Project reports delay Bayyaram plant take-off

Hyderabad: The state government has decided to wait before finalising the plans for the set up of steel plant at Bayyaram in the iron ore rich erstwhile district of Khammam.

The government decided to wait for few more months as the official committee constituted to make recommendations is facing a delay in the submission of feasible report by the Rail Vikas Nigam Limited (RVNL) on laying of a railway line and also due to draft detailed project reports (DPRs) being prepared by another agency.

The government entrusted Public Sector Consultancy organisation - MECON to prepare a DPR (Detailed Project Report) on the steel plant within two months and  RVNL to submit feasibility report on laying railway line from Bailadila (Chhattisgarh) to Manuguru (near Bayyaram) for the supply of iron ore to the plant.

Officials said that the two agencies sought some more time to finalise the report. Unless the reports are prepared, the official committee headed by Special Chief Secretary to Energy Ajay Mishra will not take a decision on the project. The committee will submit the first technical and feasibility report to the government in October. 

Based on the recommendations, Industries Department in consultation with the Finance wing will take up another study to finalise whether to take up the industry under private public participation or under public sector only.

As Chief Minster K Chandrashekar Rao submitted a list of demands including the establishment of the steel plant to Prime Minister Narendra Modi, source said that the State Industry Department is pursuing the issue of getting central assistance for the project.

As per the AP Reorganisation act, centre promised the set up of Bayyaram steel plant in 2014. But, the centre declined to honour the promise made in the act. “State government is keen to set up the project, but it will need more time in view of delay in the finalisation of project reports and also the centre’s response to the State’s demand for funding,” senior official said.