Another steel plant coming up in Andhra Pradesh

Amaravati: After Swiss major IMR Metallurgical Resources-AG proposed to set up a10-million- tonne capacity steelplant inKadapadistrict of Andhra Pradesh, big firms like Hyundai Motors, Tata Steels and Essar Steels have come forward to partner with the state government for setting up another steel plant in the same district. While the one proposed by the Swiss company at an investment of Rs 12,000 crore would be an independent venture, the other being promoted by the state government for which the foundation stone was laid in December last year.

The Kadapa Steel Plant (KSP), which would be developed by an SPV AP High Grade Steels Limited (APHGSL), would have a government equity share of Rs 500 crore.

Chief Minister Y S Jagan Mohan Reddy had announced that the KSP would be set up at a cost of Rs 15,000 crore and provide direct and indirect employment to about 25,000 people.

The plant with three million tonne per annum production capacity would be completed in three years in Sunnapurallapalli village in his nativeKadapadistrict, he said.

The state government already signed a memorandum of understanding with the NMDCfor supply of about five million tonnes of iron ore for thesteelplant every year.

On Monday, Jagan held a high-level review meeting on the progress of the KSP during which he was informed that negotiations were on with big-ticket companies like Hyundai Motors, Tata Steels and Essar Steels for a joint venture with APHGSL.

He asked the officials to complete the negotiations soon and finalise the partner in two months, an official press release the chief minister’s office said.

The development of a township and allied infrastructure would be completed in two years while soil- testing and geo-technical survey for the plant would be completed by this month-end, the release said.

Industries Minister Mekapati Goutham Reddy, Special Chief Secretary Karikal Valavan, Principal Secretary Praveen Prakash and other officials attended the meeting.

[Source – Economic Times]


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