Andhra Pradesh Chief Minister N. Chandrababu Naidu instructed mining officials on October 17, 2025, to undertake a thorough assessment of the state's vast mineral resources and develop strategies for value addition to unlock new revenue streams. Speaking during a review meeting in Amaravati, Naidu highlighted the untapped potential of Andhra's mineral sector, drawing parallels with neighbouring Odisha, which generates up to Rs 50,000 crore annually from mineral-related activities. The Telugu Desam Party (TDP) leader emphasised that similar efforts could yield Rs 30,000 crore for Andhra Pradesh, bolstering the state's finances amid post-election reconstruction priorities following the TDP-led alliance's landslide victory in June 2024.
Naidu urged the formation of a comprehensive vision plan to enhance mineral processing and downstream industries, noting that mere extraction falls short without value addition. "Estimate the value of Andhra Pradesh's mineral wealth. In states like Odisha, value addition is enabling them to achieve more revenue," he stated in an official release. Officials briefed the chief minister that the current fiscal year 2025-26 targets Rs 3,320 crore from major and minor mineral mining, a modest figure compared to the sector's estimated reserves.
Andhra Pradesh boasts significant deposits of barytes, limestone, granite, and rare earth elements, particularly in the Rayalaseema and coastal regions, but historical underinvestment and regulatory hurdles have limited contributions to just 2-3% of state GDP, per a 2024 NITI Aayog report. By focusing on beneficiation—such as converting raw bauxite into alumina—the state could create jobs and attract investments, aligning with Naidu's 'Swarna Andhra-2047' vision for a trillion-dollar economy.
The directive comes as Andhra grapples with a fiscal deficit projected at 3.5% of GSDP for 2025-26, exacerbated by capital city uncertainties and irrigation project delays from the previous YSR Congress regime. Naidu's administration has already revived investor summits and eased mining norms to draw Rs 15 lakh crore in pledges since July 2024. Mining Secretary A. Srikanth outlined preliminary surveys indicating over 1,000 million tonnes of limestone and 200 million tonnes of barytes, positioning Andhra as a key supplier for cement and oil drilling industries.
Experts suggest public-private partnerships for processing units could mitigate environmental concerns, including dust pollution and groundwater depletion in mining hotspots like the Kurnool and Anantapur districts. This push also addresses equity, with Naidu mandating benefits for local communities through royalties and skill programmes, echoing Odisha's model where 30% of mineral revenues fund tribal welfare.
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As officials gear up for geological mapping and feasibility studies by year-end, Naidu's blueprint could transform Andhra's extractive economy into a value-driven powerhouse, fostering sustainable growth. With global demand for critical minerals surging amid green energy transitions—India's lithium needs alone projected to hit 30 times current levels by 2030—the initiative positions the state competitively.
Success here may inspire similar reforms in mineral-rich southern states, contributing to national self-reliance under Atmanirbhar Bharat. Stakeholders anticipate the vision plan's rollout in the upcoming assembly session, potentially catalysing a mining renaissance that balances revenue gains with ecological safeguards.
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