State Mining Readiness Index (SMRI)

18.10.2025

1. State Mining Readiness Index (SMRI)

Context

In 2025, the Ministry of Mines launched the first-ever State Mining Readiness Index (SMRI) to assess and rank Indian States on the efficiency, transparency, and sustainability of their mining governance, with a focus on non-coal minerals.
 This initiative fulfills a key commitment of the Union Budget 2025–26, aiming to promote competitive federalism and accelerate mining reforms across India.

About SMRI

The SMRI is designed as a performance-based benchmarking tool to evaluate State-level mining policies and practices. It measures readiness through four key indicators:

1. Auction Performance – Efficiency, transparency, and pace of mineral block auctions.
    
2. Early Mine Operationalisation – Speed of converting auctioned mineral blocks into operational mines.
    
3. Exploration Thrust – Extent of geological surveys, exploration investments, and innovation in mineral mapping.
    
4. Sustainable Mining Practices – Adoption of environmentally responsible and socially inclusive mining processes.
    

Categorisation of States

To ensure fair comparison, States are classified based on mineral endowment into three categories:

• Category A (Mineral-Rich): Madhya Pradesh, Rajasthan, Gujarat – top performers.
   
• Category B (Moderate Resources): Goa, Uttar Pradesh, Assam – emerging performers.
   
• Category C (Low Endowment): Punjab, Uttarakhand, Tripura – notable achievers despite limited resources.
   

This structure enables customized policy evaluation according to each State’s resource base and institutional capacity.

Significance

• Promotes Reforms: Encourages States to modernize mining laws, streamline clearances, and expand exploration.
   
• Enhances Transparency: Integrates e-governance tools and digital monitoring to curb irregularities in allocation and operations.
   
• Encourages Sustainability: Aligns with India’s climate and ESG (Environmental, Social, and Governance) goals by rewarding responsible mining practices.
   
• Strengthens Cooperative Federalism: Creates healthy competition among States and provides performance-based incentives, including support under the SASCI (Sustainable and Secure Critical Minerals Initiative) scheme.
   

Conclusion

The State Mining Readiness Index (SMRI) marks a crucial step toward transforming India’s mineral governance framework. By combining accountability, transparency, and sustainability, it empowers States to enhance resource efficiency while ensuring environmental and social balance — advancing India’s vision of a modern, responsible, and self-reliant mining sector.