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Introduction
The Department of Mines and Geology was established in 1887.
Upto 1951, the functions of both geological survey and Inspectorate of Mines
were carried out by the department of Mines and Geological survey. In 1951 with
the federal financial integration, the Hyderabad geological survey was merged
with the Geological survey of India and the safety aspect of Mines became part
of the Director General of Mines Safety, Dhanbad.
After the formation of Andhra Pradesh, the
functions of processing the applications for Mineral concession and the grant
of Quarry leases were transferred to the Revenue Department. Later in 1976-77,
the entire mineral regulatory for both Major and Minor Minerals were
transferred from Revenue to Department of Mines and Geology. At present there
are 22 district offices and 8 Regional offices to oversee the regulatory and
promotional tasks in the state.
The Department of Mines and Geology is the investigative, administrative,
advisory and promotional arm of the Govt. of Andhra Pradesh in the mineral
development. The Department of Mines and Geology is entrusted with regulatory
and promotional tasks, which involve mineral investigation, exploration,
receipt and processing of Mineral concession applications, approve mining
plans, grant and monitoring of Leases, Vigilance, Issue of Permits, Monitoring
of production and dispatch, Collection of Mineral revenue, development of
Mineral based industries in the State.
It generates and collates Geo-Scientific data
of the state and coordinates with all geological agencies like Geological
Survey of India, National Mineral Development Corporation, Mineral Exploration
Corporation, Oil and Natural Gas Corporation, Singereni Collieries, National
Geophysical Research Institute, universities etc., for carrying out geological
investigations and explorations in the state. It helps in identifying the
Mineral potential for exploitation and development of Mineral based industries
in the state.
Functions of the Department
Regulatory & Promotional
Receipt and processing of Applications for the grant of leases under Mineral
Concession Rules.
Inspection of Applied areas to advice the Govt. for grant of Leases.
To monitor scientific exploitation of mineral wealth of the state.
To control illicit mining, quarrying and transportation of minerals.
Scanning and identification of Mineral Resources
Mineral Investigations, Exploration, Quantification and Analysis of Minerals
Guidance and Dissemination of Mineral Information
Promotion of Mineral Based Industries.
Mineral Revenue and assessments
To monitor production and dispatches of various minerals.
To monitor collection of royalty and seigniorage fee based on grades/quantity.
Imposition of penalties on illicit mining, transportation and storage.
Mineral Rights
Under the federal constitution of the India, Mineral Rights are
being vested with the state and state is wholly responsible for judicial
exploration, exploitation, development, conservation, environment, safety and
promotion of Mineral based Industries.
Mineral Acts and Rules
Mineral Regulations are being governed by the Mines and Minerals
(Development and Regulation) Central Act 1957. Mineral Concession Rules 1960.
Mineral Conservative & Development Rules 1988. Mines Act, Coal Act, Oil and
Natural Gas Rules, Safety Rules, Forest Conservation Act 1980, Environment
Protection Act 1986, Andhra Pradesh Minor Mineral Concession Rules 1966,
Granite conservation and development rules 1999, Mineral dealer rules 2000 and
the rules framed thereunder.
National Mineral Policy
In line with liberalisation and globalisation of India's
economy, a new mineral policy was formulated in 1993. This policy marks a
watershed in the history of development in the mineral sector in India. This
policy recognises the need for encouraging private investment both domestic and
foreign and the induction of state-of-the-art technology in the Mines and
Mineral sector. Under this policy, all the 13 minerals (Iron Ore, Manganese
Ore, Chrome ore, Sulphur, Diamond, Gold, Zinc, Copper, Lead, Molybdenum,
Nickel, Platinum group, Tungsten ore) which were earlier reserved for public
sector were open for exploration and exploitation by the private sector. Thus,
the entire mining sector except for atomic minerals is now open for private
investment including foreign investment.
Liberalized National Mineral Policy 1993 was brought out to
integrate the Indian Mineral Industry with the Global Mineral Industry and aims
to encourage Inflow of Private investment both domestic and foreign Technology
transfer/ Upgradation to improve productivity and Scientific working
Policy on Foreign Direct Investment
The mining sector was opened to foreign direct investment(FDI)
in 1993, initially all proposals were considered on a case to case basis by
Foreign Investment Promotion Board (FIPB), later FDI policy in the mining
sector was further liberalized, which opened up an "Automatic approval" route
for investments involving foreign equity participation upto 100 percent except
for Diamonds and precious stones.
State Mineral Policy
State Mineral Policy aims at optimum exploitation, scientific
development, value addition, marketing and exports under private and joint
sectors. Mineral Sector, Cement & Jewellery Sectors are identified as
Thrust areas in the New Industrial Policy; brought out simplified entrepreneur
friendly structural changes in the State Mineral Policy, decentralized,
deregulated & introduced Prefixed Time frame in the processing of Mineral
Concessions at each level for faster implementation of projects. The Govt. has
thrown the Mineral sector open for private investment and likes to withdraw
from areas in which their presence is no longer required and disinvest from
these public sectors. State Investment Promotion Board Created to facilitate
the entrepreneurs to get single window clearance for all the mineral Projects
under the Chairmanship of Chief Minister. Any Mineral Project filled under are
circulate simultaneously to all the departments and decision is made within 4
weeks.
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