Andhra Pradesh’s New Mining Policy Aims to Revive 2,000 Units and Boost Employment
In a significant move to rejuvenate its mining sector, the Andhra Pradesh Cabinet has approved a new Minor Mineral Policy, expected to revive approximately 2,000 non-operational mining units and benefit around 200,000 workers. The Federation of Minor Mineral Industry (FEMMI) lauded the initiative, highlighting its potential to enhance the sector’s contribution to the state’s Gross Domestic Product (GSDP)
FEMMI Secretary General Dr. Ch. Rao expressed gratitude to Chief Minister N. Chandrababu Naidu and Principal Secretary of Mines Praveen Kumar for addressing longstanding industry concerns. He emphasized that the policy would not only rejuvenate dormant units but also attract new investments, thereby bolstering the state’s economy.
Key Features of the Policy:
-
Clearing Backlogs: The policy aims to expedite pending applications, facilitating quicker operationalization of mining units.
-
One-Time Settlements: It introduces minimal penalties for one-time settlements, providing relief to operators with outstanding dues.
-
Lease Transfers: In the event of a leaseholder’s death, leases can now be transferred freely to family members, ensuring continuity.
-
Tonnage-Based Seigniorage: Transitioning to a tonnage-based seigniorage system simplifies royalty calculations and reduces administrative burdens.
-
Elimination of Multiple Taxation: By removing overlapping taxes, the policy aims to create a more business-friendly environment.
-
Installment-Based Premium Payments: Allowing premiums to be paid in installments eases financial pressures on small operators.
-
Application Process Reforms: Mining leases for materials like road metal, gravel, and building stone will now follow a first-come, first-served application process. In contrast, minerals such as silicon, sand, quartz, and dolomite will be allocated through auctions.
This comprehensive policy overhaul is anticipated to not only revive dormant mining units but also stimulate economic growth by attracting new investments and creating employment opportunities.