Dilemma over resuming Brahmani land

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posted on 13 years ago — updated on 1 second ago

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HYDERABAD: The state government is yet to take a call on the 14,670 acres of land allotted to the Brahmani Steels owned by Karnata..

HYDERABAD: The state government is yet to take a call on the 14,670 acres of land allotted to the Brahmani Steels owned by Karnataka former minister Gali Janardhan Reddy following his arrest in connection with illegal mining. While the mining baron declared that he was scrapping the project in March this year, an official communication by the company management to the Industries department in June stated that 'the project is under establishment and the production unit will commence soon'.
Land to the extent of 14,670 acres has been allotted to the Brahmani Steels at Rs 18,000 per acre in Ambavaram village of Kadapa district to set up a steel plant. In a MoU with the state government in May 2007, the company promised to complete works worth Rs 4,500 crore in the first phase by 2009. However, there has been no progress in establishment of the production unit till date.In March this year, Janardhan Reddy announced that the project would be scrapped forcing the Industries department to seek an explanation from the company management over delay in execution of the project. "We sought an explanation from the steel company in May this year and they have officially informed us in June that they have no plans to shelve the project. The state government is yet to decide on the issue," officials said. While the officials are mulling over various options for resuming the land, they are doubtful if the Brahmani Steels will part with the land, which now has a township, without seeking any compensation.

Over the years, the Brahmani Steels has come up with nothing but a compound wall stretching over 40 km, a township with about 380 villas along with guest houses, internal roads and preliminary works pertaining to railway tracks _ all worth about Rs 1,350 crore _ in the allotted land.

Though no decision has been taken on taking back the land, the government is also expected to ask the Brahmani Steels to compensate for about 54.5 lakh tonnes of iron ore exported abroad from about 171 acres of mines meant for supplying iron ore only to the steel factory.