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In the State of Andhra Pradesh, the Mines and Geology Department is entrusted with both promotional and regulatory functions for overall development of mining sector and collection of mineral revenue to the State Exchequer. The Department oversees the functions of vigilance and monitoring of minerals production, survey and demarcation of areas, mineral revenue collection, mineral investigation and exploration and dissemination of mineral information.
The Performance Audit was taken up during June 2022 to January 2023 covering the period 2017-18 to 2021-22. This Audit Report contains the overview of functioning of Mines and Geology Department, Government of Andhra Pradesh. Some of the major observations are on Formulation of State Mineral Policy, systems developed for its implementation, collection of levies, effectiveness of the control mechanisms adopted for curbing illegal mining, etc.
This Report contains Four Chapters. Chapter I contains the promotional and regulatory functions of Mines & Geology Department for overall development of mining sector and collection of mineral revenue along with trend of Revenue receipts. This Chapter also contains the role of Andhra Pradesh Pollution Control Board, State Environment Impact Assessment Authority and Indian Bureau of Mines.
Chapter II gives an overview of State Mineral Policy, process involved for obtaining approval of Mining plan and permits, etc. The observations mainly consist of deficiencies noticed in maintaining the data related to the applications received, documentation, permissions obtained by the miners from various other regulatory institutions, and ineffective mechanism for renewals, non-registration of leases, etc.
Chapter III deals with the process and system of mineral removal, realisation of associated revenues and implementation of e-permit system, while highlighting the lacunae in e-permit system, non-adherence to Supreme Court directions and non-accountal of mineral utilisation in government works. Also, observations related to levy / short levy of penalties, non-assessment of DMF & MERIT and non / short levy / collection of other revenues related mining.
Chapter IV Explains the system in place for conduct of inspections, functioning of various task forces and the deficiencies observed during audit. Other observations include revision of penalties by GoAP without any justification, non-utilisation of technology for prevention of illegal mining and a case study on estimation of limestone extracted in sampled mandals