Mining activity has been badly affected, both in Vizianagaram and Srikakulam districts, apart from other parts of the State with the unprecedented tax burden, stringent norms for sanctioning of licenses, involvement of third parties in the collection of fees and others. This has led to slump in the minor mineral industries, including granite factories.
Thousands of people lost their livelihood and many industries are unable to clear their bank loans due to the crisis in the industry. According to a study by the Federation of Minor Mineral Industry (FEMMI), total mining leases have come down from 5,935 to 3,373 in the last three years due to multiple challenges.
Speaking to The Hindu, FEMMI Secretary General Ch. Rao said that the mining activity witnessed a 43.17 percent decline in Andhra Pradesh due to various new rules such as premium tax, consideration tax, security deposit, enhancement of fees on lease renewals.
