Why in news?
The Ministry of Mines released the first State Mining Readiness Index (SMRI) on 16 October 2025. The index evaluates how effectively states are implementing reforms for non‑coal minerals. It benchmarks auction performance, timely operationalisation of mines, exploration efforts and sustainable mining practices.
Background
India amended its mining laws in 2015 and again in 2021 to make mineral allocation more transparent and to encourage private investment. Yet progress varies widely across states. To encourage healthy competition and highlight best practices, the government developed the SMRI with input from the Indian School of Mines and industry experts.
- Categories: States are grouped by mineral endowment. Category A comprises mineral‑rich states such as Odisha, Jharkhand, Chhattisgarh, Madhya Pradesh, Rajasthan and Gujarat. Category B covers states with moderate resources, while Category C includes regions with limited mineral potential.
- Top performers: In the inaugural index, Madhya Pradesh, Rajasthan and Gujarat topped Category A. Goa, Uttar Pradesh and Assam led Category B, while Punjab, Uttarakhand and Tripura ranked highest in Category C.
- Parameters: The index looks at how swiftly states auction mining blocks, how quickly successful bidders obtain statutory clearances and start operations, the extent of exploration, and efforts to minimise environmental impacts and benefit local communities.
Significance
The SMRI aims to enhance transparency and accountability in the mining sector. By naming top performers and laggards, it encourages lagging states to adopt best practices. The index also informs investors about states’ readiness to support mining projects, potentially attracting capital and jobs. In the long run, improved governance in mineral development can boost revenues and reduce illegal mining.
Source: BS