A team of Steel Authority of India (SAIL) inspected three sites in Telangana including Bayyaram, Paloncha and Kothagudem mandals for setting up a steel plant in the state.

At the request of the Telangana government, which intends to set up the proposed steel plant in Khammam district, SAIL officials inspected iron ore availability in the district and a feasible place to set up this steel plant.

SAIL officials visited three places -- Velamanuru in Paloncha mandal, Kunaram in Kothagudem mandal and Bayyaram for the project site.

The iron ore mines are spread over 5,342 ha in Bayyaram, Garla, Paloncha and Kothagudem mandals.

The Indian Bureau of Mines has estimated the value of ore at Rs16 lakh crore. It has been learned that some 18 million tonne of iron ore is expected to be available in these three mandals.

The proposed steel plant is expected to require 750 MW power and 1.5 tmc of water to run the plant.