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Uttarakhand Gets ₹100-Crore Central Incentive for Mining Reforms in 2025–26
The Centre has approved an additional ₹100 crore for Uttarakhand under a reform-linked scheme for minor minerals, citing timely compliance with key criteria.
The Central Government has approved an incentive of ₹100 crore for Uttarakhand for meeting several reform-linked targets in the mining sector for the 2025–26 financial year. The allocation, issued under the Special Assistance Scheme, follows the state’s performance in implementing reforms related to minor minerals.
According to an Office Memorandum issued by the Centre on November 18, Uttarakhand fulfilled six out of seven major criteria assessed during the latest review. These parameters included transparency measures, regulatory efficiency, monitoring systems and reforms intended to streamline mining operations. The state was evaluated alongside Nagaland and Jammu & Kashmir, with Uttarakhand securing the highest score among the three.
This is the second such incentive Uttarakhand has received within a year. In October 2025, the Ministry of Mines released ₹100 crore to the state for achieving the second rank in the Sustainable Mining Reforms Index (SMRI). With the latest allocation, the total incentive received on account of mining-related reforms this year stands at ₹200 crore.
Officials said the incentive is part of a broader central initiative aimed at encouraging states to adopt standardised processes, improve revenue management and introduce technology-driven monitoring in the mining sector. The reforms tracked under the scheme include mechanisms for curbing illegal mining, use of satellite and digital surveillance, strengthening of district-level committees, and transparent material allocation systems such as e-auctions.
Data shared by the state government indicates that revenue from mining-related activities has seen a rise over the past few years, partly due to tighter monitoring and digitisation of processes. Officials involved in the sector said these measures have improved regulatory oversight and reduced procedural delays. They added that easier access to construction material in some regions has also had a positive impact on local markets.
The Centre’s review notes that states have been adopting reforms intended to improve accountability and public access to mineral-related information. Uttarakhand’s compliance with a majority of reform points contributed to the incentive decision, the memorandum stated. The amount will be released through the Ministry of Finance after the completion of procedural approvals.
While the mining sector remains an important source of state revenue, officials acknowledged the need to balance extraction activities with environmental safeguards, particularly in ecologically sensitive hill regions. The state continues to expand satellite-based monitoring and real-time tracking systems to detect illegal mining and ensure adherence to permissible limits..
The Uttarakhand government said the latest funding will support ongoing administrative and regulatory improvements in the sector. Further details on utilisation will be outlined once the funds are formally released.
