Vijayawada: The new Minor Mineral Policy, which has been designed to ease burdens on micro, small, and medium enterprises (MSMEs), is likely to revive the struggling industry.
Mining, which contributed 3.5% to the state’s GDP in 2018-19, has seen a decline to 2.7% in 2023-24. The new policy is expected to reverse this trend and restore growth, employment and investors confidence in the sector. The state cabinet chaired by chief minister N Chandrababu Naidu, has approved the much-anticipated AP Minor Mineral Policy 2025, which is aimed at reviving the mining sector.
One of the key reforms is the disposal of over 6,000 pending lease applications that became ineligible under the 2022 auction-only policy. These will now be processed on a first-come, first-serve basis, with a one-year window for issuance of Letters of Intent (LOIs). Applications not resolved within this time frame will be moved to auction.
“To meet the varied demands of infrastructure and industry, the policy reintroduced 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,” secretary (mines and geology) Pravin Kumar told TOI.
He added 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.
Govt has also announced a special one-time settlement (OTS) scheme to address legacy penalties and violations. Pravin Kumar said that penalty amounts have been rationalised to support leaseholders and reopen closed quarries while ensuring efficient recovery of govt dues.
In a move to bail out the leaseholders, lease premium has been reduced from ten times to five times the dead rent, payable in easy instalments. For limestone slabs, the premium has been cut further to three times. Dead rents will now be adjusted annually, improving cash flow and financial predictability for operators.
Vijayawada: The new Minor Mineral Policy, which has been designed to ease burdens on micro, small, and medium enterprises (MSMEs), is likely to revive the struggling industry.
Mining, which contributed 3.5% to the state’s GDP in 2018-19, has seen a decline to 2.7% in 2023-24. The new policy is expected to reverse this trend and restore growth, employment and investors confidence in the sector. The state cabinet chaired by chief minister N Chandrababu Naidu, has approved the much-anticipated AP Minor Mineral Policy 2025, which is aimed at reviving the mining sector.
One of the key reforms is the disposal of over 6,000 pending lease applications that became ineligible under the 2022 auction-only policy. These will now be processed on a first-come, first-serve basis, with a one-year window for issuance of Letters of Intent (LOIs). Applications not resolved within this time frame will be moved to auction.
“To meet the varied demands of infrastructure and industry, the policy reintroduced 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,” secretary (mines and geology) Pravin Kumar told TOI.
He added 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.
Govt has also announced a special one-time settlement (OTS) scheme to address legacy penalties and violations. Pravin Kumar said that penalty amounts have been rationalised to support leaseholders and reopen closed quarries while ensuring efficient recovery of govt dues.
In a move to bail out the leaseholders, lease premium has been reduced from ten times to five times the dead rent, payable in easy instalments. For limestone slabs, the premium has been cut further to three times. Dead rents will now be adjusted annually, improving cash flow and financial predictability for operators.
Mining, which contributed 3.5% to the state’s GDP in 2018-19, has seen a decline to 2.7% in 2023-24. The new policy is expected to reverse this trend and restore growth, employment and investors confidence in the sector. The state cabinet chaired by chief minister N Chandrababu Naidu, has approved the much-anticipated AP Minor Mineral Policy 2025, which is aimed at reviving the mining sector.
One of the key reforms is the disposal of over 6,000 pending lease applications that became ineligible under the 2022 auction-only policy. These will now be processed on a first-come, first-serve basis, with a one-year window for issuance of Letters of Intent (LOIs). Applications not resolved within this time frame will be moved to auction.
“To meet the varied demands of infrastructure and industry, the policy reintroduced 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,” secretary (mines and geology) Pravin Kumar told TOI.
He added 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.
Govt has also announced a special one-time settlement (OTS) scheme to address legacy penalties and violations. Pravin Kumar said that penalty amounts have been rationalised to support leaseholders and reopen closed quarries while ensuring efficient recovery of govt dues.
In a move to bail out the leaseholders, lease premium has been reduced from ten times to five times the dead rent, payable in easy instalments. For limestone slabs, the premium has been cut further to three times. Dead rents will now be adjusted annually, improving cash flow and financial predictability for operators.
Vijayawada: The new Minor Mineral Policy, which has been designed to ease burdens on micro, small, and medium enterprises (MSMEs), is likely to revive the struggling industry.
Mining, which contributed 3.5% to the state’s GDP in 2018-19, has seen a decline to 2.7% in 2023-24. The new policy is expected to reverse this trend and restore growth, employment and investors confidence in the sector. The state cabinet chaired by chief minister N Chandrababu Naidu, has approved the much-anticipated AP Minor Mineral Policy 2025, which is aimed at reviving the mining sector.
One of the key reforms is the disposal of over 6,000 pending lease applications that became ineligible under the 2022 auction-only policy. These will now be processed on a first-come, first-serve basis, with a one-year window for issuance of Letters of Intent (LOIs). Applications not resolved within this time frame will be moved to auction.
“To meet the varied demands of infrastructure and industry, the policy reintroduced 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,” secretary (mines and geology) Pravin Kumar told TOI.
He added 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.
Govt has also announced a special one-time settlement (OTS) scheme to address legacy penalties and violations. Pravin Kumar said that penalty amounts have been rationalised to support leaseholders and reopen closed quarries while ensuring efficient recovery of govt dues.
In a move to bail out the leaseholders, lease premium has been reduced from ten times to five times the dead rent, payable in easy instalments. For limestone slabs, the premium has been cut further to three times. Dead rents will now be adjusted annually, improving cash flow and financial predictability for operators.
