Rashtriya Ispat Nigam Ltd will set up a Rs 1,000-crore beneficiation plant at Bayyaram in Khammam district of Andhra Pradesh, as the State Government has agreed in-principle to allot 5,342 hectares of iron ore mines to the Visakhapatnam steel plant.
In a statement issued here on Thursday, RINL Chairman and Managing Director A.P Choudhary, hailed the decision of Chief Minister N. Kiran Kumar Reddy.
The State Govenment will allot iron ore mines to RINL-VSP, spread over an area of 2,500 hectares at Guduru in Warangal district, 2,500 hectares at Bayyaram in Khammam district and 342 hectares at Bheemadevarapalli in Karimnagar district.
He described it as “a historic moment for RINL’’ and recalled the positive response by the Chief Minister when the RINL had approached the State Government for allotment of captive iron ore mines.
He said the CM had taken special interest for the benefit of RINL and for the rapid growth of steel industry in Andhra Pradesh.
Choudhary further said that the move would strengthen RINL’s expansion plans to become 20 mtpa plant, the largest plant in a single location.
He said that as there was no scientific exploration taken up by any of the Government agencies in these allotted mining areas, it would be taken up shortly by RINL-VSP to assess the quantity and quality of iron ore available.
He said RINL would be investing around Rs 1,000 crore for the development of mines which would create employment for around 1,000 people, both direct and indirect.
Choudhary also requested the State Government to take forward the proposal to the Union Government as early as possible for getting the necessary clearances from the Union Ministry of Mines.