SAIL Likely to Import Iron Ore for Bayyaram Plant.

The Steel Authority of India Limited (SAIL) would honour the commitment made in the AP Reorganisation Act, 2014 to set up a steel factory at Bayyaram in the state. However, it is exploring other options like importing iron ore required for the steel factory from Jagadalpur in Chhattisgarh. SAIL is also considering another option of setting up of mini pelletisation plants in Telangana.

Any decision by SAIL will be taken only after the Geological Survey of India (GSI) gives report on quality and quantity of iron ore in five Telangana districts. The report of GSI is expected by March.

Chief secretary Rajiv Sharma held a meeting at the Secretariat here with the officials of SAIL, National Mineral Development Corporation, Indian Bureau of Mines (IBM), Railways and Forest officials recently.

During the meeting, SAIL once again raised the issue of quality iron ore available in the state. In case the quality and quantity of iron ore is not sufficient for the proposed steel factory, then it would import ore from Chhattisgarh.

For this, a railway line from Jagadalpur to Bayyaram would be laid. According to sources, it was decided to give the survey works of railway lines to Rites.

The SAIL officials also expressed willingness to start mini-pelletisation plants, if quality iron is not available in the state. Currently, the GSI is doing the survey in nine blocks and will come out with its report by March.

The state government is firm that the Centre should honour its commitment made in the AP Reorganisation Act to establish a steel plant in Telangana.

The state government is arguing that lack of iron ore or lack of quality ore should not come in the way of setting up of steel factory.

SAIL requires 200 million tonnes of iron ore and the rough estimates put that the state has deposits of iron ore of around 320 million tonnes in five districts - Warangal, Nizamabad, Karimnagar, Adilabad and Khammam.

According to sources, SAIL officials informed the chief secretary that they had two technologies for setting up of steel factory. 'SAIL will examine which technology requires less investment and proceed accordingly,' sources said.

THE NEW INDIAN EXPRESS