Centre Unveils ₹5,175 Crore Mining Scheme
The Centre has issued guidelines for states to claim ₹5,175 crore in incentives under the Scheme for Special Assistance to States for Capital Investment 2026-27. The funding is linked to faster mine operationalisation, higher mineral production and implementation of mining governance reforms.
States Must Operationalise 79 Mineral Blocks
States will be required to bring 79 auctioned major and critical mineral blocks into production by December 31, 2026. The target represents about 10% of the 684 mineral blocks auctioned by the Centre and states until March 31.
Rajasthan and Madhya Pradesh must operationalise at least 13 mines each to qualify. Odisha has been assigned a target of eight, while Karnataka and Chhattisgarh must operationalise seven each. Gujarat must bring six mines into production and Maharashtra five.
₹5,175 Crore Mining Incentives Allocated
Of the total incentive allocation, ₹2,500 crore has been earmarked for mine operationalisation and ₹2,000 crore for implementing mining reforms. Another ₹675 crore will reward leading states under the State Mining Readiness Index.
States will receive ₹20 crore for every major mineral block auctioned during 2026-27 with forest, environmental and land clearances already secured, subject to a maximum payment of ₹200 crore.
An additional ₹250 crore will be available to states that operationalise at least 10% of their auctioned major mineral blocks.
Mining Reforms Linked to State Funding
States can claim a separate ₹100 crore incentive by completing five reforms. These include joining the Unified Mining Portal, establishing committees to resolve land issues and monitor mine development, publishing annual auction calendars and using technology to prevent mineral-grade misclassification.
Applications for reform-linked incentives must be submitted by December 15, while mine operationalisation claims will close on December 31.
