Naidu sets agenda for Kadapa steel plant
The Chandrababu Naidu government made its intentions clear of setting up a greenfield steel plant in the Rayalaseema area despite the center’s snub to this significant project.
Under the AP re-organization act 2014 the central government had promised to set up a steel plant in the Rayalaseema area however later back tracked on its promise terming it to be unfeasible.
There has been growing clamor by the people of having its own steel plant in the iron ore rich region of Rayalaseema.
Just recently the CM along with his cabinet cleared the path for the creation of a steel plant in the region with a planned capacity of 3mtpa.
A company named Rayalaseema Steel Corporation has been set up wherein the government has roped in the former CMD of RINL Mr P. Mahdusudan to lead this project as its erstwhile chief.
Speaking to Vizag Industrial Scan the former CMD of RINL stated that the corporation is scouting for investors who would be interested in getting this crucial plant rolling.
The plant will be set up after detail project reports and interests are vetted from potential investors who are willing to come with equity for the plant stated the formed CMD of RINL.
He further informed that as per the present calculation the costing for a 3mtpa roughly works out to be about Rs 15000 crores.
To be set up as a Joint venture with the GoAP it is stated that the government shall provide upto 6000 acres for the steel plant wherein the land will be treated as equity on behalf of the government while the investors come up with the other portion of funds.
Presently it is understood that banks lend in the 1:1 ratio to the steel sector. There has been speculation that interests by POSCO, LG and some Japanese steel making companies have been evinced.
The steel plant once ready is likely to generate employment to over 10000 workers both direct and indirect.
Mr Madhusudan with his prior leadership at RINL coupled with his extensive experience and network in the steel industry is being seen as the right man for this job.
Under the national steel policy of the central government it has set to achieve a target output of 300 million tonnes by the year 2030.