Source: BS
Context: The Ministry of Mines released the first-ever State Mining Readiness Index (SMRI) and State Rankings (2025) to benchmark State performance in mining reforms, fulfilling a key announcement of the Union Budget 2025–26.
About State Mining Readiness Index (SMRI):
What It Is?
- The State Mining Readiness Index (SMRI) is a performance benchmarking framework that evaluates and ranks Indian States based on their efficiency, reform readiness, and sustainability in the mining sector, particularly for non-coal minerals.
Published By: Released by the Ministry of Mines, Government of India.
Aim:
- To encourage healthy competition among States in mining sector governance.
- To enhance transparency and efficiency in mineral exploration and mine operationalisation.
- To promote sustainable and responsible mining practices aligned with India’s environmental and economic priorities.
Criteria Used:
The SMRI assesses States on four key indicators —
- Auction Performance: Effectiveness and transparency in mineral block auctions.
- Early Mine Operationalisation: Speed of converting auctioned blocks into functional mines.
- Exploration Thrust: Investment and initiatives for geological exploration and discovery of new resources.
- Sustainable Mining Practices: Adoption of environmentally sound and socially responsible mining models.
Key Features:
- Categorised Evaluation: States are grouped into three categories based on mineral endowment to ensure fair comparison.
- Category A: Mineral-rich States
- Category B: Moderately endowed States
- Category C: Low-endowment States
- Focus on Non-Coal Minerals: Encourages diversification beyond coal, focusing on critical and strategic minerals.
- Reform Benchmarking Tool: Designed to drive policy alignment with ease of doing business, investment promotion, and sustainable resource management.
- Supports Federal Reform Model: Acts as a cooperative federalism instrument to motivate lagging States to improve their mining ecosystem.
State Rankings 2025:
| Category | Top 3 States (2025) | |
| A (Mineral-Rich) | 1. Madhya Pradesh 2. Rajasthan 3. Gujarat |
|
| B (Moderate Resources) | 1. Goa 2. Uttar Pradesh 3. Assam |
|
| C (Low Endowment) | 1. Punjab 2. Uttarakhand 3. Tripura |
