Andhra Pradesh CM Naidu proposes rare earth mineral cluster across 3 states
Synopsis
Andhra Pradesh CM N. Chandrababu Naidu has proposed a rare-earth mineral cluster spanning three states — AP, Odisha, and Kerala — while directing APMDC to explore market capitalisation of assets covering titanium, ilmenite, and monazite. With 126 mineral sites already mapped and revenue up 18%, this is among the most ambitious mineral-economy pushes any state government has announced this year.
Key Takeaways
Chandrababu Naidu proposed a rare-earth mineral cluster spanning Andhra Pradesh , Odisha , and Kerala on 30 June .
126 locations with critical, bulk, and other valuable minerals have already been identified across Andhra Pradesh.
Mining revenue in the state has risen by 18 per cent due to improved operations.
APMDC has been directed to explore market capitalisation of mineral assets, including titanium , ilmenite , and monazite .
Gold reserves at Jonnagiri and Chigurugunta in Chittoor district are to be studied for future exploration.
The government has reportedly foregone nearly ₹1,000 crore annually by supplying sand free of cost to the public.
Andhra Pradesh Chief Minister N. Chandrababu Naidu on Tuesday, 30 June proposed establishing a dedicated cluster for rare-earth mineral deposits spanning Andhra Pradesh, Odisha, and Kerala, directing officials to undertake comprehensive mineral mapping across the state to identify and capitalise on its vast mineral wealth.
Key Developments
Chairing a review of the Mines Department at his official residence in Amaravati, Naidu instructed officials to assess reserves of high-value minerals including titanium, ilmenite, and monazite. He underscored that these rare-earth materials are critical to manufacturing electronics, magnets, and advanced industrial products, while also carrying strategic significance for nuclear energy and national security.
Officials informed the Chief Minister that 126 locations containing critical, bulk, and other valuable minerals have already been identified across the state, and that mining revenue has risen by 18 per cent owing to improved operations.
Value Addition and APMDC's Role
Naidu directed the state-owned Andhra Pradesh Mineral Development Corporation (APMDC) to explore avenues for market capitalisation of the state's mineral assets, with the support of domain experts. He emphasised that processing and value addition must take place within Andhra Pradesh to maximise economic returns and generate local employment.
The Chief Minister noted that substantial revenue could be unlocked by adding value to minerals such as beach sand, iron ore, manganese, and alumina, pointing to other Indian states that have achieved revenue surpluses primarily through mineral-based income. He called for a comprehensive policy framework focused on mineral value addition.
Gold Reserves and Future Exploration
Highlighting the state's untapped potential in gold mining, Naidu drew attention to gold reserves at Jonnagiri and Chigurugunta in Chittoor district, directing officials to study remaining mineral blocks for future exploration. This signals a broader push to map and monetise the state's full mineral portfolio beyond rare earths.
Sand Mining Oversight and Revenue Concerns
The Chief Minister ordered comprehensive monitoring of sand mining and supply through advanced technology, including the installation of CCTV cameras at sand reaches, use of satellite imagery for regular analysis, and GPS tracking for sand transport vehicles.
Naidu observed that the government has foregone nearly ₹1,000 crore in annual revenue by providing sand free of cost to the public, instructing officials to ensure the free sand policy is implemented transparently and without misuse.
Officials Present
The review meeting was attended by Mines Minister Kollu Ravindra, Chief Secretary G. Sai Prasad, Principal Secretary (Mines) Mukesh Kumar Meena, Principal Secretary (Finance) Piyush Kumar, and other senior officials.
With mineral mapping now underway and a three-state rare-earth cluster on the table, Andhra Pradesh's next steps on policy framing and APMDC's market strategy will be closely watched by industry and investors alike.
Point of View
EVs, and defence systems restructure away from China. But a three-state cluster requires Centre-mediated coordination, and Andhra Pradesh's track record with APMDC has been patchy. The real test is whether this stays a review-meeting directive or gets translated into an investable, policy-backed framework within a defined timeline. The ₹1,000 crore annual revenue foregone on free sand also points to a wider fiscal discipline challenge the state must address alongside its mineral ambitions.
NationPress
30 Jun 2026
Frequently Asked Questions
What is the rare earth mineral cluster proposed by Andhra Pradesh CM Chandrababu Naidu?
Chief Minister N. Chandrababu Naidu has proposed establishing a dedicated cluster for rare-earth mineral deposits jointly across Andhra Pradesh, Odisha, and Kerala. The cluster would focus on minerals such as titanium, ilmenite, and monazite, which are critical for electronics, magnets, nuclear energy, and national security applications.
How many mineral sites have been identified in Andhra Pradesh so far?
Officials informed CM Naidu that 126 locations containing critical, bulk, and other valuable minerals have already been identified across the state. Mining revenue has also risen by 18 per cent due to improved operational efficiency.
What role will APMDC play in this mineral push?
The state-owned Andhra Pradesh Mineral Development Corporation (APMDC) has been directed to explore avenues for market capitalisation of the state's mineral assets, supported by domain experts. The Chief Minister stressed that mineral processing and value addition must occur within Andhra Pradesh to maximise economic benefits and employment generation.
What are the gold mining prospects Naidu highlighted?
CM Naidu highlighted gold reserves at Jonnagiri and Chigurugunta in Chittoor district, directing officials to study the remaining mineral blocks for future exploration. This forms part of a broader strategy to map and monetise the state's full mineral portfolio.
Why is the Andhra Pradesh government concerned about sand mining revenue?
The Chief Minister noted that the state has foregone nearly ₹1,000 crore in annual revenue by providing sand free of cost to the public. He directed officials to ensure the free sand policy is implemented transparently and without misuse, and ordered advanced technology — including CCTV cameras, satellite imagery, and GPS tracking — to monitor sand mining and supply.
