Some political parties urge the Andhra Pradesh government to transfer the mining leases alloted to Obulapuram Mining Company (OMC), which is facing charges of illegal mining, in favour of Bramhani Steel.
Former Karnataka Minister Gali Janardhana Reddy and his brothers are the promoters of Bramhani Steel. They also own the OMC.
Political parties want the non-functional Bramhani Steel to be acquired by a leading player like SAIL or any other state-run company and revive its steel project near Jammulamadugu village in Kadapa district.
In Anantapur district of Andhra Pradesh, OMC reportedly holds iron ore mining leases in 134 hectare. It is alleged by some parties that the ex-minister had proposed Bramhani Steel with an "ulterior motive" during the tenure of former Andhra Pradesh chief minister (late) YS Rajasekhara Reddy.
The state government has taken back 10,500 acre of land it had allotted to Bramhani Steel after Reddy was chargesheeted in the illegal mining case.