Andhra Pradesh mining reforms aim for transparency and economic growth

Vijayawada: Mines and Geology Minister Kollu Ravindra has highlighted the comprehensive reforms introduced in Andhra Pradesh's mining sector, emphasizing their focus on transparency and economic strengthening. He noted that technology has been extensively leveraged to achieve these goals.

Speaking to the media on Thursday, the minister stated that the government has designed policies aimed at promoting industries and creating employment opportunities. He stressed that the reforms are intended to ensure that the state's mineral wealth benefits the broader population rather than being concentrated in the hands of a few.

Minister Ravindra revealed that a white paper issued after the alliance government assumed office exposed significant losses in the mining sector. The state reportedly suffered an estimated loss of ₹19,137 crore between 2019 and 2024 due to issues such as poor lease management, illegal mining activities, lack of transparency in auction procedures, and revenue shortfalls.

To address these challenges, the government introduced the AP Minor Mineral Policy-2025, which brought several key changes. These include reducing the annual dead rent burden, extending the lease period from 20 to 30 years, and increasing renewal periods from 10 to 20 years. Additionally, the auction-based process was replaced with an application-based system to enhance transparency.

The minister shared that these reforms have already shown positive results. Over the past two years, more than 1,700 applications were received, leading to the approval of 172 new mining leases. This has generated ₹172 crore in revenue for the state.