Latest news with #APMDC
Time of India
4 days ago
- Business
- Time of India
Iron ore plant takes shape in Prakasam as JSW joins hands with Andhra Pradesh Mineral Development Corporation
1 2 3 Vijayawada: In a major boost to industrial development in the backward Prakasam district, the state govt has roped in steel giant JSW to take up an iron ore beneficiation plant. The project is expected to generate local employment and revitalize the region's mineral economy. The AP Mineral Development Corporation (APMDC) has signed an MoU with JSW to kick-start the iron ore beneficiation plant near Konijedu and Marlapadu village of Tangutur mandal. The state govt has spared about 1300 acres of land for setting up the iron ore beneficiation plant. In fact, the issue of setting up the iron plant in Prakasam has been on the cards for several years since Geological Survey of India (GIS) found iron ore reserves. After carrying out the initial studies, it was found that the iron ore available in the area is not of fine quality. This resulted in a delay in getting investments into the area. APMDC itself carried out separate studies and found that the mineral available in Prakasam districts could be utilized in steel and other allied industries after purification. Sources said that the local mineral has just around 30% iron content. However, the grading would be improved after beneficiation. According to the deal made with APMDC, JSW itself will launch the exploration operation and purchase the iron ore stock at the price fixed by Indian Bureau of Mines (IBM). Subsequently, JSW will process it in the plant and sell it in the market and also utilize in its own plants. JSW will pay 11% royalty to APMDC from the processed stock. Sources said that JSW would set up the plant and also manage it with its own cost.
India.com
07-05-2025
- Business
- India.com
AP High Court Admits PIL On APMDC, Notice Issued To Centre And State; Response Sought In Four Weeks
The Andhra Pradesh High Court on Tuesday admitted a Public Interest Litigation (PIL) challenging the state government's move to raise nearly Rs 9,000 crore in loans allegedly by leveraging the assets and name of the Andhra Pradesh Mineral Development Corporation (APMDC). A division bench comprising Chief Justice Dhiraj Singh Thakur and Justice Ravi Cheemalapati issued notices to both the central and state governments, directing them to submit their counter-affidavits within four weeks. The PIL was filed by YSR Congress Party MLC and General Secretary Lella Appi Reddy, who accused the Chandrababu Naidu-led government of violating constitutional norms and endangering the financial health of both APMDC and the state. Senior advocate P. Veera Reddy represented the petitioner in court. According to the petition, the state government is allegedly pledging the state treasury as collateral to secure private loans through APMDC, a move that the petitioner claimed could grant private lenders direct access to the consolidated fund of the state in the event of loan default. This is reportedly the first instance in Andhra Pradesh's history where such a mechanism has been used, raising concerns about its legality and long-term financial implications. The PIL also warned that APMDC, once a stable and profitable public sector enterprise, is now being dragged toward insolvency due to these controversial borrowing methods. The court will take up the matter after the completion of the four-week response period.
Hans India
03-05-2025
- Business
- Hans India
Appi Reddy knocks HC doors against govt
Amaravati: YSRCP MLC Lella Appi Reddy on Friday filed a Public Interest Litigation (PIL) in the Andhra Pradesh High Court, strongly objecting to the State government's move to permit a private party to approach the RBI and access the Consolidated Fund of the State. This development is with respect to the proposed Non-Convertible Debentures issuance by the Andhra Pradesh Mineral Development Corporation (APMDC). He argued that this provision is unconstitutional, as it bypasses legislative approval and violates Articles 203, 204, and 293 of the Constitution. He urged the Court to declare the move illegal and sought a stay on further proceedings. In the PIL, Appi Reddy expressed serious concern that private bond holders or debenture trustees could be allowed to withdraw funds directly from the State's consolidated fund in total violation of the Constitutional provisions providing for legislative oversight. He stated that such access undermines the principles of financial accountability and violates the Constitution's framework for public finance. The PIL also questioned the government's decision to grant lease rights over 436 minor mineral quarries to APMDC without any open bidding or competitive process. He argued that this violates the AP Minor Mineral Concession Rules and allows public resources to be used without transparency or oversight. Further, the APMDC was permitted to mortgage these mineral rights to private entities, who were also empowered to transfer or sell them without government approval. The petitioner termed this a dangerous and unlawful handover of State-owned assets. Appi Reddy requested the High Court to strike down the entire scheme as unconstitutional and arbitrary, and to halt the issuance of NCDs backed by public assets. The PIL aims at safeguarding the State's resources and financial integrity from being misused for private financial arrangements.
