Centre Introduces First State Mining Index to Boost Reforms in Mineral Sector

The Ministry of Mines on Thursday released the State Mining Readiness Index (SMRI) along with State rankings. The index for tracking how well States are performing in facilitating mining activity and implementing reforms. The move also fulfills an announcement made in the Union Budget 2025-26.

Framework and Parameters

The index assesses States across several indicators such as auction performance, early mine operationalisation, exploration focus, and sustainable mining practices for non-coal minerals. These parameters are to measure readiness, efficiency, and the overall progress of States in the mining sector.

Classification of States

Under the SMRI, States have been divided into three categories based on their level of mineral endowment.

• In Category A, which includes mineral-rich States, Madhya Pradesh, Rajasthan, and Gujarat have secured the top three ranks.
• In Category B, Goa, Uttar Pradesh, and Assam are the leading performers.
• In Category C, Punjab, Uttarakhand, and Tripura hold the top positions.

This classification allows comparison among States with similar geological capacities rather than absolute rankings.

Purpose of the Index

The Ministry stated that the index is meant to act as a benchmarking tool to measure performance across States. It aims to encourage competition among them and identify areas needing policy attention. The framework is also expected to help the government assess the impact of mining-related initiatives and reforms at the State level.

Broader Objective

The release of the SMRI is part of the Centre’s plan to improve governance and bring uniformity in how mining operations are monitored and managed across India. By linking rankings with measurable outcomes, the Ministry hopes to promote a more structured and transparent system for resource development.

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Conclusion

The index provides a single reference point for tracking State performance in the mining sector. It is intended to promote accountability and help strengthen the overall framework of mineral governance in India.

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