Centre rolls out Rs 5,175 crore mine reform incentive scheme
The Centre has issued guidelines for states to claim ₹5,175 crore in incentives under the SASCI 2026-27 scheme by accelerating mine operationalisation, boosting mineral production and implementing mining reforms. States must operationalise 79 auct...
New Delhi: The finance ministry has firmed up guidelines for states to claim incentives worth ₹5,175 crore for expediting operationalisation of mines, improving mineral production and implementing key governance reforms under the Scheme for Special Assistance to States for Capital Investment (SASCI) 2026-27.
States will need to bring 79 auctioned major mineral and critical mineral blocks into production, equivalent to 10% of the 684 blocks auctioned by states and the Centre until March 31, as per the guidelines.
States will have to operationalise the mines by December 31. Rajasthan and Madhya Pradesh need to operationalise at least 13 mines each to qualify for the incentive, Odisha eight, Karnataka and Chhattisgarh seven each, Gujarat six and Maharashtra five, with the rest to be done by other states.
Of the total outlay, ₹ 2,500 crore has been earmarked for operationalisation of mines, ₹2,000 crore for implementation of mining reforms and ₹675 crore for rewarding top performers under the State Mining Readiness Index.
The biggest incentive is linked to operationalisation of mines. States will receive ₹20 crore for every major mineral block auctioned during 2026-27, with forest, environment and land clearances already in place, subject to a maximum payout of ₹200 crore.
