Introduction to the State Mining Readiness Index
The Ministry of Mines has unveiled the State Mining Readiness Index (SMRI) and its associated state rankings, marking a pivotal move to foster reforms in India’s mining sector. Announced as part of the Union Budget 2025-26, the SMRI aims to evaluate and encourage states to enhance their mining capabilities, focusing on non-coal minerals.
Framework of the SMRI
The SMRI is built on a comprehensive set of indicators designed to assess state performance in the mining sector. These include:
- Auction Performance: Evaluating the efficiency and success of mineral block auctions.
- Early Mine Operationalization: Measuring the speed of bringing mines into production.
- Exploration Efforts: Assessing initiatives to identify new mineral resources.
- Sustainable Mining Practices: Promoting environmentally responsible mining operations.
These indicators collectively highlight the states’ commitment to advancing the mining sector while ensuring sustainability.
State Rankings by Mineral Endowment
To ensure a fair comparison, states are categorized into three groups based on their mineral endowment. The top performers in each category are as follows:
Category A: States with High Mineral Endowment
- Madhya Pradesh: Leading with robust mining policies and operational efficiency.
- Rajasthan: Strong performance in auctions and exploration initiatives.
- Gujarat: Notable for sustainable mining practices.
Category B: States with Moderate Mineral Endowment
- Goa: Excelling in early mine operationalization.
- Uttar Pradesh: Demonstrating significant progress in mining reforms.
- Assam: Emerging as a key player in sustainable mining.
Category C: States with Low Mineral Endowment
- Punjab: Leading with innovative mining strategies.
- Uttarakhand: Strong focus on exploration and sustainability.
- Tripura: Making strides in mining sector development.
Significance of the SMRI
The release of the SMRI underscores the Ministry of Mines’ commitment to fostering competitive and sustainable mining practices across India. By ranking states and providing a clear framework for evaluation, the SMRI encourages states to adopt reforms, streamline processes, and prioritize sustainable development in the mining sector.