Centre, Andhra Pradesh clash over steel plant

Centre, Andhra Pradesh clash over steel plant

According to the statement issued by the Ministry of Steel, the State government did not submit requisite information sought.

VIJAYAWADA: Hours after Chief Minister N Chandrababu Naidu participated in the foundation laying ceremony of the integrated steel plant in Kadapa on Thursday, the Centre made public the correspondence between the Ministry of Steel and the Andhra Pradesh government with regard to the project, triggering a war of words.

While the Ministry of Steel stated that the State government was not divulging the necessary details of iron ore mines despite repeated requests, Naidu slammed the Centre claiming that all the information was furnished as requested.

BJP Rajya Sabha member GVL Narasimha Rao also made public the letter written by Secretary of Ministry of Steel Binoy Kumar to Andhra Pradesh Chief Secretary Anil Chandra Punetha, in which the former noted that the State government was yet to furnish requisite information.

CM Naidu taking part in the foundation laying ceremonies of Secretariat (above) and steel plant | Express
CM Naidu taking part in the foundation laying ceremonies of Secretariat (above) and steel plant | Express

“Mecon Ltd has informed that the State government was requested to share the survey report establishing the firm source of iron ore. Mecon is of the opinion that Geological Survey of India (GSI) exploration confirming G2-level availability of resources can alone ensure continuous availability of sufficient iron ore on long term basis for sustained operation of the plant for a minimum of 30 years. The same is still awaited from the State government,” he noted in the letter dated December 20.

G2-level means general exploration, the objective of which is to establish the main geological features of a deposit and provide an initial estimate of size, shape, structure and grade of the mineral in the mine.
Binoy Kumar further requested the State government to take urgent steps to confirm the availability of iron ore and assured that the ministry will extend all the support to AP in setting up the steel plant once the feasibility is ascertained.

According to the statement issued by the Ministry of Steel, the State government did not submit requisite information sought.

“The State government itself engaged Geological Survey of India for G2 exploration work of Obulapuram mines. However, in spite of several reminders and reviews of Task Force (which last met on December 17), the information has not been shared by the State government. It has also not shared whether any survey was taken up at all and whether the State government has given necessary forest clearance for conducting such survey,” the statement said.

Reacting sharply to this, Naidu came down heavily on the Centre. Speaking to the media after releasing the white paper, the Chief Minister said, “How many times should we furnish the details? Why are they resorting to drama? Doesn’t the Centre have any responsibility? We have given all the information many times and I even wrote letters, including to the Prime Minister, on multiple occasions.”

He further added that the MPs, MLAs and others staged protests against the Centre for delaying the project. “We, in fact, staged a protest in Parliament. We even gave a two month ultimatum. As the Centre was not coming forward, with no other option, we decided to establish the steel plant ourselves. This is to teach the Centre a lesson and to let it know that we are not slaves,” he added.

Naidu also observed that the State was paying `900 crore annually in the form of taxes to the Centre. “Whatever the Centre is giving is nominal, but we are paying taxes on everything. In fact, we are the ones giving land, incentives, power and other facilities. But, when we ask for our rights, the Centre is attacking us,” he concluded.

Meanwhile, BJP MP Narasimha Rao alleged that CM Naidu was cheating the State. “The CM laid a stone for a fake steel plant. He is resorting to dramas and propaganda as if he is working for AP.”

‘No details of iron ore mines provided’

While the Ministry of Steel stated that AP government was not divulging the necessary details of iron ore mines despite repeated requests pertaining to setting up of steel plant in Kadapa, CM Naidu claimed that all the information was furnished as requested

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