MoU had automatic cancellation clause
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The MoU between Andhra Pradesh Mineral Development Corporation and Rakshana Steels, which the state has decided to cancel, had an inbuilt clause that automatically made the agreement null and void in the absence of any mining rights to the state agency. As per rules, mines in tribal zones are declared as “reserve areas” and the Centre has to accord permission before mining can be taken up in those areas.
The Y.S. Rajasekhar Reddy regime had worked out the MoU between APMDC and Rakshana Steels as only government agencies are permitted to carry out mining in tribal areas. As per the MoU, the APMDC would mine the ore spread over 56,690 hectares (1.41 lakh acres) and the company would use it. The state government’s role in Bayyaram mines had been questioned even after the death of Y.S. Rajasekhar Reddy.
Despite the Opposition’s objections, the then Chief Minister K. Rosaiah had cleared the proposal to accord mining rights to the APMDC in June 2010, paving the way for Rakshana Steels to benefit from it.
However, with Mr Jagan Mohan Reddy stepping up his dissidence, the Rosaiah government asked the Centre to put the earlier permission granted for mining on hold. Subsequently, the state government issued another order in December 2010, cancelling the mining rights to APMDC.
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