Uttarakhand's Mining Reforms Reveal 100 Crore Revenue Boost Amid Policy Changes

"There is a scheme of the Indian government under which all states of the country have been categorised based on the amount and type of mineral resources they possess... Under Category C, Uttarakhand has been awarded a special incentive in the form of Rs 100 crore by the Indian government. This amount is for policy reforms," Brijesh Sant told ANI.

"These reforms focus on making mining policies and rules more transparent and simple, increasing penalties for violations to complement simplification, and utilising advanced technologies like drone cameras, e-challans, e-gates, and anti-illegal mining forces at various administrative levels to curb illegal mining. These efforts have shown positive results in increasing legal mining and decreasing illegal activities, as reflected in the revenue growth over the past years," he added.

The Union Ministry of Mines has unveiled the State Mining Readiness Index (SMRI) and the state-level rankings. According to the official communication from the Union Ministry of Mines, SMRI is a key initiative aimed at encouraging reforms in the mining sector at the state level.

Building on this initiative, improvements in the mining sector have now been incorporated into the Special Assistance to States for Capital Investment (SASCI) Scheme 2025-26 by the Department of Expenditure, Ministry of Finance.

A total fund allocation of ₹5,000 crore has been set aside under this scheme, which includes three components related to mining reforms. One of these components, worth ₹900 crore, is reserved for the top three states in Categories A, B, and C, as per the SMRI ranking.

Each such state is eligible to receive ₹100 crore from the SASCI funds. State participation in the SMRI process is crucial and requires the timely and accurate submission of relevant data.

Uttarakhand falls under Category C. Under the SMRI framework, the Ministry of Mines sought detailed information from all states in a prescribed format on matters such as e-auction of mining blocks, issuance of Letters of Intent, mining plan approvals, environmental clearances, mining lease sanctions, execution of lease deeds, CTE/CTO approvals, operationalization of mining blocks, implementation of mining surveillance systems to curb illegal mining and transportation, receipt and utilization of DMF funds, revenue enhancement, etc.

Based on Uttarakhand's strong performance in Category C, the state will receive an incentive of ₹100 crore, marking a notable achievement for the state and the mining department.

Chief Minister Pushkar Singh Dhami stated that mining plays a vital role in the state's revenue. "The state government is emphasising environmentally sustainable and lawful mining practices. Alongside curbing illegal mining, strict action has been taken against tax evasion. The remarkable performance in the central government's mining rankings is a direct result of these efforts," he said.

- ANI