Uttarakhand receives Rs 200 crore incentive for mining sector reforms

Uttarakhand Chief Minister Pushkar Singh Dhami

Under the leadership of Chief Minister Pushkar Singh Dhami, Uttarakhand has once again secured a major incentive grant from the Central Government, reflecting its performance and ongoing reforms in the mining sector.

The Union Ministry of Mines has awarded Uttarakhand an additional incentive of ₹100 crore under the Special Assistance Scheme for Capital Investment (SASCI) for the year 2025-26, recognising the state's achievements in minor mineral reforms.

Earlier, in October 2025, the state had already received an incentive of ₹100 crore for securing the second position in the SMRI ranking. Thus, due to outstanding reforms and improved policies in the mining sector, Uttarakhand has now received a total incentive amount of ₹200 crore.

In recent years, the state has emphasised mining reforms and implemented progressive policies, resulting in Uttarakhand achieving the No. 1 position in the country's mining sector.

According to the latest office memorandum issued by the Centre on 18.11.2025, the state has successfully and effectively implemented most of the mandated reform measures in the mining sector. Notably, Uttarakhand has fulfilled six of the seven primary criteria for minor mineral reforms, earning it the top position.

The transparent and business-friendly policies adopted by the Uttarakhand government in the mining sector have led to an unprecedented increase in state revenue. Strengthened management within the mining department and newly introduced policies have not only boosted the state's treasury but also provided employment to lakhs of people.

Additionally, millions of traders and entrepreneurs associated with the mining industry are benefiting economically. Residents and government construction agencies are receiving construction materials at affordable rates, and mining activities have created more employment opportunities, thereby energising the regional economy.

In its review report, the Central Government has acknowledged Uttarakhand's consistent progress and rapid implementation of mining reforms. Based on this performance, the Centre has issued a directive through the Ministry of Finance granting the state an additional ₹100 crore.

Among the states included in the order, Nagaland, Jammu & Kashmir, and Uttarakhand, Uttarakhand has been ranked the best performer. According to the Ministry, all these states have made the mining reform process more effective, with Uttarakhand leading the way.

This achievement clearly indicates that the mining sector has become a major source of revenue for the state government. Increasing transparency, improved policy-making, and timely implementation of reforms have helped Uttarakhand establish a strong and credible identity in the national mining landscape. States like Uttar Pradesh, Himachal Pradesh, and Jammu & Kashmir are now following Uttarakhand's mining policies.

Chief Minister Pushkar Singh Dhami stated that several steps, such as the introduction of e-auction systems and satellite-based monitoring, have been taken to ensure transparency and accountability in the mining sector. The government is strictly curbing illegal mining while ensuring environmental protection, and these efforts are now producing positive outcomes.