In a determined bid to tap into its vast mineral wealth, the Rajasthan government has restarted the auction process for two substantial gold mine blocks. This move aims to officially place the state on India's map of gold-producing regions after a previous attempt was cancelled due to procedural issues.
A Fresh Start for Precious Metal Prospects
The state's Department of Mines and Geology is now inviting digital bids for composite licences. These licences grant the rights to both explore and mine gold in the specified blocks. The two blocks in focus are the Kankriya Gara Block in Banswara district and the Dugocha (Salumber) Block in Udaipur district. The crucial technical bid opening is scheduled for January 2, 2026.
This auction represents a second chance for both projects. A senior government official explained the need for the relaunch, stating, "Both blocks were auctioned previously. However, the process was annulled after detecting irregularities in the documentation submitted by the winning firm." The current tender sale window commenced on November 29 and ran until December 15, leading up to the final bid submission deadline on January 2.
Assessing the Golden Potential
The scale and value of the two blocks present a significant economic opportunity for Rajasthan.
The Kankriya Gara block spans 205 hectares across villages in Ghatol tehsil. Preliminary estimates suggest it holds a promising over 1.2 million tonnes of gold ore.
The Dugocha block is an even larger prospect. Covering 472 hectares, it contains more than 1.74 million tonnes of gold resources. The ore here has a grade of 1.63 grams per tonne. Based on this, the in-situ value of the Dugocha block is approximately Rs 1,410 crore, highlighting the massive potential locked beneath the ground.
Paving the Path to a Golden Future
A successful conclusion to this auction would be a landmark event for Rajasthan. An official noted that it would formally integrate Rajasthan into India's small cluster of gold-producing states. Currently, this group includes Karnataka, Jharkhand, and Andhra Pradesh.
The state's ambitions for its mineral sector extend beyond these two blocks. Authorities have revealed that the Geological Survey of India (GSI) has submitted reports for 18 potential gold blocks across various parts of Rajasthan. This indicates a long-term strategy to systematically develop the region's mineral resources, potentially transforming its economic landscape and creating new avenues for industrial growth and employment.
