YCP MP Y S Avinash Reddy this week in Lok Sabha asked whether the Government proposes to set up new steel plants including small and medium steel plants in various parts of the country, if so, the details thereof, State/UTwise including Assam, Andhra Pradesh and Telangana;

In his written reply, the Minister of State for Steel Vishnu deo said, “The Government is not considering setting up of new steel plants in the country.”

In March, replying to similar question in the Rajya Sabha, the minister stated, “A Task Force has been constituted on 19 October 2016 comprising of representatives from the Central and State Government, SAIL, RINL, NMDC Limited, MECON Limited and MSTC Limited to consider the feasibility issues and to prepare a road map for setting up of Steel Plants in Andhra Pradesh and Telangana”

If the reports are to be believed, this task force has not visited the region. The region has enough resources to setup a steel plant as the Congress government gave permissions to Brahmani Steel Plant but was later scrapped by TDP due to irregularities.

The AP Re-Organisation Act 2014, in its Thirteenth Schedule promised the setting up of a steel plant in the public sector. SAIL examined the feasibility of establishing an Integrated Steel Plant in YSR Kadapa district. SAIL submitted the feasibility report on 02 December 2014 which said that setting up of steel plant is prima facie not financially viable.

The steel plant was supposed to provide employment opportunities to the skilled and unskilled youth in Kadapa. However, after the Jammalamadugu Minister Adinarayana reddy was inducted into the Cabinet, the people of the region are hopeful about the steel plant. On the contrary, TDP like any other issue stated in re-organisation act is not pressurizing its ally on seeking the steel plant.