Andhra Pradesh Chief Minister N. Kiran Kumar Reddy gave an assurance here on Tuesday to the Chairman and Managing Director of the Rashtriya Ispat Nigam Ltd (Visakhapatnam Steel Plant), A.P. Chowdhary, that the State Government was favourably inclined to the petition of the company for iron ore mines in the State and one or two may be allotted shortly, according to a press release.

Power supply restrictions

The release adds that the CMD also brought up the issue of restrictions on power supply and penalties imposed by the State electricity authorities on the company and the Chief Minister had responded positively and promised immediate action to help RINL.

Chowdhary thanked the Chief Minister and pointed out to him that the expansion project of the steel plant would benefit the people of the State and allotment of captive iron ore mines would considerably reduce the cost of the production of the steel plant, making it competitive.

T.K Chand, Director (Commercial), RINL, also participated along with Chowdhary in the meeting.

The union leaders met the Chief Minister separately and presented a memorandum to him urging him to expedite the process of allotment of captive iron ore mines, as it was proving to be a great handicap to the plant.

A group of industrialists also met the Chief Minister here on Tuesday and requested him to rescue the industry from peak hour load restrictions and crippling penalties being imposed on them for overdrawal of power during peak hours.

They told him that it would be impossible to run the units under the present circumstances.

The Chief Minister reportedly told them that due to factors beyond his control such as availability of natural gas there was a deficit of power in the State and it would continue for some time more.

They would have to co-operate with the authorities and to the extent possible the State Government would help them.

But they should also be aware of the various factors leading to the power crisis.

> sarma.rs@thehindu.co.in