DEHRADUN: Uttarakhand has secured second place in its category in the latest State Mining Readiness Index (SMRI), making the Himalayan state eligible for a Rs 100 crore central government incentive. Launched by the Union Ministry of Mines, the SMRI aims to promote reforms in the mining sector at the state level.
This central recognition has quickly become a political tool for the ruling Bharatiya Janata Party (BJP) in Uttarakhand, where mining is a contentious issue often sparking sharp political debates.
The incentive is part of the Special Assistance Scheme for Capital Investment (SASCI) 2025-26 by the Finance Ministry’s Department of Expenditure. The scheme has a total allocation of Rs 5,000 crore, with Rs 900 crore reserved for the top three performers across Categories A, B, and C of the SMRI rankings, ensuring each qualifying state receives Rs 100 crore.
States were classified into three categories based on their mineral wealth: Category A for mineral-rich states, Category B for those with moderate resources, and Category C for states with limited mineral resources. Uttarakhand placed second in Category C, securing the central reward.
Chief Minister Pushkar Singh Dhami praised the achievement and said that, "Mining is a significant contributor to the state’s revenue, and the state government is emphasising eco-friendly and legal mining practices. We have consistently cracked down on illegal mining and taken strict action against tax evasion."
Dhami highlighted an "unprecedented increase of Rs 800 crore" in mining revenue, stating it demonstrates the efficacy, transparency, and strength of the state’s new mining policy. He noted that officials from Himachal Pradesh and Jammu & Kashmir are studying Uttarakhand’s model.
The BJP immediately leveraged the news politically, targeting the main opposition party, Congress. State Media Head Manveer Singh Chauhan described the surge in mining revenue as "a pleasant sign and a sharp slap in the face of the Congress."
Chauhan told the TNIE, "The revenue figure from mining is historic. The Congress, which has been spreading political disinformation on this issue, must now clarify its stance. In 2019-20, the revenue was less than Rs 400 crore. It was a clear loss-making situation benefiting the mafia, whereas now the revenue is accumulating in the state's treasury."
He credited the success, where Uttarakhand ranked ahead of Punjab and Tripura in Category C, to transparent policies. "The Central Ministry of Mines has recognised Uttarakhand’s administrative efficiency in the SMRI 2025."
Chauhan added that Uttarakhand’s mining reforms, transparency, and efficiency generated over Rs 1,000 crore in revenue in FY 2024-25.
