Hyderabad: The management of Saraswati Power and Industries Limited on Thursday moved the Hyderabad High Court challenging the action of the Andhra Pradesh government in cancelling the mining lease granted for limestone extraction in 613 hectares in Tangeda, Vemavaram and Chennayapalem villages in Guntur district.
The Industries department of the AP on October 9 issued GO Ms No 98 cancelling the lease on the ground that the mining lease holder was in mineral revenue dues of Rs 23,922 and the company had failed to establish cement plant for captive purposes as assured while securing the mining lease for the project.
The then Y.S. Rajasekhar Reddy government granted the 30-year mining lease to Saraswati Power for setting up a seven-million tonne cement plant and Y.S. Jagan Mohan Reddy reportedly has stakes in the company.
The company in its plea contended that the delay in establishment of cement plant was on account of pending clearances from the state government regarding issuance of “consent for establishment” and drawing of water. It urged the court to declare the action as illegal.
