VIJAYAWADA: As the TDP government is all set to make an announcement on setting up a steel plant in Kadapa on its own, if the Centre does not come forward in this regard, at its proposed Dharma Porata Deeksha, which has been postponed to October 30, Union Steel Minister Chaudhary Birender Singh has directed MECON to submit its technical report to the Task Force immediately without waiting for any other details that are yet to be provided by the AP government.
A High Powered Task Force comprising representatives from the Central and State governments, SAIL, RINL, NMDC, MECON and MSTC, is working to evolve a plan for the establishment of the steel plant. Though MECON has already submitted a draft report and finalised all that is required for the preparation of a technical report, it has been waiting for data relating to the availability of iron ore, which is essential for the preparation of feasibility report. The data to be provided by the State government, is still awaited.
A delegation of TDP MPs met the Union minister recently and urged him to speed up the process of establishment of the integrated steel plant in Kadapa and direct MECON to submit the feasibility report.
After the TDP MPs’ representation, Birender Singh reviewed the progress of the steel plant proposal in Kadapa, which is one of the provisions of Andhra Pradesh Reorganisation Act. He instructed MECON to give its technical report to the Task Force immediately and ask the AP government to furnish all the details of mining leases and availability of iron ore at the earliest so as to enable the Task Force evaluate the technical report of the project and its feasibility.
The High Powered Task Force will also study the mode of investment for the proposed steel plant as a public sector or a private sector unit, a joint venture or a combination of any or all these.
Birender Singh observed that setting up of a steel plant in Kadapa is very important for the overall development of that region and all efforts should be made to take the project to its logical end.
On its part, the State government has offered several incentives for the steel plant, like allocation of iron ore mines for captive purpose without any additional cost, subsidised and uniform land rate of `4 lakh per acre, reimbursement of `1 per unit of power consumed for a period of five years, 100 per cent stamp duty and transfer duty paid on purchase or lease of land and 50 per cent of net VAT/CST or SGST for a period of seven years, 10 per cent subsidy on cost of plant and machinery, 25 per cent subsidy on fixed capital investment and development of external power and water supply infrastructure, the delegation of the MPs informed the minister.
The State government also stated that adequate iron ore is available for running the proposed steel plant for a period of 30 years, as requested by MECON.Out of eight mining leases in Anantapur district, three will expire by March 31, 2020, and they will be made available for the integrated steel plant.
Bifurcation promise
Union Steel Minister Chaudhary Birender Singh directs MECON to submit its technical report on Kadapa steel plant to the High Powered Task Force immediately without waiting for any other details that are yet to be provided by the AP government
State’s incentives
The State government offers several incentives for the steel plant, like allocation of iron ore mines for captive purpose, uniform land price of J4 lakh per acre and reimbursement of some costs