In a late night move on Thursday, Kiran Kumar Reddy government has issued orders scrapping the five year old MoU signed with Brahmani Steels project signed during the tenure of late YS Rajasekhar Reddy as chief minister. The project was to be set up by tainted mining baron Gali Janardhan Reddy at Jammalamadugu in backward Kadapa district.

Distancing itself further from the late CM's controversial projects and schemes, the Kiran Kumar Reddy government in a late night move issued GO 99 cancelling the project, promoted by Jaganmohan Reddy's friend Janardhana Reddy, who is cooling his heels in a Bangalore jail in connection with the OMC illegal mining case. A senior official said the Brahmani Industries Ltd (BIL) did not implement the project as per schedule and hence, the government took the decision to terminate the project. Then YSR government had signed the MoU with Gali's firm on May 21, 2007, to set up a mega steel plant and provide jobs to thousands of unemployed youth. Sources said the government is yet to take a decision on taking back over 14,000 acres of land allotted to BIL.