Hyderabad | May 19, 2016: Telangana Government is working out an alternative plan to establish a steel plant at iron-ore rich Bayyaram in Khammam district with the Centre going slow on the project plan. The State Government is considering proposals by several private players in the steel industry.
Under 13th Schedule of the AP Reorganisation Act, the Union Government had promised to the Telangana State that a steel plant would be established by the Steel Authority of India Limited (SAIL) by exploiting the iron ore mines at Bayyaram and other reserve forest areas in tribal dominating district.
It is learnt that SAIL is backtracking over quality of ore. Unless the quality of ore is assured to be fit for steel production, SAIL may not go ahead with the steel plant plan, it is learnt.
The state government is preparing a report with the help of Geological Survey of India (GSI) on the quality of ore.
SAIL authorities gave ample indications that the project may not come up in the area as preliminary reports indicate that the mining area is containing only 50 per cent to 60 per cent ferrous in the iron ore which is inferior in the quality and not suitable for setting up a full-fledged steel plant.
The Centre, the State Government feels, was not ready to accord permission to SAIL to take up the plant until the survey report was finalised. GSI informed the state government that it could submit the report in the mid 2017.
“TS has been pursuing the issue with the Centre for past two years but the efforts did not fructify,” an official said. Deputy Secretary (Industries) S K Saida told The Hans India that taking all the issues into consideration, the government has adopted a ‘wait-and-watch’ policy till June next year.
In its own study, the government has come to a conclusion that the mining zone has ample potential to promote iron ore pellet manufacturing.
Several private steel companies like Jindal had come forward to set up pellet production units, it is learnt. Since the demand for iron ore pellets is increasing manyfold in the international market, the government intends to exploit the mining sources towards industrial growth as well as creation of wealth and employment.
To give a big push for private investments in the ore industry, the government is preparing a master plan.
(Source: http://www.thehansindia.com/)