The Telangana government on Thursday issued a notification for reassessment of iron ore deposits over 100 sq km in and around Bayyaram in Khammam and Gudur in Warangal through a joint survey by its own Mines and Geology Department and Geological Survey of India (GSI).
The joint survey for a period of five years will not be applicable in case the area was already held under any prospecting licence or mining lease.
It will also be subject to court orders in cases filed by Rakshana Steels and another individual, the notification said.
The reassessment of iron ore bearing areas was ordered since the Steel Authority of India Limited (SAIL) had sought information regarding availability of the mineral, water, power and transmission lines for preparation of a feasibility report on setting up of an integrated steel plant in Khammam district. The bifurcation law had specified that the SAIL examine feasibility of establishing the plant.
A team of SAIL officials accordingly shortlisted three locations – Vulvanur near Paloncha, Kuranam near Kothagudem and Bayyaram – for the plant.
Responding to the request of SAIL, the Director of Mines and Geology of the State government informed that the GSI reported occurrence of iron ore in and around Bayyaram, Gudur and Yerraballi in Karimnagar. However, a detailed investigation was required to update resources into reserves for obtaining prior approval of the Central government before the grant of mining lease for exploitation of iron ore deposits by SAIL.
The State government held meetings with SAIL, GSI, Mineral Exploration Corporation Limited and Director of Mines and Geology to workout modalities for taking up the detailed investigation of iron ore deposits near Bayyaram and Gudur.
It was then decided to have a collaborative project between the government and GSI by entering into a memorandum of understanding. Hence, the government gave permission to Director of Mines and Geology to enter into a MoU with GSI.
The Director has also submitted proposals for notification of the area by the government.
Mines and Geology Department and GSI to take up a joint survey in and around Bayyaram in Khammam and Gudur in Warangal.
Source: Hindu Business Line