APMDC jt venture project scrapped.

After 9 years and four months, the curtains are finally down on the controversial mining project involving Bothli Trade AG and the Andhra Pradesh Mineral Development Corporation (APMDC).

The AP Government has issued an order directing the Corporation to scrap the memorandum of understanding and all agreements pertaining to the project. Accordingly, the APMDC has issued termination orders recently.

The MoU was first signed in April 2006 by OST-CHEM Group, Ukraine, on behalf of Bothli Trade and the APMDC. Accordingly, a joint venture was to be formed between the two and an investment of Rs. 4,500 crore should have flowed in from the latter.

The project kicked up a major political row between the ruling Congress (I) and the Opposition Telugu Desam in the 2014 elections. This was a consequence to allegations of bribes involving a Congress (I) MP, and people in close quarters of former Chief Minister of combined AP, Y S Rajasekhara Reddy, the Ukranian promoter of the company. The issue blew up into a big scam in 2014, when the US Court in Chicago named these people as involved in the bribery case.

As per the agreement, Bothli Trade was to tap the heavy mineral sands deposits in Srikakulam, Vizianagaram and Visakhapatnam districts. The company was allocated mining areas in three stretches including 1,284 ha in Kuppili, Kotaplaem and Mentada in Etcherla and Ranasthalam mandals of Srikakulam district; 1,050 ha in Koyyam, Bouthala under Kodur in Vizianagaram district; and another 1,000 ha in a contiguous stretch in the two districts.


HBL