Hyderabad, July 24: The multi-crore mining project in Khammam district, in which family members of the late chief minister YS Rajasekhara Reddy allegedly have a vested interest, has been halted.
The Government of India has kept in abeyance a notification issued earlier reserving 1.40 lakh acres in Bayyaram, Garla and Nelakondapalli mandals in Khammam district in favour of the AP Mineral Development Corporation (APMDC) for mining.
Based on the notification, the APMDC had entered into an MoU with a private company, Rakshana Steels Ltd, for mining iron ore and setting up an integrated steel plant. The twist in the tale is that rights over the land, on record, vest with the corporation as private players cannot operate in notified tribal zones. In reality, though, it is the private firm which invests and mines as well.
The Centre’s move is being seen as the first strike at the financial strength of the YSR family in the wake of Kadapa MP YS Jagan Mohan Reddy’s souring relationship with the party leadership.
Rakshana Steels is reportedly owned by friends of Brother Anil Kumar, son-in-law of the late YSR.
It was only a couple of weeks ago that the entire Opposition and several members of the ruling Congress demanded that the government cancel the MoU between APMDC and Rakshana Steels. At one stage, Chief Minister K Rosaiah, to whom Jagan is now virtually an enemy, contemplated a judicial probe but had to drop the idea due to his colleagues.
Delhi was then briefed on the issue. Significantly, the communication from the Centre on Friday said the decision to keep the notification in abeyance was taken “based on a proposal sent by the State Government.
–Agencies