Andhra Pradesh
Introduction
Minerals are the property of State irrespective of surface ownership. In order to exploit any mineral the concerned State Government should give permission by following the mining policy of the state concerned. The seventh schedule under article 246 of The Constitution of India deals with the division of powers between the Union and the States by classifying the powers into three lists, Viz. Union List, State List and the concurrent List. Under list I, entry 54, of the said schedule the Central Government is empowered to make legislation to regulate Mines & Minerals in the country. However to the limited extent under list II entry 23 of the schedule the states are also delegated with power over the subjects not covered by the Central Legislation. The Mines & Minerals (Development and Regulation) Act, 1957(MMDR Act) was brought in by the Central Government which is a comprehensive legislation in this subject. For the purpose of this Act, minerals are classified as Major Minerals and Minor Minerals. All the minerals except those specified as Minor Minerals u/s 3(e) of the Act are Major Minerals. To name a particular mineral as minor mineral, there must be a declaration to this effect by the Central Government u/s 3(e) of the Act. In this article we deal with only “Stone Aggregates.” A stone aggregate is the name derived commercially in course of time by the civil engineers in the construction projects for their use. This terminology is not assigned as a mineral by the Central Act. Further the MMDR Act also delegated power to the State Government for framing its own rules touching various aspects under section 15 of the Act. This means the State Government need to frame its own rules as per the limitations contained in the Central Act. In this article the author would like to touch upon various provisions relating to stone aggregate mining in the states of Andhra Pradesh and Telangana
II. Salient features of MMDR Act, 1957
This Act has come into force from 28.12.1957 and underwent several amendments until 2020. It deals with general provisions to undertake Reconnaissance, prospecting and mining operations, procedure for obtaining Reconnaissance permit, prospecting licence or mining leases, rules for regulating the grant of Reconnaissance permit, prospecting licence and mining leases, powers of Central Government to make rules in respect of major minerals, powers of State Government to make rules in respect of minor minerals, powers of State Government to collect funds for district mineral foundation in case of minor minerals, reservation of area for purpose of conservation, power to make rules for mineral development, penal provisions in respect of illegal mining activities, schedule of rates of royalties etc.. For the present purpose to deal with minor minerals the following provisions of the Central Act are enough to know.
(i) Section 3(e) of the Act:
3(e) “minor mineral means building stone, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central Government, by notification in the official gazette declare to be a minor mineral.”
Therefore a notification under this section is imperative to name any mineral as minor mineral.
(ii) Section 15 of the Act: Section 15 empowers the State Government to make rules for regulating the grant of quarry leases, mining leases or other mineral concessions in respect of minor minerals and for purposes connected there with.
(iii) Section 15 (1-A) provides in detail on matters the State Governments can frame the minor mineral concession rules. This clearly indicates that any rule made by the State Government shall fall within the ambit of these guidelines issued by the Government of India.
(iv) Sub-section (3) of Section 15 says “The holder of a mining lease or any other mineral concession granted under any rule made under subsection (1) shall pay royalty or dead rent, whichever is more in respect of minor minerals removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee at the rate prescribed for the time being in the rules framed by the State Government in respect of minor minerals:
Provided that the State Government shall not enhance the rate of royalty or dead rent in respect of any minor mineral for more than once during any period of three years.”
(v) Sub-section (4) of Section 15 says: “Without prejudice to sub-sections (1), (2) and sub-section (3), the State Government may, by notification, make rules for regulating the provisions of this Act for the following, namely:—
(a) the manner in which the District Mineral Foundation shall work for the interest and benefit of persons and areas affected by mining under sub-section (2) of section 9B;
(b) the composition and functions of the District Mineral Foundation under sub-section (3) of section 9B; and
(c) the amount of payment to be made to the District Mineral Foundation by concession holders of minor minerals under section 15A.”
(vi) Sub-section 15(A) delegates Power to State Government to collect funds for District Mineral Foundation in case of minor minerals.
(vii) Reservation of areas for purposes of conservation:
17A. (1) The Central Government, with a view to conserving any mineral and after consultation with the State Government, may reserve any area not already held under any prospecting licence or mining lease and, where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such area will be reserved.
(2) The State Government may, with the approval of the Central Government, reserve any area not already held under any prospecting licence or mining lease, for undertaking prospecting or mining operations through a Government company or corporation owned or controlled by it and where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such areas will be reserved.
