NewKerala.com

Centre launches Rs 5,000 crore incentive scheme to boost state mining reforms

The Centre has rolled out a Rs 5,000 crore incentive scheme under SASCI to encourage mining sector reforms in states for FY 2026-27. The scheme offers incentives for integration with the Unified Mining Portal, successful auction of mineral blocks with pre-embedded clearances, and operationalisation of mines. States can earn up to Rs 100 crore for completing five reform actions by December 15, 2026. Top-performing states under the State Mining Readiness Index will also receive rewards.

Key Points: Rs 5,000 crore mining incentive scheme for states

  • Rs 5,000 crore incentive scheme under SASCI for FY 2026-27
  • States must integrate with Unified Mining Portal, form committees, adopt tech measures for Rs 100 crore
  • Incentives for successful auction and operationalisation of major mineral blocks
  • Top states under State Mining Readiness Index to get rewards up to Rs 100 crore
2 min read

Centre rolls out Rs 5,000 crore incentive scheme to help states boost mining sector

Centre rolls out Rs 5,000 crore incentive scheme under SASCI to help states boost mining sector reforms, increase mineral production, and improve governance.

"The objective of this SASCI scheme component is to facilitate and expedite mine operationalisation, increase mineral production, enhance revenue collection by states from the mining sector, and improve overall governance of the mining sector. - Ministry of Mines statement"

New Delhi, April 24

Following the success of the previous fiscal year, an incentive mechanism on mining sector reforms with a Rs 5,000 crore outlay has been incorporated in the Scheme for Special Assistance to States for Capital Investment for FY 2026-27, the Ministry of Mines said on Friday.

The operational guidelines for this component of the scheme have been issued recently by the ministry and constitute a significant step to encourage mining sector reforms in states, according to a ministry statement.

The objective of this SASCI scheme component is to facilitate and expedite mine operationalisation, increase mineral production, enhance revenue collection by states from the mining sector, and improve overall governance of the mining sector. The Scheme incentive is to be provided to states and UTs (with legislature) under three reform areas.

The first involves integration of the state with the Unified Mining Portal of the Ministry of Mines for mine operationalisation, constitution of a Pre-Auction Committee to actively resolve land scheduling issues, constitution of a state-level Coordination Committee for regular monitoring of operationalisation of mines, annual auction calendar for major minerals & adherence to the same to the extent possible, and adoption of technology-based measures to prevent or detect grade misclassification of mineral ore. A state has to undertake all the above five reform actions by December 15, 2026, upon which it will be eligible for an incentive of Rs 100 crore.

The second entails mine operationalisation through incentivising states for successful auctioning of major mineral blocks with pre-embedded clearances (such as forest, environment, land, etc.) in FY 2026-27 upto December 31, 2026 (Rs 20 crore per block successfully auctioned, with an upper cap of Rs 200 crore per state) and operationalisation (i.e. commencement of production and dispatch) during FY 2026-27 (up to December 31, 2026) at least 10 per cent of the major mineral blocks successfully auctioned till March 31, 2026 (Rs 250 crore per state).

The third involves SMRI-based reforms, which include rewarding the top three states in each of the three categories A, B, and C under the State Mining Readiness Index (SMRI) 2026-27, to be released by the Ministry of Mines (Rs 100 crore, Rs 75 crore, and Rs 50 crore for securing 1st, 2nd and 3rd position under each category.

- IANS

Share this article:

Reader Comments

R
Rekha R
Interesting to see the SMRI ranking is back—states competing for top spots will push transparency. My worry is environmental compliance. We've seen too many mining zones ruin local ecosystems and water tables. The pre-embedded clearances are fine, but they must include strict green audits. Otherwise, this becomes a license to loot.
J
James A
As someone who's worked in mining policy, this scheme's linkage to the Unified Mining Portal is long overdue. Digitising land records and auction timelines is key to reducing corruption. But 5,000 crore is just a drop if states don't have the capacity to adopt these reforms quickly. Need more training for district-level officials.
P
Priyanka N
Yaar, this sounds good on paper, but remember the previous mining scams in Karnataka and Odisha? Without independent monitoring, these incentives can be misused. The Pre-Auction Committee needs representation from local gram sabhas and environmental experts, not just bureaucrats. Otherwise, it's just another way to fast-track big corporates. 😤
K
Karthik V
Finally some fiscal federalism in mining! For years, states like Jharkhand and Chhattisgarh got peanuts while the Centre took royalty share. This Rs 100-250 crore per state incentive might actually make them set up proper coordination committees. The 15 December 2026 deadline is tight but doable if they start now. Let’s see if they deliver.
S
Suresh O
All well and good, but what about the tribal communities displaced by mining? No mention of rehabilitation or revenue sharing with locals. The SMRI index should include

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50