A status report has been submitted by the APCB to its "operations committee," which is expected to finalise the course of action shortly, said sources. As part of the apex court's direction in response to a PIL, the state government has to identify and take action against those companies, which fall within a 10 km radius of both of Hyderabad's lakes. Accordingly, the state government has to submit the `action-taken report' to the Supreme Court by the end of March 31, 2001. Out of the 114 companies, 40 factories are located upstream of the Himayatsagar and Osmansagar lakes, while 74 are located downstream. The two lakes are vital for the city's drinking water requirements. APPCB is expected to immediately issue a closure order against 19 firms, which include 14 textile mills, 4 lead extraction mills and one steel producer, sources said.

APPCB has also proposed to relocate about 18 textile units, 12 from the upstream belt and 6 the from downstream belt of both the lakes, to other locations.