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APMDC must control bauxite mining: CM

Our Bureau

Hyderabad , Jan. 20

THE Chief Minister Dr Y. S. Rajasekhara Reddy, has said that National Aluminium Co Ltd (NALCO) should allow the bauxite mining lease to be in the name of AP Mineral Development Corporation (APMDC) only for monitoring environmental and tribal welfare issues effectively.

At a review meeting on Thursday, he said that the State Government is committed to economically uplifting tribals. The State undertaking, APMDC, should have a direct control on bauxite mining activities.

Officials informed Dr Reddy that NALCO had insisted on certain conditions, which would take away the control of mining activity from the State, besides insisting on State's investment. The conditions put forth by NALCO were:

  • Mining lease should be on the name of NALCO, as it is a PSU or it can be held by a joint venture company of NALCO and APMDC.

  • The equity participation between APMDC and NALCO could be in the ratio of 49:51 on investment basis, which works out to Rs 2,000 crore of investment by APMDC (up to the production of alumina.)

  • A rail link can be laid from the mining area up to K.D. Pet with a joint investment of Rs 250 crore.

  • Rehabilitation of tribals should be undertaken by APMDC with an estimated amount of Rs 500 crore charged on the project.

  • NALCO also suggested that the Government can jointly allot coal blocks and finance captive power production.

    Thus the conditions imposed by NALCO lead to investment of Rs 2,000 crore by the State for floating a joint venture company of APMDC and NALCO for bauxite mining and the production of alumina.

    If further value addition is needed to produce aluminium, investment by the State may jump up to Rs 8,000 crore.

    On the exploration of oil and natural gas, Dr Reddy said that APMDC may identify world class companies, which are experts in oil drilling and ready to invest in the State by way of sweat equity so that there is no financial burden on the corporation.

    The Chief Minister also accepted APMDC's proposal to have a joint venture with a Russian-based company to produce value added products using beach sand deposits in the State.

    He also appreciated the proposals to create mining zones in Ranga Reddy and the surrounding districts to meet the demand for road metal in the construction industry and rock sand production.

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