(viii) Penalties: Sections 21, 22, 23, 23A, 23B deals with Penal provisions. According to section21(1) “Whoever contravenes the provisions of sub-section (1) or sub-section (1A) of section 4 shall be punishable with imprisonment for a term which may extend to five years and with fine which may extend to five lakh rupees per hectare of the area. (2) Any rule made under any provision of this Act may provide that any contravention thereof shall be punishable with imprisonment for a term which may extend to two years or with fine which may extend to five lakh rupees, or with both, and in the case of a continuing contravention, with additional fine which may extend to fifty thousand rupees for every day during which such contravention continues after conviction for the first such contravention.….(4) Whenever any person raises, transports or causes to be raised or transported, without any lawful authority, any mineral from any land, and, for that purpose, uses any tool, equipment, vehicle or any other thing, such mineral, tool, equipment, vehicle or any other thing shall be liable to be seized by an officer or authority specially empowered in this behalf, (4A) Any mineral, tool, equipment, vehicle or any other thing seized under sub-section (4), shall be liable to be confiscated by an order of the court competent to take cognizance of the offence under sub-section (1) and shall be disposed of in accordance with the directions of such court, (5) Whenever any person raises, without any lawful authority, any mineral from any land, the State Government may recover from such person the mineral so raised, or, where such mineral has already been disposed of, the price thereof, and may also recover from such person, rent, royalty or tax, as the case may be, for the period during which the land was occupied by such person without any lawful authority, (6) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, an offence under sub-section (1) shall be cognizable.
(ix) Considering the problems faced by the State Governments in dealing with illegal mining activity effectively at all the stages viz. mining, transportation, storing, processing etc., the Government of India delegated Powers to the State Governments to make rules for preventing illegal mining, transportation and storage of minerals under a new provision brought out in the year 1999 u/s 23C.
III. Nomenclature of Stone Aggregate
As said earlier the nomenclature of any mineral is important to fit in the policy frame work. Depending on the nomenclature the relevant rules are applicable to regulate the mining activity. Various minor minerals are declared as minor minerals from time to time by the Central Government u/s 3(e) of the Act. Now let us confine to the nomenclature for stone aggregate. The nomenclature Stone Aggregate is used mainly in concrete making. But it ialso used in respect of stone used for soling purpose in road making as railway ballast as cushion to the railway track. But the entire material is derived out of stone boulders. The Government of India declared “building stone” as minor mineral. At the time of issuing MMDR Act itself. Subsequently vide notification G.S.R. 436(E), Dated: 01-06-1958 “Boulder, Shingle, Chalcedony pebbles used for ball mill purposes only” are added as minor minerals. Further GOI vide notification issued in G.S.R. 341(E), Dated: 25-02-1965 declared “Stone used for making household Utensils, Quartzite and sandstone when used for purposes of building or for making road metal and household utensils” as minor minerals.
IV. Andhra Pradesh Minor Mineral Concession Rules, 1966
Pursuant to the delegation of powers u/s 15 of MMDR Act, Andhra Pradesh Minor Mineral Concession Rules, 1966 were issued with effect from 07.12.1967. The same rules are adopted by the Government of Telangana at the time of bifurcation of the state in the year 2014 simply replacing the word Telangana in place of Andhra Pradesh and hence as far as Telangana State is concerned Telangana Minor Mineral Concession Rules, 1966 are applicable.
- Procedure for grant of leases:
For all minor minerals including boulders, building stone which is source material for stone aggregate the quarry leases are granted by the Department of Mines & Geology, in the state. Presently the powers are delegated for grant of quarry leases for stone and metal to the Deputy Director of Mines & Geology who is located at each district headquarters in the state as far as Andhra Pradesh is concerned and at the regional level in Telangana State. The application in the prescribed proforma shall be filed seeking grant of quarry lease to the Asst. Director of Mines & Geology concerned along with the application fee of Rs.5000 and a deposit of Rs.10,000 per every Hectare or part thereof and a sketch of the applied area specifying geo coordinates and cadastral survey number duly drawn to the scale and prepared by a qualified surveyor. Once the application is filed in triplicate one set of application will be referred to the concerned tahsildhar for the category of the land applied for and no objection certificate. In respect of forest land, forest clearance under FC Act, 1980 is required. In respect of patta lands the consent of pattadars is required. Asst. Director after gathering the entire data from other departments by conducting technical inspection on the availability of mineral and other parameters such as the proximity to the nearby structure, villages, households etc., and after taking up survey of the area, submits his recommendations to the Deputy Director, Mines & Geology. Once the Deputy Director gets convinced with the proposals, issues a letter for submission of approved mining plan and EC. After submission of the same the quarry lease will be granted subject to various conditions specified in the grant orders. Once lease is granted, the applicant has to enter into agreement before the Asst. Director of Mines & Geology by depositing advance dead rent as specified.
