Amaravati: Bharathi Cements Leases Set for Revocation
Non-Compliance Sparks Lease Cancellation
The Andhra Pradesh government is preparing to revoke limestone mining leases granted to Bharathi Cements due to violations of auction-based allocation rules. The prior Y.S. Jagan Mohan Reddy administration allocated 744 acres across two limestone mines in February 2024, disregarding mandatory auction protocols.
Legal Approval and Imminent Decision
The state’s legal department has endorsed the cancellation of Bharathi Cements‘ leases. Chief Minister N. Chandrababu Naidu will review the Mines Department today, with a decision on the leases anticipated, potentially influencing similar cases involving other companies.
Background of Lease Allocations
In 2009, Raghuram Cements, later acquired by Bharathi Cement, obtained a Letter of Intent (LOI) for 744 acres in YSR Kadapa district’s Kamalapuram and Erraguntla mandals. The company failed to secure required clearances, prompting the state to issue a withdrawal notice in 2016.
Central Mining Reforms
In 2015, the central government mandated that LOI holders obtain all approvals within two years, or face lease termination. Bharathi Cement’s non-compliance led to the 2016 notice. The company’s appeal resulted in a High Court status quo order, delaying action.
Court Directives and Recent Allocations
A 2021 central amendment required exploration leaseholders to secure approvals for mining leases, or risk cancellation. In 2023, the High Court instructed the state to hear Bharathi Cement’s case, leading to the contested 2024 lease allocation, similar to one granted to ACC Cements.
Additional Companies Under Review
ACC Cements, now under Adani Cements, holds a 2,463-acre lease in Mylavaram mandal from 2010, unfulfilled due to missing approvals. Ramco Cements is also under scrutiny. The Indian Bureau of Mines (IBM) has challenged these allocations, citing mandatory auctions since 2015.
Central Scrutiny and State Action
The IBM raised concerns with the Union Ministry of Mines, which sought clarification from the state. The legal department recently supported revoking Bharathi Cement’s leases, while ACC and Ramco’s cases await further evaluation.
Critical Review Meeting
Chief Minister Naidu’s review of the Mines Department today is expected to finalize the cancellation of Bharathi Cement’s leases. Officials will present the legal department’s opinion, aligning the state’s actions with central mining regulations.