Notwithstanding the threats hurled by opposition leader and YSRC President YS Jaganmohan Reddy against bauxite mining, TDP government has expressed its determination to mine the bauxite from Agency area of Visakhapatnam district. However, the government would wait for some time to allow the tempers cool down in the name of debating the issue widely among the people of the state and the tribal population inhabiting the Agency area in specific.
Making a statement on bauxite mining issue in the State Assembly , chief mminister Naidu said a decision on whether to go ahead with bauxite mining in the tribal-dominated areas in Visakhapatnam or not would be taken up only after “wider consultations and discussions”.
“Bauxite mining activities in the State have already been suspended. The government will honor public sentiment and take up a decision on bauxite mining only after a thorough debate on the pros and cons of mining of the ore. And the government’s policy on preserving the sensitive ecological balance will also be explained to the people,” he said in Assembly.
He said the government would revoke the controversial GO 222, issued by the Congress government led by YS Rajasekjhara Reddy in 2008 . This was the GO that allowed permission to mine the ore by two companies ANRAK and JSW to loot the ore given pittance to the government in return.
” GO MS 222, issued on August 13, 2008 enabled private companies to enter bauxite mining. It will benefit them most and the State and the local tribal people will be getting nominal fruits,” he said.
” The then YSR government had entered into two separate memorandums of understanding (MoUs) in 2007 with the government of Ras al Khaimah (an emirate forming part of UAE) and Jindal South West Holdings Ltd for supply of bauxite through the AP Mineral Development Corporation Ltd for the proposed aluminium refineries and smelters currently being established by these two private promoters in Vizianagaram district. The company floated by Jindal South West Holdings was incorporated as ‘JSW Aluminium Ltd’ and that of Ras al Khaimah as ‘AnRak Aluminium Ltd,” he said.
According to the GO,Naidu said, APMDC would get an equity participation of 1.5 per cent subject to a maximum of Rs 50 crore per year plus an extra sum of 1.25 times of the prevailing royalty for tribal development. The remaining 97-odd per cent of the revenue was earmarked for these two private promoters.
“As per this formula, for a production of 2,50,000 tonnes of aluminium per annum, Anrak Aluminium Ltd will earn a revenue of Rs 3,625 crore while JSW Aluminium Ltd with an annual production of 1.4 million tonnes of alumina, will earn Rs 3,150 crore. In contrast, as per the MoU, APMDC will get only Rs 100-Rs 150 crore per year as royalty and its share of the profit,” he said.
The State will get only a pittance while the two private promoters will walk away with the bulk of the revenue, he alleged.
Coming down heavily on Congress and the YSRC, Naidu said, “The followers of corrupt leaders, who were involved in allocating mining leases, are now demanding that government should stop mining activities.”
