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Centre considering Salem Steel Plant expansion

G. Gurumurthy

Salem (Tamil Nadu) , Feb. 4

THE Prime Minister, Dr Manmohan Singh, on Saturday said the Centre was actively considering expansion of the public sector unit Salem Steel Plant (SSP) to make it an integrated steel plant.

This will be a major investment in this region, he said at a function here to lay the foundation for four-laning of the Salem-Chengapalli section of National Highway 47.

He was responding to the pleas made by the UPA alliance partners including the PMK leader, Dr Ramadoss, and the MDMK leader, Mr Vaiko. They had asked the Centre to expedite the clearance for SSP's expansion plans and were apprehensive that SAIL was delaying the clearance of its Rs 1,330-crore expansion programme.

Dr Singh also recounted that the Centre came to the rescue of the textile industry by removing CENVAT duty on cotton textiles and by imposing safeguard duty on starch imports. This helped save lakhs of tapioca farmers in the region, he said.

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