VIJAYAWADA: The Cabinet meeting held under the chairmanship of Chief Minister N Chandrababu Naidu, has approved the Andhra Pradesh Minor Mineral Policy 2025, aimed at reviving the mining sector, and easing burden on micro, small and medium enterprises (MSMEs).
Mining, which contributed 3.53% to the State GDP in 2018-19, had declined to 2.71% in 2023-24. The new policy is expected to reverse this trend, and restore growth, employment, and investor confidence in the sector.
One of the key reforms is the disposal of over 6,000 pending mining lease applications that became ineligible under the 2022 auction-only policy. These will now be processed on a first-come, first-served basis, with a one-year window for issuance of Letters of Intent (LOIs). Applications not resolved within the stipulated time frame will be moved to auction.
To meet the varied demands of infrastructure and industry, the policy reintroduces application-based leases for granite and building materials, while industrial minerals will be auctioned with a production-linked premium model. This dual approach ensures equitable access and encourages genuine participation.
In a move welcomed by leaseholders, the lease premium has been reduced from 10 times to 5 times the dead rent, payable in easy installments. For limestone slabs, the premium has been cut further to three times. Dead rent will now be adjusted annually, improving cash flow and financial predictability for operators.
The policy extends lease periods significantly. Granite and industrial minerals lease rises from 20 to 30 years, while road metal leases for captive use now last for 30 years instead of 15. These changes will offer long-term stability to investors and industries relying on mineral resources.
Mining Secretary Praveen Kumar confirmed that the controversial Consideration Amount, introduced in 2021 to offset pandemic-related expenditure, has been completely revoked. The State has also introduced a clear, tonnage-based seigniorage fee structure, with no additional burden on critical minerals like dolomite and slate that face competition from neighbouring States.
A special One-Time Settlement (OTS) scheme has been launched to address legacy penalties and violations. Penalty amounts have been rationalised to support leaseholders and reopen closed quarries while ensuring efficient recovery of government dues.
Cabinet panel meets on Bhogapuram land allotment
The Cabinet Sub-Committee, which met under the chairmanship of Finance Minister Payyavula Keshav at the State Secretariat on Tuesday, discussed the additional allotment of 500 acres of land for Bhogapuram International Airport. Roads and Buildings Minister BC Janardhan Reddy and Industries Minister TG Bharath participated in the meeting.
Observing that the Bhogapuram airport would help promote rapid development of North Coastal Andhra, the sub-committee suggested the departments involved in the project to focus on completing it at the earliest with better coordination