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GUNTUR: In yet another blow to YSR Congress party president Y Jagan Mohan Reddy, the assistant director of mines and geology at Dachepalli has recommended cancellation of the lease for 613.476 hectares of land granted to Jagan’s cement company in Guntur district.In a letter dated 21-09-2011, assistant director G Ramachandra Rao urged the director of Mines and Geology deparment at Hyderabad to initiate action for cancellation of the lease for mining of limestone in favour of Saraswathi Power and Industries (P) Ltd, owned by Jagan, for violating several norms under 28(1) of MC Rules, 1960.The lease was granted to the company based on a letter (File No: 2633/R,3-2-2007) sent to the State government by former director of Mines and Geology Rajagopal recommending allotment of 613.476 hectares of land to Saraswathi Power and Industries Private Ltd for mining limestone of 3.5 lakh tonnes per annum.Two days after the Assembly election results were declared on May 16, 2009, i.e, on May 18, the Industries and Commerce department issued a circular No. 107 allotting 613.476 hectares of land to Saraswathi Power and Industries in Dachepalli and Machavaram mandals. The company, based at Chinnayapalem in Machavaram mandal of Guntur district, promised to provide employment to 250 persons by setting up a cement manufacturing unit. The Mining department executed a mining lease on August 20, 2009 for 30 years (till August 19, 2039) in favour of the company and issued work orders. However, the mining department has set a precondition that the lessee shall commence mining operations only after obtaining environmental clearance from the Union Ministry of Environment and Forest, and consent for establishment of the unit from the Andhra Pradesh Pollution Control Board (APPCB).The company has produced neither the clearances till date, nor did it commence mining operations. It also did not clear outstanding dues. Further, the lessee company has not submitted accounts and returns to the mining department since execution of the lease deed. Based on these violations, the assistant director has recommended cancellation of the lease.Following the recent CBI raids on companies associated with Jagan, the files related to Saraswathi Power Industries, including its blue print and map, were seized by the CBI officials from the officials of the Industries department.
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