VIJAYAWADA: The State government approved Essar Steel Limited as the joint venture partner for setting up an integrated steel plant in Kadapa district.The Cabinet, in its meeting held recently, has approved the recommendation made by SBICAP, the consultants to assist in the selection of joint venture partner, and an order to this effect was issued on Tuesday.
In fact, Liberty Steel India Limited was selected as the joint venture partner by the Cabinet a few months ago. However, with the financial constraints of Liberty coming to a fore, the SBICAP suggested that the YSR Steel Corporation Limited (YSRSCL), the Special Purpose Vehicle (SPV) to set up the steel plant, proceed with the Essar Steel Limited.
Though there was mention to examine the feasibility of establishing an integrated steel plant in Kadapa district in the AP Reorganisation Act, the Centre kept the same pending. The State government then decided to set up a steel plant at Sunnapurallapalle and Peddanandluru villages.