Task force created to explore potential of steel industry in Telangana

KOLKATA: Chief Minister of Telangana, K Chandrashekar Rao, met Minister of Steel & Mines Narendra Singh Tomar and Labour & Employment minister Bandaru Dattatreya on Friday to explore the potential for setting up steel industry in and around the Bayyaram mines located in state's Khammam district.

Among the possibilities discussed was setting up a greenfield steel unit through a special purpose vehicle along the lines of those being set up by the government in Chhattisgarh, Odisha, Jharkhand and Karnataka.

The state CM expressed eagerness to facilitate such an investment by providing captive mines, discounted land and connectivity with ports. Other matters, such as return on investment, technology of production, basis for shareholding etc. were also deliberated in detail.

It was decided a task force comprising central, state and PSU representatives, will conduct an in-depth study of existing alternatives in a time-bound manner, based on which a decision will be taken.

Steel secretary Rakesh Singh said Steel Authority of India Limited (SAIL) had already conducted a feasibility study on the subject. Different mechanisms and permutations were discussed to evolve a plan wherein a major industry, whether in mining, steel-making, pellet-making, or a combination of all, could be operationalised efficiently.

"State and Central governments must step in with sops to guarantee commercial viability of the project," Mr Singh added. The target of achieving 300 million tonne steel production by 2025 gives enough elbowroom to set up green-field capacities, the steel secretary said. He also suggested that a Special Purpose Vehicle could be initiated for this project, on the lines of those already established in the states of Jharkhand, Karnataka, Odisha and Chhattisgarh.

Assuring them of his support, Mr Tomar said: "Whatever can be done, will be done for the people and state of Telangana." The meeting was attended by secretary (steel) Rakesh Singh, chief secretary of Telangana Rajiv Sharma, senior politicians and bureaucrats of Telangana and officials from steel ministry and associated PSUs.

Hinting at insurgency in said parts of Telangana, the chief minister solicited support of the central government in establishing a steel industry in affected regions.