Vijayawada: The Union government has granted prospecting licences to 16 multinational companies to explore gold and diamond deposits in Andhra Pradesh.

State Mines Minister Uma Madhav Reddy told reporters the Geological Survey of India, had identified rich gold and diamond deposits in 11 districts, including Mahaboobnagar, Nalgonda Krishna and Guntur.

The companies were allowed to prospect for gold and diamond deposits in the next three years under the lease agreement. Memoranda of understanding had been signed for projects worth Rs 1,600 crore with private parties, she said.

The state, second after Bihar in mineral wealth, had earned foreign exchange worth Rs 350 crore through granite exports, she added.

The Karnataka-based Kudremukh Iron Ore company would set up a Rs 400 crore low grade iron pellet project near Ongole and the foundation stone would be laid by Chief Minister N Chandrababu Naidu on April 12, the minister said.

The income from the Mines Department had surpassed the target of Rs 572 crore by 13 crores during 2000-2001, she said and added that a target of Rs 630 crore had been fixed for this year.

Later, she inaugurated an exclusive check post of the Mining Department at Tummalapalem, near here, first in the state and announced that similar check posts would be set up in all the districts to check illegal quarrying and transportation.

UNI

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