Andhra Pradesh Mining Sector Achieves Robust Growth in Current Fiscal Year
In a significant development for the state's economy, mining revenue in Andhra Pradesh has surged by an impressive 27 percent during the current financial year 2025-26. This announcement was made by Mukesh Kumar Meena, the principal secretary of mines, during a district collectors' conference held on Thursday. The sector continues to demonstrate steady progress, contributing substantially to the state's fiscal health.
Substantial Increase in Gross Value Added and Revenue Targets
Meena highlighted that the mining sector's Gross Value Added (GVA) has also recorded a remarkable growth of 15.74 percent. This increase elevates the GVA from Rs 29,344 crore in the previous year to Rs 33,956 crore in the current fiscal period. The mines department had initially set a revenue target of Rs 3,320 crore from both major and minor minerals for 2025-26. By the end of February, the department had already collected Rs 2,654 crore, showcasing strong performance.
When including collections from the District Mineral Foundation (DMF), merit amounts, and security deposits, the overall revenue has reached Rs 3,331 crore. This figure is part of a broader target of Rs 4,000 crore, indicating that the sector is on track to meet or exceed expectations.
District-Wide Performance Review and Pending Applications
During the conference, Meena conducted a thorough review of district-wise revenue performance and the status of No Objection Certificates (NOCs). He advised collectors from districts that recorded less than 80 percent of their revenue targets to intensify efforts to improve mining revenue. The districts identified include:
- Guntur at 61 percent
- YSR Kadapa at 64 percent
- Annamayya at 69 percent
- Chittoor at 69 percent
- Nandyal at 73 percent
- Palnadu at 74 percent
Meena noted that a substantial number of applications received under the Minor Mineral Policy–2025 are pending for NOCs. Specifically, out of 1,788 applications, about 1,125 are yet to be cleared, with many related to building construction materials and granite leases. He directed district collectors to conduct regular reviews and ensure that NOCs are issued within the stipulated timeframe to avoid delays.
Initiatives to Boost Revenue and Efficiency
The principal secretary emphasized that clearing even 50 percent of the pending applications could generate nearly Rs 100 crore in premium revenue within three months. To streamline the approval process, the government is planning to introduce a 'Deemed NOC' system. Under this system, approvals will be granted automatically if the prescribed time limit is not adhered to, potentially reducing bureaucratic hurdles and accelerating project implementations.
Auction of Mining Blocks and Free Sand Policy
Meena also discussed the auction of new mining blocks and the implementation of the state government's Free Sand Policy. He reported that 10 major mineral blocks have already been successfully auctioned during the first half of the financial year, with the number expected to reach 20 by the end of this month. Andhra Pradesh currently ranks among the top four states in the country in mining block auctions, reflecting its competitive edge in the sector.
However, he pointed out that land classification reports required before auctions are pending in Palnadu, Kadapa, Nellore, and Vizianagaram districts. Officials have been instructed to complete the process and submit the reports within two weeks to facilitate further auctions.
Ensuring Sand Availability and Curbing Illegal Activities
In line with the Free Sand Policy, Meena directed authorities to ensure that there is no shortage of sand anywhere in the state. He emphasized the need to curb illegal transportation and sale at higher prices by strengthening monitoring at supply points and check posts. This measure aims to maintain fair pricing and availability of sand for construction and other purposes, supporting the state's infrastructure development.
The conference underscored the mining sector's vital role in Andhra Pradesh's economic growth, with ongoing efforts to enhance revenue, streamline processes, and combat illegal activities. The initiatives discussed are expected to further bolster the sector's contribution to the state's economy in the coming months.
