The Central Government has approved an incentive of Rs 1 billion 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 dated 18 November, Uttarakhand met six of the seven major criteria assessed during the latest review. These included transparency measures, regulatory efficiency, monitoring systems and reforms aimed at streamlining mining operations. The state was evaluated alongside Nagaland and Jammu & Kashmir, securing the highest score among the three.

This is the second incentive Uttarakhand has received within a year. In October 2025, the Ministry of Mines released Rs 1 billion to the state for achieving second place in the Sustainable Mining Reforms Index (SMRI). With the latest allocation, the total incentive received for mining-related reforms this year stands at Rs 2 billion.

Officials said the incentive forms part of a broader central initiative to encourage states to adopt standardised processes, improve revenue management and introduce technology-led monitoring in the mining sector. The reforms tracked under the scheme include measures to curb illegal mining, use of satellite and digital surveillance, strengthening of district-level committees and transparent material allocation systems such as e-auctions.

State government data shows that revenue from mining-related activities has risen in recent years, partly due to tighter monitoring and digitisation. Officials noted that these improvements have enhanced regulatory oversight, reduced procedural delays and improved access to construction materials in certain regions.

The Centre’s review highlighted that states are increasingly adopting reforms to improve accountability and public access to mineral-related information. Uttarakhand’s compliance with most reform requirements contributed to the incentive decision. The funds will be released by the Ministry of Finance following procedural approvals.

While the mining sector remains a key source of state revenue, officials emphasised the need to balance extraction with environmental safeguards, particularly in ecologically sensitive hill regions. Uttarakhand continues to expand satellite-based monitoring and real-time tracking systems to detect illegal mining and ensure compliance with permissible limits.

The state government said the latest funding will support ongoing administrative and regulatory improvements in the sector, with further details to be shared once the funds are formally released.