DEHRADUN: The Union Ministry of Mines has released an additional incentive of ₹100 crore to the state for its outstanding performance in mining reforms under the Special Assistance to States for Capital Investment scheme for the financial year 2025 to 2026. The approval was issued on November 18, confirming that Uttarakhand ranked first among the performing states in the minor minerals reform category.
Our correspondent reports that the latest allocation takes Uttarakhand’s total incentive for mining reforms to ₹200 crore this year. The state had previously received ₹100 crore in October after securing second position in the SMRI ranking. Officials said the fresh incentive places the state among the top performing states implementing transparent and reform driven mining policies.
Chief Minister Pushkar Singh Dhami welcomed the Centre’s decision, calling it a strong endorsement of the state’s governance approach. He said, “Uttarakhand has worked consistently to build a transparent and efficient mining system. The new incentive from the Government of India reflects the success of our reforms.” He added, “Mining has become a major source of revenue for the state and the benefits are reaching a large number of people involved in related sectors.”
According to official documents, Uttarakhand successfully implemented six out of seven key parameters listed under the Minor Minerals Reforms Framework. These include enhanced monitoring, stricter compliance systems, improved revenue collection, streamlined procedures, and reform based governance. The Union Ministry noted that Uttarakhand completed the required reforms on time and with high efficiency.
Our correspondent adds that the Centre assessed mining performance across Nagaland, Jammu and Kashmir and Uttarakhand before issuing the incentives. Uttarakhand emerged as the top performer due to its reform compliance and transparent policy execution. The review report also highlighted that the state is reducing irregularities and adopting modern systems to curb illegal mining.
Officials from the state mining department said that the new incentive will further strengthen infrastructure and compliance systems. A senior officer said, “This support will help the state in expanding technology based monitoring and ensuring accountability.” He added, “Satellite driven monitoring, e auction systems and digital tracking are already showing positive results.”
The state government noted that transparent mining practices have increased revenue significantly. Employment opportunities have also improved. Local traders, contractors and labourers associated with stone, sand and mineral related work have benefited from the streamlined system. A senior industry representative said, “The new reforms have ensured stable supplies for construction work and boosted the income of thousands of families.”
Chief Minister Dhami said that Uttarakhand’s mining reforms have become an example for other states. He remarked, “Several states including Uttar Pradesh, Himachal Pradesh and Jammu and Kashmir are now studying our reform model.” He stressed that Uttarakhand will continue to balance environmental protection with economic development. “We will maintain strict action against illegal mining and ensure that natural resources are used responsibly,” he said.
The mining department has taken measures to ensure transparency and accountability. These include digital auctions, satellite based surveillance and regular inspections. Officials said that environmental safeguards remain a priority and that the reforms focus on sustainable mining practices.
Economists observe that additional central funds will support development activities in the state, especially in infrastructure and compliance networks. They said that mining income and central incentives together will allow Uttarakhand to improve district level mineral management and boost the state’s financial stability.
With the ₹100 crore now released, the government plans to strengthen administrative monitoring and expand digital systems further. Officials also stated that better coordination with environmental agencies will be emphasised to ensure responsible extraction and long term sustainability.
Uttarakhand’s rapid progress in the mining sector has positioned the state as a reliable contributor in the national mining landscape. The fresh incentive from the Centre reinforces the state’s rising performance and its focus on implementing timely and reform oriented policies.
Darpita covers business, industry, startups, and economic developments with a focus on Uttarakhand’s emerging markets. She writes on MSME growth, taxation, government policies, and the state’s entrepreneurial ecosystem. Known for simplifying complex financial topics, she aims to make business news accessible and relevant to local readers.
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