Andhra Pradesh govt to set up steel plant in Kadapa
KSP will be set up a cost of Rs 15,000 crore
Companies like Hyundai Motors, Tata Steel and Essar Steel India have come forward to partner with the state government for setting up another steel plant in the same district. This has happened following the Swiss company IMR Metallurgical Resources proposal to set up a 10 million tonne capacity steel plant in Kadapa district of Andhra Pradesh.
While the one proposed by the Swiss company at an investment of Rs 12,000 crore will be an independent venture, the other one is being promoted by the state government for which the foundation stone was laid in December 2019.
Kadapa Steel Plant (KSP), to be developed by a special purpose vehicle (SPV) AP High Grade Steels (APHGSL), will have a government equity share of Rs 500 crore.
KSP will be set up a cost of Rs 15,000 crore and provide direct and indirect employment to about 25,000 people.
The plant with three million tpa production capacity will be completed in three years in Sunnapurallapalli village.
The government of Andhra Pradesh has already signed a memorandum of understanding (MoU) with NMDC for supply of about five million tonne of iron ore for the steel plant every year.
Apart from this, the development of a township and allied infrastructure will be completed in two years while soil- testing and geo-technical survey for the plant will be completed by the end of June 2020.