Visakhapatnam: The state government late on Thursday night issued orders cancelling the Memorandum of Understandings (MoU) for supplying bauxite ore mined by the state run mining agency, AP Mineral Development Corporation (APMDC).
The MoUs had been signed with Jindal South West Ltd (JSW) in 2005 and with Anrak Ltd in 2008, to supply the bauxite ore mined by APMDC in the Vizag Agency tracts by the then Y.S. Rajasekhar Reddy government. The Comptroller and Auditor General (CAG), in its latest report, had found fault with the MoUs, which it felt were unfavourable towards the state government.
It was after widespread resistance and criticism from various quarters, especially from the local tribals, that the state government retracted its decision to go ahead with bauxite mining. The state government also has plans to cancel Go No 97 it had issued last November, diverting forest land in favour of APMDC to proceed with mining.
Interestingly, the Industries departments GOs 44 and 45, which were issued late on Thursday night cancelling the MoUs, also found fault with the YSR government, stating that the agreements were not favourable for the Corporation.
APMDC had pointed out at least seven clauses of the MoU signed with Anrak that should be amended to maximise the revenues of the Corporation. Based on the APMDC’s proposal, the state Industries department issued orders cancelling the MoUs.
However, cancelling the agreements didn’t please those fighting against bauxite mining. “The spirit of state government’s proposal on bauxite mining remains the same unless the GO 97 is cancelled too. The state government can sign another MoU with the same company with new clauses, or with another company. We will consider that the government has totally withdrawn the decision on mining only if Go 97 is cancelled,” said CPM state secretariat member, Ch. Narasinga Rao.
