Abrupt policy change can result in significant financial losses for investors and entrepreneurs who have initiated projects under the previous rules, says Chief Minister N. Chandrababu Naidu.
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Andhra Pradesh Chief Minister N. Chandrababu Naidu has written to Union Coal and Mines Minister G. Kishan Reddy seeking relief for the applicants who applications for mining lease have been put on hold following changes in the classification of laterite deposits.As per the details of the letter released to the media on Tuesday, Mr. Naidu highlighted the difficulties being faced by Andhra Pradesh following the Centre’s decision to classify laterite containing 20% or more aluminium content as bauxite rather than a minor mineral.According to Mr. Naidu, the revised policy effectively stalled the processing of several mining lease applications.The Chief Minister said the State government had to temporarily put on hold 402 mining lease applications that were processed under the minor mineral category before the revised guidelines came into effect. These included 19 that had already received Letters of Intent, 113 relating to government land, 255 involving forest land, and 15 concerning private patta land, he said.Mr. Naidu pointed out that many applicants had invested substantial amounts based on the earlier regulatory framework, including payments towards application fee, land purchase and forest clearance procedures. He cautioned that abrupt policy change could result in significant financial losses for investors and entrepreneurs who had initiated projects under the previous rules.Drawing attention to past precedents, the Chief Minister noted that when minerals such as mica, quartz, feldspar and barytes were reclassified from minor to major minerals, the Centre had provided a “saving clause” to protect ongoing applications and projects. He urged the Union government to extend a similar concession in the case of laterite mining.The Chief Minister also requested the Centre to permit the 402 pending applications to be processed under the earlier regulations and provide a two-year transition period to complete the approval process. Such a measure would prevent financial hardship for the applicants and reduce the possibility of prolonged legal disputes, he observed.Mr. Naidu also stated that granting the requested relaxation would help ensure uninterrupted availability of raw materials for industries such as cement manufacturing, iron ore processing and road construction. He emphasised that a smooth transition would safeguard employment opportunities and industrial activity linked to the mining sector. Published - June 02, 2026 07:35 pm IST
