Mining lease to Saraswati Power cancelled

• GO viewed as political decision
• 600 acres of govt land allotted to company may be taken back

Guntur: In what appears to be a political decision, the TDP Government issued a GO (98) on Thursday cancelling the mining lease, issued during the erstwhile Congress Government, for setting up a cement factory at Chennagipalem in Makavara mandal in which YSRCP president Y. S. Jaganmohan Reddy is said to be having stakes.

The police beefed up security in the village apprehending trouble from the YSRCP activists following the issue of GO. Political observers feel that the GO is politically motivated rather than a decision taken on principled grounds. The GO might open a Pandora’s Box, as thousands of acres of government lands allotted for several projects throughout the State are locked up in private hands, having political affiliations. The reasons stated for annulling the lease is failure of the project promoters to set up the factory within the stipulated period that is by 2011. In all likelihood, the government might subsequently take back the government land of 600 acres given for the purpose, as the next step.

The lease was issued to Saraswati Power Pvt Ltd for setting up the cement factory. The Rajasekhara Reddy government had actually alienated 600 acres of government land to the company. The firm purchased 800 acres from farmers for setting up the factory.

Recently clashes occurred between farmers, supported by the TDP, and the company personnel, backed by YSRCP supporters, at Chennagipalem when factory personnel resisted attempts by farmers to stall building operations.

Farmers, who were already compensated by the company, tried to re-occupy the land with the support of the ruling party activists.

Minister supports GO
Guntur: Minister for Agriculture P.Pulla Rao has reiterated his support to the displaced farmers of Saraswati Power project whose lands they sold for the establishment of a Cement Company at Chennaipalem in 2009.

Addressing a meeting at the village here on Thursday, the Minister said that the government has issued a GO annulling the mining lease to the company as the company failed to set up its project within the stipulated time. He said that 1050 acres of lands out of 1515 acres had been registered in company's favour but works had not commenced since then.
He assured the farmers that all the lands sold by them also will be returned to them by the government in course of time.

He also promised of action the company personnel for attacking the farmers. Gurajala MLA Sreenivasarao announced a compensation of Rs.15,000 to every farmer whose crops had been damaged in the attack.