Minister refutes TDP leader's charge on mining lease issue

Hyderabad, July 26 (UNI) Andhra Pradesh Mines and Geology Minister P Sabitha Reddy today refuted the charge of the Telugu Desam Party MLA M V Mysoora Reddy on the Minister misleading the House on mining lease for the Obulapuram Mining Company(OMC).

Addressing a press conference with Major Industries Minister J Geetha Reddy, she said the government had given the lease as per the Major Mineral Mining Rules and had submitted all the details to the House.

She said the Major Mineral Mining lease for 20 years and forest clearance certificate for mining was for ten years as per rules. The OMC had the lease licence till 2017 and the forest clearance till August this year.

Ms Reddy refuted the charge of the Opposition to OMC which is indulged in illegal mining in Ananthpur District.

Major Industires Minister Geetha Reddy alleged that TDP was trying to obstruct industrial development in the backward areas of Rayalaseema.

She said the promoter of OMC had proposed to establish steel plant in Kadapa with an initial investment of Rs 4,500 crore to produce 2.5 million tonnes of steel in the first phase by utilising the iron ore in Obulapuram.

The present rate of iron ore per tonne was between Rs 1,500 to Rs 2,000 and the state would get Rs 240 crore per year as taxes on conversion into steel.

The minister said 1.5 tonne iron ore would be required to get one tonne of steel which would fetch Rs 30,000.

Ms Reddy said the promoter had asssured the government to provide employment to 3,000 people in the first phase. The promotor would invest Rs 20,000 crore in four phases to produce ten million tonne per annum by 2017.

As much as 96 million tonne of iron ore would be required to produce 10 million tonne of steel and the promoter had come forward to invest in the company as 100 million tonne of iron ore reserves were available in the area.

UNI