Recently the Government of Andhra Pradesh vide its memo dated 21.10.2020 has taken a good decision for filing of mineral concession applications by single desk portal with effect from 29.10.2020. Further as per the stipulations laid in Andhra Pradesh Public Services Delivery Guarantee Rules, 2018 the time stipulations for disposing of applications is prescribed as 30 days at various levels and in the event of default the department is liable to pay a compensation of Rs.50 per day up to a maximum of Rs.5000. The applications now can be filed online through single desk portal facilitated in department of industries website of Government of Andhra Pradesh (https://www.apindustries.gov.in).
- Preparation of mining plan:
The concept of preparation mining plan even for minor minerals was introduced in the year 2016. The mining plan must be prepared by a recognized qualified person (RQP)(a geologist having approval of the Director of Mines & Geology). The mining plan shall be approved by the regional Deputy Director of Mines & Geology.
- Levy of seigniorage fee/ dead rent:
Once the quarry lease is granted the lessee is entitled to excavate the mineral and dispatch to the place of either processing or directly to the place of consumption by paying seigniorage fee (royalty) as per the schedule 1 of Rule 10. These rates are subject to revision once in three years. Presently the levy for building stone, rough stone/boulders, manufactured sand, road metal and ballast is Rs.90 per cubic meter or Rs.60 per metric Ton in the state of Andhra Pradesh and Rs.75 per cubic meter or Rs.50 per metric Ton in the state of Telangana. Further in order to ensure minimum revenue from a particular area dead rent is levied as per schedule II of Rule 10 which is Rs.65,000 per Hectare per annum in the state of Andhra Pradesh and Rs.50,000 in Telangana for these minerals. However the dead rent is adjustable out of seigniorage fee payable. Hence it is not liability for regular mine operators.
- Ceiling on extent for grant of leases:
There is no ceiling limit with regards to extents prescribed under these rules for grant of leases, however the average lease holds for each lease will be less than 5 hectares in both the states.
- Period of leases and its renewals:
The period of lease for a quarry is ten years with provision for two renewals and for captive use to a stone crushing industry the period is fifteen years with a provision for renewal until the unit exists.
- Preferential rights for grant of leases:
As per Rule 12(3) in respect of building stone, rough stone /boulders manufactured sand, road metal and ballast, dimensional stone used for curbs and cubes, the quarry lease applications will be disposed in the following order of preference.
- Application filed by manufactured Sand Units (Existing units without quarry and green field units).
- Crusher owner who do not have quarries
- Applications of Societies of Professional/(local) Traditional stone cutters (Vaddaras).
- Others.
In the state of Telangana the priorities slightly differ as given below:
- Applications of Societies of Professional/(local) Traditional stone cutters (vaddaras).
- Crusher owner who do not have quarries
- Unemployed youth holding Geology degree, and business man who propose to set up crushers
- Others.
- Recovery of seigniorage charges from the bills of contractors:
In order to prevent leakage of revenue, the state Government introduced a system of recovery of seigniorage fee charges from the bills of the contractors who execute civil works for the various Government departments. However incase the contractor produces documentary proof of having paid the seigniorage for such quantities, recovery is dispensed with. In the state of Andhra Pradesh and Telangana 75% of the revenue collected on stone aggregate is by way of recovery from the bills of the contractors.
- Issue of temporary permits:
In order to meet immediate needs of boulders, metal etc., there is provision for grant of temporary permits for limited quantities and for limited period.
- Special provisions to Vadderas (professional stone cutters) Rule No.12(3):
The vadderas are having preference in the grant of quarry leases in respect of building stone, rough stone/boulders, road metal and ballast, dimension stone used for kerbs and cubes. Further, Government of Andhra Pradesh extended the facility of exemption of Seigniorage fee and dead rent in respect of leases granted to vadderas provided they sale the material for local consumption where PWD Departments are not involved.
