The Central government has exhorted the Telangana government to explore possibility of setting up the proposed integrated steel plant at Bayyaram in Khammam district in collaboration with a private company.

Union Home Secretary Govind Mohan made the suggestion to the Telangana government delegation during the meeting to review the progress of educational institutions/infrastructure projects in Telangana as enumerated under Schedule XIII of the Andhra Pradesh Reorganisation Act, 2014.

The Union Home Secretary was responding to Chief Secretary A. Santhi Kumari’s contention that setting up of an integrated steel plant was a promise made under the Act in place of the already existing steel plant in Andhra Pradesh and the promise should be fulfilled by the Central government.

The Telangana government informed the meeting that six options had been considered for the proposed plant for finding out the least cost of iron ore and coal at the selected site. Of these, the government had selected Pulluru village in Garla mandal of Mahbubabad district for the plant to which iron ore could be sourced from Ramandurg/Donimalai captive mines through Mine Developer cum Operator (MDO) route or on market price basis from the same mines. The government had also requested the Ministry of Mines to consider reservation of iron ore to the tune of 175.58 million tonnes to Telangana Mineral Development Corporation Limited.

Senior officials of the Steel Ministry said it was their mandate to examine the feasibility of establishing a steel plant in Khammam district where it was not found feasible. Three locations in Mahbubabad district were shortlisted by MECON, formerly known as Metallurgical & Engineering Consultants (India) Limited — a central public sector undertaking.

It was suggested that Mahbubnagar district, which is closer to Karnataka from where iron ore could be procured, be selected. It was also suggested that Telangana government could consider the feasibility of establishing an integrated steel plant in collaboration with a private company. Responding to this, Mr. Govind Mohan felt that the Ministry of Steel might play a promotional role and facilitate feasibility study by SAIL.

This story has been corrected for a factual error