The controversy is brewing as the Chandrababu Naidu government is trying to hand over the iron ore to another private company, even before the investigation into the allegations that 29 lakh metric tons of iron ore had been transferred to other countries between 2007 and 2009 during the YS Rajasekhara Reddy regime, and that more than Rs. 10,000 crores of public money had gone to one person, has not yet reached a conclusion.
The AP government has issued orders to South West Mining, a company owned by JSW, to explore for iron ore in 3,317.50 acres of forest land on the Andhra Pradesh- Karnataka border. This company is related to Jindal. There is criticism that the government-owned APMC has been creating many obstacles and restrictions in this area even though it has already been granted permission.
When the company applied that it could no longer carry out mining when the composite license expired, the government issued orders handing over the license to the private company Southwest Mining Company through e-action. This company has granted the composite license to conduct mining and identify minerals.
This company will later grant mining permits in the areas identified in the mineral exploration. JSW Company came forward to set up a steel industry in Kadapa during the previous government. With the change of government in the state, there was a campaign that the company was backing down.
However, key TDP leaders also announced in Mahanadu that it would definitely be set up here. The government has now given the iron ore lease to the company related to that company. There are criticisms that the government has been obstructing public sector companies that have come forward to mine iron ore and manufacture raw iron.
Three public sector companies have come forward to set up a steel pellet manufacturing industry in the Nemakallu area of Anantapur district. While APMC was to carry out the mining, Kudremukh was to manufacture the steel pellets, and a tripartite agreement was signed between the three companies in June 2012 to give half of the steel pellets produced to Rashtriya Ispat Nigam Limited (Visakhapatnam Steel).
After that, Kudremukh came here and laid the foundation stone in Nemakallu in 2012 itself. There was a huge delay in the allocation of iron ore to that company. It is still unclear what happened to that tripartite agreement.