NE NEWS SERVICE
AMARAVATI, June 15
After Swiss major IMR Metallurgical Resources-AG proposed to set up a 10-million- tonne capacity steel plant in Kadapa district in Andhra Pradesh, big firms like Hyundai Motors, Tata Steels and Essar Steels are keen to have partnership with the state government for setting up another steel plant in the same district.
కడప స్టీల్ప్లాంట్ ఏర్పాటుపై సీఎం శ్రీ వైయస్.జగన్ సమీక్ష. ఈక్విటీ కింద రూ.500 కోట్లు కేటాయించాలని ఆదేశం, ఫ్యాక్టరీ నిర్మాణంకోసం మౌలిక సదుపాయాల కల్పనపై దృష్టి. pic.twitter.com/Upwp3HHI3m
— CMO Andhra Pradesh (@AndhraPradeshCM) June 15, 2020
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 a Special Purpose Vehicle (SPV) of 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 native Kadapa district, he said.
The state government already signed a memorandum of understanding with the NMDC for supply of about five million tonnes of iron ore for the steel plant 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, the release added.
