Why in the News?
The Ministry of Mines has issued operational guidelines for a ₹5,000 crore incentive package under the Scheme for Special Assistance to States for Capital Investment (SASCI) for FY 2026-27. This initiative aims to accelerate mineral production and improve governance across India.
What is the Scheme Component?
A dedicated financial incentive mechanism designed to reward States and UTs (with legislatures) for implementing structural reforms in the mining sector.
- Nodal Ministry: Ministry of Mines.
- Total Outlay: ₹5,000 crore.
- Core Objective: Expedite mine operationalization, increase mineral production, and enhance state revenue through better governance.
| Reform Area | Specific Requirements | Potential Incentive |
| I. Implementation of Mining Reforms | 1. Integration with Unified Mining Portal.2. Setup Pre-Auction Committee (land issues).3. Setup State-level Coordination Committee.4. Issue annual auction calendar.5. Adopt tech to prevent grade misclassification. | ₹100 crore (if all 5 are met by Dec 15, 2026) |
| II. Mine Operationalization | A. Pre-embedded Clearances: Auctioning blocks with forest/env clearances already in place.B. Production Kickstart: Operationalizing at least 10% of blocks auctioned prior to March 2026. | A. ₹20 crore per block (Max ₹200cr/state).B. ₹250 crore per state. |
| III. SMRI-based Reforms | Rewarding top performers in the State Mining Readiness Index (SMRI) 2026-27 across three categories (A, B, and C). | 1st: ₹100 crore2nd: ₹75 crore3rd: ₹50 crore |
| [2025] Consider the following statements: Statement I: In India, State Governments have no power for making rules for grant of concessions in respect of extraction of minor minerals even though such minerals are located in their territories. Statement II: In India, the Central Government has the power to notify minor minerals under the relevant law. Which one of the following is correct in respect of the above statements? [A] Both Statement I and Statement II are correct and Statement II explains Statement I [B] Both Statement I and Statement II are correct but Statement II does not explain Statement I [C] Statement I is correct but Statement II is not correct [D] Statement I is not correct but Statement II is correct |
