Mining Industry in A.P. faces neglect amidst widespread closures and cartelisation; FEMMI urges CM to initiate immediate action

Federation of Minor Minerals Industry secretary-general Dr. Ch. Rao. File photo: Special Arrangement

FEMMI expresses concern over Andhra Pradesh mining sector crisis, urges government intervention for sustainable industry development.

SRIKAKULAM The Federation of Minor Minerals Industry (FEMMI) has expressed grave concern over the alarming state of the mining sector in Andhra Pradesh, which has been grappling with several issues for years.

According to the association, the situation is dire, with 50% of the minor mineral mines —approximately 2,000 out of 4,000 — shutting down operations. This stark reality presented by the Principal Secretary during the recent Collectors’ conference in the presence of Chief Minister N. Chandrababu Naidu, underscores the dismal condition of the sector. FEMMI lamented that no discussion on the reasons behind the closure took place in the meeting, leaving critical issues unaddressed.

FEMMI secretary-general Ch. Rao has written a letter to the Chief Minister explaining the reasons for the unprecedented closure of mines and denial of livelihood opportunities for lakhs of people. According to him, a staggering 300-450 per cent taxation on minor minerals was making the leaseholders from A.P. lose the competitive edge with their counterparts from other States, the shift from the successful first come first serve (FCFS) system to an auction based allocation and issues of Environmental Clearances (ECs) have also put the industry in a precarious position. 

FEMMI also registered its protest strongly over the involvement of political leaders who are reportedly insisting for supply of minerals of their cartels in districts like Nellore where quartz mining was almost stopped in the last 6.5 months. The government’s Online Mineral e-Permit System (OMPS), which ensured transparency and efficiency, remains non-operational, leaving miners at the mercy of opaque processes controlled by political interests. Adding to their woes, the government has not even filed a counter to the writ petition on the permits issue in the High Court leaving the mine owners in a bleak situation.

“Mr. Chandrababu Naidu has the vision and authority to enact reforms and rescue this sinking industry. It’s time for the government to walk the talk on zero tolerance for corruption and rebuild a sustainable mining sector that generates wealth and livelihood for the State,” Mr. Rao stated. He escalated these issues to the Prime Minister’s Office (PMO), NITI Aayog, and the Ministry of Mines, seeking urgent intervention to protect the sector in Andhra Pradesh.