SF Prep Notes

₹5,000 crore mining-reform incentive included in SASCI 2026-27; Mines Ministry issues guidelines

The Ministry of Mines said on 24 April 2026 that a ₹5,000 crore incentive for mining sector reforms has been included in the Scheme for Special Assistance to States for Capital Investment (SASCI) for FY 2026-27, and that it has issued the operational guidelines as nodal ministry.

Summary

An incentive mechanism for mining sector reforms with an outlay of ₹5,000 crore has been included in the Scheme for Special Assistance to States for Capital Investment (SASCI) for FY 2026-27, the Ministry of Mines said on 24 April 2026, adding that it had recently issued the operational guidelines as the nodal ministry. Incentives are offered to States and UTs with legislature in three reform areas. Under the first, a state that completes five reform actions by 15 December 2026, including integration with the Unified Mining Portal, a Pre-Auction Committee, a State-level Coordination Committee, an annual auction calendar and technology to detect grade misclassification, gets ₹100 crore. Under the second, states get ₹20 crore for each major mineral block auctioned with pre-embedded clearances up to 31 December 2026, capped at ₹200 crore per state.

Key facts

Outlay
₹5,000 crore within SASCI FY 2026-27
Nodal ministry
Ministry of Mines (operational guidelines issued)
Eligible
States and UTs with legislature
Reform actions
Five actions by 15.12.2026 → ₹100 crore
Mine auctions
₹20 crore per block with pre-embedded clearances (to 31.12.2026); cap ₹200 crore per state

Practice MCQs 2 questions

Q1 Advanced

What is the outlay of the mining sector reform incentive included in the Scheme for Special Assistance to States for Capital Investment (SASCI) for FY 2026-27?

Show answer

Correct answer: B — ₹5,000 crore

The Ministry of Mines said an incentive mechanism on mining sector reforms with ₹5,000 crore outlay has been incorporated in SASCI for FY 2026-27.

Q2 Advanced

Under the SASCI 2026-27 mining reform component, a state gets ₹20 crore for each major mineral block auctioned with pre-embedded clearances, subject to an upper cap per state of:

Show answer

Correct answer: D — ₹200 crore

The incentive is ₹20 crore per block successfully auctioned up to 31 December 2026, with an upper cap of ₹200 crore per state.

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