Union Minister of Steel Chaudhary Birender Singh’s instruction to the task force on the establishment of an integrated steel plant in Kadapa district to study the mode of investment has rekindled the hope that the unit will be set up though it has some more distance to cover for securing the final nod. Besides, he told the task force to evaluate the technical report submitted by MECON Limited without waiting for further details from the State government.
The fact that Mr. Singh ordered the panel to weigh the options on investment pattern suggests that the Central government after some dithering appears keen on delivering its promise which figures in the A.P. Reorganisation Act.
According to official sources, Mr. Singh wanted the task force to get back with its findings on whether the steel plant can be set up in the public sector, the private sector, as a joint venture or a combination of any of them.
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Draft report
The task force comprises representatives of the Central and State governments, Steel Authority of India Limited, Rashtriya Ispat Nigam Limited, the National Mineral Development Corporation, and MECON Limited and MSTC.
MECON has already submitted its draft report pending the provision of data relating to the availability of iron ore.
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The Union Minister felt that the steel plant in Kadapa district is a very important project for the overall development of Rayalaseema and that all efforts should be made to take the project to its logical end. The steel plant was proposed to be a 3 million tonnes per annum facility, for which about 140 million tonnes of ore was identified in Anantapur and Prakasam districts and the reserve is expected to be as high as 250 million tonnes if a more detailed exploration is done by the Geological Survey of India.
War of words
BJP MP G.V.L. Narasimha Rao said it was evident from Thursday’s review meeting that the Central government was prepared to clear the project provided the State gave its report on the availability of the ore, its quality and other matters relevant thereto. The ball is now in the State’s court, he insisted.
However, RS member C.M. Ramesh said nothing new emerged from the meeting held by Mr. Singh and maintained that the State government had not received any official communication regarding the G-2 survey of iron ore which, he said, would take two years and cost nearly ₹50 crore. “The objective of the meeting is to hold the State responsible for the delay,” he observed.