Bayyaram Steel Factory may soon become reality
HYDERABAD: The loss-making public sector undertaking unit Steel Authority of India Limited (SAIL) is exploring various options to set up a steel factory in Bayyaram in Khammam district.
According to sources, as SAIL’s financial losses stood close to `5,000 crore, the company is exploring several possibilities to start the Bayyaram Steel Factory in collaboration with some other firms. Setting up a steel factory in Telangana was a commitment made by the Centre in AP Reorganisation Act, 2014.
Recently, industries minister KT Rama Rao had held discussions with the Union ministers concerned on the fate of the Steel Factory. Later, the Union government constituted a committee to explore the possibility of setting up a steel factory in Bayyaram in Telangana and another steel factory in Kadapa of Andhra Pradesh. The Telangana government wanted the Centre to take a representative in the committee from Telangana State too, for which the Centre accepted.
However, sources said SAIL could not set up Bayyaram Steel Factory on its own. This is on two counts - the SAIL is in huge losses and the quality of iron ore available in Bayyaram is not good.
According to sources, one option being explored is that SAIL will have a tie-up with the Arcelor Mittal to start a steel factory in Bayyaram. The other option before the SAIL is to start a pelletisation factory in Bayyaram to improve the quality of iron ore in Bayyaram and later manufacture steel with the pellets.
The State government suggested the Centre to link up the proposed Bayyaram Steel Factory with iron ore mines in Bailadila, located near Kirandul town in Dantewada district of southern Chhattisgarh.
So that the iron ore from Bailadila mines can be transported to Telangana for the use of proposed steel factory in Bayyaram.