Why in the news?

  • The Ministry of Mines has unveiled the State Mining Readiness Index (SMRI) and corresponding State rankings, a major initiative aimed at promoting mining sector reforms across States.

State Mining Readiness Index

  • What is it?: It is India’s first-ever benchmarking framework to systematically assess and rank States based on their readiness, efficiency, and reforms in facilitating non-coal mineral mining.
  • Launched by: Ministry of Mines
  • Objectives:
    • To evaluate State performance in the mining sector on key parameters.
    • To foster healthy competition among States and accelerate the pace of mining reforms.
    • To promote sustainable resource management and transparency.
  • Evaluation Parameters:
    • Auction performance: Efficiency and success in conducting mineral block auctions.
    • Early mine operationalisation: Speed in making auctioned mines operational.
    • Focus on exploration: Initiatives and investments in mineral exploration.
    • Sustainable mining practices: Adoption of environmentally responsible mining techniques.
  • Categorisation of States:
    • Category A: Mineral-rich States.
    • Category B: States with moderate mineral resources.
    • Category C: States with limited mineral resources.
  • Significance
    • Acts as a tool for benchmarking and tracking the reform progress in the mining sector at the State level.
    • Encourages transparency and good governance in mining.
    • Helps States identify gaps and improve their mining ecosystem.
    • Complements India’s goal for sustainable and responsible mining.
  • Top Performers:
    • Category A: Madhya Pradesh, Rajasthan, Gujarat
    • Category B: Goa, Uttar Pradesh, Assam
    • Category C: Punjab, Uttarakhand, Tripura