https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Govt Introduces ₹5,000 Crore Incentive Scheme for Mining Reforms Under SASCI FY 2026–27 

New reform-linked financial framework aims to accelerate mine operationalisation, improve mineral production, and strengthen governance across States and UTs
Indian Masterminds Stories

New Delhi: In a significant move aimed at accelerating reforms in India’s mining sector, the Central Government has introduced a financial incentive mechanism worth ₹5,000 crore under the Scheme for Special Assistance to States for Capital Investment (SASCI) for FY 2026–27.

The initiative, announced by the Ministry of Mines, is designed to encourage States and Union Territories with legislatures to adopt key reforms that improve mining efficiency, transparency, and revenue generation.

The scheme follows the success of similar measures in the previous financial year and is expected to significantly improve mining governance across the country.

Objective: Faster Mine Operations and Better Governance

The primary objective of the new SASCI mining reform component is to:

  • Speed up mine operationalisation
  • Increase mineral production
  • Improve State revenue from mining activities
  • Strengthen governance and transparency in the mining sector

The scheme focuses on incentivising structural and technological reforms that make mineral auctions and production more efficient and accountable.

Read also: India, New Zealand Set to Ink Landmark Trade Deal; Strategic Shift Amid Global Uncertainty

Three Key Reform Areas Under the Scheme

The incentive framework is divided into three major reform categories that States must implement to become eligible for financial assistance.

1. Implementation of Mining Reforms

States must undertake a series of governance and technology-driven reforms, including:

  • Integration with the Unified Mining Portal of the Ministry of Mines
  • Formation of a Pre-Auction Committee to resolve land and scheduling issues
  • Establishment of a State-level Coordination Committee for monitoring mine operations
  • Preparation of an annual auction calendar for major minerals and adherence to it
  • Adoption of technology-based systems to detect or prevent grade misclassification of mineral ore

If a State successfully implements all five reforms by 15 December 2026, it will be eligible for an incentive of ₹100 crore.

2. Incentives for Mine Operationalisation

The scheme also rewards States for improving the efficiency of mineral block auctions and bringing mines into production.

Key provisions include:

  • ₹20 crore per successfully auctioned major mineral block with pre-embedded clearances (forest, environment, land, etc.), capped at ₹200 crore per State
  • ₹250 crore per State for operationalising at least 10% of auctioned major mineral blocks, provided they begin production and dispatch by 31 December 2026

This component aims to reduce delays in approvals and ensure quicker conversion of auctioned blocks into active mining operations.

3. Performance-Based Rewards Under SMRI 2026–27

The third component of the scheme introduces performance-linked rewards based on the State Mining Readiness Index (SMRI) 2026–27, to be released by the Ministry of Mines.

States will be ranked across three categories (A, B, and C), and incentives will be awarded as follows:

  • 1st place: ₹100 crore
  • 2nd place: ₹75 crore
  • 3rd place: ₹50 crore

This competitive framework is expected to encourage States to improve regulatory efficiency and overall mining readiness.

Expected Impact on India’s Mining Sector

The ₹5,000 crore incentive scheme is expected to:

  • Accelerate mining reforms across States
  • Improve ease of doing business in the mining sector
  • Boost mineral production and auction efficiency
  • Enhance transparency through digital integration
  • Increase State revenues from natural resources

By linking financial support to performance, the government aims to create a more competitive and reform-driven mining ecosystem in India.

About SASCI Scheme

The Scheme for Special Assistance to States for Capital Investment (SASCI) is a central government initiative designed to support States in boosting capital expenditure and infrastructure development. The 2026–27 mining reform component strengthens the scheme’s focus on sector-specific reforms, particularly in mining, by linking incentives to measurable governance outcomes.

