In this regard, A affidavit was filed by the centre in the Supreme Court. The Center has stated that division guarantee was only to examine the possibilities of setting up the factory. It is now clear that the Union Steel Ministry has taken into consideration all the possibilities to arrive at a decision, not to set up a steel plant.
It said It is not possible in the present circumstances to set up steel plant as the existing industries are in distress and difficult situations. The Center also said it is clear that the steel plants in the new states could not be established in the present due to the scarcity of iron ore. After Several ministries have been urged to study the feasibility of setting up a steel plant, Mocan organisation has given a report which said it is impossible for the steel plants to be established in both Bayayram and Kadapa.