Chief Minister N.Kiran Kumar Reddy cancelled the allocation of 10,760 acres of Government land to Brahmani Industries of Gali Janardhan Reddy, former Karnataka Minister who is presently in jail in connection with illegal iron ore mining.

The land allotment was cancelled for failure to establish the project to set up an itegrated steel plant in the backward region of Jammalamadugu mandal in Kadapa district which was allocated by YS Rajashekar Reddy when he was the Chief Minister.

As per the memorandm by the State Industries and Commerce Department Brahmani Industries for facilitating the setting up of an integrated steel plant of 2 million tonnes capacity per annum and a full production capacity of 10 million tonnes by 2017. The company had also promised to provide direct employment to 10,000 people and indirect employment to 100,000 people.

After Gali Janardhan Reddy was arrested by the Central Bureau of Investigation on charge of illegal mining and export of iron ore from Andhra Pradesh and Karnataka, the project got indefinitely delayed and was marred by controversies, the company failed to fulfil its commitment to establish the project in line with the memorandum, the Industries and Commerce Department terminated the memorandum and cancelled the incentives.