GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

Mines & Minerals - Prospecting Licence forLimestone over an extent of 1694.09 Acs in Sy.Nos. 592 to 668, 691 to 753, 756 to 789, ofRamapuram & 130 to 146 of Dondapadu villages, Mellacheruvu Mandal, Nalgonda Districtfor a period of 2 years in favour of M/s. Maata Cements Ltd - Sanctioned.

INDUSTRIES & COMMERCE (MI) DEPARTMENT

G.O.Ms.No.167                                        Dated:13.3.2001.

Read the following:-

1) From M/s. Nirman Cement Ltd ML application dt.8.11.1991

2) From M/s. Priyadarshini Cements Ltd, ML applicationdt.15.12.1996

3) From M/s. Maatha Cements Ltd, ML application dt.6.9.1997

4) From M/s. Priyadarshini Cements ltd., PL applicationdt.31.10.98

5) From M/s. Maatha Cements Ltd PL application dt.17.3.99

6) From M/s. Vishnu Cements Ltd., PL application dt.25.4.2000

7) From the DMG F.No.26074/R8(1)/97, dt.12.12.2000

8) Govt. Memo.No.24179/MI(2)/2000-1, dt.27.1.2001

9) Govt. Memo.No.24179/MI(2)/2000-2, dt.27.1.2001.

10)Govt. Memo.No.24179/MI(2)/2000-3, dt.27.1.2001.

11) From M/s. Pridyadarshini Cements Ltd, letter dt.7.2.2001

12) From M/s. Vishnu Cements Ltd, letter dt.7.2.2001.

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ORDER:

The following applications have been filed forgrant of Prospecting Licence/Mining lease for Limestone in Ramapuram and Dondapaduvillages, Mellacheruvu Mandal, Nalgonda District:

2. The Director of Mines & Geology in thereference 7th read above has submitted the following proposals:-

(1) to reject the ML application of M/s.NirmanCements Limited on the ground that it is not possible to establish any cement industrybasing on a small extent of 11.27 Hectares, and the applicant Company has also notindicated the stage of establishment of Cement Plant.

(2) to reject the ML&PL applications ofM/s.Priyadarshini Cements Ltd., on the ground that the reserves available in the existingleases of this Company are quite sufficient to meet their requirement, evenafterexpansion.

(3) to reject the PL application of M/s.VishnuCements Ltd., as their applied area is fully overlapping with the earlier applications ofMata Cements Ltd., & Priyadarshini Cements Ltd., the prior applicants, and

(4) to grant PL (ML application converted intoPL) for Limestone over an extent of Ac.1694.09 in Sy.Nos.592 to 668, 691 to 753 etc., ofRamapuram & Dondapadu (Vgs), Mellacheruvu (M), Nalgonda District for a period of 2years in favour of M/s.Maata Cements Ltd., by over looking the priority of M/s.NirmanCements Ltd., and M/s.Priyadarshini Cements Ltd., duly invoking the provisions of section11(5) of the MMDR Act, 1957 as the project of the company is a green field project, andthe company is setting up a plant having a capacity of one million tonnes and the rawmaterial i.e., limestone required for this Plant is 1.5 Million tonnes per annum.

3. As required under rule 26(1) of M.C. Rules,1960, show cause notices were issued to M/s.Nirman Cements Ltd., M/s.Priyadarshini CementsLtd., and M/s.Vishnu Cements Ltd., to explain within (7) days from the date of receipt ofthe memo as to why action should not be taken as proposed at para 2 above.

4. In response to the Show Cause Notices theexplanations received from the Companies have been examined in detail with reference tothe Provisions of the MM (D&R) Act, 1957 and the Rules made there under as detailedbelow:-

The show cause notice issued to M/s.NirmanCements Ltd., was returned undelivered by the Postal Authorities. The applicant companyhave left the address given in their ML application without informing the change ofaddress either to the Director of Mines and Geology or to the Afssistant Director of Mines& Geology, Nalgonda for receiving the Government communications. It demonstrates thelack of interest of the applicant company in their ML application. Hence, theirapplication is liable for rejection.

M/s.Sri Vishnu Cements Ltd., have stated that theapplied PL area is adjoining to their existing PL and plant area and as the area is at adistance of one to two Kms from their crusher as such mining can be done economically.Their Plant is already under expansion and the requirement of raw material (i.e,Limestone) is not sufficient and further move the mineral available is also low grade.M/s. Vishnu Cements Limited have, therefore requested to consider their PL application.

Grounds for rejection:

The applied area of M/s.Vishnu Cements Ltd., isfully overlapping with the applied area of prior applicants viz., M/s.Matha Cements Ltd.,and M/s.Priyadarshini Cements Ltd., Therefore their request needs no consideration. The PLapplication is therefore liable for for rejection.

(C) Priyadarshini Cements Limited:-

M/s.Priyadarshini Cements Limited in their letterdated 7.2.2001 have stated that (1)they have taken a decision to enhance their capacityfrom .60 million tons per annum to 2 million tons in the first phase (2) Ultimately buildcapacity of 4 million tons and achieve economies of scale for being competitive in theinternational market. (3) Financial institutions would require evidence of long termavailability of limestone supplies. (4) applied for the PL much earlier and (5) alreadyapplied to the State for sales tax incentives for the enhanced capacity and thereforerequested to consider the PL application for grant.

Grounds for rejection:

The ML and PL applications of M/s.PriyadarshiniCements Ltd., be overlooked on the grounds that (1) as per the approved mining plan theyhave sufficient reserves for maintaining a 2 million tons per annum plant for 60 years.(2)Their application is for only 2 million tons plant and the present plan to expand to 4million tons is only an after thought (3) There is no evidence of financial tie up and thenegotiations are reported to be under way.

5. For the reasons stated in para 4 above,Government hereby reject the following applications referred to at para (1) above.

1. ML application of M/s.Nirman Cements Limited.

2. PL application of M/s.Vishnu Cements Limited.

3. ML&PL applications of M/s.PriyadarshiniCements Limited.

SECTION OFFICER.