35 leases sanctioned for mining of semi-precious stones

By Our Staff Reporter

VISAKHAPATNAM OCT. 13. Gem stones have been discovered in the very first strike of the State Government's plan to put semi- precious stones' mining in the agency belt of Visakhapatnam district on an organised scale with the involvement of girijans.

Mr. P. Srinivas Reddy, Minister for Mines and Geology, on Friday displayed to reporters the coloured stones unearthed on superficial digging during the commissioning of mining three days ago by the Andhra Pradesh State Mineral Development Corporation (APMDC) and A. P. Tribal Cooperative Financial Corporation (TRICOR), which have been granted leases for prospecting and mining.

Mr. Reddy, who had visited the mining areas in Paderu region along with Mr. Ch. Ayyanna Patrudu, Minister for Forests, and Ms. M. Mani Kumari, Minister for Tribal Welfare, said 35 mining leases had been sanctioned with 28 of them to APMDC and the rest to TRICOR. They would undertake mining as a joint venture and be guided by a special cell constituted at Paderu with the officials of the Mines and Geology Department, APMDC and ITDA.

He said that TRICOR was undertaking mining with the formation of societies involving tribals and that 3,051 tribals had already been enrolled with each household contributing one member. He said the Government would collect 10 per cent royalty on the amount realised through the auctioning of the stones mined and that modalities were being worked out for using the rest of amount for local area development and paying dividend to the society members.

The Minister hoped that the grant of mining leases would put an end to the practice of illegal mining in the tribal belt which had so far claimed 50 lives. "We are not restricting the mining leases to 35 but would issue more once the entire girijan belt has been surveyed for potential mines," he added.

As for mining leases in non-agency and non-forest areas of the district, he said though 10 revenue areas were identified for prospecting and mining, the two offers received during the auction held in September were below the minimum bid amounts. APMDC would be inviting fresh bids soon. The State Government had earned Rs. 3.50 crores during the first auction held in 1996 for a six-month period and Rs.1.50 crores when the leases were given an extension.

Referring to the State Government's Vision 2020 document which had identified mining as one of the 19 growth engines, Mr. Reddy said, "Though our State ranks second in the country in terms of mineral wealth we occupy the fifth place in terms of exploitation and revenue earnings from the minerals. While the value of the mineral wealth exploited in the country is put at Rs.33,000 crores, our contribution in only six per cent," he said.

Explaining the State Government plans at optimum utilisation of the mineral wealth, the Minister said that while 5,806 mining leases were in operation in 22 districts, his department had issued an additional 1,333 licences in less than five months. While 1,574 applications were pending till September-end, mining sadassus were being held in the district to hasten the process of their clearance and issue of new ones.

The Mines and Geology Department has aimed at a 30 per cent growth in the revenue from mineral wealth during 2000-2001 over the Rs.440 crores realised last fiscal. In terms of value of the minerals mined in the State, coal accounted for the largest share of Rs. 247 crores followed by minor minerals (Rs.154 crores), limestone (Rs.118 crores) and oil and natural gas (Rs.41 crores). The value of export of minerals stood around Rs.200 crores with granite being the major item.

Replying to a question, Mr. Reddy said the State Government would be deciding soon the process for award of mining leases for gold and diamond, which were found to occur in 11 districts including Chittoor, Anantapur, Kurnool, Cuddapah, Nellore, Khammam and Warangal. The Government has received 38 applications for 26 blocks shortlisted for gold and diamond mining.

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Section  : Southern States
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