The Union Steel Ministry plans to set up a taskforce to look into the viability of setting up steel plants in Telangana and Andhra Pradesh, Steel and Mines Minister Narendra Singh Tomar said here today.
He told reporters at the Telangana state BJP office that a taskforce comprising officials from the respective state governments, Rashtriya Ispat Nigam Limited, Steel Authority of India Limited as well as the Union Steel and Ministry Ministry, would submit its report in three months.
"SAIL has already studied the feasibility of setting up steel plants in AP and Telangana. Now a taskforce will be formed to study the viability of plants with respect to technology and other commercial aspects," Tomar said.
Earlier in the day, he met Telangana Chief Minister K Chandrashekar Rao at the latter's office, according to a state government release issued here.
Tomar proposed that Geological Survey of India and Mineral Exploration Corporation Limited, which function under his ministry could assist Telangana assess its mineral resources for revenue generation, a state government release said.
Both the leaders discussed the present status of the proposal to set up a 3 million tonnes per annum (mtpa) integrated steel plant in Telangana, the release said.
Besides preparing a feasibility report, SAIL has carried out site inspection and market analysis for the project in Telangana, the release said.
"Accordingly, recommendations have been made for consideration by the state government and government of India. These include tax concessions, interest and capex subsidy and recalculation internal rate of returns, the release said.
The Union Minister also discussed a proposal to allot land to Vizag Steel (RINL) in Warangal, the release said.
