The State government has decided to grant a composite licence through competitive bidding to explore diamond mines at Upparapalli, a nondescript village in Kadapa district.
The Mines and Geology Department will invite tenders by the end of this month.
The decision comes after a preliminary survey by the Geological Survey of India (GSI) has hinted at the presence of diamonds at Upparapalli. The GSI has already conducted G-4 studies (Reconnaissance Survey).
“The government has given its nod to invite the tenders. A composite lease will be given to the successful bidder, who will take up the survey to pinpoint the regions where diamonds are present in abundance,” says V.G. Venkat Reddy, Vice Chairman and Managing Director, Mines and Geology Department.
The successful bidder has to take up G-3 (Preliminary Exploration), G-2 (General Exploration), and G-1 (Detailed Exploration) surveys. These will help in assessing the level at which the ores are available in those blocks.
The successful bidder will have to bear the expenses of the surveys. The bidder will be given two to five years to complete the surveys.
The G-4 studies have shown that diamonds are available in the area. As per the estimates, diamonds are available within a radius of 37.65 sq km in the Upparapalle area. The river basins of the Penna and the Krishna are said to have once harboured large diamond mines.
Act amended
There was a ban on issuing licence for diamonds exploration based on the G-4 surveys. However, the Union government had recently amended the Mines and Minerals, Development and Regulation (MNDR) Act to allow leasing of mines as per the G-4 survey to increase revenue.
Following the amendment, the State government has turned its attention to explore diamond and gold reserves.
“As the surveys involve huge investment, the Centre thought of roping private agencies, and to facilitate this, the Centre has amended the Act. A six-member high-power committee has sanctioned permission for the survey at Upparapalli,” according to the officials.
