BL reported that the Telgu Desam Party has charged that Obulapuram Mining Company has managed to make huge profits by paying a paltry amount of royalty to the state government for iron ore excavated in Anantapur district of AP.

TDP Parliamentary party leader Mr N Nageswara Rao and TDP leader Mr CM Ramesh at a press conference said that while OMC ought to have given a royalty of INR 5,000 crore, a mere INR 9.8 crore was paid.

They also questioned how the iron ore meant for the proposed Brahmani Steels Limited was being excavated and exported when the lease was for captive mine for that particular firm.

Referring to the turnover of INR 1,740 crore achieved by OMC during 2008 and the gross profit of INR 760 crore and net profit of INR 450 crore, they sought to know how gross profit of 45% and net profit of 35%.

(Sourced from BL)