AP blames Telangana for steel plant delay

HYDERABAD: Andhra Pradesh has blamed Telangana for delay in the resolution to arrange steel crops in the two Telugu-speaking states, as promised in the AP Reorganisation Act of 2014. The two states were to get one steel plant each — in Khammam district of Telangana and Kadapa district of AP.



According to an reputable who attended the assembly of the duty drive constituted to review the viability of the two steel crops, Telangana is but to post any concrete proposals on allocation of land, and stable water and power supply for the proposed 1.five million tonne consistent with annum (mtpa) steel plant .


“On the other hand, AP gave a clear course of action for the 1.five mtpa steel plant in Kadapa. The Kadapa plant may also have get entry to to the iron ore reserves in Anantapuramu (Anantapur) district,” the reputable mentioned, inquiring for anonymity.


The activity drive, chaired by one of the most three joint secretaries in the Union steel ministry, met for an hour in Delhi on Tuesday. The assembly used to be attended by officials from the AP and Telangana governments and bosses from NMDC, SAIL, Rashtriya Ispat and MECON Ltd, among others.



“The transient of the duty drive is to make a decision whether it might be viable for the government of India to arrange steel crops in Telangana and AP,” the reputable mentioned. According to the reputable, the government will require over ?20,000 crore each for the two steel crops. “Such a large allocation is daunting. The executive could possibly take the Public Private Partnership (PPP) path to arrange the plant in AP,” the reputable mentioned.



But earlier than the government takes the PPP path, it might want to amend the Mineral Concession Rules (MCR) to permit the private sector to get keep an eye on of an iron ore mine. “Under the MCR, iron ore is a Category 1 mineral. There is not any want to trade it if a public sector corporate like SAIL or RINL is given the mandate to arrange the steel crops,” the reputable mentioned. Both SAIL and RINL have made it clear that they're in no financial place to arrange the brand new crops. NMDC too has expressed its incapability to do so.
AP blames Telangana for steel plant delay AP blames Telangana for steel plant delay Reviewed by Kailash on June 16, 2018 Rating: 5
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