Centre Launches Rs 5K Crore Scheme To Push States For Mining Sector Reforms

Operational guidelines for this component have been issued, positioning it as a key policy tool to drive reform-oriented outcomes across states and Union Territories with legislatures. Under the scheme, incentives will be provided across three key reform areas. The first focuses on implementation of structural mining reforms, including integration with the Unified Mining Portal, establishment of Pre-Auction and State-level Coordination Committees, adherence to annual auction calendars, and adoption of technology to prevent mineral grade misclassification. States completing all specified actions by December 15, 2026, will be eligible for Rs100 crore. The second component incentivises mine operationalisation, offering up to Rs20 crore per successfully auctioned mineral block with pre-embedded clearances, subject to a cap of Rs 200 crore per state. Additional incentives of up to Rs 250 crore will be provided for operationalising at least 10Percent of blocks auctioned prior to March 31, 2026. The third component is linked to performance under the State Mining Readiness Index (SMRI) 2026–27, where the top three states in each category will receive financial rewards ranging from Rs 50 crore to Rs 100 crore. The scheme builds on the previous year’s framework and is expected to further strengthen the mining ecosystem by encouraging transparency, efficiency, and faster project execution across states. (KNN Bureau)