The Banswara gold discovery in Rajasthan’s Kankariya village represents one of India’s most significant gold finds, with geological surveys confirming approximately 222.39 tonnes of pure gold spread across 940.26 hectares .
This marks the third confirmed gold-bearing zone in Banswara district, following earlier discoveries in Bhukia and Jagpura, establishing the region as India’s emerging “gold capital”. Discovery DetailsThe Kankariya gold mine, located in Ghatol tehsil, contains an estimated 113.52 million tonnes of gold ore across the 940-hectare area.
Geological surveys indicate the gold-bearing ore stretches across a 3-kilometer span, making it one of the largest deposits ever reported in Rajasthan. Additionally, the nearby Kankariya-Gara area is expected to yield 1.24 million tonnes of gold ore across 205 hectares . The gold deposits were initially identified during a geological survey conducted in 1990-91, with studies revealing that one ton of ore contains approximately 1.945 grams of gold �.
Beyond gold, the site is also expected to yield valuable co-minerals during extraction operations.
Mining Lease and Economic Impact
The Rajasthan government previously auctioned the Bhukia-Jagpura mining block (940 hectares) in June 2024, awarding it to Syed Owais Ali from Ratlam, Madhya Pradesh, who offered the highest premium of 65.30%.
The lease was valued at ₹1.30 lakh crore and is expected to generate ₹1 lakh crore in revenue over the next 50 years through premiums and royalties. However, the initial license was cancelled after the winning company failed to deposit the required guarantee amount, prompting fresh tenders with bid openings scheduled for November 3, 2025.
Mining operations are planned to commence in 2025-2026 using open-cast mining techniques and automation. Experts project that Banswara’s gold mines could supply up to 25% of India’s total gold demand, significantly reducing the country’s import dependence.
The development is expected to create 50,000 direct and indirect employment opportunities in gold mining, processing, jewelry, electronics, and related industries.
Strategic Significance
Once operational, Banswara will join a select group of Indian states actively engaged in gold mining, transforming the tribal-dominated district into a major industrial and economic hub. The discovery is particularly significant given that India currently produces only about 1.6 metric tons of gold annually through domestic mining while importing 700-800 metric tons. This find, along with other recent discoveries across Rajasthan, Madhya Pradesh, and Odisha, positions India to substantially boost its domestic gold production capacity.
About the Author
