Naidu threatens to stop movement of illegally mined iron ore

The Telugu Desam Party (TDP) Saturday threatened to stop transport of iron ore in Anantapur district of Andhra Pradesh after a central empowered committee appointed by the Supreme Court slammed illegal mining activity by a firm owned by Karnataka Tourism Minister G. Janardhan Reddy on the Andhra-Karnataka border.

TDP president N. Chandrababu Naidu told a news conference Saturday that if the government failed to stop mining activity in Anantapur district by the Obulapuram Mining Company (OMC) in two days, his party would stop trucks transporting iron ore.

Naidu, who is running a campaign against illegal mining, demanded that the government immediately cancel all mining leases and seize iron ore in the region.

He alleged that Chief Minister K. Rosaiah, like his Karnataka counterpart B.S. Yeddyurappa, had surrendered to the mining "mafia" and had shut his eyes to the illegal activities of the OMC.

"The Rosaiah government should be ashamed of itself after reading the report of the central empowered committee," he said.

The committee, in its report submitted to the Supreme Court Friday, also pulled up the Andhra Pradesh government for not being impartial and recommended that all mining activity be suspended until fresh boundaries of the mining leases are carried out.

Andhra Pradesh's minister for Panchayati Raj B. Satyanarayana Saturday said the government would take necessary action after going through the committee's report.

OMC is facing allegations that it is carrying out illegal mining in the lease areas of other mining companies, forest land and also indulging in illegal transport of iron ore between the two states.

Naidu said the committee's report had vindicated his party's stand that OMC looted public wealth with full support from then chief minister Y.S. Rajasekhara Reddy.

Naidu has alleged that the illegal mining had caused a loss of Rs.10,000 crore to the state during the last few years.

"They are illegally mining 3,000 tonnes of iron ore, thus looting Rs.10 crore of public wealth every day," he said.

The TDP chief alleged that Janardhan Reddy, through this ill-gotten money, had become a powerful "mafia" and even "bought" 50 legislators in Karnataka to stage a revolt against Yeddyurappa.

"Unfortunately BJP surrendered to this mafia to save its government," he said.

Naidu reiterated that Janardhan Reddy also pumped in money into Sakshi, the Telugu daily and television channel owned by Rajasekhara Reddy's son and Kadapa MP Y.S. Jaganmohan Reddy.

The Andhra Pradesh government had Nov 10 announced a probe by the Central Bureau of Investigation (CBI) into the alleged illegal mining.

Janardhan Reddy has denied allegations of illegal mining and offered to surrender his mining business and quit politics if the allegations were proved. He also denied business links with Jaganmohan Reddy.

Janardhana Reddy's elder brother Karunakara Reddy is the Karnataka revenue minister. Their third sibling G. Somasekhara Reddy is also a member of the assembly.

The powerful Reddy brothers hail from Andhra Pradesh's Chittoor district but they have made Karnataka's iron ore rich Bellary district bordering Andhra Pradesh their home.

Last updated on Nov 21^st, 2009 at 15:57 pm IST--IANS