Rakshana Steels Mining Lease Cancelled

The state government, on Monday, cancelled the mining lease of Rakshana Steels with the Andhra Pradesh Mineral Development Corporation, that was given for the exploration of iron ore in Bayyaram and other mandals in Khammam district.

A senior official, when contacted, confirmed that the ministry of mines had cancelled the lease.

It may be mentioned here that Rakshana Steels is backed by Brother Anil Kumar, son-in-law of former chief minister Y S Rajasekhara Reddy.

The government, while scrapping the mining leases, asked APMDC to cancel all agreements in connection with the exploration of iron ore.

Earlier, the Centre, too, cancelled its earlier approval given to APMDC for the exploration of iron ore in Bayyaram and other mandals in Khammam.

The Centre had, earlier, reserved 1.41 lakh acres of land in favour of APMDC in Bayyaram, Garla and Nelakondapally mandals in Khammam district, for exclusive exploration, covering the survey and investigation of mineral-bearing areas.

However, there was a huge political outcry when opposition parties demanded the cancellation of the mining lease, on grounds that Rakshana Steels was backed by Anil Kumar, YSR's son-in-law.

However, the management of the company denied the charges.

Meanwhile, the Telugu Desam Party and the Communist Party of India have hailed the state government's decision over the scrapping of the leases, and appealed to the government to supply ore to steel plants run by the government. (INN)