Hyderabad: Andhra Pradesh late on Tuesday ordered a complete halt to iron ore mining across the state, delivering a huge blow to Karnataka Minister G Janardhan Reddy's Obulapuram Mining Company (OMC).
The government also issued orders that the iron ore stocks with all companies should not be transported to other states or the ports.
OMC and five other companies engaged in iron ore mining in Anantapur district bordering Karnataka would be affected by the orders, which came hours after Chief Minister K Rosaiah held a high-level meeting with officials to discuss the issue of alleged illegal mining by OMC.
The decision came after a central empowered committee appointed by the Supreme Court established illegal mining by OMC and recommended that all mining activity be suspended until fresh boundaries of the mining leases are carried out.
Rosaiah discussed the report of the central empowered committee and also that of a three-member committee appointed by the state government to look into alleged irregularities. The decision was taken after the government consulted the legal experts.
OMC is allegedly carrying out illegal mining in the lease areas of other mining companies, forest land and also indulging in illegal transport of iron ore between Andhra Pradesh and Karnataka.
The Opposition Telugu Desam Party (TDP) is already running a campaign on the issue. It alleged that the illegal mining by OMC had caused a loss of Rs 10,000 crore to the state.
The TDP also alleged that OMC pumped in ill-gotten money into business concerns of YS Jaganmohan Reddy, Kadapa MP and son of former chief minister YS Rajasekhara Reddy.
Janardhana Reddy, who is minister for tourism in Karnataka, has huge mining interests in both the states.
The powerful Reddy had recently led a revolt against Karnataka Chief Minister BS Yedyurappa.
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