Centre rolls out 5,000 crore SASCI incentive scheme to push state-level mining reforms

The Ministry of Mines on 24 April 2026 issued operational guidelines for a 5,000 crore rupees incentive scheme under the Scheme for Special Assistance to States for Capital Investment (SASCI) for FY 2026-27. The scheme rewards states that fast-track mineral block auctions, operationalise mines, and improve mining-sector governance.

Incentives are arranged across three reform areas. First, states that complete five baseline reforms — integration with the Unified Mining Portal, constituting a Pre-Auction Committee, setting up a state-level Coordination Committee, adopting an annual auction calendar for major minerals, and putting in place tech-based grade misclassification controls — by 15 December 2026 become eligible for 100 crore rupees.

Second, states earn 20 crore rupees per major mineral block successfully auctioned with pre-embedded clearances, capped at 200 crore rupees per state; operationalising at least 10% of major mineral blocks already auctioned (till 31 March 2026) during FY 2026-27 fetches a further 250 crore rupees. Third, the top three performers in each of three categories (A, B, C) under the new State Mining Readiness Index (SMRI) 2026-27 receive 100, 75 and 50 crore rupees respectively.

Exam angle: SASCI is an interest-free 50-year capex loan to states that the Centre has scaled up steeply in recent budgets — separate from the 'normal' tax devolution under Article 270. Mining is a State subject under the Seventh Schedule, but mineral regulation comes under Union control via the Mines and Minerals (Development & Regulation) Act, 1957. Recall that the MMDR (Amendment) Act, 2023 allowed private auction of 'critical and strategic' minerals like lithium and rare earths. The Unified Mining Portal is run by the Ministry of Mines.