The Andhra Pradesh government is preparing to revoke two limestone mining leases granted to Bharathi Cements just before the 2024 elections. The move follows objections raised by the Union Ministry of Mines, which flagged the allotments as violations of central mining laws. Responding to the alert, the state’s coalition government ordered a detailed inquiry. The Advocate General’s (AG) report has since confirmed that the leases were granted illegally, setting the stage for their cancellation once the Mines Department submits its final report.
Violation of 2015 Mining Reforms
The controversy stems from amendments made in 2015 to India’s mining regulations. Under these rules, leases for major minerals such as limestone must be allotted only through public auction. The law also stipulates that any Letter of Intent (LOI) issued before January 12, 2015, would automatically lapse if the company failed to secure all approvals by January 11, 2017. Despite these clear guidelines, just weeks before the 2024 elections, the then Chief Minister Y. S. Jagan Mohan Reddy’s wife, Bharathi, who serves as a director of Bharathi Cements, received two mining leases that ignored these legal requirements. The leases covered 509.18 acres in Kamalapuram and 235.56 acres in Erraguntla mandals of Kadapa district.
Raghuram Cements Link and Legal Manoeuvring
The land in question originally belonged to Raghuram Cements, which Bharathi Cements had acquired in 2009. Although Raghuram Cements had previously applied for the leases and received an LOI, it failed to obtain the required permissions within the deadline.
In 2016, when the company officially changed its name to Bharathi Cements, this update was not communicated to the government. Consequently, the government cancelled the original LOI and issued a notice of termination. Bharathi Cements challenged this decision in the High Court, which issued a status quo order, allowing the company to maintain temporary control.
By 2023, the High Court instructed the state government to review the matter and take a final call. On February 2, 2024, just a month before the election schedule was announced, the Jagan-led administration reissued the leases to Bharathi Cements, bypassing the central rules once again.
Other Companies Under the Scanner
The irregularities are not limited to Bharathi Cements. Similar violations were found in leases allotted to ACC and Ramco Cements. ACC had received an LOI back in 2010 for 2,463 acres in Mylavaram mandal of Kadapa district. However, the company failed to secure a valid lease after the 2015 regulatory changes. When Adani Cements acquired ACC in 2022, the Jagan government approved the lease in November 2023, contradicting central norms. Soon after, Bharathi Cements received its own leases, followed by Ramco Cements, which was allotted 267.30 acres in Jayantipuram, NTR district, on March 15, 2024.
All three companies later applied to the Indian Bureau of Mines (IBM) for mining plan approvals. Upon review, IBM discovered multiple violations, noting that the leases were granted directly through applications instead of public auctions. This, IBM stated, was a direct breach of the amended central mining policy. Following IBM’s report, the Union Mines Ministry asked the Andhra Pradesh government to re-examine the allotments and ensure compliance with federal mining laws.
State’s Next Move: Cancellation and Auction
The Andhra Pradesh government sought legal advice from the Advocate General, whose report clearly stated that the leases were illegal and must be cancelled. Acting on this, the Mines Department has been tasked with preparing a comprehensive final report. Once the report is submitted, the government is expected to cancel all four leases granted to Bharathi Cements, ACC, and Ramco Cements. Officials have hinted that these limestone blocks will soon be reallocated through a transparent public auction, bringing the entire process back in line with central regulations.
The state government’s action marks a decisive step toward transparency in resource allocation. By addressing irregularities that were overlooked for years, Andhra Pradesh is signalling a shift toward stricter enforcement and fair competition in the mining sector.
