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Andhra Pradesh Asks Centre to Protect 402 Laterite Mining Applications

The state seeks a two-year saving clause so applicants can complete approvals under the old minor-mineral rules to avoid financial losses and supply disruptions.

Overview

  • Chief Minister N. Chandrababu Naidu wrote to Union Coal and Mines Minister G. Kishan Reddy on Tuesday asking the Centre to allow 402 pending mining lease applications to be processed under the earlier rules.
  • The Union has reclassified laterite with 20% or more aluminium as bauxite, a move that changed the approval route and prompted Andhra Pradesh to pause applications it had treated as minor mineral projects.
  • The 402 applications include 19 with Letters of Intent, 113 on government land, 255 involving forest land, and 15 on private patta land, and the state says many applicants have already spent crores on fees, land and clearances.
  • Naidu warned that an abrupt change could trigger financial losses, lawsuits and interruptions to raw-material supply for cement, iron processing and road construction, and he cited past cases where the Centre granted saving clauses.
  • The state has asked for a two-year transition window to finish approvals and is awaiting a decision from the Union government, a response that will shape short-term operations and legal exposure for applicants.