HYDERABAD: Even as Andhra Pradesh Chief Minister YS Jagan Mohan Reddy laid the foundation stone for the Kadapa steel factory on Monday, the fate of Bayyaram steel factory in Telangana has been hanging in balance. The AP government laid foundation stone to complete the steel factory in three years with a Rs 15,000 crore investment.
Though the Telangana government too thought of starting the Bayyaram steel factory on its own, it is the AP government which went ahead with the idea of starting the Kadapa steel factory on its own as there is no action from the Central government even five years after the bifurcation of the combined Andhra Pradesh.
As per the AP Reorganisation Act, 2014, the SAIL has to set up both Kadapa and Bayyaram steel factories. The AP Reorganisation Act stated: “SAIL shall examine, within six months from the appointed day, the feasibility of establishing an integrated steel plant in Khammam district of the successor State of Telangana”. But there has been no clarity from the Centre on the issue so far.
Meanwhile, the Telangana government asked MECON Limited, Ranchi to give a feasibility report on Bayyaram factory. The State government even sanctioned money for the MECON, towards meeting the expenditure for a feasibility report for the proposed three metric tonne per annum (3 MTPA) integrated steel plant at Dharmapuram village in Bayyaram in Mahabubabad district.
According to official sources, the MECON has not yet submitted its report to the government and suspense continues on the fate of Bayyaram. The officials, however, said that the government requires around Rs 7,000 to Rs 10,000 crore to start the Bayyaram steel factory. Besides, a dedicated railway line too was required to transport the required iron ore from Chhattisgarh. It remains to be seen whether the State government would start the factory on its own on the lines of AP or not.