SAIL prepares feasibility report for Telangana project

Steel Authority of India Limited (SAIL) has prepared a feasibility report and carried out site inspection and market analysis for a proposal to set up a 3-million tonne capacity integrated steel plant in Telangana.

The status of this project, among other proposals, was discussed today at a meeting between Union Minister for Steel and Mines Narendra Singh Tomar and Telangana chief minister K Chandrasekhar Rao in Hyderabad.

Apart from assuring all possible support,  the Tomar also proposed that GSI and MECL, the two government organisation under the Ministry of Mines, can assist the state in assessing its mineral resources for revenue generation, according to an official statement.  

The issue of Identification of mines for auction and further action on that front was also discussed at the meeting, it said.

Tomar informed the chief minister that the recommendations in respect of the proposed steel plant had been made for consideration of both the state government and the Centre for tax concessions, interest and capex subsidy and recalculation of internal rate of return (IRR), which is used to evaluate the attractiveness of a project or an investment.

Preferential treatment to Vizag Steel (RINL) products needed for infrastructure and industrial development in the state and, allotment of land to Vizag Steel in Warangal for better reach and distribution in Telangana were among the other issues that came up for discussion.