Hyderabad News

Andhra govt restores mining lease of company which was linked to CM Jagan Mohan Reddy

The Andhra Pradesh government has restored the mining lease of Saraswati Power Industries Limited, which was earlier associated with Chief Minister YS Jaganmohan Reddy.

The lease of mining limestone in Guntur district was canceled by N. Chandrababu Naidu after the bifurcation of Andhra Pradesh in October 2014. The lease was originally allotted to Saraswati Power Industries Limited for limestone on 613 hectares in Vemavaram, Tangeda and Chennipalem villages of Guntur district under Y-Rajasekhara Reddy. Naidu revoked the lease claiming that it was an anonymous company of YS Jagan Mohan Reddy.

Jela Jagan Mohan Reddy, one of the directors of Saraswati Power Industries Limited, is also a director of Bharti Cement Corporation Private Limited, Bharti Power Corporation Private Limited and YSR Foundation. YS Bharti, wife of YS Jagan Mohan Reddy, is a director at Bharti Cements. Recently, the government restored the lease of Saraswati Power Industries Limited.

Minister of Mines and Geology, Pedireddy Ramchandra Reddy told that Restoration of the lease to Saraswati Power Industries Limited was done as per the established norms. “The opposition Telugu Desam Party (TDP) is unnecessarily an outrage and crying. The state government has acted under Section 8A (3) as per the directions of the Mines and Minerals Development and Regulation (MMDR) Act, and has been done as per orders given by the High Court of Andhra Pradesh on December 12, 2019. He said.

He said that Chandrababu Naidu was unnecessarily causing controversy over the company’s lease being restored by tagging the chief minister. “In a united AP, the government gave 613 hectares of land to the Saraswati powers for limestone mining, but due to political reasons, during the TDP regime in 2014, Chandrababu Naidu canceled the lease. The company approached the court, which ordered the state government to restore the lease on December 12, 2019. Following court orders, the state government restored the lease and was extended for 50 years as per the MMDR Act. Ramchandra Reddy said that Leader of the Opposition Chandrababu Naidu is making unnecessary allegations against the government, despite that he has extended the lease period of more than 30 industries to 50 years.

He said, “Today Naidu is accusing the state government of reinstating the lease of a single industry, but he has extended the leases only two months before it is functioning properly.”

All mining activity in the state is carried out with permits granted during the previous government and no new license has been granted. “Chandrababu is unnecessarily politicizing every minor issue and making false allegations,” he said.

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