Hyderabad: The fate of SAIL steel plant in Bayyaram in Khammam district, that was promised to Telangana state in the AP Reorganisation Act, 2014, hangs in balance as a survey carried out by the Geological Survey of India failed to find the benchmark of 20 crore tonnes of iron ore reserves in five districts of TS. The TS government had taken up the survey with the help of GSI in November last year.
However, the state government is making a last-ditch effort by extending the survey till March 2017. SAIL made it clear that unless 20 crore tonnes of iron ore is available, the project would not be financially viable.
The TS government is now planning to request the Centre to set up the plant by transporting iron ore from neighbouring Chhattisgarh by setting up a special railway link to Bayyaram for the purpose.
Under 13th Schedule of the AP Reorganisation Act, the Centre had promised a steel plant by SAIL in Telangana by exploiting the iron ore mines at Bayyaram and other reserve forest areas.
While the TS mines department is claiming that there are around 32 crore tonnes of iron ore reserves available in Warangal, Nizamabad, Karimnagar, Adilabad and Khammam district SAIL authorities expressed doubts over the quality of iron ore as the preliminary reports indicated that it contained only up to 60 per cent ferrous, which would be not suitable for setting up a full-fledge steel plant due to inferior iron ore quality.
“As an option, SAIL is now proposing to set up a mini-pelletisation plant in the place of steel plant, if quality iron ore is not found in the state. But the TS government is keen on Centre setting up steel plant as promised in AP Reorganisation Act by exploring other options like importing iron ore from neighbouring Chhattisgarh,” said a senior official of industries department.
Chief Minister K. Chandrasekhar Rao is expected to write to Prime Minister Narendra Modi soon to get the project on track by setting up a railway line from Jagadalpur in Chhattisgarh to Bayyaram to import iron ore.
