Uttarakhand receives ₹100 crore central incentive for 2025–26 for successful mining reforms. The funding will enhance transparency, digitization, and sustainable practices in the minor minerals sector.
Uttarakhand has been awarded a ₹100 crore central incentive for the 2025–26 financial year under a reform-linked scheme for minor minerals, following the state’s exemplary compliance with key mining sector reforms. This marks the second incentive within a year, bringing the total central funding for mining reforms in the state to ₹200 crore.
The additional allocation comes under the Special Assistance Scheme, highlighting Uttarakhand’s successful implementation of reform measures such as regulatory efficiency, transparency, robust monitoring systems, and streamlined mining operations. According to an official memorandum issued by the Centre on November 18, the state achieved six out of seven major evaluation criteria, outperforming Nagaland and Jammu & Kashmir in the latest review.
Focus on Standardization and Digital Oversight
Officials stated that the incentive is part of a broader central initiative to encourage states to adopt standardized mining practices, enhance revenue management, and integrate technology-driven monitoring. Reforms tracked under the scheme include curbing illegal mining, satellite-based surveillance, strengthening district-level committees, and implementing transparent material allocation processes like e-auctions.
The Uttarakhand government reported that tighter regulatory oversight and digitisation of mining operations have led to increased revenue and reduced procedural delays. Enhanced monitoring has also ensured smoother access to construction materials in key regions, benefiting local markets.
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Balancing Growth and Environmental Protection
While the mining sector contributes significantly to state revenue, officials emphasized the importance of balancing extraction with environmental safeguards, especially in ecologically sensitive hill regions. Uttarakhand continues to expand real-time tracking and satellite monitoring systems to detect unauthorized mining activities and ensure adherence to permissible limits.
The Centre’s memorandum noted that states adopting accountable and transparent mining reforms receive priority in incentives. The approved ₹100 crore will be released via the Ministry of Finance after completion of procedural approvals. Uttarakhand officials confirmed that the funds will support ongoing administrative and regulatory improvements in the mining sector, with detailed utilisation plans to be announced post-release.
Looking Ahead
With the new incentive, Uttarakhand is set to strengthen its position as a leader in mining reform among Indian states. The funding will help further modernize operations, enhance compliance, and ensure sustainable mining practices, benefiting both the economy and local communities.
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