Financially unviable: Wind's not fair for SAIL's steel unit in Telangana.

Steel Authority of India (SAIL) has informed the union government that the public sector company found it financially unviable to set up an integrated steel project in Telangana as proposed by the government in the state bifurcation Act.

A task force appointed by the Union steel ministry to evaluate the project's viability has strongly recommended against it, a senior SAIL official said, dealing a major blow to India's newest state that was eagerly looking for its first integrated steel facility.

Under the Andhra Pradesh State Reorganisation Act 2014, the steel giant was asked to examine the feasibility of setting up an integrated plant near Bayyaram in Khammam district of Telangana.

SAIL was asked to complete the feasibility exercise within six months from the day the new state came into existence on June 2 last year.

The proposed project, with a capacity of at least 3 million tonnes a year, was expected to bring in investments of at least Rs. 30,000 crore over 4-5 years.

'The union minister of state for steel, Vishnu Deo Sai, has also informed the members in Parliament recently that the task force had submitted its feasibility report, finding the proposed project financially unviable with the proposed configurations,' the SAIL official told ET.


ET