Andhra Pradesh CM Pushes for Mining Policy Overhaul and Sand Supply Improvements

The Chief Minister of Andhra Pradesh, N. Chandrababu Naidu, held a crucial meeting on March 15, 2024, to address the state’s mining sector and the implementation of its free sand policy. He directed the Mines and Geology department to compile a detailed report assessing the mineral wealth within the state and to formulate a policy aimed at granting mining leases specifically to the Vaddera community and their societies.

During the meeting, Naidu emphasized that increasing revenue would hinge on the value addition of minerals. Officials informed him that the mining department has set an ambitious revenue target of ₹3,320 crore for the fiscal year 2025–26, which represents a growth of 34 percent compared to the previous year. Currently, over 72 percent of the state’s mineral revenue is derived from manganese and similar resources. By adopting a strategy like that of Odisha, which generates approximately ₹50,000 crore annually through value-added mining, Andhra Pradesh could potentially increase its revenue to between ₹20,000 crore and ₹30,000 crore.

In addition, the Chief Minister called for expedited approvals for approximately 6,500 pending mining applications. He also instructed the mining department to draft guidelines for leasing mines to the Vaddera community, a traditionally underprivileged group involved in quarrying activities. Naidu proposed that a reservation of 15 percent for Vadderas and their cooperative societies in the awarding of mining leases be prepared for discussion at the next cabinet meeting.

To bolster the economic welfare of the Vaddera community, Naidu suggested offering a 50 percent reduction in seigniorage and premium charges. He also highlighted the importance of linking this initiative with the development of micro, small, and medium enterprises (MSMEs) to facilitate the transition of Vadderas into small-scale entrepreneurs.

Technological Oversight and Free Sand Policy Implementation

In a bid to modernize the monitoring of mining activities, Naidu called for the use of satellite imagery and drone technology to oversee operations and permit issuance in real time. He stated, “Every excavation must be mapped and reviewed periodically using technology.” He further noted that there is significant potential for revenue enhancement through heavy mineral and beach sand mining.

Naidu stressed the importance of ensuring that the government’s free sand policy effectively benefits the public. He ordered strict implementation measures to prevent misuse and illegal transportation of sand. Officials reported that 6.65 million metric tonnes of sand have been stockpiled for the current season, with 4.3 million tonnes available at various distribution points. The Chief Minister insisted that sand should be accessible to every citizen, with minimal loading and transport costs.

To ensure compliance, he called for regular inspections throughout the state and directed authorities to enhance CCTV surveillance along interstate transport routes. Additionally, he urged the reinforcement of monitoring free sand distribution through the real-time governance system.

The meeting included key figures such as Kollu Ravindra, the Minister of Mines, Mukesh Meena, the principal secretary, Praveen Kumar, the commissioner, and officials from the Real-Time Governance Society (RTGS). Their collaboration will be essential in implementing the policies discussed and ensuring the sustainable development of Andhra Pradesh’s mining sector.