New Mining Policy to Revive 2,000 Units in Andhra Pradesh

The Minor Mineral Policy approved by the Andhra Pradesh Cabinet is expected to revive 2,000 non-operational units and benefit around 200,000 workers, according to the Federation of Minor Mineral Industry (FEMMI). The policy includes clearing backlogged applications, minimal penalties for one-time settlements, and free.

Transfer of leases to family members upon a leaseholder’s death. It also shifts to tonnage-based seigniorage, eliminates multiple taxation, and allows installment-based premium payments. FEMMI Secretary General Dr. Ch. Rao expressed gratitude to Chief Minister N. Chandrababu Naidu and Principal Secretary of Mines Praveen.

Addressing the long-pending industry issues The Andhra Pradesh government has unveiled the Minor Mineral Policy 2025, aiming to rejuvenate the state’s mining sector by reviving approximately 2,000 inactive units and benefiting around 200,000 workers. This initiative seeks to reverse the sector’s declining contribution to the state’s Gross Domestic Product (GDP), which dropped from 3.53% in 2018–19 to 2.71% in 2023–24

Key Reforms and Provisions

The policy introduces several reforms to streamline operations and support micro, small, and medium enterprises MSMEs A one-time settlement (OTS) scheme is introduced to address legacy penalties and violations, with rationalized penalty amounts to support leaseholders and reopen closed quarries first-served basis.

• Clearing Backlogs: Over 6,000 pending lease applications, previously ineligible under the first-served basis 2022 auction-only policy, will now be processed on a first-come, first-served basis. A one-year window is provided for issuing Letters of Intent (LOIs), after which unresolved applications will be moved to auction first-served basis approach ensures.
• Dual Allocation Approach: Application-based leases are reintroduced for granite and building materials, while industrial minerals like silicon, sand, quartz, and dolomite will be allocated contribution to the state’s GDP and attract new investments through auctions with a production-linked premium model. This approach ensures equitable access and encourages genuine participation A one-time settlement scheme introduced to.
• Financial Relief Measures:
  • Lease premiums are reduced from ten times to five times the dead rent, payable in easy installments. For limestone slabs, the premium is cut further to three times. address legacy penalties and violations, with rationalized penalty amounts to support leaseholders and reopen closed quarries Dead rents will now be adjusted annually, improving cash flow.
• • A one-time settlement (OTS) scheme is introduced to address legacy penalties and and financial predictability for operators violations, with rationalized penalty amounts to support leaseholders and reopen closed quarries For more detailed information, you can refer to the official announcement for minerals like dolomite and slate that face competition from
• Seigniorage Fee Structure: The policy shifts to a tonnage-based seigniorage fee structure, eliminating multiple taxation and providing clarity for operators. This change aims to contribution to the state’s GDP and attract new investments enhance competitiveness, especially for minerals like dolomite and slate that face competition from neighboring states
• Transfer of Leases: Leases can now be transferred to family members upon a leaseholder’s death without additional charges, simplifying succession and ensuring continuity of refer to contribution to the state’s GDP and attract new investments confidence in the sector operations.

Stakeholder Reactions

The Federation of Minor Mineral Industry (FEMMI) has welcomed the policy, expressing gratitude to Chief Minister N. Chandrababu Naidu and Principal Secretary of Mines Praveen Kumar for addressing long-standing industry concerns. FEMMI Secretary General Dr. Ch. Rao highlighted that the policy would enhance the sector’s.

Outlook

The Minor Mineral Policy 2025 is poised to revitalize Andhra Pradesh’s mining sector by providing a balanced framework that supports MSMEs, ensures transparency, and promotes sustainable development. By addressing operational challenges and offering financial relief, the policy aims to restore growth, employment, and investor

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