Cabinet ratifies new mining policy

Hyderabad, Oct 31 (UNI) The Andhra Pradesh Cabinet today ratified a new mining policy with the Centre giving 'in-principle' approval to Andhra Pradesh and Orissa to mine the Nuagaon Telisahi coal block jointly on a 50:50 sharing basis.

The Government decided on the new policy in view of huge demand for coal and consequent expansion in mining in and outside the state, including a considerable part of coal blocks in tribal areas, where only Central or state public sector undertakings could take up mining, State Information and Energy Minister Mohd Ali Shabeer said.

He told reporters after a Cabinet meeting that the state's share from coal mined from Nuagaon Telisahi would be first allotted to the Krishnapatnam Thermal Plant and later other Generation Corporation units, before sale to other firms.

The state Mineral Development Corporation had bid for 20 blocks across India, including six in notified scheduled areas in Andhra Pradesh, Mines Department Director, V D Rajagopal said.

It was estimated that the Nuagaon Telisahi block had 480.98 million tonne of coal deposits, while the six blocks in Andhra Pradesh had 750 million tonnes, Mr Rajagopal added.

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