From Our Correspondent
Vijayawada: The much-touted beach-sand mining project of the Andhra Pradesh Mineral Development Corporation (APMDC) has once again become entangled in legal controversy. The deal between APMDC and Alluvial Heavy Minerals Ltd (a company of the Adani Group) for mining coastal heavy-minerals in Srikakulam and Visakhapatnam districts has stalled, as the Andhra Pradesh High Court has asked for detailed records and raised questions over the legality of the tender and equity sharing.
Key issues
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Under the agreement, Alluvial Heavy Minerals was slated to receive 90 % of the separated minerals, while APMDC would retain just 10 %. This has triggered objections that the deal contravenes central guidelines.
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The tender for the project was drawn up in December 2023; however, the mining lease and key statutory approvals have not been fully consummated. The state government admitted in court that the equity shares are not yet finalised.
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A public interest litigation (PIL) was filed, seeking cancellation of the tender. The High Court has directed the state and APMDC to submit all documents including the bidding process, approvals from the Department of Atomic Energy (because many of these beach-sand minerals include radio-active elements) and mineral-sharing arrangements.
Why this matters
The beach-sand deposits in Andhra Pradesh are rich in heavy minerals like ilmenite, garnet, sillimanite and possibly monazite, which are critical for industries and national strategic resources. Permitting a private company to capture 90 % of the output raises questions of both governance and national interest. Observers have flagged the danger of “resource capture” in beach sand mining as a matter of national security, especially where atomic minerals are involved.
The process has been criticised for potential disregard of the Mineral (Development & Regulation) (MMDR) Act and the 2019 amendment which permits only government agencies or their joint ventures for beach sand mining in many cases. The fact that a private developer has been appointed in a direct role has triggered heightened scrutiny.
State government response & current status
The state, via APMDC, has asserted that the private firm is a “project developer” and that ultimate mining rights remain with the corporation. But the court has not accepted this at face value, asking for a clear affidavit spelling out shares, timelines, and compliance.
The tender remains on hold until the legal process is resolved. With the High Court reserving verdict and records demanded, the project’s progress is uncertain.
Implications
For the government: A delayed project could impact expected revenues, employment, and industrial-upstream linkages.
For regulation and governance: The case sets a precedent for how beach-sand public resources are managed in Andhra Pradesh – whether private players can dominate and on what terms.
For environmental and strategic interests: Given the risk of radioactive minerals and ecological sensitivity of coastal deposits, regulatory oversight is critical.
The High Court hearing is pending and future orders will determine whether the deal is revived, modified, or scrapped.