OMC and five other companies, engaged in iron ore mining in Anantapur district bordering Karnataka, will be affected by the orders, which came hours after Chief Minister K Rosaiah held a high-level meeting with officials to discuss the issue of alleged illegal mining by OMC.
The decision came after a Central empowered committee(CEC), appointed by the Supreme Court, established illegal mining by OMC and recommended that all mining activities be suspended until fresh boundaries of the mining leases were carried out. Rosaiah discussed the report of the CEC and also that of a three-member committee appointed by the State Government to look into the alleged irregularities.
OMC is allegedly carrying out illegal mining in the lease areas of other mining companies and forest land, besides indulging in illegal transport of iron ore between Andhra Pradesh and Karnataka.
The Opposition Telugu Desam Party (TDP) is already running a campaign on the issue. It alleged that the illegal mining by OMC had caused a loss of Rs 10,000 crore to the state exchequer. The TDP also alleged that OMC pumped in ill-gotten money into the business concerns of Y S Jaganmohan Reddy — Kadapa MP and son of former chief minister late Y S Rajasekhara Reddy.
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