The Hindu
03-05-2025
- Business
- The Hindu
PIL filed in HC against A.P. govt. over private party's access to State's Consolidated Fund
YSR Congress Party (YSRCP) MLC Lella Appi Reddy has filed a Public Interest Litigation (PIL) in the Andhra Pradesh High Court, objecting to the State Government's move to permit a private party to approach the RBI and access the Consolidated Fund of the State. This development is concerning the proposed NCD issuance by the APMDC. The MLC argued that this provision is unconstitutional as it bypasses legislative approval and violates Articles 203, 204, and 293 of the Constitution. He urged the High Court to declare the move illegal and sought a stay on further proceedings, according to a press release. Referring to the PIL, Mr. Appi Reddy expressed concern that private bondholders or debenture trustees could be allowed to withdraw funds directly from the State's consolidated fund, in violation of the Constitutional provisions providing for legislative oversight. He stated that such access undermines the principles of financial accountability and violates the Constitution's framework for public finance. The PIL also questioned the government's decision to grant lease rights of over 436 minor mineral quarries to APMDC without any open bidding or competitive process, he said. The YSRCP leader argued that this violates the Andhra Pradesh Minor Mineral Concession Rules and allows public resources to be used without transparency or oversight. Mineral rights Further, the APMDC has been permitted to mortgage these mineral rights to private entities, who are empowered to transfer or sell them without government approval. The petitioner termed it as a 'dangerous and unlawful handover of State-owned assets. Mr. Appi Reddy requested the High Court to strike down the entire scheme by deeming it unconstitutional and arbitrary, and to halt the issuance of NCDs (bonds) backed by public assets. The PIL aims to safeguard the State's resources and financial integrity from being misused for private financial arrangements, he added.
India Today
25-04-2025
- Business
- India Today
Former Andhra finance minister flags irregularities under TDP government
The YSR Congress Party (YSRCP) slammed the Chandrababu Naidu-led Andhra Pradesh coalition government, calling out what it described as 'undemocratic' and 'unprecedented' handling of public a press conference, former Andhra Pradesh Finance Minister Buggana Rajendranath Reddy accused the government of pushing the state into a financial crisis, claiming that loans have ballooned to Rs 1.40 lakh crore without any clear explanation on where the money has no clarity on fund utilisation, and the promised welfare schemes during the election haven't even taken off,' Reddy FUTURE BORROWINGS PLEDGED? Reddy also flagged what he called a dangerous precedent — pledging the future borrowings of the Andhra Pradesh Mineral Development Corporation (APMDC).'What's even more shocking is that a private entity has been allowed to access Reserve Bank of India (RBI) funds directly. This is not only unprecedented, it goes against established financial norms,' he urged the government to explain how and why this was approved, warning that public sector undertakings like APMDC were being dragged into risky financial FOR REVENUE SPENDING, NOT DEVELOPMENT?The YSRCP leader took particular issue with the government's move to raise money through Non-Convertible Debentures (NCDs), which he alleged were being used for revenue expenditure — day-to-day costs — rather than long-term capital projects that would drive development. He warned that the borrowing, which reportedly exceeds APMDC's annual revenue, would only deepen the state's financial burden."PRIVATE HANDS ON PUBLIC MONEY"advertisementWhile borrowing for infrastructure isn't unusual, Reddy said the decision to allow a private custodian of these bonds to directly tap into RBI financing raises serious concerns.'How can a private player get access to central banking funds meant for government borrowing? It's a dangerous mix,' he said.'WE HANDLED IT BETTER DURING COVID'Drawing a comparison with the previous regime, Reddy said the YSRCP government managed state finances better — even during the Covid pandemic.'We borrowed responsibly and spent transparently. Today, we have a coalition government that's borrowed Rs 1.40 lakh crore and still hasn't fulfilled its basic promises to farmers, students, or women,' he said.A CALL FOR ACCOUNTABILITYReddy ended with a warning: that the coalition's financial tactics are not just questionable—they risk eroding public trust. He urged the government to be more transparent and called for greater scrutiny from within the coalition response, the Naidu government has refuted the allegations, calling them baseless and unsubstantiated. It maintained that the funds are being raised transparently to boost infrastructure and expand mining projects. IN THIS STORY#Andhra Pradesh
