The barytes syndicate traders have looted indiscriminately during YS Jaganmohan Reddy’s regime. Some have cheated the Andhra Pradesh Mineral Development Corporation (APMDC) and taken the barytes, while some have taken the Central Government’s Oil and Natural Gas Corporation (ONGC) by cheating it.
As per preliminary estimations, in the last five years, ONGC has been reportedly cheated to the tune of Rs. 370 crore. Senior officials say that if a thorough investigation is conducted, the value is likely to double. Low-quality CDW grade was purchased from APMDC and supplied to ONGC in the name of B grade powder.
Some senior officials in ONGC also cooperated in the fraud of a syndicate from Kadapa district. The corporation’s safety standards were put at risk. APMDC has also suffered financial losses. This fraud was uncovered when some key files in APMDC did not show any details of the barytes supplied to the central agency.
The market price of B grade barytes is Rs. 13,067 per tonne. But traders have offered to supply ONGC for Rs. 11,926. That is at a loss of Rs. 1,141 compared to the market rate! This is where the real problem lies. Traders are buying low quality barytes from APMDC at Rs. 2,000 per tonne. They process it and convert it into powder and supply it to ONGC.
Including the processing, transportation, loading and packing costs, the cost per tonne may not be more than Rs. 5,500. Supplying CDW grade barytes in the name of B grade is generating a surplus of Rs. 5,426 per tonne. This scam has been going on for the last five years since Jagan’s rule.
1.20 lakh tonnes of barites are being supplied to ONGC every year. Additional bills are being received from ONGC. Some senior officials in the corporation have colluded with traders. It seems that a YSRCP leader from Kadapa district has played a role in this affair.
In this way, Rs. 347.76 crore has been embezzled from ONGC in the last five years. It has come to light that some senior officials in ONGC have colluded with traders here and registered CDW grade as B grade and are taking the powder.
