Auction of silica sand fetches APMDC Rs 3.16 crore

VIJAYAWADA: The reforms initiated in the Mines and Geology Department to get more revenue has started yielding results. The Andhra Pradesh Mineral Development Corporation (APMDC) has earned a record revenue of Rs 3.16 crore through e-auction of silica sand in Chillakur mandal of Nellore district. 

Silica sand is the most preferred material in glass industry. The APMDC  had invited bids for silica sand mining in 6 hectares. Five firms participated in the bidding. The bidding which commenced at Rs 1.60 crore, touched a record high of Rs 3.16 crore. Smarco Industries won the bid.

Informing that the State government used to give lease of mines on first come first served basis, an official of the Mines and Geology Department said mines used to be given on lease to those who filed applications first at a fixed price. As the fee was too low, there were instances of leaseholders not taking up any mining operations for several years, breaching the revenue to the government.

Hence, the government has come up with several reforms. Apart from the Rs 3.16 crore, the government will get more revenue through silica sand mining once the bidder commences mining activity. Director of Mines and Geology VG Venkata Reddy said by conducting the e-auction of silica sand for the first time in a transparent manner, the department has succeeded in generating more revenue to the exchequer.

Speaking to TNIE, Venkata Reddy said earlier they used to get Rs 3.5 lakh per hectare in the absence of auction. “But this time around, we changed the policy and rolled out the auction system to encourage competitiveness thereby generating more revenue to the exchequer,” he said, adding that their efforts have yielded the desired results.