Non-starter mining leases set to face axe

Non-starter mining leases set to face axe
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Highlights

There is a huge demand for those minerals in open market. The mining department officials did not reveal any particular reason for the development. The department gives six months to two years time to, the lease holders to get necessary permissions based on nature of mineral. The lease holders should obtain clearances from environmental and revenue departments in this period.

Amaravati: Andhra Pradesh department of mines and geology has decided to cancel huge number of minor and major mineral leases across the state that have not come into operation in the last two years. The department identified around 1,385 non-working leases in the state because of which to is losing huge revenue.

Highlights:

  • Govt identifies 1,385 mines which are non-operational even after two years of leasing agreement
  • Lease holders who got environmental and other clearances will get some more time and those who have not got them will face cancellation of leases from August

Interestingly, the non-working mineral leases are related to road construction material, granite and building material along with some others.

There is a huge demand for those minerals in open market. The mining department officials did not reveal any particular reason for the development. The department gives six months to two years time to the lease holders to get necessary permissions based on nature of mineral. The lease holders should obtain clearances from environmental and revenue departments in this period.

Of the 6,989 mining leases in the state, 382 are major mineral leases and the remaining are minor mineral leases. Officials identified 1,385 major and minor mineral leases which have not come into operation so far.

Responding to a query, secretary to government (mines and minerals) B Sreedhar told The Hans India that the non-operation of such huge mines would affect not only the revenue of the government but some other construction sectors too. The department identified that some lease holders have not even applied for permissions of environmental clearance so far. “We will cancel such mining leases soon after getting a detailed report on those leases,” Sreedhar said.

Assistant directors of mines and geology of all districts have been issued instructions to study the reasons for failure of lessees to start operations. “The lease holders will be categorised into two kinds. We will push the lease holders who had obtained environmental permissions but not started the functioning of mines to begin operations. But, will take action against those who are not interested at all to start mining and even did not apply for permissions,” Sreedhar explained.

The assistant directors have been given 15 days time to submit their reports and leases will be cancelled from August. Sources said that it has become difficult to some lease holders to obtain environmental clearances though they managed to get lease from mining department.

By K Varaprasada Rao

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