After Swiss major IMR Metallurgical Resources AG (IMR) proposed to set up a 10 million tonne capacity steel plant in Kadapa district 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 plant is 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 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.
The CM asked officials to complete the negotiations soon and finalise the partner in two months, an official press release by 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 monthâ€™s end, the release said. Industries Minister Mekapati Goutham Reddy, Special Chief Secretary Karikal Valavan, Principal Secretary Praveen Prakash and other officials attended the meeting.