VIJAYAWADA: The State government on Friday cancelled the limestone mining lease of the factory owned by the family of former minister JC Diwakar Reddy at Konuppalapadu village in Yadiki Mandal of Anantapur district. As per the Government Order issued to this effect, the lease for limestone mining given to Trishul Cement Company in an area of 649.684 hectares was terminated for contravention of sub-rule 10 of Rule 12 and Rule 24 of Minerals (other than atomic and hydrocarbon energy minerals) Concession Rules.
The government also revoked the order issued granting an extension of time for a further period of five years from August 1, 2015 to July 31, 2020 for the establishment of cement plant. It was observed that no work had commenced to set up the cement plant.
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Mining lease for Trishul Cement Company was given in August 2007 for captive use for a period of 20 years subject to the condition that the company should establish the cement unit within three years. When the factory was not set up even after the deadline, the government had extended the deadline by two more years. But the order was modified and instead of two years, the deadline was extended by five years. In 2015, the deadline was further extended by five more years.
In 2018, the lessee company requested for change in its name to Tadipatri Cements, but the Department of Mines and Geology recommended to the government to reject the request and revoke the order issued. It was also sought to terminate the mining lease.
Reacting to the cancellation of limestone mining lease for his cement factory, Diwakar Reddy said he will take a legal recourse in the matter. Speaking to newsman, he described the cancellation of the lease as ‘vindictive politics’ of the YS Jagan Mohan Reddy government. “I will fight it out in court. It is nothing but factionism - cutting off income sources of your opponent,” the former MP said.