Works on steel plant go on at snail’s pace

The steel industry was listed in sops in AP Reorganisation Act clearly stating to set up industry within six months from the date of the state division. As part of bunch of packages announced during UPA government, the SAIL had to set up industry to provide wage for unemployed youth in Rayalaseema region.

The SAIL had reportedly explored possibility of establishing two integrated steel plants, in Kadapa district in AP and another in Khammam district in Telangana. And the team of officials had also inspected three feasible locations in Kadapa district. District officials put forth the proposals for setting up an integrated steel plant at the Brahmani steel plant site at Ambavaram in Jammalamadugu mandal, Thalamanchipatnam in Mylavaram mandal and at Kopparthi, eight km away from Kadapa headquarters.

SAIL officials inspected the land, infrastructure, water and power availability, road, railway and air connectivity and raw material availability. The raw material available at Obulapuram in Anantapur district was haematite. A three million tonne steel plant required about three million tonnes of magnetite and allocation of 850 MW of power, as land and water were available and it would be expanded to five million tonnes subsequently.

SAIL authorities were in favour of setting up plant with five million tonne production capacity with an estimated cost between Rs 20,000 crore and Rs 25,000 crore. Suspecting legal wrangles as Brahmani Industries Limited secured status quo orders from the High Court, the authorities opted alternative sites. APCC leader Tulasi Reddy alleged both centre and state governments disobeyed the Reorganization Act.