Centre Offers Financial Incentives For State Mining Reforms

The SASCI component targets three reform areas. The first area requires integration of a State with the Unified Mining Portal for mine operationalisation, constitution of a Pre-Auction Committee to resolve land scheduling, formation of a State-level Coordination Committee to monitor mine operationalisation, preparation of an annual auction calendar for major minerals and adoption of technology to detect grade misclassification of ore. States must complete all five measures by 15 December 2026 to qualify for an incentive of Rs 1,000 mn. This condition is designed to strengthen governance and reduce delays in bringing mines into production.

The second reform area incentivises auctioning and operationalisation of major mineral blocks during the financial year up to 31 December 2026. The scheme offers Rs 200 mn per block successfully auctioned with pre-embedded clearances, subject to an upper cap of Rs 2,000 mn per State, and provides Rs 2,500 mn per State for commencing production and dispatch from at least 10 per cent of blocks auctioned earlier. These provisions aim to accelerate mine development and ensure early production.

The third area links rewards to the State Mining Readiness Index (SMRI) for 2026-27, with prizes for the top three States in each category A, B and C amounting to Rs 1,000 mn, Rs 750 mn and Rs 500 mn respectively. The Ministry expects the package to incentivise reform adoption and improve mining readiness across jurisdictions. The operational guidelines set out eligibility criteria and timelines for disbursement under the SASCI component.