Question : Establishment of Steel Plants

(a) 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 Andhra Pradesh Reorganisation Act, 2014;
(b) if so, the details thereof along with the time by which these plants are likely to be made operational;
(c) whether the Government proposes to set up more steel plants including Ultra Mega Steel Plants (UMSPs) in the country during the next three years and if so, the details thereof, State/UT-wise;
(d) the number of operational steel plants including UMSPs both in public and private sectors at present, State/UT-wise; and
(e) the steps taken by the Government to make the proposed plants operational in a time bound manner?

THE MINISTER OF STATE FOR STEEL (SHRI VISHNU DEO SAI)

(a)&(b): In terms of the Thirteenth Schedule of the Andhra Pradesh Reorganisation Act, 2014, Steel Authority of India Ltd. (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. As per the feasibility report submitted by SAIL on 02.12.2014, the setting up of steel plant is prima facie not financially viable. Subsequently, a Task Force has been constituted on 19.10.2016 comprising of representatives from the Central and concerned State Governments, SAIL, RINL, NMDC Ltd., MECON Ltd. and MSTC Ltd. to suggest a road map for setting up of Steel Plants in Andhra Pradesh and Telangana. In the last meeting of the Task Force held on 27.12.2017, 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.

(c) At present, there is no proposal to set up more steel plants by the Government.

(d) The state-wise number of operational steel plants both in public and private sector during the year 2016-17 as per Joint Plant Committee (JPC) is annexed.

(e) Steel being a de-regulated sector, the Government’s role is that of a facilitator which lays down the policy guidelines and establishes the institutional mechanism/structure for creating conducive environment for improving efficiency and performance of the steel sector.

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