Obulapuram Mining Company issue
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CM & Opposition leader Chandrababu Naidu differ on Obulapuram Mining Company issue
Obulapuram Mining Company

CM & Opposition leader Chandrababu Naidu differ on Obulapuram Mining Company issue
CM says mining lease grant valid till 2017

OMC promoter files defamation suits
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CM & Opposition leader Chandrababu Naidu differ on Obulapuram Mining Company issue

CM says mining lease grant valid till 2017

Hyderabad, July 26, 2007

The Chief Minister, Dr. YS Rajasekhara Reddy has asserted that the iron ore mining lease granted to Obulapuram Mining Company in D Hirehal mandal of Anatapur was valid till 2017 and there was no proposal for extension or renewal of the lease in the near future. He said that he company had applied for forest clearance that would expire on August 3 despite being entitled to temporary working permission for one year. The OMC paid Rs.1.81 crore as the net present value towards forest clearance and the Union Environment and Forests Ministry cleared the proposal.

Meanwhile, the opposition leader N Chandrababu Naidu contested that the Chief Minister's contention saying the transfer of leave to OMC on May 10, 2002 was valid for the unexpired lease period that was over on December 13, 2004. The company has applied for renewal of mining lease in 2005 and it was granted permission in a hurried manner by rushing the officials to New Delhi without OMC fulfilling th conditions.

He said that the OMC is continuing excavation of iron ore even now though its lease period expired in December 2004. During this period nearly Rs.1800 crore worth of iron ore was excavated, transported and exported but the government could get only Rs.18 crore as royalty. At a press conference, the Minister for Mines, P Sabitha Indra Reddy and J Geetha Reddy rubbished the charges made by TDP leader MV Mysoora Reddy on Wednesday.

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CM says mining lease grant valid till 2017

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