Date:27/07/2007 URL: http://www.thehindu.com/2007/07/27/stories/2007072753500600.htm

Andhra Pradesh

YSR, Naidu differ over mining company issue

OMC paid paid Rs. 1.81 cr. for forest clearance: YSR
Lease expired in December, 2004: Naidu

HYDERABAD: Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy has asserted that the iron ore mining lease granted to Obulapuram Mining Company in D. Hirehal mandal of Anantapur district was valid till 2017 and there was no proposal for extension or renewal of lease in the near future.

He said the company had applied for forest clearance that would expire on August 3 this year despite being entitled to temporary working permission of one year. The OMC paid Rs. 1.81 crore as the net present value towards forest clearance and the Union Environment and Forests Ministry cleared the proposal.

Leader of the Opposition N. Chandrababu Naidu, however, contested the Chief Minister’s contention saying the transfer of lease to OMC on May 10, 2002 was valid only for the “unexpired lease period” that was over on December 13, 2004. The company had applied for renewal of mining lease in 2005 and it was granted permission in a hurried manner this month in two days by rushing officials to New Delhi without OMC fulfilling the conditions.

Earlier, Mr. Naidu and floor leaders of other Opposition parties sent a letter to the Chief Minister urging him not to renew the lease to OMC. They alleged that the OMC was continuing excavation of iron ore even now though its lease expired in December 2004. During this period about Rs. 1800 crore worth of iron ore was excavated, transported and exported. But the State Government could get only Rs. 18 crore as royalty. After cancelling the lease they wanted it to be given to Andhra Pradesh Mineral Development Corporation or call for global tenders.

Mines Minister P. Sabitha Indra Reddy and Major Industries Minister J. Geetha Reddy rubbished the charges made by TDP leader M. V. Mysoora Reddy.