Government of India Announces State Mining Readiness Index; Uttarakhand Among Top Performers, to Receive ₹100 Crore Incentive
Centre rewards states driving mining sector reforms under SMRI and SASCI 2025–26 schemes

The Government of India has released the State Mining Readiness Index (SMRI) and state-level rankings to promote transparency, efficiency, and reforms in India’s mining sector. Under this initiative, Uttarakhand has emerged as one of the top-performing states in the country, securing second place in Category-C and becoming eligible for an incentive of ₹100 crore from the central government.
The State Mining Readiness Index (SMRI), developed by the Ministry of Mines, is designed to encourage states to undertake structural reforms, adopt e-governance, and strengthen compliance and environmental management in mining operations. The initiative has now been integrated with the Special Assistance to States for Capital Investment (SASCI) 2025–26 scheme of the Department of Expenditure, Ministry of Finance, which earmarks ₹5,000 crore to reward states leading in mining reforms.
Of this total outlay, ₹900 crore has been allocated to states ranking first in each of the three categories — A, B, and C, classified according to their mineral wealth. Each top-ranking state in these categories will receive ₹100 crore as part of SASCI’s reform-linked incentive structure.
Top Performing States According to the rankings:
- Category-A (Mineral-Rich States): Madhya Pradesh, Rajasthan, Gujarat
- Category-B (Medium Mineral Resources): Goa, Uttar Pradesh, Assam
- Category-C (Limited Mineral Resources): Punjab, Uttarakhand, Tripura
This categorization ensures fair comparison and evaluation based on each state’s resource base and capacity to implement mining reforms.
Encouraging Reform and Transparency
Under the SMRI assessment, the Ministry of Mines evaluated states on parameters including e-tendering of mining blocks, approval timelines for leases, environmental clearances, mining plan approvals, monitoring systems for illegal mining, revenue performance, and utilization of District Mineral Foundation (DMF) funds.
Timely and accurate submission of data by states played a critical role in determining their scores. Uttarakhand’s strong showing reflects its commitment to digital governance and sustainable mining practices.
Centre’s Focus: Reforms and Sustainability
A senior official from the Ministry of Mines stated that the SMRI initiative is part of the central government’s broader goal to build a globally competitive, transparent, and environmentally responsible mining ecosystem. By linking reform performance to capital assistance under SASCI, the Centre aims to foster healthy competition among states and accelerate mineral sector modernization.
Uttarakhand’s Chief Minister Welcomes Recognition
Reacting to the announcement, Uttarakhand Chief Minister Pushkar Singh Dhami said: “Mining contributes significantly to the state’s revenue. Our focus has been on environmentally sustainable and legal mining, coupled with strict action against illegal operations and tax evasion. This recognition from the central government reflects our transparency and reform-oriented approach.”
The State Mining Readiness Index (SMRI) is expected to become a benchmark for assessing governance standards in the mining sector and a critical driver in India’s journey toward resource efficiency and sustainable growth.