The Chief Minister of Andhra Pradesh, Jaganmohan Reddy, is constantly surrounded by controversy over the decisions of his government. Recently the High Court dismissed the proceedings of a criminal case of insider trading related to Amravati land deals. Jagan ordered this action, accusing the TDP of corruption. After this, Jagan is now accused of taking personal benefits from the government decision while still in office. In fact, in the last 10 months, only one cement company owned by Jagan’s family is getting most of the government’s purchase orders. Controversy has arisen regarding this.
What’s the matter ?: Jaganmohan Reddy’s family holds a 49 percent stake in a cement company- Bharatiya Cement Corporation Private Limited. Jagan’s wife is also the director of this firm. From April 2020 to January 18, 2021, 14% or 2,28,370.14 MT of the government’s total cement purchases have been taken from this firm. It is reported that 51 percent of Bharti Cement belongs to a French company named Vicat.
According to the information, The India Cements Ltd. received an order to purchase 1,59,753 MT cement – the largest after Bharti Cements. But the order received by India Cements was 30 percent lower than Jagan’s firm. Let me tell you that India Cements has an investment of 95.32 crores in Bharti Cements and sold it to Bharti only when Vikat acquired 51% of it.
N Srinivasan, managing director of The India Cements is among those who have been named by the CBI in the case against YS Jaganmohan Reddy and others. The CBI has alleged that the YS Rajasekhara Reddy government had benefited some companies and allotted them land at a lower price years ago. Apart from this, he ignored some laws and gave a lease of the mine and gave orders to some companies like giving more water to the river. In return, these companies invested in Jagan Reddy’s firm.
When asked by Andhra Pradesh Industries Minister M Gautam Reddy about this, he said that most orders were placed to Bharti Cement and India Cements, as these companies were the only ones able to supply according to the time period of the government. Some producers were having problems maintaining the supply chain and it is challenging for the government to keep the construction necessary. These orders were given according to the requirement.
The Telugu Desam Party, which lost the last election to the YSR Congress, has alleged that other cement companies led by Bharti Cement have formed a syndicate and in the last few months, the price of 50 kg sack has been increased from 220-250 to 350-400. Has been given up to Rs. This has been done only to benefit Bharti Cement, in which Jagan’s family holds 49 percent.