(x) Reservation of areas for Public Sector (Rule No.9A (1):
The state government may by notification in official gazette reserve any area by exploitation by the State Government, a corporation established for any Central, State or Provincial Act or a Government company, after taking prior approval from Govt. of India u/s 17A.
(xi) Leases in Forest Lands:
The procedure for obtaining forest clearance is same to that of major minerals. But the state government issued instructions to the forest department to process the applications for forest clearance for mining purpose only on being referred by the Department of Mines and Geology.
(xii) Leases in Patta Lands:
All the leases in Patta Lands for minor minerals shall be granted only with the consent of the land owners.
In respect of land owners owning land not exceeding 2.24 Ha., (5 Acres) shall be given preference for grant of small scale quarry lease in their patta lands, in respect of all minerals except granite, marble and 31 minerals specified (Rule 12(2)(a)).
(xiii) Operational conditions:
The operational conditions are specified in Rule 31 and also lease agreement in Form G. Once the lease agreement is concluded the lessee is entitled to commence quarrying operations duly following conditions such as:
a) The lessee shall commence quarrying operations within 2 months in the date of grant.
b) To follow the Provisions of Labour Laws, pertaining to the employment, payment of wages etc., Rule 31(xxi)(a).
c) To follow the Metalliferous Mines Regulations, 1961, Rule 31(xxi)(b).
d) The lessee shall dispatch the mineral only after obtaining dispatch permits issued by the ADMG concerned (Rule 34).
e) The lessee shall maintain the boundary pillars of the area (Rule (31(vi)). etc., etc.,
(xiv) Permit system:
The procedure of permit system is almost similar to that of major minerals. The lessee shall obtain dispatch permits from the ADMG, duly paying seigniorage fee etc. The dispatch permits are now issued under e-permit system through online. The lessee is expected to issue transit forms for each vehicle before the mineral is dispatched from the quarry. The said transit form is prescribed by the department and in token of having approval of the same for the proportionate quantities for which permits are issued. One copy of the same shall be surrendered to the department once the dispatches are over against the particular permit. Since, the revenue generated to the department from any quarry is based on the accountability of permits, the department by way of surprise checks at places establishing departmental check posts same is achieved. Of late the quarry pits are measured and counter checked with permits obtained and if any variation is found demand is raised with penalty.
(xv) Procedure for transfer of the leases:
Prior to the amendments issued vide MM(DR) Amended Act, 2015, all the leases were transferable. But, the Government of Andhra Pradesh prohibited transfers in the year 2017. However, in respect of Road Metal, Ballast and Manufactured Sand serving as captive source of crusher unit a provision is made for transfer if the crushing unit is also involved in transfer to the same person. The granting authority for respective minerals is the transferring authority. But, Government stipulated, exorbitant fee of 10 times the dead rent payable, in respect of that area or the amount equivalent to the dead rent per hectare for the unexpired period of lease whichever is higher.
Even in respect of proposed industries transfer of quarry lease is permitted with a condition that no permits will be issued until commercial operation date. In such cases three years advance dead rent is payable as transfer fees. Further without the approval of the Deputy Director of Mines & Geology no new Partners/Directors be added in the Firm/Company. Such new persons anyhow cannot take more than 49% of the shareholding. This particular provision seems to be defeating the concept of Indian Partnership Act, 1932 and Indian Companies Act, 2013 (this is Author’s opinion only).
Rule 31(IX)
(xvi) Incentives for Manufacturing Sand Units:
Considering the over-exploitation of river sand, the endeavor of the Government is to encourage utility of manufactured sand. For this purpose there is preference in allotment of leases and also certain incentives are announced. Government of Telangana vide G.O.Ms. No.38 dated 12.12.2004 and G.O.Ms. No.37 dated 29.05.2018 issued instructions to use manufactured sand (rock sand) and natural river sand in the ratio of 50:50 in all mixes of cement concrete. Further, the Govt. OF Andhra Pradesh in G.O.Ms. No.92 dated 04.11.2019 issued orders to provide subsidy on interest at the rate of 3% per annum on facility upgradation cost (ranging from 50 lakhs to 150 lakhs) for upgrading the existing stone crusher units to M-sand units within a period of six months. The Government of Andhra Pradesh issued G.O.Ms. No. 38 dated 17.03.2016 in order to encourage the setting up of manufactured sand unit.
