The Ministry of Mines announced the incorporation of an incentive mechanism for mining sector reforms in the Scheme for Special Assistance to States for Capital Investment (SASCI) for FY 2026-27, with a Rs 5,000 crore outlay. Operational guidelines for this scheme component have been recently issued to encourage mining sector reforms and boost mineral production.
The objective of the SASCI scheme component is to expedite mine operationalisation, enhance mineral production, increase revenue collection by states from the mining sector, and improve overall governance of the mining sector. States and UTs will receive incentives under three reform areas, including integration with the Unified Mining Portal, constitution of committees for resolving issues, and adoption of technology-based measures.
States are required to undertake specific reform actions by December 15, 2026, to be eligible for incentives ranging from Rs 100 crore to Rs 250 crore based on successful auctioning and operationalisation of major mineral blocks. Additionally, top-performing states in the State Mining Readiness Index (SMRI) 2026-27 will be rewarded with amounts up to Rs 100 crore for securing top positions in different categories.
