The Andhra Pradesh government today cancelled the limestone mining leases granted to Penna Cement Industries, saying the company had failed to execute them.
The company was granted leases in 106.86 hectares and and additional 18.615 hectares respectively in Anantapuram district.
The AP government's order issued by Industries Secretary Sabyasachi Ghosh said that Penna Cements held mining leases in 1105.975 hectares (11.06 square km) in Anantapuram, Kurnool and Nalgonda districts.
The six mining leases were granted by former AP Chief Minister Y S Rajasekhara Reddy's government in 2008.
"Penna Cement Industries holds mining leases, altogether in an extent of 1105.975 hectares, which is in excess of 10 square kilometres limit prescribed under Section 6(1)(b) of the Mines & Mineral (D&R) Act, 1957. Hence, the grant is treated as void as per Section 19 of Mines & Mineral (D&R) Act,1957," the Industries Secretary said in his order issued today.
Accordingly, he said that mining leases granted in Anantapuram district in an extent of 106.86 hectares and 18.615 hectares respectively, were being withdrawn because the company has not yet executed the mining leases, Ghosh said.
In September, the CBI filed chargesheets against cement firms including Penna Cement, for allegedly investing money in Jagathi publications, owned by Jaganmohan Reddy, and in return got favours from the then Andhra Pradesh government led by his father Y S Rajasekhara Reddy, CBI sources had said.
Penna Pratap Reddy, Chairman of Penna Cement, now faces charges in the Jaganmohan Reddy illegal assets case.
