Former Union energy secretary EAS Sarma (File Photo) 
Andhra Pradesh

Former Union energy secy urges Centre to probe AP-RAKIA deal

This has given rise to the impression that the state government is considering an out of court settlement.

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VISAKHAPATNAM: Former Union energy secretary EAS Sarma on Friday urged Union Cabinet secretary Rajiv Gauba to order an independent investigation into the MoU signed between AP government/APMDC and ANRAK/RAKIA (Ras Al Khaimah Investment Authority), determine the civil and criminal liabilities for violation of the law of the land and for doling out bauxite at less-than-the-market price and thereby compromising the public interest.

Sarma, in a letter, said there was no question of any out-of-court settlement in the international arbitration case filed by Ras Al Khaimah (RAK), which is claiming compensation for the failure on part of the state government and Andhra Pradesh Mineral Development Corporation to deliver adequate quantity of bauxite to the alumina refinery at 

Makavarapalem in Narsipatnam division.

He noted that the government recently constituted a nine-member committee to deal with the arbitration proceedings. “...it was proposed to explore any recommendation to achieve an out of court settlement in the international arbitration case. This has given rise to the impression that the state government is considering an out of court settlement.

There is a widespread public apprehension in the state that RAKIA may get the undue benefit of a back-door re-entry into an arrangement whereby APMDC may be persuaded to get the bauxite deposits in Visakhapatnam tribal tracts mined as originally contemplated and supply the raw material to the joint venture ANRAK (between Penna Cements & RAKIA) Alumina Refinery.”He urged the Union Secretary to stop AP from allowing a backdoor re-entry of RAKIA and ANRAK, and revoke all mining proposals to safeguard the interests of the tribals.

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