The Hindu Business Line : AP targets Rs 2,300 cr from mining sector

Hyderabad, June 3 The Andhra Pradesh Government has projected revenues of Rs 2,300 crore from mining operations in the State during the year, up from Rs 1,755 crore registered in 2008-09.

Addressing a press conference here today, the State Minister for Mines and Geology, Mr B. Srinivasa Reddy, said of the Rs 1,755-crore revenue, major minerals such as coal, limestone, barytes and iron ore contributed Rs 921 crore.

Referring to the general economic slowdown impacting the granite industry, Mr Reddy said the State Government had come forward to rescue the granite and stone slab industry by extending 40 per cent waiver of seignorage fee during 2008-09 and 20 per cent waiver during the current year.

Mine leasing

During 2008-2009, the mines department granted 1,449 leases for minor minerals and 143 leases for major minerals. The mining leases constitute less than one per cent of the State’s geographical area.

Referring to recent discussions around Obulapuram Mining Company and allegations of favouritism to them by opposition parties, Mr Reddy said that there was no illegality in award of mining leases or in their operations.

Mentioning about cess on mineral bearing lands, the Minister said the State was able to garner Rs 16 crore from both major and minor minerals.

However, he said but for the stay orders issued by Supreme Court, the State would have got revenue of Rs 150 crore.

The State produces about 90 million tonnes of major minerals and 300 million cubic meters of granites and building stones per year.

Limestone production

Andhra Pradesh occupies prominent position in limestone production contributing about 36 million tonnes for the cement industry in the country.

On recent concerns about illegal mining, the Minister said the mining department has set up 15 vigilance squads to check illegal mining. The department had collected Rs 20 crore through penalties.

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