Uttarakhand has secured yet another major incentive from the Centre for its performance in the mining sector, taking the state’s total reward for reforms to Rs 200 crore this year.
The Ministry of Mines has approved an additional Rs 100 crore under the Special Assistance Scheme for 2025–26, recognising the state’s continued progress under Chief Minister Pushkar Singh Dhami.
Second Major Incentive In Two Months
This is the second time in recent months that Uttarakhand has received a Central incentive of Rs 100 crore. In October 2025, the state was awarded the same amount for securing the second position in the Sustainable Mining by Ranking Index (SMRI). With the latest release, Uttarakhand’s total incentives tied to mining reforms have reached Rs 200 crore.
Uttarakhand Tops National Ranking in Mining Reforms
According to the latest office memorandum issued on 18 November 2025, the state has achieved the No. 1 rank in India for mining reforms. The Centre noted that Uttarakhand successfully completed six out of seven major criteria related to minor mineral reforms, placing it ahead of other states such as Nagaland and Jammu & Kashmir.
The memorandum states that the government has “effectively and timely implemented most of the reform-related actions”, affirming the state’s strong performance in the sector.
Reforms Drive Revenue and Employment Growth
The Dhami-led government has implemented a series of transparency-driven and business-friendly measures in the mining sector. Strengthened departmental management and new policies have raised state revenues, generated employment for lakhs engaged in mining activities, and delivered economic benefits to traders and entrepreneurs.
The state government says reforms have ensured cheaper availability of construction material for local communities and government departments, while mining-led activities have bolstered the local economy.
Centre Recognises Fast-Paced, Consistent Progress
The Central Government’s review report highlights that Uttarakhand is “consistently progressing” in mining reforms. Acknowledging the state’s rapid implementation of policy measures, the Ministry of Finance has authorised the release of the additional Rs 100 crore incentive.
Among the states listed in the order – Nagaland, Jammu & Kashmir, and Uttarakhand – the latter has been assessed as the top performer. The Centre also noted that other states have strengthened their mining reform processes.
Mining Sector Emerges as Major Revenue Pillar
The state government says mining has now become a key revenue generator for Uttarakhand. Improved transparency, robust policymaking, and timely reforms have positioned the state as a leading model in India’s mining framework. Officials say states including Uttar Pradesh, Himachal Pradesh, and Jammu & Kashmir are adopting aspects of Uttarakhand’s mining policies.
To strengthen transparency and curb illegal mining, the government has introduced e-auction systems, satellite-based monitoring, and stricter enforcement mechanisms. Authorities say visible improvements are now emerging as a result of these measures.
“Keeping environmental protection in mind, the government is tightening control over illegal mining, and positive results are now becoming visible,” Pushkar Singh Dhami, Chief Minister of Uttarakhand said.
