The stalemate between the Central and State Governments over setting up of an integrated steel factory at Bayyaram in Khammam district continues as the Telangana Government is yet release data of the land proposed as the site for MECON Limited (formerly Metallurgical and Engineering Consultants) of the Union Steel Ministry.
The issue figured in the recent meeting of the standing committee of the southern zonal council with Telangana making a strong pitch for fulfilment of the promise made in the A.P. Reorganisation Act 2014.
Home Ministry’s joint secretary (CS) S.K. Jindal who chaired the meeting reiterated that it was for the Telangana Government to identify the location for the steel plant following which the MECON would conduct survey of the location and submit a draft feasibility report (DFR).
The Ministry of Steel had addressed several letters to the State Government, the last one being on April 6, asking it to make available data about the land of the proposed site to MECON for finalising the report.
Setting up of an integrated steel factory was an assurance given in the 13th schedule of the Act which says, “SAIL shall examine, within six months from the appointed day (June 2, 2014), feasibility of establishing an integrated steel plant in Khammam district of the successor State of Telangana”.
Almost nine years since the assurance was given, no concrete decision has been arrived at on the location for the proposed project. SAIL has conducted a feasibility study of the proposed site and submitted a report on setting up of three MTPA integrated steel plant on December 2, 2014. The report, however, said setting up of a steel plant with proposed configuration was prima facie not found financially viable.
The Telangana Government has no doubt submitted copies of maps pertaining to Pulluru and Chandragiri villages of Garla mandal in Mahbubabad district and Dharmapuram in Bayyaram mandal of Khammam district. The Government is also exploring options to shift the plant towards the west side of the State i.e. in Mahbubnagar district nearer to Karnataka, the Home Ministry said quoting the data uploaded by the MECON, according to the minutes of the SZC meeting.
“They [the government] is yet to take a final call between Bayyaram and some other site in the western part of the State,” the Home Ministry said.
IT and Industries Secretary Jayesh Ranjan assured the SZC Standing Committee that a final decision on the proposed site will be communicated to MECON soon.
