MiningSector – Andhra Pradesh Mining Reforms Drive Revenue and Investment Growth
MiningSector – Andhra Pradesh’s mining sector has witnessed significant progress following a series of policy changes introduced by the State government, leading to improved revenue generation, greater investor participation, and enhanced transparency in operations.
The State’s Excise Minister, Kollu Ravindra, stated on Thursday that reforms implemented by the coalition government during the last two years have played a key role in reviving the mining industry. Speaking to reporters, he said the measures have strengthened governance in the sector while creating new opportunities for economic growth.
White Paper Highlights Financial Losses
Referring to a recently released White Paper, the minister said the document identified several issues that affected the mining sector between 2019 and 2024. According to the report, irregularities in the allocation of mining leases, unauthorized extraction of minerals, and shortcomings in the implementation of sand-related policies resulted in estimated losses of Rs 19,137 crore to the State treasury.
He noted that the findings highlighted the need for comprehensive reforms aimed at restoring efficiency and accountability within the industry.
New Mineral Policy Encourages Participation
Ravindra said the introduction of the Andhra Pradesh Minor Mineral Policy-2025 marked a major turning point for the sector. The policy brought several changes, including a reduction in annual dead rent charges, longer lease durations, and the return of an application-based approval system.
These measures reportedly generated strong interest among businesses and entrepreneurs. More than 1,700 applications were received under the revised framework, while authorities approved 172 new mining leases. The government recorded revenue collections of Rs 172 crore from these leases, reflecting substantial growth compared with the previous administration.
Major Mineral Blocks Attract Industry Interest
The minister also highlighted progress in the allocation of major mineral resources. The State conducted auctions for 21 major mineral blocks and issued 11 mining leases along with 10 composite licences.
Several leading industrial groups have shown interest in expanding their presence in Andhra Pradesh’s mining and mineral sector. Companies including JSW Steel, Vedanta, Hindustan Zinc, Ambuja Cements, Dalmia Cement and VNR Minerals have reportedly expressed interest in investing in the State.
Free Sand Policy Reduces Construction Costs
Discussing the government’s sand management initiative, Ravindra said the Free Sand Policy has provided significant relief to consumers and the construction industry. Under the programme, authorities supplied approximately 191.85 million metric tonnes of sand without charge.
The distribution was carried out through 412 dispatch centres and 238 stockyards across the State. According to the minister, the policy has helped lower construction-related expenses by nearly 50 percent, benefiting both individual home builders and infrastructure projects.
Action Against Illegal Mining Activities
The minister said the government has intensified efforts to curb unauthorized mining operations. Authorities have issued demand notices exceeding Rs 3,500 crore against entities allegedly involved in illegal extraction activities.
He also pointed to the potential of Andhra Pradesh’s beach sand mineral reserves, stating that the resource base could attract investments worth around Rs 20,000 crore in the coming years.
Revenue Target for Current Fiscal Year
Expressing confidence in the sector’s performance, Ravindra said the department remains on track to achieve its revenue target of Rs 3,500 crore during the 2025-26 financial year. He added that continued policy support, stricter monitoring, and growing investor confidence are expected to contribute to sustained growth in the mining industry.