Bhubaneswar: The Ministry of Mines has released the inaugural State Mining Readiness Index (SMRI) for 2025-26, an initiative announced under the Union Budget to encourage competitive reforms in the mining sector across states.
While the index successfully shines a spotlight on states demonstrating high performance in operationalizing mines and adopting sustainable practices, one of the country’s most mineral-rich states, Odisha, is conspicuously absent from the top three rankings in its category. Odisha has 137 Mines.
The top three ranks in this most significant category were secured by Madhya Pradesh, Rajasthan, and Gujarat, highlighting a major discrepancy between Odisha’s vast natural wealth and its administrative readiness score.
The SMRI measures state performance across key parameters relevant to non-coal minerals, including auction performance, early mine operationalization, thrust on exploration, and sustainable mining practices.
Odisha’s failure to secure a top spot suggests significant challenges remain in converting its mineral reserves into efficiently operational mines under the new reform-driven framework.
Industry analysts suggest that the state’s ranking may have been hampered by below-par performance in areas such as:
Delays in granting various statutory clearances, such as forest and environmental approvals, often hinder the swift commencement of production from successfully auctioned blocks, a crucial metric in the SMRI.
While the state has a high volume of mineral auctions, the Index rewards not just the auction itself, but the speed and effectiveness with which these blocks begin production.
The focus on “Sustainable Mining” and the overall administration of the sector, including the adoption of advanced technology for monitoring and addressing illegal mining, appears to be an area where top-ranked states have outperformed.
The SMRI is tied to the central government’s incentive scheme for mining sector reforms, meaning the top states are eligible for financial incentives for their capital expenditure. By missing a top-three rank, Odisha loses out on this immediate financial benefit.
The results serve as a wake-up call for the state, signaling that holding large mineral reserves is not sufficient to lead the sector. To secure a higher rank in future assessments, the Odisha government will need to focus on streamlining its regulatory environment, fast-tracking operational clearances, and pushing for transparent, technology-driven administration to align its readiness with its vast resource potential.
The rankings clearly indicate that competitive federalism in the mining sector will now be driven by the ease and speed of doing business.