Govt gives `rosy picture' on Bellary Steel-Hub

Govt gives `rosy picture' on Bellary Steel-Hub

By Shivakumar G Malagi

Bellary, Dec 12: Going by the hard realities, particularly the severe shortage of water and non-agricultural land, plan of the BJP-led government to develop this iron ore rich region as a major hub of steel industry appears `rosy'.

The proposed project is expected to be permitted in the jurisdiction of the newly created Vijayanagar Area Development Authority (VADA) covering Bellary, Hospet and Sandur mining belt. Besides, the government braced up to promoting several iron ore value addition industries, including townships under the new mining policy unveiled recently.

The government wants the proposed Bellary Steel Hub to come up on the lines of Hazira Township in Gujarat in order to boast steel mills capable to produce at least 20 million tones per annum (mtpa) banking on the abundant availability of iron ore. Already, the regions' total steel production is hovering around 9 mtpa with the operation of steel major JSW Steels and nearly, 50 sponge and pig iron mills.
The governments plan to go ahead with steel hub project, in all probabilities sure to confront with farmers while providing water to industrialists as estimated 20 mtpa Steel Hub requires the minimum 7- tmcft water.
The Tungabhadra reservoir is the only major source of water in region. With the entire available in the reservoir committed for agriculture, there has been no special allocation for industrial use in Tungabhadra inter-state (Karnataka:138.990 tmcft and Andhra:73.010 tmcft) project.

However, the government has allocated 7.617 tmcft of water to about nine industries on either side of the reservoir in Koppal and Bellary districts.

Nevertheless, the applications seeking allocation of 1.321 tmcft of water by three more industries, though approved by the Tungabhadra Board has been rejected by the Tungabhadra Irrigation Circle at Munirabad.

Besides, the proposals to put up steel plants by major players, RM Steel Limited, Aaress Iron and Steel Limited, MSPL Limited have been cleared by the high power committee and of late, the PSU mining major NMDC is seeking approval to set up a 5-mtpa five plant in region.

Even the government's assurance to industrialists to get water from Almatti reservoir in Bagalkot, which is around 300 km away, is sure to draw the wrath of farmers, as it was evident recently when JSW Steels laid pipelines to draw water. Here, also no specific industrial allocation of water as per the Krishna Tribunal Award.
Being the situation so, government's new mining policy focused on value addition projects may reach nowhere. "Let government to give at least 300 acres of land at the government price and ensure sufficient water supply, every mine owner of Bellary will put steel plants" remarks VSL Mining Company Ltd managing director Anil Lad.



However, the district in charge and infrastructure development minister Gali Janardhana Reddy is confident of overcoming the every hurdle to see Steel Hub a reality. "We have taken the services of Centre for Enivironmental Protection and Technology, Ahmedabad to prepare a roadmap for developing Steel Hub and the Cabinet has approved the formation of VADA. One has to wait and see how the face of Bellary will change into a Steel zone of the country in near future".