The validity of the Memorandum of Understanding with the company expired on May 20, 2010, and it "failed to fulfil its obligations and live up to the agreement", an order issued by Principal Secretary (Industries) T S Appa Rao said.
Brahmani Industries Limited (BIL) is a subsidiary of Obulapuram Mining Company owned by Gali Janardhan Reddy who is now in jail in connection with the illegal mining scam.
The then government headed by Y S Rajasekhara Reddy had allotted 10,760 acres of land to BIL for setting up an integrated steel plant with an initial production capacity of two million tonnes per annum, which was to be expanded to ten million tonnes by the year 2017, providing direct employment to 10,000 persons and also creating indirect employment to one lakh persons.
Initially, when the project was mooted, the government had agreed to allot only 8,000 acres to BIL but the then Chief Minister ensured the company got more land than required.
Several other incentives under the state