The Central Ministry of Environment, Forest and Climate Change has granted environmental clearance to Uttam Galva Ferrus Limited (UGFL) for a steel plant with an annual capacity of 60 million tonnes and a captive power plant of 893 megawatts in Ballari. This decision, taken at the 31st meeting of the Expert Appraisal Committee on September 4, marks the beginning of a major industrial venture on land that has remained vacant for over a decade.
The state government allocated 4,877 acres (1,973.65 hectares) in four villages of Ballari and Kampli taluks to Uttam Galva in 2010, originally assigned to Brahmini Steel. The project involves an investment of ₹36,000 crore and is expected to provide permanent employment to 64,247 people. The plant will require 14.50 crore litres of water daily, with 70 lakh litres sourced from rainwater harvesting and 13.80 crore litres from the Tungabhadra River. The company has assured that the Bankan, Oorumundra, and Eelamori nallas will not be damaged, allocating a separate budget of ₹12 crore for their natural flow and protection.
The steel plant will require 1.46 crore tonnes of iron ore annually, which is expected to be supplied from a private mine in Sanduri. Meanwhile, land-affected farmers from Kudatini, who have been protesting for 1,404 days for a just land price and employment, have welcomed the company’s decision but reiterated their demand for fair compensation. Sathyababu, president of the Kudatini Land-Affected Struggle Committee, stated that the company’s move is welcome and that they will pursue legal action if the government fails to determine a just land price.
Under its Corporate Environmental Responsibility (CER) initiative, Uttam Galva plans to invest ₹276.72 crore in education, health, drinking water, rural infrastructure, roads, and skill development in the villages of Kudatini, Venivirapur, Kolagallu, and Yarrangali. This includes the construction of two multi-specialty hospitals at a cost of ₹50 crore. The central ministry has mandated the company to maintain zero liquid discharge, adhere to solid waste management rules, and use modern technology to control carbon emissions.
Separately, the National Mineral Development Corporation (NMDC), which holds 2,843 acres in Ballari for a steel plant and owns two large mines in Sanduri, has not yet clarified the timeline for its own plant establishment.