Read also: CAIT Launches National Entrepreneurship Mission to Empower 50 Million Differently-Abled Citizens in India


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Tamilnadu-police-resized
Tamil Nadu Reshuffles 10 IPS Officers Across Internal Security Units; G. Dharmarajan Appointed DIG, Intelligence (Security)
Uttar Pradesh Wins ‘Exemplar’ Award in LEADS 2025 Rankings, Emerges as India’s Top Landlocked State in Logistics
Uttar Pradesh Wins ‘Exemplar’ Award in LEADS 2025 Rankings, Emerges as India’s Top Landlocked State in Logistics
Madhya Pradesh UCC panel
CM Mohan Yadav Cracks Down on Saubhagya Singh Thakur Over 200-Vehicle Convoy; Show-Cause Notice Issued, Financial Powers Revoked
nandini-chakraborty-ias
Who Is Nandini Chakraborty? Former West Bengal Chief Secretary Gets Crucial Assignment in Suvendu Adhikari Govt
BEL
Bharat Electronics Wins Golden Peacock Award 2026 for Business Excellence, ESG and Governance Leadership
industrial-hub-
Bihar Govt Approves Land for NIFTEM in Hajiipur, Boosting Food Processing & Industrial Growth 
cm bihar
Bihar Govt Launches Initiative to Provide Safe and Legal Overseas Employment for Youth 
PNB
Punjab National Bank Honoured with Golden Peacock Award for Excellence in Training FY 2025–26 
ADVERTISEMENT
ADVERTISEMENT
Videos
Rupinder Brar
Rupinder Brar Beyond the Desk: Music, Mindfulness & the Many Sides of a Civil Servant
WhatsApp Image 2026-05-05 at 6.46
Rupinder Brar: The Officer Connecting Policy, People, and India’s Key Sectors
Punjab’s Welfare Push Backed by Surging Revenues Harpal Singh Cheema
Punjab’s Welfare Push Backed by Surging Revenues
ADVERTISEMENT
UPSC Stories
Ravi Laxmipriya IFS
From 3 Interview Failures to AIR 9 in UPSC IFS 2025: The Inspiring Journey of Ravi Laxmipriya
An Inspiring Story of Patience, Persistence, and Finding the Right Direction. Facing repeated UPSC disappointments,...
WhatsApp Image 2026-05-12 at 4.23
11 Years, One Dream, All CSE Attempts Exhausted: How Indian Coast Guard Officer Anshuman Singh Secured AIR 2 in UPSC IFS 2025
After Exhausting All UPSC CSE Attempts, This Coast Guard Officer Turned Setbacks Into Strength and Secured...
Dr Washim Ur Rahman UPSC
How Dr. Wasim Ur Rahman Cleared UPSC After Years of Setbacks and 5 Interviews
Dr. Wasim Ur Rahman secured AIR 157 in UPSC CSE 2025 after five interviews, IRS selection, and years...
CSR NEWS
CCL
CCL Wins Greentech CSR India Platinum Award 2026 for Transforming 5,000 Households in Hazaribag 
CCL’s Integrated Rural Development Initiative Benefits Over 5,000 Households, Promotes Women-Led Participation,...
nlc
NLC India Donates Life Support Ambulance in Odisha Under CSR Initiative to Boost Emergency Healthcare
NLC India Limited strengthens rural healthcare support in Sambalpur as Dharmendra Pradhan flags off fully...
BCCL
BCCL Wins Two Gold Awards at Greentech CSR India Awards 2026 for Skill Development and Education
Bharat Coking Coal Limited recognised in New Delhi for impactful CSR initiatives focused on education,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Tamilnadu-police-resized
Tamil Nadu Reshuffles 10 IPS Officers Across Internal Security Units; G. Dharmarajan Appointed DIG, Intelligence (Security)
Uttar Pradesh Wins ‘Exemplar’ Award in LEADS 2025 Rankings, Emerges as India’s Top Landlocked State in Logistics
Uttar Pradesh Wins ‘Exemplar’ Award in LEADS 2025 Rankings, Emerges as India’s Top Landlocked State in Logistics
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Rupinder Brar
WhatsApp Image 2026-05-05 at 6.46
Punjab’s Welfare Push Backed by Surging Revenues Harpal Singh Cheema
ADVERTISEMENT
ADVERTISEMENT