Andhra Pradesh Mining Sector Records Impressive 27% Revenue Growth in Current Financial Year
In a significant development for the state's economy, Andhra Pradesh's mining revenue has registered a remarkable 27% growth during the current financial year (2025–26). Principal Secretary of Mines, Mukesh Kumar Meena, announced this achievement while addressing the district collectors' conference, emphasizing the sector's continued steady progress and substantial contribution to the state's fiscal health.
Substantial Growth in Gross Value Added and Revenue Collection
The mining sector's Gross Value Added (GVA) has also demonstrated strong performance, recording a growth of 15.74%. This represents an increase from Rs 29,344 crore in the previous year to Rs 33,956 crore in the current financial year, reflecting enhanced productivity and economic value generation from mining activities across the state.
Meena revealed that the mines department had set an ambitious revenue target of ₹3,320 crore from both major and minor minerals for FY 2025–26. By the end of February, the department had successfully collected Rs 2,654 crore. When additional collections from the District Mineral Foundation (DMF), merit amounts, and security deposits are included, the overall revenue reached Rs 3,331 crore. This figure is measured against a broader target of Rs 4,000 crore, indicating strong performance in key revenue streams.
District-Wide Performance Review and NOC Clearance Challenges
During the conference, Meena conducted a thorough review of district-wise revenue performance and the status of No Objection Certificates (NOCs). He specifically advised collectors from districts that recorded less than 80% of their revenue targets to intensify efforts to improve mining revenue collection. The underperforming districts include Guntur (61%), YSR Kadapa (64%), Annamayya (69%), Chittoor (69%), Nandyal (73%), and Palnadu (74%).
A significant concern highlighted was the backlog of applications under the Minor Mineral Policy–2025, particularly those related to building construction materials and granite leases. Meena noted that approximately 1,125 out of 1,788 received applications are still pending for NOC clearance. He directed district collectors to conduct regular reviews and ensure that NOCs are issued within the stipulated timeframe to expedite mining operations and revenue generation.
"Clearing even 50% of the pending applications could generate nearly Rs 100 crore in premium revenue within just three months," Meena stated, underscoring the financial impact of delayed approvals. To address this issue systematically, the government is planning to introduce a innovative ‘Deemed NOC' system. Under this proposed mechanism, approvals will be granted automatically if the prescribed time limit for processing applications is not adhered to, potentially streamlining bureaucratic processes and reducing delays.
Advancements in Mining Block Auctions and Sand Policy Implementation
The Principal Secretary also provided updates on the auction of new mining blocks and the implementation of the state government's Free Sand Policy. He reported that 10 major mineral blocks have already been successfully auctioned during the first half of the financial year, with expectations that this number will reach 20 by the end of the current month. This progress positions Andhra Pradesh among the top four states in the country for mining block auctions, reflecting a competitive and transparent bidding environment.
However, Meena identified specific challenges in districts where land classification reports required before auctions are pending. These districts include Palnadu, Kadapa, Nellore, and Vizianagaram. He instructed officials to complete the necessary processes and submit these critical reports within two weeks to facilitate timely auctions and prevent bottlenecks in mining development.
Regarding the Free Sand Policy, Meena directed authorities to ensure that there is no shortage of sand anywhere in the state. He emphasized the need to curb illegal transportation and sale of sand at higher prices by strengthening monitoring mechanisms at supply points and check posts. This directive aims to maintain fair pricing and availability of essential construction materials while preventing unauthorized mining activities that could undermine revenue and regulatory compliance.
The comprehensive review and strategic directives issued during the conference highlight the Andhra Pradesh government's focused approach to optimizing mining sector performance, enhancing revenue collection, and implementing progressive policies to support sustainable mineral resource management.
