Union Tribal Affairs ministry directed scrapping in 2012
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Visakhapatnam: CPM MP from Tripura, Jitendra Chowdhary, demanded scrapping of agreements APMDC signed with Jindal South West Ltd (JSW) and Ras Al Khaima (RAK) of UAE on bauxite mining, which were faulted by CAG. He said the issue would be raised in the Parliament in the winter session, if the agreements are not cancelled by the AP government.
The TD government in Andhra Pradesh and BJP- led NDA government at the Centre are both paving way for corporate loot of precious natural resources by undermining the law of land and environmental rules, which are leading to huge revenue loss and long run impact on the socio-economic and cultural base of our country.
CAG report No. 5 of 2014 on the public sector undertakings for the year ended March 2013 has observed that the MoU signed by the previous Congress government with JSW and RAK during 2005-2007 was aiming at only looting the precious natural resources, the bauxite ore from picturesque Araku Valley, he said on Monday.
He said that the CAG pointed that an estimated 550 million tonne bauxite ore reserve of Vizag district worth Rs 1 lakh crore had been mysteriously undervalued to Rs 11,400 crore only, which was further reduced to Rs 258 crore only in the agreement.
While APMDC has been maintaining 11 per cent share to lease on other minerals like granite and beach sand etc. in case of bauxite it was only 1.5 pc, which was leading to huge revenue loss.
Bauxite being a poisonous ore is profusely degrading the quality of water and land of Araku valley. No provision for checking the environmental degradation had been entered into the agreement. This will have long term effect to the life and economy of the valley, he added. As per the MoU, point is only 0.5 pc revenue from the project shall be spent on tribals.
( Source : deccan chronicle )
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