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.

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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)

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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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