`We have divided the 11 districts into 26 blocks each with an extent of 5000 sq km for mining gold and diamonds,' Reddy, who assumed office today, told reporters here.

Initial survey was underway and mining process would be taken up soon, he said adding that the state has fixed a target of Rs. 450 crore from mining this year against the previous figues of Rs. 420 crore.

Four districts each in Rayalaseema and coastal Andhra and three in Telengana were identified for gold and diamond mining, he said.

While the major chunk of revenue was from coal amounting to Rs. 232 crore, other major minerals like barytes and mica are likely to yield Rs. 115 crore.