State Mining Readiness Index

17 Oct 2025

State Mining Readiness Index

The Ministry of Mines has unveiled the State Mining Readiness Index (SMRI) and corresponding State rankings, marking India’s first-ever framework to systematically assess and benchmark the mining readiness of States

  • The initiative fulfills a commitment made in the Union Budget 2025–26 to promote transparency, performance benchmarking, and sustainable development in non-coal mineral mining.

About the State Mining Readiness Index

  • Published by: Ministry of Mines.
  • Purpose: 
    • Promote transparency, accountability, and efficiency in State-level mining governance.
    • To evaluate States’ performance in non-coal mineral development, streamline governance, and accelerate reforms in the mining ecosystem.
  • Indicators: The index includes key parameters such as:
    • Auction Performance: Measures the success of mineral block auctions and efficiency of bidding processes.
    • Early Mine Operationalisation: Evaluates how quickly auctioned mines become operational.
    • Thrust on Exploration: Gauges investments and activities in geological mapping and exploration.
    • Sustainable Mining Practices: Assesses adherence to environmental, social, and governance (ESG) norms in non-coal mineral extraction.

Categorisation of States

  • States are grouped into three categories based on their mineral endowment and potential:
    • Category A (High Mineral Endowment)
    • Category B (Medium Mineral Endowment)
    • Category C (Low Mineral Endowment)

Top 3 State Rankings (2025):

  • Category A : Madhya Pradesh (1st), Rajasthan (2nd), Gujarat (3rd)
  • Category B:  Goa (1st), Uttar Pradesh (2nd), Assam (3rd)
  • Category C:  Punjab (1st), Uttarakhand (2nd), Tripura (3rd)

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Significance

  • Reform Catalyst: Encourages States to strengthen mining regulation, digitize clearances, and streamline approvals.
  • Investment Promotion: Enhances investor confidence by improving transparency and governance in resource management.
  • Sustainability Push: Reinforces the Centre’s focus on environmentally responsible mining practices.
  • Ease of Doing Business: Simplifies mineral licensing and boosts industrial competitiveness in the non-coal sector.
  • Policy Benchmarking: Establishes uniform indicators for measuring performance across States.

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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