CPI demands transfer of OMC mining leases to its stalled unit

KADAPA: Andhra Pradesh CPI Secretary K Narayana on Tuesday demanded that mining leases of the troubled Obulapuram Mining Company (OMC) be allotted to its non-functional unit, Bramhani Steel and it be taken over by a state-run entity.

Narayana said his party would launch an agitation for completion of the Bramhani Steel Factory, based near Jammulamadugu village in Kadapa district.

Obulapuram Mining Company (OMC), owned by now incarcerated former Karnataka minister Gali Janardhana Reddy, and his brothers, is the promoter company of the Bramhani Steel.

OMC has been embroiled in controversy over alleged instances of illegal mining.

"Government should ask SAIL or any other state-run company to take over the pending project (Bramhani Steel) for the development of the backward Rayalseema region. The government could hand over the mining leases of Obulapuram Mining Company to Bramhani Steel", Narayana told reporters after visiting the unit.

OMC reportedly holds iron ore mining leases in 134 hectares in Anantapur District of Andhra Pradesh.

Narayana alleged that the ex-minister had proposed Bramhani Steel with an "ulterior motive" during the tenure of former Andhra Pradesh chief minister (late) Y S Rajasekhara Reddy.

The state government has taken back 10,500 acres of land it had allotted to Bramhani Steel after Reddy was chargesheeted in the illegal mining case.

"CPI will build a public momentum for starting Bramhani Steel by engaging like-minded parties", Narayana said.