Suspense over the fate of a steel plant at Bayyaram in Khammam district, as proposed to be set up by the Steel Authority of India Ltd (SAIL) in the Andhra Pradesh Reorganisation Act, is likely to continue for one more year as the task of ascertaining the quality of iron ore reserves in the area is yet to be completed by the Geological Survey of India (GSI).
The Government of Telangana has handed over the task of finding out the quantity and quality of the iron ore reserves in the nine geological blocks spread over Khammam, Warangal, Karimnagar, Adilabad and Nalgonda districts to the GSI afresh in addition to the similar ongoing exercise in Bayyaram and adjoining areas.
The GSI has been asked to submit the report within a year by roping in other agencies, including private ones.
Crucial meeting
A meeting held on the issue here on Friday asked the SAIL to examine the possibilities of decentralised pelletisation of iron ore to sustain steel making for long in the proposed plant at Bayyaram.
The meeting chaired by Chief Secretary Rajiv Sharma was attended by officials of the SAIL, GSI, National Mineral Development Corporation, Indian Bureau of Mines, Railways and Singareni Collieries besides State Government officials from Industries, Finance, and Revenue departments.
Official sources stated after the marathon meeting that went on for over six hours that the State Government resolved to have a steel plant at Bayyaram as it had requested the Railways take up a feasibility study on laying a line between Jagdalpur in Chhattisgarh and Bayyaram. It was done with a view to running the proposed steel plant with iron ore mined in the neighbouring State, in case the mineral available in Telangana was found to be of inferior quality.
The GSI, in association with the Singareni Collieries, is already on the job of ascertaining the quality of iron ore available in Bayyaram area with the latter sinking 11 borewells to collect the samples of iron ore and other minerals available in different layers.
According to a rough estimate by the Department of Mines of Telangana, Bayyaram area has about 320 million tonnes of iron ore. It was decided to have another meeting in January next.
Source: http://www.thehindu.com/