(For purchase of machinery for details refer GO from https://goir.ap.gov.in) Apart from the above there is an assurance from the government to purchase 50% of M-sand production for the government works.
(xvii) Penal provisions:
Whoever is involved in unauthorized quarrying is liable to pay normal Seigniorage fee for the quantum excavated with ten times penalty. The mineral excavated can be seized by the officers nominated by the Director of Mines & Geology.
A person who is in possession of any mineral including processed mineral and unable to substantiate the source, is liable to pay five times normal Seigniorage fee and five times penalty.
In case a lease holder is involved in such unauthorized quarrying the lease is liable to be terminated. The Government of Andhra Pradesh brought stringent penal provisions in 2017 of two years imprisonment, penalty of Rs.5 lakhs and value of the mineral deposit along with seigniorage fee in all cases of unauthorized mining and transportation.
In order to facilitate the builders from the possible demand of documentary production on the minor mineral consumed by them the Government of Telangana imposed environment impact fee of Rs.3/- per square foot in respect of built up area above 10000 square feet. The idea behind such levy is they need not be assessed for penalties in the event they have paid such fee. (G.O.Ms.No.34, Ind. & Com. (Mines I) Department, dated 17.06.2015 read with G.O.Ms.No.8, Dated 24.02.2016).
V. Andhra Pradesh Mineral Dealer’s Rules, 2017
After the introduction of Section 23C by way of amendments to MM(DR) Act, 1957 with effect from 20.12.1999, delegating powers to state Governments to make rules for preventing illegal mining, transportation and storage of minerals, establishment of check post, Inspection, Checking and search of minerals at the place of excavation or storage or during transit etc. the Government of AP brought out Andhra Pradesh Mineral Dealer Rules, 2000. The Telangana State also adopted the same rules.
These rules mandate to obtain Mineral Dealer License by the persons who are dealing with mineral for the purpose of processing or for the purpose of trading. However, the mining lease holders who are involved in processing and trading need not obtain dealer license. All the dealers are required to account for the mineral purchased by them and for the transport of minerals or processed minerals from the place of processing units or depots, they need to obtain transit passes from the Department of Mines and Geology by surrendering transit forms obtained by them for transportation of minerals from the place of excavation. They are not charged anything in this process except nominal user charges.
The Hon`ble High Court of AP in Noval Granites Ltd., vs. Government of AP (AIR 2009 AP 107) held that, the explanation to Rule (2)(1)(h) by which processed minerals and final products are treated as minerals amounts to ultra vires the rule making power of the state government and hence same has been struck down. However, the Court held that the department can inspect the processing units or depots and call for source of mineral and in case they are not able to substantiate the source necessary action can be initiated on them. However, Government of Andhra Pradesh brought out Andhra Pradesh Mineral Dealer Rules, 2017, by way of rectifying the defects. But this author feels that all the ills have not been cured. In Telangana, the Mineral Dealer Rules, 2000 are still applicable r/w the judgment of Hon’ble High Court of Andhra Pradesh. In fact these rules are advantageous to the mineral traders since they can do the business without hurdles from the department.
VI. Other Legislations for Minor Minerals
(i) The Andhra Pradesh District Mineral Foundation Trust Rules, 2016:
Since the MMDR amended Act provided for levy of 30% on the Seigniorage fee towards District Mineral Foundation Trust, the Govt. of Andhra Pradesh issued the Andhra Pradesh District Mineral Foundation Trust Rules, 2016. As per the said rules for stone aggregate 30% on the seigniorage fee is the additional levy towards MDF (Rule 7). The said funds shall be utilized in the mining effected areas directly or indirectly. The directly affected areas are defined as areas within 10 kms of the radius of the peripheral of quarry lease area, the indirectly affected areas are defined as areas within 10-25 kms of the radius of the peripheral of quarry lease area.
(ii) The Telangana State District Mineral Foundation (Trust Rules), 2016:
This is similar to that of The Andhra Pradesh District Mineral Foundation Trust Rules, 2016. The rule deals with levy of MDF and allocation of funds for effected area by following various procedures. The levy of 30% on Seigniorage fee towards MDF is same.
