Firm owned partly by CM Jagan household will get bulk of govt orders

IN WHAT raises questions of battle of curiosity and propriety, a cement firm part-owned by Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy’s household, has acquired a bulk of the acquisition orders for state authorities works within the first 10 months of the present monetary 12 months.
Bharathi Cement Corporation Private Ltd — by which Reddy’s household holds 49 per cent stake, and his spouse is a Director — acquired 14 per cent or 2,28,370.14 metric tonnes of all buy orders for cement made by the state from April 2020 until January 18, 2021.
Vicat, a French firm, had acquired a majority 51 per cent stake in Bharathi Cement in 2010.
The India Cements Ltd acquired the second highest buy orders of 1,59,753.70 MT, which is about 30 per cent lower than Bharathi Cements. The India Cements had investments of Rs 95.32 crore in Bharathi Cement, and had offered it the identical 12 months Vicat acquired 51 per cent in Bharathi.
N Srinivasan, Managing Director, The India Cements, is among the individuals named within the CBI’s (Central Bureau of Investigation) quid professional quo case in opposition to YS Jagan Mohan Reddy and others. The CBI had accused that the then Y S Rajashekara Reddy authorities had favoured sure corporations and allotted land at lesser costs, circumvented legal guidelines to present mining leases or allotted extra river water in opposition to guidelines, in lieu of which they invested in companies owned by Jagan Reddy.
Of the 11 chargesheets filed by the CBI between April 2012 and September 2014, the sixth, seventh and eighth pertain to quid professional quo by Dalmia Cements, India Cements, Raghuram Cements (earlier identify of Bharathi Cement), and Penna Cements. Penna Cements had acquired buy orders of 1,50,325.02 MT.
Taken collectively, these three corporations account for a 3rd of the overall buy orders throughout April 2020 and January 2021.
When contacted, Andhra Pradesh Industries Minister M Goutham Reddy stated Bharathi Cement and India Cements acquired a bulk of the orders as a result of they had been in a position to provide as per the federal government schedules. “Some manufacturers have supply chain issues and it is challenging for the government to ensure constant supply of cement to keep up with the schedule of works. The orders are placed as per the requirement,” he advised The Indian Express.
In Andhra Pradesh, buy orders are made via YSR Nirman, a state-launched portal utilized by all state departments to obtain cement for presidency works similar to housing, roads, irrigation initiatives, and so on. The portal connects stakeholders together with the Cement Manufacturers’ Association, manufacturing corporations, and authorities departments.
The YS Jagan Mohan Reddy authorities has mounted the value of a 50-kg cement bag at Rs 225 for purchases by its departments. The departments ship their necessities to the District Collectors who then place the orders utilizing YSR Nirman to the AP Cement Manufacturers’ Association (APCMA). The APCMA then distributes the orders amongst its 23 producers.

M Ravinder Reddy, Director, Bharathi Cement, who can be Vice-President, APCMA, dismissed allegations of favouritism. “The government orders have nothing to do with Y S Bharathi (wife of YS Jagan Mohan Reddy) being a director. She has been there since the beginning and we have supplied to the government during the previous regime too at Rs 230 per bag,” he advised The Indian Express.
An official of APCMA stated the commerce physique doesn’t favour any explicit firm in allotting orders. “The allotment is based on market share of the manufacturers and their capacities in Andhra Pradesh. The reason why Bharathi Cements or India Cements has got bigger orders is other companies are unable to supply the required quantity. Some companies do not want to take big orders because the government price is very low,” the official, who didn’t want to be named, stated.
Just a few cement corporations which acquired decrease buy orders refused to remark.
YSR Congress rival Telugu Desam Party has alleged that cement corporations led by Bharathi Cement have fashioned a syndicate and elevated costs from Rs 220-250 per 50 kg bag to Rs 350-400 per bag in the previous couple of months. “This has been done to benefit Bharathi Cement in which the CM’s family still had 49 per cent stake,” claimed Kommareddy Pattabhi, National Spokesperson, TDP. TDP claims the state authorities has turned a blind eye to cement worth rise within the open market. The normal public finally ends up paying way more, permitting cement corporations to make tremendous regular income via open market sale, even when they provide at a lower cost to the federal government, it alleges.
Ravinder Reddy, Director, Bharathi Cement, dismissed these allegations. “Prices have risen due to many factors. We have a plant with a capacity of 5 million tonnes, so we receive many government orders. But it is a burden because the price is very low. We do it as part of corporate social responsibility especially because housing for weaker sections is also involved,” he stated.
When requested about TDP’s allegation that cement costs have steadily risen, Industries Minister Goutham Reddy stated the federal government can not implement worth management. “Prices have risen, but the government has no role in it. We cannot dictate prices,” he stated.
When requested if cement corporations had been appearing in live performance to affect costs, he stated, “Cements companies have their own platforms. I am not really in a position to discuss it because I cannot present evidence.”