AP bifurcation casts shadow on mines allocation to RINL

Bifurcation of Andhra Pradesh may delay plans of Rashtriya Ispat Nigam Limited (RINL) of developing Bayyaram iron ore mines in Telangana region's Khammam district as the mines will fall in different state, sources say.

RINL's Vizag Steel is located in Visakhapatnam in residual Andhra Pradesh, while mines that were allotted to the steel maker are situated in Telangana.

Though RINL CMD P Madhusudhan expressed keen interest to develop the mines, sources close to the development said it may not be easy for the PSU to proceed after the state bifurcation as the new government in Telangana may review the earlier government's decision.

"Now the issue depends on the new government that will take over Telangana state. It is not clear whether it will be in favour of the allotment of mines to RINL. The decision to allot mines to RINL was widely criticised by all people including political parties," sources said.

"There is no further progress on the issue. It will be taken up with Telangana government only after the new government settles down. Until then there will not be any move from either side (state government and RINL)," sources added.

When contacted, Madhusudan said the PSU is keen to follow up the process for getting mines for captive purpose with the new government formation in Telangana.

"We will certainly ask the new government, it may take time, because we need captive mines to meet our expansion plans," Madhusudan said.

A senior state government official said there is no progress on the issue ever since the Centre's decision to divide the state and may not be taken up at this juncture.

Last year, Kiran Kumar Reddy's government issued an order allotting the iron ore mines located Khammam, Warangal and Karimnagar districts to RINL for captive purpose.

The move evoked strong resentment from Telangana leaders in all political parties who claimed that the resources of the region should be utilised there itself by setting up an integrated steel plant.

As per the MoU signed between RINL and AP government, the government would facilitate RINL to obtain necessary permissions, registrations, approvals and clearances from the departments concerned.

Then CMD of RINL A P Choudhary had said that there was no scientific exploration taken up by any of the government agencies in these allotted mining areas.

RINL would be investing around Rs 1,000 crore for the development of the mines allotted which would create employment for around 1,000 people, both direct and indirect, a press release by RINL had said earlier.