It is known that the Chief Minister of Andhra Pradesh, YS Jagan Mohan Reddy, and his family, own a 49% share in the Bharati Cements, and that his wife, Bharati is a director of the company as well. It has recently come to light that Bharati Cements has received the major share of government contracts in the last 10 months of the current financial year.
A share of 14 per cent or 2,28,370.14 metric tonnes of all purchase orders for cement made by the state government from April 2020 to January 18, 2021, has gone to Bharati Cements. A French Company, Vicat, acquired a major share of 51% in Bharati Cements.
Prior to Vicat acquiring the major share, The India Cements Ltd had investments worth Rs. 95.32 Crores in Bharati Cement. The India Cements Ltd is the second company to receive the major share of cement contracts from the Andhra Pradesh government. A total of 1,59,753.70 MT was ordered from the India Cements, which is a solid 30% less than the order that went to Bharati Cements.
The managing director of The India Cements, N Srinivasan is one of the persons who is mentioned in the CBI’s quid pro quo case filed against Jagan Mohan Reddy. Eleven chargesheets were filed by the CBI in between April 2012 and September 2014, quid pro quo cases exist on Dalmia Cements, India Cements, Raghuram Cements (now Bharati Cements) and Penna Cements. These companies are said to have been favored mostly by the then CM of AP, YS Rajasekhar Reddy, for any government contracts, as they were associated with his Jagan.
Andhra Pradesh Industries Minister M Goutham Reddy said that there is no favoritism going on, and that the contracts are being given to companies who are capable of meeting with the government’s expectations. He also said that many other smaller companies are not able to meet the government’s demands, and are not coming forward to have agreements with the government as the cement bags are priced lower with the government, at Rs. 225 per 50kg bag.
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