The Ministry of Mines has launched a Rs 50 billion incentive mechanism for mining sector reform under the scheme for special assistance to states for capital investment (SASCI) for 2026-27.
The scheme component has an outlay of Rs 50 billion and aims to expedite mine operationalisation, increase mineral production, improve state revenues from mining and strengthen sector governance. States and Union Territories with legislatures will be eligible for incentives across three reform areas, including integration with the Unified Mining Portal, constitution of committees to resolve land scheduling and mine operationalisation issues, preparation of an annual major mineral auction calendar and adoption of technology-based measures to detect grade misclassification. Under the scheme, states completing five specified mining reform actions by December 15, 2026 will be eligible for Rs 1 billion. States will also receive Rs 200 million per successfully auctioned major mineral block with pre-embedded clearances, subject to a cap of Rs 2 billion per state, and Rs 2.5 billion for operationalising at least 10 per cent of major mineral blocks auctioned till March 31, 2026.