Beni pushes for projects in Amethi

Congress leader and Steel Minister Beni Prasad Verma plans to revive a steel factory acquired by the Steel Authority of India in Rahul Gandhis constituency,Amethi.

Congress leader and Steel Minister Beni Prasad Verma plans to revive a steel factory acquired by the Steel Authority of India SAIL in Rahul Gandhis constituency,Amethi. Verma has written to Petroleum Minister S Jaipal Reddy demanding 2.1 million metric standard cubic metre per day MMSCMD of gas from KG D6 basin,operated by Reliance Industries,for the Jagdishpur steel plant.

I have also apprised the Prime Minister about this. The revival of the unit in Amethi depends on the assured supply of gas, Verma told The Indian Express.

Verma said 1.34 MMSCMD natural gas will be required as feed stock for the sponge iron-making facility at the unit while remaining about 0.76 MMSCMD will be required for downstream facilities for producing steel for automobile industry.

This demand is in addition to the SAILs demand for 5 MMSCMD for setting up of a 1050 MW of gas-based captive power plant to meet the power needs of the Jagdishput plant that has been shut down since 1988. Verma informed that he has taken this up with Power Minister Sushil Kumar Shinde to impress upon the Petroleum Ministry and provide assured gas supply for the captive power plant.

The unit,earlier known as Malvika Steel,was acquired by the SAIL during UPA-I. Verma is now trying to revive the unit with partnership with Kobe Steel of Japan. The plan has since been stuck over lack of assured gas supply. The fact that Verma has taken up this issue with the PM,Petroleum and Power ministers indicates his eagerness to push the project,given the Assembly polls next year,in which the Congress plans to counter the ruling BSP and its rival SP on development plank.

Verma has recently pushed the Rashtriya Ispat Nigam Ltd RINL that is under the administrative control of the Steel Ministry to take up activities in Bundelkhand,another region of particular interest to Rahul. Verma has asked the RINL to apply for license for mining of iron ore in Lalitpur in Bundelkhand. The moment I was informed about the discovery of iron ore in Lalitpur,I instructed the RINL to apply for license for prospective mining. The reserves may be useful for the Jagdishpur steel unit, he said.

The RINL is learnt to have applied for licence for mining in Bundelkhand.