New Delhi: The Central Government has announced a ₹5,000 crore incentive scheme aimed at encouraging states to expedite the auction and operationalisation of mining blocks across the country. The initiative is designed to boost domestic mineral production and strengthen India’s resource security.
Under the scheme, states will receive financial incentives based on the speed and efficiency with which they auction mineral blocks and bring them into production. The government believes this performance-linked model will push states to streamline approvals, reduce delays, and improve overall governance in the mining sector.
Officials said the move comes amid rising demand for critical minerals such as lithium, cobalt, and rare earth elements, which are essential for clean energy technologies, electric vehicles, and electronics manufacturing. Faster operationalisation of mines is expected to reduce import dependence and support industrial growth.
The incentive programme also aligns with broader reforms introduced in recent years to make India’s mining sector more transparent and investor-friendly. These include simplified auction processes, policy support for exploration, and measures to enhance private sector participation.
Industry experts have welcomed the announcement, noting that delays in auctions and project clearances have long been a bottleneck for the sector. The financial push could help unlock stalled projects and attract fresh investments into mining and mineral exploration.
The government reiterated that the scheme will not only increase mineral output but also generate employment, boost state revenues, and contribute to the country’s long-term economic development.