Hyderabad: The State government is expecting a positive statement from Union Minister for Steel Birendra Singh on setting up of Bayyaram Steel Plant in the State, when he arrives in the city, on Friday to take part in the diamond jubilee celebrations of the National Mineral Development Corporation (NMDC).
Minister for IT and Industries K T Rama Rao had recently met the Union Minister in New Delhi and discussed at length about the setting up of the plant at Bayyaram. He had also put forth the State government’s arguments before the task force meeting set up by the Ministry of Steel to look into the viability of the project.
The AP Reorganisation Act, 2014, clearly states that Bayyaram Steel Plant should be established in the new State. But the process was delayed due to non-availability of quality iron ore at Bayyaram and delay in submission of report by the committee.
After persistent requests and follow-ups, the Department of Steel constituted a task force to study the feasibility report for establishing the plant. The State government too sanctioned Rs 2 crore to Steel Authority of India Limited (SAIL) to prepare the project report on setting up of Bayyaram Steel Plant including import of quality iron ore from Biladilla in Chhattisgarh.
During the meeting in New Delhi, the Union Minister is reported to have indicated that something positive could come out during his visit to Hyderabad. Singh had also asked the State government to prepare a final plan with the help of senior officials from the Union Steel Ministry. Both the task force and the State government are ready with the reports and it would be discussed on Friday in the presence of the Union Minister, sources said.
The project was proposed to be set up in erstwhile Khammam district with an initial capacity of 3 metric tonnes and subsequently expanded to 6 metric tonnes.