Mining revival boosts revenue

■ Andhra Pradesh approved reforms that attracted over 1,700 applications, approved 172 new mining leases, and recorded 262% growth in the sector.

■ Nearly 1.92 crore metric tonnes of sand were supplied free of cost through 412 sand reaches and dispatch centres, helping reduce construction costs.

■ The state has the potential investments exceeding Rs 20,000 crore, while the Jonnagiri Gold Project nears commercial production.

Metro India News | AMARAVATI

Andhra Pradesh’s mining sector has witnessed a major transformation over the past two years through a series of reforms focused on transparency, technology and investor confidence, according to Excise, Mines and Geology Minister Kollu Ravindra. Addressing the media, the minister said the coalition government has revived a sector that was allegedly weakened by illegal mining, sand exploitation and policy irregularities during the previous administration.

Ravindra stated that a government white paper had revealed an estimated Rs 19,137 crore loss to the state exchequer between 2019 and 2024 due to irregularities in mining leases, illegal extraction and revenue leakages. To reverse the trend, the government introduced the AP Minor Mineral Policy-2025, which has simplified procedures, encouraged investments and enhanced revenue generation.

The minister said more than 1,700 applications were received under the new policy, resulting in the approval of 172 new mining leases and generating Rs 172 crore in revenue. He noted that the sector recorded a 262 percent growth compared to the previous regime. In the major minerals segment, the state has auctioned 21 mineral blocks, issuing 11 mining leases and 10 composite licences, attracting interest from leading companies including JSW Steel, Vedanta, Hindustan Zinc, Ambuja Cements and Dalmia Cement.

Highlighting the government’s free sand policy, Ravindra said nearly 1.92 crore metric tonnes of sand had been supplied free of cost through 412 sand reaches and dispatch centres. The initiative, he said, has significantly reduced construction costs and provided relief to home builders, contractors and workers.

To curb illegal mining and sand transportation, the government has deployed satellite monitoring, drone surveys, GIS mapping and real-time tracking systems. Authorities have already issued demand notices worth over Rs 3,500 crore in cases linked to illegal sand activities.

The minister also outlined plans to develop Andhra Pradesh into a hub for beach sand minerals, rare earth processing and value-added mineral industries, with potential investments of over ₹20,000 crore. He further announced that the Jonnagiri Gold Project in Anantapur district is nearing commercial production, marking a new chapter in the state’s mining industry.

With mining revenues growing by 32 percent, the government has set a target of Rs 3,500 crore revenue in 2025-26, positioning the sector as a key driver of Andhra Pradesh’s economic growth and the Swarna Andhra Vision.