Telangana mining revenue declines despite tech reforms to curb illegal mining

Despite reforms and technology‑driven surveillance measures, the Department of Mines and Geology and Telangana Mineral Development Corporation Limited continue to face declining revenues. Auctions of limestone blocks and sand bazaars have not offset sluggish revenue generation, while illegal mining and unauthorised crushing units persist across Telangana.

Hyderabad: Despite the tall claims being made by the Department of Mines and Geology over introducing reforms in utilisation of technology to curb illegal mining and continuous surveillance at sites, the revenue generation is still sluggish.

In the 2022-23 financial year, the revenue realised by the Department of Mines and Geology and Telangana Mineral Development Corporation Limited was Rs.7,705.53 crore. In the 2024-25 financial year, the revenue realisation declined to Rs. 5,507.72 crore, reflecting the state of affairs.

---

In the last financial year (2025-26), up to January 2026, the total revenue was Rs. 3,998.51 crore. Considering the sluggish revenue generation, it appears to be a challenge for the department to achieve the previous financial year’s revenue figures.

Since the 2022-23 financial year, the Department of Mines and Geology and Telangana Mineral Development Corporation Limited revenue realisation has been steadily declining.

At present, there are 198 mining leases and 1,644 quarry leases in the minor minerals category in the State. The Department of Mines and Geology handles both promotional and regulatory functions for overall development of the mineral sector and mineral revenue collections.

In the major minerals category, the department conducted an auction for three limestone blocks as mining leases in November 2024. One limestone block was annulled due to lack of technically qualified bidders. Rs. 12.55 crore was received towards the first installment of 20 percent of upfront payment during 2024-25.

In the second phase, the department conducted an auction for two limestone blocks as composite licences on September 19 and 23, 2025. Preferred bidders submitted performance security in the form of bank guarantees of Rs.12.93 crore and Rs. 4.49 crore respectively.

Similarly in the third phase, auctions were conducted for two limestone blocks as mining leases on January 28 and 29, 2026. The expected revenue was Rs.12.26 crore by March-end 2026.

This apart, the department had proposed a mines surveillance system, Mineral resource information system, GIS platform, AI and satellite imagery-based change detection system for detecting illegal mining.

Furthermore, the department had empanelled agencies for supply installation and integration of 140 GPS tracking systems for mineral transporting vehicles. Likewise, more surveillance cameras and advanced systems and weighbridges were also planned at crusher and quarry lease areas.

The Telangana Mineral Development Corporation had also established 19 sand bazaars across the State, including four such bazaars around HMDA limits. The move was aimed at supplying sand transparently and conveniently to consumers.

The corporation has also undertaken API integration of surveillance systems to enhance real-time visibility and streamline operations at sand stockyards and active sand mining locations.

Despite all these measures and claims, the Department of Mines and Geology and Telangana Mineral Development Corporation Limited revenue realisation is not encouraging. Complaints of illegal sand mining and unauthorised crushing units operations are being reported from many places in the State.