A task force has been formed to consider the feasibility issues and prepare a road map to set up steel plants in Andhra Pradesh and Telangana, according to the government.
The task force has representatives from the Centre and state government, SAIL, Rashtriya Ispat Nigam (RINL), NMDC, MECON and MSTC, Minister of State for Steel Vishnu DEO said in a reply to the Rajya Sabha.
"A task force has been constituted on October 19, 2016 comprising of representatives from the Central and state government, SAIL, Rashtriya Ispat Nigam Ltd (RINL), NMDC Ltd, MECON Ltd and MSTC Ltd to consider the feasibility issues and to prepare a road map for setting up of steel plants in Andhra Pradesh and Telangana," the minister said.
"In terms of the Thirteenth Schedule of the Andra Pradesh Reorganisation Act, 2014, Steel Authority of India (SAIL) was required to examine the feasibility of establishing an integrated steel plant in YSR Kadapa district of the successor state of Andhra Pradesh," he added.
As per the feasibility report submitted by SAIL, setting up of steel plant is, prime facie, not financially viable.