Centre Urges Telangana to Consider Private Partnership for Khammam Steel Plant

The Central government advised the Telangana government to consider a collaboration with the private sector for implementing the proposed integrated steel plant at Bayyaram in Khammam district. This was indicated during a high-level meeting under the chairmanship of Union Home Secretary Govind Mohan to take stock of progress in infrastructure projects and educational institutions as envisioned by the Andhra Pradesh Reorganisation Act, 2014.

During the meeting, Telangana Chief Secretary A. Santhi Kumari said that establishing the steel plant was a commitment under the Act. She reiterated that it was intended to replace an existing steel plant in Andhra Pradesh and insisted that the Centre fulfill this promise.

Commenting on this, the Union Home Secretary suggested to the Telangana government to tie up with private companies to further this project. Clarifying the officials’ role, ministry sources said, the Ministry of Steel was evaluating whether such a plant could be erected in Khammam. Results of earlier studies revealed that this site was unsuitable, therefore MECON -Metallurgical & Engineering Consultants India Ltd- a central PSU had listed three alternative places for the Khammam region which fell within the Mahbubabad district.

Mr. Govind Mohan recommended that the Ministry of Steel take on a promotional role and facilitate a feasibility study through SAIL (Steel Authority of India Limited) to identify potential opportunities. However, the Centre also mentioned that private sector collaboration would provide a practical solution to expedite the project.

The Centre and Telangana have been at loggerheads over the proposed integrated steel plant since it was a part of the bifurcation commitments. The latest discussions indicate the need for innovative approaches to ensure the project becomes a reality.