Andhra Pradesh government received a request from AP Choudhary, Chairman and Managing Director of
Rashtriya Ispat Nigam (RINL) to seek the approval of the union ministry of mines for allocating Bayyaram iron ore mines at Khammam district.
The company is learnt to have agreed to invest Rs 42,400 crore in the state and the state government agreed to facilitate allotment of iron ore mines to RINL on priority.
Following this, the state government issued an order allotting ore mines located at Khammam, Warangal and Karimnagar districts to RINL.
But local political leaders in Telangana claimed that the resources of the region should be utilised here itself by setting up an integrated steel plant.
RINL plans to begin exploration of Bayyaram mines area to find out the exact quantum of ore reserves there and set up value addition facilities.
The value addition facilities include beneficiation plant, pelletisation plant, steel mill, depending on the quantum of ore reserves available at Bayyaram and other proposed mines in Warangal and Karimnagar districts.
The company, despite being one of the major steel producers, is without any captive iron ore and coal mines. RINL has applied for 7 mining leases in Andhra Pradesh starting from 2005 to secure supply of iron ore.
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