The Hindu : Andhra Pradesh / Hyderabad News : OMC row: TDP for action against officials

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Tuesday, Nov 10, 2009
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Andhra Pradesh

Andhra Pradesh - Hyderabad

OMC row: TDP for action against officials

Special Correspondent

HYDERABAD: Telugu Desam Legislature Party has submitted a memorandum to Chief Minister K. Rosaiah, demanding action against officials who allegedly connived with Obulapuram Mining Company (OMC) and allowed it go ahead with illegal mining of iron ore.

In the memorandum presented by a delegation of TDP legislators led by Nagam Janardhan Reddy and M. Narsimhulu, it was highlighted how OMC was caught in a fresh row over the way it was selling 50 per cent of the excavated iron ore at “operational cost plus five per cent” to its consultant against the allotment conditions. Dr. Janardhan Reddy said the Chief Minister gave an assurance to get the issue examined.

When the allotment was made for 68.50 hectares, the State government had made it clear that the land was meant to serve as captive mines for the proposed steel plant in Kadapa, he said. But now without the steel plant coming up, these mines were excavated and virtually 50 per cent profit to the tune of hundreds of crores every year for arranging clearances and permissions.

It was nothing but siphoning of public money by the OMC with support from related authorities, Mr. Reddy alleged.

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