were auctioned in the state, which is the highest in the country.
• Current mining holdings include 3,395 mining leases for major minerals, 13,428 for minor minerals, and 16,058 quarry licenses.
• Rajasthan Mineral Policy 2024 aims for sustainable development, zero-waste mining, and the use of AI-driven monitoring and GPS-based tracking to prevent unauthorized activities.
• Rajasthan M-Sand Policy 2024 promotes Manufactured Sand (M-Sand) as a sustainable alternative to river sand (Bajri) in construction.

Mining Revenue and RSMML Performance

• In 2025-26, the revenue target for the Mines and Geology department was ₹12,980 crore.
• Revenue collected up to December 2025 was ₹6,857.97 crore.
• Rajasthan State Mineral Mines Limited (RSMML) generated unaudited gross revenue of ₹1,726.03 crore in 2024-25, with a profit before tax of ₹658.22 crore.
• For 2025-26, RSMML’s budgeted gross revenue is ₹1,922.17 crore and pre-tax profit is ₹665.45 crore.
• RSMML has contributed ₹253.92 crore to the government exchequer up to December 2025.
• RSMML operates four Strategic Business Units (SBUs): Rock phosphate at Jhamarkotra, Udaipur, Gypsum at Bikaner, Limestone at Jodhpur, and Lignite at Jaipur.
• Operational revenue for Rock Phosphate up to December 2025 was ₹911.48 crore.

Oil, Gas, and Refinery Projects

• Rajasthan City Gas Distribution (CGD) Policy 2025 was released on 16th July 2025 to promote a gas-based economy and expand access to Piped Natural Gas (PNG) and Compressed Natural Gas (CNG).
• Up to December 2025, 53,047 new domestic piped cooking gas connections were provided.
• Crude oil: about 57,000-59,000 barrels per day from 15 fields (Mangla, Bhagyam, Aishwarya and others) in the Barmer-Sanchore basin.
• HPCL Rajasthan Refinery Ltd. (HRRL): a joint venture of HPCL (74 per cent) and the state (26 per cent); a 9 MMTPA refinery-cum-petrochemical complex at Pachpadra, Balotra, begun on 16th January, 2018, revised cost ₹79,459 crore.
• It will produce BS-VI standard products and will be the first refinery in India integrated with a petrochemical complex.
• Work orders of ₹76,442 crore have been issued for the refinery, with expenditure of ₹63,456 crore incurred up to December 2025.
• Approximately 90 per cent of the refinery project work has been completed, employing more than 26,000 workers.
• Of the state's ₹6,886 crore equity, ₹3,734.91 crore has been paid to HRRL.
• Total revenue from the petroleum sector in 2024-25 was ₹2,688.91 crore.

Installed Power Capacity

• The installed power capacity in Rajasthan was 27,283.83 MW up to March 2025 and increased to 31,556.43 MW up to December 2025.
• Thermal power remains the dominant source, with state-owned capacity at 7,830 MW up to December 2025.
• Within installed capacity, solar power reached 9,898 MW by December 2025.
• Wind power capacity grew to 4,416.12 MW by December 2025.
• Together, wind and solar energy account for 45.36 per cent of the total installed capacity up to December 2025.
• The total installed capacity increased by 5.55 per cent CAGR from 2020-21 to 2024-25.

Renewable Energy Potential and Policies

• Rajasthan’s solar potential is estimated at 142 GW by the MNRE, with high solar radiation intensity of 6-7 kWh/Sq.m/day and over 325 sunny days annually.
• The Rajasthan Integrated Clean Energy Policy, 2024 aims to contribute to the national target of 500 GW of renewable energy by 2030.
• The policy sets a target of 115 GW of renewable energy and 10 GW of storage capacity by 2029-30.
• Up to December 2025, Rajasthan has commissioned 42,531 MW of solar power capacity, including rooftop and off-grid projects.
• The wind energy potential is estimated at about 284 GW at 150 metres above ground level; 5,229 MW of wind capacity was commissioned in the state up to December 2025.
• The state aims to achieve 2,000 Kilo Tonnes per Annum (KTPA) Green Hydrogen generation by 2030.

Key Solar Parks and Infrastructure

• Bhadla Solar Park (Jodhpur) has a total capacity of 2,245 MW, commissioned in four phases.
• Nokh Solar Park has a capacity of 925 MW, developed by Rajasthan Solar Park Development Company Limited (RSDCL).
• Pugal Solar Park has a capacity of 2,450 MW and includes a Battery Energy Storage System (BESS) of 1600/6400 MWHr.
• The Extra High Voltage (EHV) transmission network increased from 36,079 Ckt. km in March 2017 to 45,933.315 Ckt. km up to December 2025.
• In 2025-26 (up to December), a provisional subsidy of ₹5,805.18 crore was provided to 98.03 lakh domestic consumers.