Vijayawada Serves Notices To Bharati Cement Over Controversial Limestone Lease Approvals
The Andhra Pradesh government has initiated action from Vijayawada by issuing show-cause notices to Bharati Cement over two limestone mining leases in YSR Kadapa district, questioning their approval through the application route despite central laws mandating e-auctions. The company has been asked to submit its explanation within 15 days, as the state reviews mineral allocations made in the final months of the previous administration, with the outcome likely to influence regulatory credibility, investment confidence, and governance standards in the cement and mining sectors.
Officials said the notices were issued after an internal review found that the limestone leases were granted in February 2024, even though amendments to the Mines and Minerals (Development and Regulation) Act clearly require major minerals such as limestone to be allocated only through an electronic auction process. The leases were approved just weeks before the model code of conduct for the general elections came into force, drawing scrutiny over both timing and procedure.The leases in question relate to mineral-bearing land in Kamalapuram and Erraguntla mandals of YSR Kadapa district. These parcels were originally applied for by another cement company more than a decade ago and were issued a Letter of Intent. However, mining leases can be executed only after securing approved mining plans and environmental clearances within a stipulated period, which were not obtained at the time. Government sources indicated that the Letter of Intent was later transferred to Bharati Cement without formal disclosure to the state, creating procedural and legal concerns.
Despite subsequent changes in central law that made auctions compulsory for such allocations, the previous state government proceeded to regularise the leases. Industry experts say this has raised broader questions about how legacy applications were handled after the law changed, and whether discretionary approvals undermined transparency in mineral governance.Similar issues have surfaced in other cases across Andhra Pradesh. Over the past year, limestone mining leases granted to multiple cement manufacturers have come under examination after central authorities flagged deviations from statutory norms. Mining plans submitted by these companies were reviewed by the Indian Bureau of Mines under the Union Ministry of Mines, which reportedly questioned how leases approved in 2023 and 2024 were allotted without auctions and formally flagged the matter to the Centre.The present NDA-led state government has indicated that it is reviewing all mineral leases granted in deviation of central law. Officials said further action will depend on the explanations submitted and legal vetting of each case. For the cement industry, which plays a key role in housing, infrastructure and urban expansion, the review introduces short-term uncertainty but also signals a push towards clearer, rule-based resource allocation.
Urban development analysts note that transparent mineral allocation is essential for sustainable city building, as limestone mining has long-term environmental and social impacts. How Andhra Pradesh resolves these cases is expected to shape future investment decisions and reinforce whether growth in construction and real estate aligns with accountable and sustainable governance.
