Big blow: Jagan company lost mining lease

Seems Jagan Mohan Reddy’s stars aren’t favouring him these days and one after the other, he is facing blows regarding disproportionate assets case and new chargesheets getting added to the previous ones, is only dereasing his chances of getting aquitted. Like sprinkling salt on injuries, latest Jagan Company Saraswati Power and Industries limited has lost the mining lease as AP government has officially announced the mining company leased as ‘Lapsed’.

In May 2009, 5 years back YSR’s government has granted this lease to the company. But since there was no activity to dig the mines for limestone and also to set up a cement factory, the government of AP has served notices twice to the company. First time no response and second time the explanation was said to be unsatisfactory. Since the time has lapsed with inactivity, it was declared lapsed.

Industries Principal Secretary said, “After duly following due procedure under the rules and keeping in view the complete failure of the company to fulfil the mining lease conditions, the government hereby declares the mining lease held by Saraswathi Power and Industries Limited, officially, as lapsed under Rule 28 (1) of Mineral Concession Rules with effect from August 20, 2011.”

After Jayalalitha’s conviction, his poltical opponents saw it as a bad sign for the corrupted leaders and additional chargesheets to the accusations made on him came as unseen blow. But loosing this lease is in a way a bigger blow to Jagan with immediate effect because loosing a 30-year lease to mine limestone in 613 hectares of land is no simple thing.