Union government wants captive mines for Bhadravathi steel factory

Union Minister for Steel and Mines Narendra Singh Tomar has promised that the Centre would release Rs 1,000 crore for the revival of the loss-making Visvesvaraya Iron and Steel Plant, (VISP), a public-sector undertaking in Bhadravathi, provided the State government allots 245 acres of mining area for the plant at Ramanadurga in Ballari district.

Speaking to mediapersons during his visit to VISP, here on Friday, he said that the allotment of captive mine for steel plant was essential for reviving the factory.

“The State government had sanctioned 140 acres of land in NEB Range of Sandur taluk in Ballari district. But some private people claimed ownership over a portion of area and hence the issue is in court. The VISP has not been allotted with any captive mine,” the minister said.

Production cost
The Steel Authority of India Limited (SAIL) could bring raw materials from its plants in Chhattisgarh and Jharkhand for VISP.

But the cost of production would be high and it won’t prove beneficial for the plant, he added.

Tomar said that the Centre was committed to increase the steel production to 50,000 million tonne by 2025. At present, SAIL is producing 35,000 million tonne per annum. The steel production is contributing two per cent for Gross domestic product (GDP) the minister added.

Lok Sabha member B S Yeddyurappa, Union Minister for Chemicals and Fertilisers Ananth Kumar, Rajya Sabha member Ayanur Manjunath and others were present.