Report 1 of 2025 - Report of the Comptroller and Auditor General of India on Functioning of Mines and Geology Department pertaining to Government of Andhra Pradesh

What did the audit examine?

This audit examined the functioning of the Mines and Geology Department of the Government of Andhra Pradesh, covering the period from 2017-18 to 2021-22, focusing on mineral exploration, lease granting, revenue collection, and prevention of unauthorized mining.

Who / what it concerns

Mines and Geology Department, Government of Andhra Pradesh

What the auditor found

• State Mineral Policy not formulated, depriving optimal use of mineral resources
• Mining plans approved without considering UNFC guidelines, inflating reserves
• Mineral exploration fund did not receive designated revenue and funds not fully utilized
• System for granting mining leases not transparent, with pending applications and lack of data
• Inoperative leases not properly monitored, leading to idling of mining areas
• Lease deeds not executed and registered, causing loss of revenue from stamp duty
• Short levy of DMF and MERIT on government works
• Short collection of security deposit and non-forfeiture
• Short levy of dead rent and interest

Points worth noting

• Mining plans approved without UNFC guidelines led to inflated reserves
• Mineral exploration fund did not receive designated revenue
• Lease deeds not executed and registered, causing loss of revenue
• Short levy of DMF and MERIT on government works
• Short collection of security deposit and non-forfeiture