Bayyaram Steel Plant: An episode of continued denial of Telangana’s rights
Hyderabad: Call it discrimination or political vendetta, establishing a steel plant at Bayyaram was approved in the AP Reorganisation Act but the BJP-led union government has been vehemently denying Telangana’s demand for the project, citing non-feasibility and other reasons. This has been the case since 2014. Every time Telangana raised the demand at different platforms, […]
Hyderabad: Call it discrimination or political vendetta, establishing a steel plant at Bayyaram was approved in the AP Reorganisation Act but the BJP-led union government has been vehemently denying Telangana’s demand for the project, citing non-feasibility and other reasons.
This has been the case since 2014. Every time Telangana raised the demand at different platforms, including in the Parliament, the Centre has come up with a routine ‘non-feasibility’ response.
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In 2015, when MP Mohd Ali Khan raised the issue in Rajya Sabha, the then union Minister of State for Steel and Mines Vishnu Deo Sai said as per Andhra Pradesh Reorganisation Act, 2014, Steel Authority of India Limited (SAIL) was to examine the feasibility of establishing an Integrated Steel Plant in Khammam district of Telangana within six months from the appointed day – June 2, 2014. The feasibility report was submitted on December 1, 2014.
As per the feasibility report, setting up of steel plant with the proposed configurations was prima facie not financially viable. In October 2016, a Task Force was constituted to suggest ways and means to make the setting up of a steel plant in Telangana financially viable, identify and quantify incentives and concessions required and to prepare a road map with responsibility mapping, he had replied.
Representatives from the Central and State governments, SAIL, RINL, NMDC, MECON and MSTC were part of the Task Force. Again in March 2018, when the issue was raised in Lok Sabha by TRS MP Prabhakar Reddy, Vishnu Deo Sai said at the Task Force meeting on December 27, 2017, it was decided that the State Governments concerned – Telangana and AP – would share with MECON the data for preparation of report and work out realistic assumptions.
Based on complete information or confirmation from both the State governments, MECON would complete the Feasibility Report, the union Minister said in a written reply.
Meanwhile, the Geological Survey of India in its survey identified 300 million metric tonnes of iron ores in Bayyaram. But the Centre kept on insisting that it was not feasible and cited the quality of the ores. This has been the case since 2014 and even after eight years, the BJP government continues to stick to its stand of non-feasibility.
Though disappointed and frustrated with the Centre’s repeated denial, the Telangana government did not give up. It suggested a few alternatives, including setting up a plant at Bailadi in Chhattisgarh, which was 180 kms away from Bayyaram.
For transporting the ore to Bayyaram, a slurry pipeline or railway track could be laid. This was suggested by Chief Minister K Chandrashekhar Rao to Prime Minister Narendra Modi.
Vexed with the Centre’s discriminative attitude, Industries Minister KT Rama Rao in a letter to union Minister Ramchandra Prasad Singh in February this year pointed out that the NMDC had agreed to transport the ore from Chhattisgarh to Telangana.
The State government had even agreed to share the cost for laying a slurry pipeline or railway track. Yet, the Centre was not responding to the repeated pleas made by Telangana, Rama Rao had said.
Apart from the GSI survey, Metallurgical Engineering Consultants conducted a survey in Khammam and neighbouring areas and recommended setting up of a pelletisation plant or a scrap-based plant. The then union Minister Birendra Singh too, while participating in the NMDC celebrations, had announced that Centre was prepared to set up a pelletisation and scrap based plant at Kothagudem and Palvancha but there was no development in this regard till date, Rama Rao reminded.
Interestingly, even when the Centre in association with State governments is setting up special purpose vehicles for establishing steel plants in Chhattisgarh and Jharkhand, it has been neglecting Telangana’s appeals.
The Central government had spent Rs.71,000 crore on expansion and development of steel plants in Rourkela, Burnapur, Durgapur, Bokaro and Salem, but not a rupee was sanctioned for the Bayyaram steel plant in Telangana.
And on Monday, union Minister G Kishan Reddy once again rubbed salt into Telangana’s wounds, apart from shattering the employment dreams of tribal youth of erstwhile Khammam district, by repeating the same old refrain that the Bayyaram steel plant was not financially feasible.
