The announcement that the Y S jagan Mohan reddy administration has given the go-ahead for the restart of iron ore mining operations at the Obulapuram mines in the Anantapur district, owned by mining magnate and former karnataka minister gali janardhan reddy, has created a stir in state politics. The state government's attorney recently informed the supreme court that the state has no objections to Obulapuram Mining Company (OMC), which is promoted by gali janardhan reddy, resuming iron ore mining in the reserve forest region.

After OMC requested permission from the supreme court to resume mining operations, the jagan administration filed an affidavit, asserting that "nothing further remains" in the case because the boundary dispute between andhra pradesh and karnataka, which had forced mining to cease, was now addressed. gali janardhan reddy is currently back in the iron ore mining industry, and if the supreme court approves it after reviewing the state government's submission, that will be a major plus for the ysr congress party given his strong friendship with Jagan.

After the Central Empowered Committee (CEC) of the sc reported widespread encroachment and recommended that companies guilty of mining outside lease areas be allowed to resume mining and made to pay exemplary penalty, mining in the Anantapur district was halted until the mining leases were demarcated on the ground in march 2010. Allegations surfaced that gali janardhan reddy had engaged in indiscriminate iron ore mining in areas larger than those authorised by the OMC and claimed infringement on forest land. He continues to be the subject of a cbi investigation on alleged money laundering and illicit extraction.

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