Amaravati: The Andhra Pradesh government will launch the Kadapa steel plant project on December 26. The Integrated Steel Plant will be established at Sunnapu Rallapalli and Peddanandluru Villages of Jammalamadugu Mandal in YSR Kadapa district in partnership with a private investor and a GO was issued on Wednesday to this effect.
An initial provision of Rs.250 crore was made in the Budget 2019 towards establishment of the steel plant and Rs.62 crore has been sanctioned for commencing various activities related to the steel plant.2
The Government has recognized the need to leverage expertise of private sector in high grade steel production and accordingly incorporated “A.P. High Grade Steels Limited” under Companies Act 2013, which will be 100% owned by Government of Andhra Pradesh.
Chief Minister YS Jaganmohan Reddy has personally taken up the issue of ore linkage for the proposed plant with the Union Minister for Steel during his visit to Amaravati in November. The NMDC would provide iron ore linkage to the steel plant and the MoU with NMDC would be signed in second week of December.
Land to an extant of 3,295 Acres was identified in the villages of Sunnapurallapalli and Peddanandluru Villages of Jammalamadugu Mandal for establishing the proposed Steel Plant. The Government has directed Water Resources and Energy Departments to ensure timely supply of water and power to the Plant both during construction and operation phases.
MECON has been engaged for preparation of Detailed Project Report for the proposed steel plant and the report is expected to be ready by fourth week of December 2019.
Efforts have been made in the last couple of months to invite potential private investors for establishing an Integrated Steel Plant at Kadapa.
Meetings were held
with various reputed steel companies for establishing an Integrated Steel Plant in Kadapa. Certain companies have expressed interest in the project and Government is holding detailed deliberations for working out a feasible Public Private Partnership model for the project. In the event of proposed PPP model not materializing for the plant, the Government is determined to establish the plant on its own.
To improve financial viability of the project, the Government has sought certain incentives to the plant from Government of India like refund of IGST for the first 7 years, Income Tax Exemption for 10 years out of the first 15 years of operation and exemption of import duty for 10 years on capital goods as well as raw material imports.
A committee is constituted to oversee conducting of foundation laying ceremony for the proposed integrated steel plant on Dec. 26.