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Performance Audit was conducted on the functioning of Directorate of Mines and Geology in Andhra Pradesh to ascertain whether the systems and procedures for approval/renewal of mineral concessions were as per the prescribed rules/regulations and were properly complied with; the provisions for levy, assessment and collection of mineral receipts were properly enforced to safeguard the revenue of the State; and whether the monitoring and vigilance mechanism in Andhra Pradesh Government/Directorate of Mines and Geology was adequate and effective.
The audit revealed a number of system and compliance deficiencies which are briefly discussed in this Report.
Central and the State Governments are jointly responsible for the development of mining sector and mineral exploitation in India. In Andhra Pradesh the Directorate of Mines and Geology under Department of Industries and Commerce is responsible for grant, administration and monitoring of mineral concessions relating to minor minerals as well as levy and collection of mineral receipts.