Ministry Releases State Mining Readiness Index Rankings

The Ministry of Mines revealed the State Mining Readiness Index (SMRI) in 2025. This index ranks state of Indias on their ability to promote mining reforms and sustainable practices. It is a key step to improve the mining sector and was announced in the Union Budget 2025–26. The SMRI assesses states on auction performance, mine operationalisation speed, exploration efforts, and sustainable mining of non-coal minerals. The index aims to enhance transparency and efficiency in mining activities across India.

Purpose and Significance of SMRI

The SMRI measures how prepared states are to implement mining reforms. It encourages competition and accountability among states. The index helps identify strengths and weaknesses in mining governance. It supports sustainable resource use and aligns with national economic goals. The SMRI is a tool to promote transparency and attract investments in mining.

Parameters of Evaluation

States are assessed on four main criteria. Auction performance reflects success in leasing mineral resources. Early mine operationalisation tracks how quickly mines start production after auction. Focus on exploration measures efforts to find new mineral deposits. Sustainable mining practices evaluate environmental and social responsibility in mining operations. These parameters ensure a balanced approach to growth and conservation.

State Categorisation and Rankings

States are grouped into three categories based on mineral wealth. Category A includes mineral-rich states like Madhya Pradesh, Rajasthan, and Gujarat, which topped the rankings. Category B features states with moderate mineral resources; Goa, Uttar Pradesh, and Assam led here. Category C covers states with limited mineral endowment, with Punjab, Uttarakhand, and Tripura as top performers. This classification provides fair comparison among similar states.

Impact on Mining Reforms and Sustainability

The SMRI promotes faster and more efficient mining reforms. It pushes states to improve auction processes and operational timelines. Emphasis on exploration encourages discovery of new mineral reserves. Sustainable mining practices in the index show the importance of environmental care and community welfare. The index acts as a catalyst for modernising India’s mining sector while protecting natural resources.