Following the issuance of Consent to Establishment (CTE) by the AP Pollution Control Board (APPCB), the AP Mineral Development Corporation (APMDC) is moving fast to begin mining of iron ore at Konijedu and Marlapadu villages in Prakasam district with its joint venture partner AP JSW Steel Limited (JSWSL).

The joint venture, in which JSWSL is the majority partner with 89% shareholding, has begun steps for setting up an iron ore beneficiation plant at the site with an investment of ₹1,231.20 crore, including a fixed capital investment (FCI) of ₹1,058.20 crore, for a capacity of about 5 million tonnes a year run-of-mine and a production capacity of 1.35 million tonnes a year of high grade iron ore concentrate, spanning an operational life of about 15 years.

The APMDC published a notification on July 28 for the selection of an agency to carry out a Differential Global Positioning System (DGPS) survey and land classification for the project.

Issued by APPCB Member-Secretary S. Sri Saravanan, the CTE is valid for seven years from the date of issue — May 1, 2026. The APPCB’s Consent to Operate is awaited and is expected by the end of this year.

A senior APMDC official told The Hindu that as per previous data, the Konijedu-Marlapadu area had around 60 million tonnes of iron ore reserves, and that detailed exploration was in progress.

Permission was obtained from the government to withdraw 0.2789 tmc ft of water from the Gundlakamma reservoir. In June 2026, the government granted incentives under the AP Industrial Development Policy 2024-29: a 23% investment subsidy on eligible FCI limited to ₹210.40 crore, and power tariff reimbursement of ₹1 a unit for three years, not exceeding ₹57 crore, for energy procured from APCPDCL.

Green belt

In view of the impact of mining on the environment, it has been ordered that a green belt covering 33% of the total project area should be developed within the plant premises, with a five to 10 metre wide greenbelt on all sides along the periphery.

The plant site is to be selected as per Central Pollution Control Board guidelines in consultation with the District Forest Officer. The project is likely to be operational by early 2028.

Published - August 06, 2026 07:48 pm IST