Uttar Pradesh's Mining Sector Plays Crucial Role in Achieving Trillion-Dollar Economy Goal

Strategic Insights -

Chief minister Yogi Adityanath has emphasized the importance of the mining sector in Uttar Pradesh's journey towards achieving the trillion-dollar economy goal. The sector has evolved beyond mineral extraction and is now a key driver of economic growth, investment attraction, and local employment generation. The state's mining policy has emerged as a model of transparency and technological efficiency, with the department of geology and mining achieving an average annual growth rate of 18.14% in mineral revenue between FY 2021-22 and FY 2024-25.

Key Takeaways:

  • The mining sector has evolved beyond mineral extraction to become a key driver of economic growth, investment attraction, and local employment generation.
  • The state's mining policy has emerged as a model of transparency and technological efficiency, with the department of geology and mining achieving an average annual growth rate of 18.14% in mineral revenue between FY 2021-22 and FY 2024-25.
  • The state has successfully auctioned leases for major minerals such as phosphorite, iron ore, and gold in recent years, with prominent companies like JSW, Adani Group, Tata Steel, and UltraTech Cement showing interest in investing in Uttar Pradesh.
  • The department has achieved a 100% implementation of the Mine Surveillance System in all mining districts, leading to significant improvements in the average timeline for environmental clearances and enhancing the overall transparency of regulatory procedures.
  • The chief minister has instructed officials to expedite the composite licensing process further and ensure timely identification of potential mining zones along with the prompt preparation of geological reports.
  • The regulation fees collected from brick kilns amounted to Rs.258.61 crore in 2024-25 and Rs.70.80 crore as of 2025-26.
  • The chief minister has directed the process of issuing new leases for minor minerals to be completed during the monsoon season, enabling mining activities to commence from October 15.
  • The DMF fund is to be prioritized for public welfare initiatives, such as establishing Anganwadi centres, developing playgrounds, enhancing healthcare and skill training, and promoting water and energy conservation.

Statistics:

  • Average annual growth rate of 18.14% in mineral revenue between FY 2021-22 and FY 2024-25.
  • Revenue from major minerals stood at Rs.608.11 crore in FY 2024-25.
  • The state generated Rs.623 crore in revenue from major minerals in just the first two months of FY 2025-26.
  • 57 technology-enabled check gates have been installed, and 21,477 vehicles have been blacklisted.
  • 99 potential mining sites have been identified through PGRS laboratory and drone surveys, of which 23 have been deemed suitable for operations.
  • Post-monsoon assessments have been conducted for sand/morang deposits in 52 locations.

Sources:

  • Hindustan Times