VISAKHAPATNAM: In a move to kill two birds with one stone, the State Government is understood to be contemplating allotment of iron ore mines to the Visakhapatnam Steel Plant.Firstly, it helps the VSP save money as it now imports iron ore from other States. Secondly, it effectively checks the growth of YSR Congress chief YS Jagan Mohan Reddy since Obulapuram mines are under the control of Karnataka Minister Gali Janardhan Reddy, a family friend of the YSR family, and suspected to be their financial life line. The government’s logic, sources say, is that none would fault its decision if Obulapuram or for that matter, Bayyaram iron ore mines are allotted to the VSP as it will be in national interest.The VSP does not have captive iron ore mines and as a result, is forced to cough up huge money to buy ore. Currently, it gets iron ore from the NMDC at Rs 4,300- Rs 5,000 per tonne. Steel plants with captive iron ore mines do not spend more than Rs 850- Rs 1,000.Lending his voice to the proposed move, Congress senior leader and Rajya Sabha member V Hanumantha Rao, who launched Jagriti a programme to study irregularities in allotment of mining leases here on Monday, said, “I want Obulapuram iron ore mines to be allotted to the VSP. Gali Janardahn Reddy, who holds the lease for mining iron ore to feed his Brahmani Steels, has declared that Brahmani Steels project is shelved.”The government seems to be waiting for the demand to pick up steam before moving in so that when it does, its decision will not appear vindictive. The INTUC, according to sources, has been directed by the government to demand allotment of all iron ore mines, run by private mining companies in the State, to the VSP.It has the support of VSP employees too. One official pointed out, “even in a cinema, outside food is not allowed. Why shouldn’t the VSP have captive mines?”
Comments
0 comment