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Anrak mining deal under CBI scanner
Edited by : AL CIRCLE
2 min read
The CBI is investigating the orders for bauxite mining given by the YSR government to Anrak Aluminium Limited, a joint venture of the Penna Group of Ras-Al-Khaiamah investment authority, in Visakha-patnam and Vizianagaram.
The CBI, which is investigating the case against Penna Cements that has invested in Jagan Mohan Reddy’s companies, is recording the statements of officials and ministers linked to Anrak GOs.
Home minister P. Sabita Indra Reddy, then mines minister, claimed that the AnRak bauxite mining file had passed through her ministry as a routine procedure, and that the entire process was taken up by the AP Mineral Development Corporation in which she had a limited role.
The APMDC struck MOUs with Anrak and Jindal companies in 2007. The charge is that APMDC has got 2.5 per cent, while the private promoters got 97.5 per cent. The Jindal South West Holdings has incorporated JSW Aluminium Ltd, and the UAE government Ras-Al-Khaiamah floated Anrak Aluminium Ltd.
In November 2007, the YSR government appointed a six-member committee for fixing the sale price of bauxite and the percentage that the APMDC would get as royalty. The CBI will question committee members Y. Srilakshmi and B. P. Acharya.
As per the GO 222 of 2007, for 2,50,000 tonnes of aluminium per annum, Anrak Aluminium Ltd would earn Rs. 3,625crore, and JSW Aluminium Ltd Rs. 3,150 crore. However, the APMDC would get only Rs. 100 to Rs. 150crore per year as royalty and its share of profit.
If the state would have followed CEC’s formula it would stand to get Rs. 907.5crore as royalty.
The CBI, which is investigating the case against Penna Cements that has invested in Jagan Mohan Reddy’s companies, is recording the statements of officials and ministers linked to Anrak GOs.
Home minister P. Sabita Indra Reddy, then mines minister, claimed that the AnRak bauxite mining file had passed through her ministry as a routine procedure, and that the entire process was taken up by the AP Mineral Development Corporation in which she had a limited role.
The APMDC struck MOUs with Anrak and Jindal companies in 2007. The charge is that APMDC has got 2.5 per cent, while the private promoters got 97.5 per cent. The Jindal South West Holdings has incorporated JSW Aluminium Ltd, and the UAE government Ras-Al-Khaiamah floated Anrak Aluminium Ltd.
In November 2007, the YSR government appointed a six-member committee for fixing the sale price of bauxite and the percentage that the APMDC would get as royalty. The CBI will question committee members Y. Srilakshmi and B. P. Acharya.
As per the GO 222 of 2007, for 2,50,000 tonnes of aluminium per annum, Anrak Aluminium Ltd would earn Rs. 3,625crore, and JSW Aluminium Ltd Rs. 3,150 crore. However, the APMDC would get only Rs. 100 to Rs. 150crore per year as royalty and its share of profit.
If the state would have followed CEC’s formula it would stand to get Rs. 907.5crore as royalty.
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