The Andhra Pradesh Government has cancelled the allotment of more than 10,000 acres of land for the Brahmani Steel Plant of Gali Janardhan Reddy, the controversial former Karnataka Minister who is presently in jail in connection with illegal iron ore mining.
The State Government had alienated 10760 acres of land for the Brahmani Industries in Kadapa district in 2007 when YS Rajashekhar Reddy was the State Chief Minister. An official release said that the land allotment was being cancelled as the company had failed in implementing the project of integrated steel plant.
The land deal as well as the announcement of several incentives for the project had evoked sharp criticism from the Opposition parties as Gali Janardhan Reddy, the promoter of the project was a close friend of the then Chief Minister and his family.
Under the MoU signed by the Industries and Commerce department of the State Government and the Brahmini Industries, the first phase of the project was to be completed by 2009 with a capacity to produce two million tons of steel.
The company had also promised to provide direct employment to 10,000 people and indirect employment to 100,000 people. However, the project got indefinitely delayed and was marred by controversies when its promoter Gali Janardhan Reddy was arrested by the Central Bureau of Investigation on charge of illegal mining and export of iron ore from Andhra Pradesh and Karnataka. The steel plant, which was to come up in Jammalamadugu mandal of the district, was projected to have a total capacity of ten million tons of steel by 2017.