Land given to Reddy's factory cancelled

Company was alloted 10,760 acres of land

The Andhra Pradesh government on Thursday cancelled the allotment of 10,760 acres to Brahmani Industries owned by tainted former Karnataka minister Gali Janardhana Reddy following directions by Chief Minister N Kiran Kumar Reddy.

According to a statement from the chief minister’s office, 10,760 acres of government land in Vemaguntapalli, Kothaguntapalli, P Bommepalli and Thugutlapalli villages of Jammalamadugu mandal in Kadapa district were allotted to Brahmani Industries for setting up an integrated steel plant of 2 million tonnes per annum capacity and a full production capacity plant of 10 million tonnes per annum capacity by 2017.

The allotment was cancelled after the company failed to establish the project. The company had assured direct employment to 10,000 people and indirect employment to at least 1 lakh people.

The decision to allocate land to Brahmani was taken by the cabinet led by then chief minister Y S Rajasekhara Reddy on June 6, 2007.

According to the memorandum of understanding (MoU) signed by the state Industries and Commerce Department and Brahmani Industries, the first phase of the steel plant with a production capacity of 2 million tonnes of steel was to be set up by 2009.

 As the Company failed to fulfill its commitment to establish the project as per the MoU, the agreement was terminated and allotment was cancelled.