HYDERABAD: Union Minister for Coal and Telangana BJP President G Kishan Reddy has ruled out the establishment of a steel plant in Bayyaram, Mahabubabad district, citing poor-quality iron ore in the region.
Speaking in Warangal on Sunday, he stated that the available minerals do not meet the required standards for steel production. He argued that investing in such a project would be financially unviable. The central government, he said, prioritizes projects that efficiently use resources and provide tangible benefits.
Concerns Over Economic Feasibility
Various political parties and local organizations have been demanding a steel plant in Bayyaram, believing it would create jobs and boost the economy. However, Kishan Reddy pointed to geological surveys that consistently show the region’s iron ore is of inferior quality. Establishing a plant would require importing high-grade raw materials, significantly raising production costs.
NMDC Studies Confirm Unsustainability
Studies by the National Mineral Development Corporation (NMDC) further reinforce the lack of feasibility. According to their findings, the project would not be economically sustainable without heavy financial subsidies and a continuous supply of high-quality minerals from outside sources.
Focus on Alternative Industries
Given these challenges, the central government has decided against pursuing the Bayyaram steel plant proposal. Instead, Kishan Reddy urged state leaders to explore industries better suited to local resources. He reiterated the government’s commitment to Telangana’s development and assured that future projects would be chosen based on long-term viability and benefits to the people.