(iii) The State Mineral Exploration Trust Rules, 2015: (Telangana State)
These rules are formed to use the funds approved to the trust for the regional and detailed exploration in such manner as prescribed by the state Government. As per Rule 6 the state Government shall, by order, set up a fund under the trust to be called as the State Mineral Exploration Trust Fund. The holders of quarry lease under schedule I shall make payment for contribution to the trust fund as fixed by the government along with seigniorage fee. These rules deal with spending of money for mineral investigations in the state. Further an amount of 2% on seigniorage fee from all the minor mineral holders towards State Mineral Exploration Trust (SMET) is being levied.
(iv) Mineral Exploration, Research and Innovation Trust (MERIT):
As far as Andhra Pradesh is concerned though separate rules are not issued government vide GOMs No.18 dated 13.01.2016 created a Mineral Exploration, Research and Innovation Trust (MERIT). The objective of the trust is to take up regional and detailed exploration of minerals in the state by creating a governing body and an executive committee. Further an amount of 2% on seigniorage fee from all the minor mineral holders is to be received in addition to 10% of sale turn over from A.P Mineral Development Corporation. This concept of allocation of 10% of the sale turnover from the state PSU is a unique concept in India which was implemented for the last two decades in Andhra Pradesh which is helpful to take up research activity in the state. Probably this concept might have paved way for bringing amendments to MMDR Act in 2015 for levy of 2% NMET fee on royalty.
(v) Metalliferous Mines Regulations (MMR):
These are framed as per powers delegated under section 57 of Mines Act, 1952 and are applicable to all mines of whatever description other that a coal or oil mine. The definition of mine under Mines Act, 1952 includes any excavation where any operation for the purpose searching for or obtaining minerals has been or is being carried on and includes all open cast workings. These Metalliferous Mines Regulations deals with appointment of qualified persons in the mines, furnishing of returns, qualifications required for the appointment of technical persons in mines, duties and responsibilities of work man in the mines, maintenance of mine plans, distance to be maintained to the railways and roads, usage of explosives, use of certain machinery etc. These rules are implemented by the official of the Director General of Mines Safety (DGMS), GOI. Regulation 164 of MMR specifies 500 mts as the safety distance if there is a structure, road, railway line, pipe line, electrical lines, etc., is located. However within this distance with the permission of DGMS, mining can be undertaken by way of controlled blasting.
(vi) Indian Explosives Rules, 2008:
In order to store the explosives, explosive licence is required under Indian Explosives Rules, 2008. This licence is issued by regional Controller of Explosives after getting NOC from the concerned District Collector who in turn obtains the report for police department. The mine operators are not able to get police clearances due to many security reasons. Presently some third party agencies are procuring licences and entering into MoU with small mine operators and undertaking blasting operations in the small quarries.
(vii) Environmental Clearance:
The stone quarrying require environmental clearance under Environment Protection Act, 1986 and Environment Protection Rules, 1986. Pursuant to this MoEF issued detailed notification SO NO. 1533 dated 14.09.2006. As per the said SO, EC is required to undertake quarrying operations. Upto 100 hectares of area state level authority is empowered to issue EC. For above 100 hectares area MoEF will issue EC. Public hearing is mandatory for issue of EC in respect of projects over and above 5 hectares.
VII. Conclusion
Minerals are the backbone for the development of the Nation. Among various minerals, stone aggregate forms important mineral contributing for the development of the civilization. From a small house to mammoth complexes, apartments etc. would not have been possible without stone aggregate. Mother earth has given minerals for the cherishment of her children. No matter we create pain to her in extracting the stone by taking due care to preserve our valuable environment. The proper mining policy is essential to achieve this objective. Transportation cost is becoming an impediment in cost of stone aggregate. Rapid urban agglomeration is resulting in blocking of potential hillocks containing suitable material for making stone aggregates in the close proximity of the consuming places. Since minerals cannot be created we must ensure proper utilization of minerals where ever nature has provided by way of bringing a policy of exclusive mining zones by allowing any other activity in such areas with in minimum distance atleast of 1 km. Cluster mining approach in place of existing small mines of less than 5 hectares areas must be encouraged. Some states are resorting to auctioning of stone aggregate mines which is detrimental to the establishment of stone crushing industry. The levy of additional taxation for movement of stone aggregate from one state to another state is rightly held bad by the Hon’ble High Court of Karnataka very recently. In Andhra Pradesh and Telangana states there is heavy potentiality for stone aggregate making industry along with manufactured sand particularly in cities like Hyderabad, Visakhapatnam where river sand is not available within the close proximity.
