The failure of Penna Cements to begin its limestone mining operations in Thadipatri Mandal, Anantapur  district, has led the Andhra Pradesh government to force the cancellation of the mining leases originally granted to the cement company. In 2008, Penna Cement had been awarded licences to mine the limestone reserves of 1105.975ha (11.06km2) in Anantapuram, Kurnool and Nalgonda districts.

The company's in action has resulted in two mining leases granted in Anantapuram district of 106.86ha and 18.615ha being withdrawn, according to Industries Secretary Sabyasachi Ghosh.