Under this, individual states will be eligible for incentives of up to ₹550 crore under various components.
The incentive mechanism has been incorporated under the Scheme for Special Assistance to States for Capital Investment (SASCI) for FY27, following the success of a similar initiative in the previous financial year.
The Ministry of Mines, the nodal ministry for the scheme, has recently issued the operational guidelines. The scheme aims to expedite mine operationalisation, boost mineral output, enhance states' revenue from the mining sector, and strengthen governance.
Under the first reform pillar, states will receive ₹100 crore upon completing five key mining reforms by December 15, 2026.
These include integration with the Unified Mining Portal, setting up a pre-auction committee, constituting a state-level coordination committee, publishing an annual auction calendar for major minerals, and adopting technology-based systems to detect or prevent grade misclassification of mineral ore.
The second component focuses on mine operationalisation. States will be eligible for ₹20 crore for each major mineral block auctioned with pre-embedded clearances such as forest, environment and land approvals during FY27 up to December 31. It is subject to a cap of ₹200 crore per state.
In addition, states can receive ₹250 crore if they operationalise at least 10 per cent of the major mineral blocks auctioned till March 31, 2026, by commencing production and dispatch before December 31, 2026.
The third component rewards performance under the State Mining Readiness Index (SMRI) 2026-27.
The top three states in each of the three categories will receive₹100 crore,₹75 crore and ₹50 crore, respectively.
The Ministry of Mines said the scheme is intended to incentivise states to undertake structural reforms and improve ease of doing business in the sector.
 "Odisha Mining Corporation")