Kurnool: AP Carbides Ltd, the first foray of Chief Minister Y.S. Jagan Mohan Reddy's family into industry some 45 years ago, has had a controversial run.
Even after it was taken over by relatives of TD leader and cine actor N, Balakrishna, it continues to bleed promoters and drills a big hole to the state exchequer.
Bharat Alloys Energy Ltd, the latest version of AP Carbides Ltd, situated near Kurnool, has electricity bill arrears of Rs 38,65,08,257.
APTransco superintendent engineer G. Bhargava Ramudu has issued a notice to the now defunct company to pay the dues. Otherwise, its assets would be liquidated to recover the dues.
The directors of the company include Babu Rao Nadella, managing director, and Siva Sankara Rao Kale, Gopala Bhupala and Mathu-kumalli Rama Rao Sripattabhi listed as directors. The company was listed as ‘amalgamated’. Babu Rao is also listed as director in Bollineni Sponge Iron and Srinav Oil Extrac-tion Private Limited as full-time director.
Dr Y.S. Rajasekhar Reddy, the father of Mr Jagan Mohan Reddy, was one of the major stakeholders of AP Carbides. It was an ambitious project of the Rajasekhar Reddy family in the corporate sector as till then they were small-time contractors and traders in barytes in Kadapa district.
When the Telugu Desam came to power in 1983, then Chief Minister N.T. Rama Rao targeted the AP Carbides factory at Kurnool. The government slapped a demand notice for Rs 5 lakh on AP Carbides. The issue had figured in the AP Assembly and Dr Rajasekhar Reddy had a tough time defending the non-payment of electricity charges.
AP Carbides used to produce carbide products initially, and later switched over to ferro alloys before it was shut....