What Steps is the Centre Taking to Enhance State Mining Readiness?
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Synopsis
The Centre has introduced the State Mining Readiness Index, ranking states to invigorate mining reforms. With important indicators and strategic moves like Rajasthan's auction of mineral blocks, the initiative aims to boost investments and self-reliance in rare earth elements, crucial for India's technological and national security.
Key Takeaways
- State Mining Readiness Index launched to enhance mining sector reforms.
- States categorized based on mineral endowment.
- Rajasthan leads as the first state to auction major mineral blocks.
- Rare earth elements production is crucial for national security.
- Performance-linked rewards announced for Coal PSU workers.
New Delhi, Oct 16 (NationPress) The Ministry of Mines unveiled the State Mining Readiness Index along with state rankings on Thursday, aiming to catalyze reforms in the mining industry, in alignment with the pledges made in the Union Budget 2025-26.
Under the SMRI, states have been classified into three categories based on their mineral resources. The top three states in Category A include Madhya Pradesh, Rajasthan, and Gujarat, while Goa, Uttar Pradesh, and Assam lead in Category B. The top three states in Category C are Punjab, Uttarakhand, and Tripura.
The index is structured around key indicators such as auction performance, timely mine operationalization, emphasis on exploration, and sustainable practices in non-coal minerals, which are pivotal for assessing state performance in the mining field.
Recently, Rajasthan became the first state in India to auction major mineral blocks after securing all essential pre-embedded approvals, a strategic move aimed at accelerating mining initiatives, attracting investments, and creating job opportunities. Other states are gearing up to follow this example.
On a related note, on September 26, public sector coal enterprises announced a performance-linked reward of Rs 1,03,000 for non-executive staff.
This payment will positively impact around 2.1 lakh non-executive employees of Coal India Ltd and its subsidiaries, in addition to approximately 38,000 non-executive workers at Singareni Collieries Company Ltd (SCCL), as per the official announcement.
According to President Droupadi Murmu on September 26, India must achieve self-sufficiency in the production of rare earth elements (REEs), which are vital for the nation's development and security. The President highlighted that REEs are fundamental to modern technology and urged the development of technologies to enhance their usability.
Point of View
It's crucial to recognize that the launch of the State Mining Readiness Index by the Centre represents a strategic approach towards enhancing the mining sector in India. This initiative not only aims to streamline operations but also aligns with national goals of self-reliance and sustainable development. It is a timely response to the need for modernization and efficiency in a sector that holds significant potential for economic growth.
NationPress
16/10/2025
Frequently Asked Questions
What is the State Mining Readiness Index?
The State Mining Readiness Index is a framework released by the Ministry of Mines that ranks states based on their readiness and performance in the mining sector.
Which states topped the rankings?
The top three states in Category A are Madhya Pradesh, Rajasthan, and Gujarat; in Category B, Goa, Uttar Pradesh, and Assam; and in Category C, Punjab, Uttarakhand, and Tripura.
What are the key indicators of the index?
The index includes indicators like auction performance, early mine operationalization, exploration focus, and sustainable mining practices.
Why is self-reliance in rare earth elements important?
Self-reliance in rare earth elements is vital for India's technological advancement and national security, as these elements are essential for modern technologies.
What is Rajasthan's recent achievement in mining?
Rajasthan has become the first state in India to auction major mineral blocks after obtaining all necessary pre-embedded permissions, aiming to boost mining operations and investment.
