Mecon to prepare feasibilitty report on steel plants in AP, Telangana

State-run consultancy firm Mecon will prepare a feasibility report on the possibility of steel plants in Andhra Pradesh and Telangana, steel minister Vishnu Deo Sai said today.

As per the feasibility report submitted by SAIL in December 2014, setting up of steel plant is prima facie not financially viable.

Subsequently, a task force was constituted in October 2016 comprising representatives from central and concerned state governments, SAIL, RINL, NMDC, Mecon, MSTC, to suggest a road map for setting up steel plants in Andhra Pradesh and Telangana, the minister told the Lok Sabha.

"In the last meeting of the task force held on December 12, 2017, it was decided that the concerned state government would share with Mecon the data for preparation of report and work out realistic assumptions based on which Mecon would complete the feasibility report," he said.

He was replying to a question whether the government has cleared the path for setting up an integrated steel plant at Kadapa and a cold-rolled coils steel plant at Vizag as promised in the Adhdra Pradesh Reorganisation Act, 2014.

The minister also said that in terms of 13th Schedule of the AP Reorganisation Act, 2014, SAIL was to examine the feasibility of establishing integrated steel plants at YSR Kadapa district of Andhra Pradesh and at Bayyaram in Khammam district of Telangana.