State Mining Readiness Index (SMRI)
Context:
The Ministry of Mines has released the first State Mining Readiness Index (SMRI) and the corresponding state rankings.
This initiative, announced in the Union Budget 2025-26.
It is a significant step to encourage mining sector reforms at the state level.
SMRI 2025:
Under the SMRI, States were grouped into three categories on the basis of their mineral endowment.
The top three ranked States in Category A are Madhya Pradesh, Rajasthan and Gujarat, while States Goa, Uttar Pradesh and Assam have been ranked in top three in Category B.
In Category C, the top three ranks have been obtained by Punjab, Uttarakhand and Tripura.
Objectives of SMRI
The primary objectives of the SMRI are:
To capture and assess the relative contribution of each state in developing the country's mining sector.
To instill a spirit of competition among states to drive overall development in the mining sector.
To assess the effectiveness of states in areas like mining regulation, administration, adoption of technology, and ensuring sustainability.
To identify key areas for reforms.
Categorization of States under SMRI
For the index, states were grouped into three categories based on their mineral endowment, number of operating mines and area under mining lease.
Category A (High Mineral Endowment):
Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh, Chhattisgarh, Jharkhand, Karnataka, Maharashtra, Odisha, and Telangana.
Category B (Moderate Mineral Endowment):
Goa, Uttar Pradesh, Assam, Bihar, Himachal Pradesh, Kerala, Meghalaya, and Tamil Nadu.
Category C (Low Mineral Endowment):
Punjab, Uttarakhand, Tripura, Arunachal Pradesh, Haryana, Manipur, Mizoram, Nagaland, Sikkim, and West Bengal.
SMRI Indicators
The structure of the index is built upon four main pillars (indicators) which are further divided into 79 parameters.
The four main pillars are:
Regulatory Framework
Mineral Administration
Technical Expertise
Sustainability
These pillars evaluate states on aspects like auction performance, early mine operationalization, thrust on exploration, and sustainable mining for non-coal minerals.