Rajasthan hikes mineral royalties, construction costs set to surge

Jaipur: In a move that is expected to increase cost of construction in Rajasthan, the govt has revised royalty rates on minerals, resulting in higher levies and increase in prices of key raw materials including bajri (river sand), sandstonnee, marble, and other construction stonnees.

Department of Mines and Geology notified an increase in royalty on bajri by Rs 15 per tonne, raising uniform rate to Rs 60 per tonne across all districts. Previously, royalty on bajri extracted from Bharatpur, Jhunjhunu, tonnek, Dholpur, Sawai Madhopur, Sikar, and Bhilwara was charged at Rs 50 per tonne, while in other districts, it was Rs 45 per tonne. An official source said, "The new rule brings uniformity in royalty rates across Rajasthan. This increase will push up the price of bajri by approximately Rs 600 per truck, considering that a single truck typically carries around 40 tonnes of material."

Sandstone, particularly the widely used Chhajja stone, will also become more expensive. The royalty on processed sandstone was raised from Rs 240 to Rs 320 per tonne, marking an increase of Rs 80 per tonne. "Raw sandstone extracted from mines in Bharatpur and Dholpur will now attract a royalty of Rs 220 per tonne, up from Rs 155. In Kota, Bundi, and Karauli, the rate increased from Rs 130 to Rs 180 per tonne, while in other districts, it went up from Rs 100 to Rs 145 per tonne," said a mine owner.

Marble sourced from Makrana and nearby areas also saw a price revision. The earlier rate of Rs 490 per tonne increased to Rs 550, bringing it in line with marble from other parts of the state, where the royalty was previously Rs 560 per tonne. In a similar move, the royalty on stone used in tile manufacturing went up from Rs 455 to Rs 500 per tonne. Additionally, stones used in concrete and chips—such as dolomite, limestone, and rhyolite—will now attract a royalty of Rs 130 per tonne, up from the earlier Rs 90. "These revisions, while aimed at increasing state revenue, are likely to raise the overall cost of construction, especially in the real estate and infrastructure sectors, where these materials form the foundation of building activity," said realtor Ankur Tiwari.

eom