Blitz Bureau
NEW DELHI: The Centre has rolled out a Rs 5,000 crore incentive to help states boost the mining sector. This has been incorporated in the Scheme for Special Assistance to States for Capital Investment (SASCI) for FY 2026-27, the Ministry of Mines said on April 24.
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.
