Pandora's box open in Assembly over Obulapuram mining lease

Hyderabad, July 26 (UNI) Even as Andhra Pradesh Leader of opposition N Chandrababu Naidu urged the Government not to renew its agreement with the Obulapuram mining company, Chief Minister Y S Rajasekhara Reddy today made it clear that the mining lease, already issued to the company, was valid till 2017 and there was no need for renewal.

The Assembly today witnessed acrimonious exchange between ruling and opposition party members during the debate on land related issues, after Mr Naidu demanded the State Government to protect Rs 50,000 crore worth mineral rich land by not renewing the agreement.

The government should call for global tenders, he maintained.

Later, replying to Mr Naidu's demand, the Chief Minister asked why did the previous TDP government approved the transfer of mining lease to the company in 2002.

Dr Reddy said the government had no intention to involve itself in mining activity as the State Trading Corporation had incurred Rs 15 crore loss trying to make the first shipment of iron ore in the past.

The government was for encouraging value addition by facilitating establishment of 10 million tonne integrated steel plant in the State and get Rs 4000 to 5000 crore by way of taxes over a perid, Dr Reddy added.

Earlier, Mr Naidu claimed that illegal mining was taking place in Obulapuram and suggested that Finance Minister K Rosaiah could collect about Rs 5000 crore by imposing fine to fill the State's coffers.

He wanted the government to file an appeal in the Supreme Court to facilitate imposition of Rs 100 per tonne of iron ore as cess on the iron ore extracted.

UNI