New Delhi: The Central Government has launched a ₹5,175 crore Mine Reform Incentive Scheme aimed at accelerating reforms in India’s mining sector, promoting faster mineral exploration, and encouraging states to implement key policy initiatives for sustainable resource development.
The incentive scheme is designed to reward states for undertaking reforms such as expediting the auction of mineral blocks, improving the operational efficiency of mines, enhancing exploration activities, and strengthening the overall ease of doing business in the mining sector. The initiative seeks to unlock the country’s vast mineral potential while ensuring transparency and efficient resource management.
Officials said the scheme aligns with the government’s broader objective of increasing domestic production of critical and strategic minerals, reducing import dependence, and supporting industries such as steel, renewable energy, electric vehicles, and advanced manufacturing.
The financial assistance will be linked to the performance of states in implementing mining reforms, encouraging healthy competition and faster adoption of best practices. The government expects the programme to attract greater private investment, improve mineral availability, and generate employment in mining-rich regions.
Industry stakeholders have welcomed the initiative, stating that a performance-based incentive framework will help streamline regulatory processes, speed up the development of mineral assets, and strengthen India’s position as a reliable supplier of key raw materials.
The ₹5,175 crore Mine Reform Incentive Scheme is expected to play a crucial role in modernising the country’s mining ecosystem, boosting mineral production, and supporting India’s long-term goals of industrial growth, infrastructure development, and self-reliance in critical mineral resources.