Lok Sabha Question No. 761 (UNSTARRED), answered on 2024-02-07
Subject: Mining Leases in Andhra Pradesh
Ministry: MINES
Asked by: Balashowry Vallabbhaneni

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 761

ANSWERED ON 07.02.2024

## MINING LEASES IN ANDHRA PRADESH

761. SHRI BALASHOWRY VALLABHANENI:

Will the Minister of MINES be pleased to state:

- (a) the details of mining leases given in the State of Andhra Pradesh;
- (b) whether it is true that royalty being given to the Government of Andhra Pradesh by mining lease holders has come down from Rs. 417 crores in 2018-19 to 340 crores in 2020-21;
- (c) if so, the reasons therefor;
- (d) the details of royalty paid to the State in 2021-22, 2022-23 and 2023-24; and
- (e) the steps taken to increase the royalty to be paid to States on exploration of various minerals?

## ANSWER

## THE MINISTER OF MINES, COAL AND PARLIAMENTARY AFFAIRS (SHRI PRALHAD JOSHI)

- (a): As per the information available in Ministry of Mines, there are 376 mining leases for  various  major  minerals  (other  than  atomic,  minor  and  hydrocarbon  energy minerals) in the state of Andhra Pradesh out of which 106 mines are working and 270 mines are non-working.
- (b) & (c): As per Section 9 of the Mines and Minerals (Development and Regulation) Act,  1957  (MMDR  Act,  1957),  every  mining  lease  holder  pays  royalty  for  major minerals  removed  or  consumed  as  per  the  royalty  rates  specified  in  the  Second Schedule of the MMDR Act, 1957.

As per the information provided by the Government of Andhra Pradesh, the royalty accrual from major mineral mining leases decreased from Rs. 417 Crores in 2018-19 to Rs. 340 Crores in 2020-21 due to the covid-19 outbreak.

- (d): As per the information provided by the Government of Andhra Pradesh, the royalty to the Government of Andhra Pradesh from major mineral mining leases in 2021-22, 2022-23 and 2023-24 is as under:

| Year                      |   Royalty accrual (in Rs. Crore) |
|---------------------------|----------------------------------|
| 2021-22                   |                              414 |
| 2022-23                   |                              433 |
| 2023-24 (till 31.01.2024) |                              412 |

(e):  The  MMDR Act, 1957 was amended  with effect from 12.01.2015 whereby the auction regime was introduced for grant of mineral concessions in a transparent and non-discretionary  manner.  The  method  of  auction  also  ensures  that  the  State

Governments  get  their  fair  share of  revenue  accruing  from  grant  of  mineral concessions. In addition to royalty, districts affected by mining also get funds under District Mineral Foundation (DMF) as per the provisions of Section 9B of the MMDR Act, 1957.

Thereafter, the MMDR Act, 1957 was amended through the MMDR Amendment Act, 2021  with  effect  from  28.03.2021.  Through  the  said  amendment,  timelines  were prescribed for commencement of production and dispatch upon execution of mining lease.

So far, Government of Andhra Pradesh has auctioned 23 major mineral blocks out of which 2 blocks have commenced production and dispatch. The revenue realization on account of auction will commence when auctioned mines start production of minerals. Further,  an  amount  of  Rs.  1,888.62  Crores  have  accrued  to  the  DMFs  in  Andhra Pradesh till November, 2023.

As  a  result  of  these  reforms,  pace  of  auction  of  mineral  blocks  and  production  of minerals have increased resulting in concomitant increase in revenue from mineral sector to the State Governments.

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