JOIN USGali learnt nuances of mining from YSR's father
Despite its best efforts, the then Telugu Desam-led government of Nara Chandrababu Naidu had not been successful in breaking the hegemony of the mining mafia on the political and economic fortunes of Rayalaseema region.
Sources in the YSR family confirm that GJR learnt the ropes of mining as a small-time operator and assistant of Raja Reddy, father of YSR, who owned several barite mines in Mangampeta belt of Kadapa district. Raja Reddy had driven away all other competitors and even managed to encroach upon protected deposits of barites ore in the region.
Close on the heels of the expose of illegal mining of iron ore by Obulapuram Mining Corporation (OMC) of Karnataka Minister Gali Janardhana Reddy in Andhra Pradesh, the then chief minister K Rosaiah had cancelled all their mining licences.
The Rosaiah government had no alternative but to cancel the licences after the empowered committee of the Supreme Court, in its report of November 19, 2009 indicted OMC for its illegal mining operations over and above the original mining lease of 547.62 acres.
“Although the lease period ended in 2006, the YSR government extended the licence for a period of 20 years,” said V Hanumanth Rao, Congress MP who fought tooth and nail against the leases to the mining group of BJP leaders of Karnataka. Not only that, the YSR government sanctioned yet another 68.52 acres for 20 years on June 18, 2007.
Discreet exports
YSR government argued that the iron ore from the Ananthapur mines would facilitate Brahmani Steels set up by Gali Janardhana Reddy (Brahmani is the name of Gali’s daughter). But the steel company, which is now on the verge of being scrapped by the AP government, was allowed to export iron ore to South East Asian countries by the Gali group.
In AP, the Reddys were allotted over 10,000 acres in 2007 for the first phase of the Rs 25,000-crore Brahmani Steel project in YSR’s home district Kadapa. YSR had laid the foundation stone for Brahmani Steels and also granted over 5000 acres near the plant site for promoting a private air field. While Brahmani Steels is still awaiting water linkage, the airport is nowhere in sight even after five years of operation.
TDP chief Chandrababu Naidu, who spearheaded a campaign against illegal mining on Andhra soil, said in 2007: “Rampant mining is going on in Siddapuram and Obulapuram in defiance of the Union Environment ministry directive to stop mining till the Survey of India had verified the boundaries. The Union government has written four letters to get the survey completed, but the state government says it has done the survey through its forest department. Thousands of trucks of ore are being quarried out through Krishnapatnam port.”
“Blood and Iron”, a documentary produced by veteran journalist Paranjoy Guha Thakurta speaks volumes about the political, economic and ecological consequences of illegal iron ore mining in and around the Bellary district of Karnataka and Ananthapur district of Andhra Pradesh.
It highlights the crude manner in which the mining mafia eliminated their rivals, who included competing minors, non-cooperative toll gate and forest officials.
Suave and controversial
Former chief minister Y S Rajasekhar Reddy, though came across as a polished and suave politician, had a controversial beginning to his career as a barites mines owner in Kadapa district before he entered politics in 1978. Since then the mine licences are in the name of his wife, Y Vijayalakshmi, now Pulivendula MLA.
YSR was at the centre of several controversies, including the barites mining lease to his father and the acquisition of AP Carbides Limited by his family, which was subsequently sold to Renuka Chowdhary, now in Congress after the TDP slapped a notice for huge electricity dues and disconnected power supply to the company.
The TDP government had cancelled the barite mining lease in 2000 after a report by an enquiry committee, led by senior IAS officer V S Sampat (now Election Commissioner) into the illegal activities, including encroachment of unlicensed mining area.
Former TDP Parliament Member from Kadapa C Ramachandraiah’s comment speaks volumes of how the YSR family over rode law and order in the district. “If any labourer was killed in their mines, the body was thrown on rail tracks and recorded as an accident,” he said.
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