VIJAYAWADA: The AP High-Grade Steels Limited, incorporated by the State government to set up an integrated steel plant in Kadapa district, is receiving good response from private players. Seven reputed companies, including two from abroad and five Indian ones which have bases abroad, have evinced interest to join hands with the State government for the project.
Informing that as many as seven players responded to the Expression of Interest (EoI) called by the State government to invest in the Integrated Steel Plant, AP High-Grade Steels Limited managing director Sagili Shan Mohan felt that it may take at least 6 to 8 weeks to finalise the bidder.
He informed TNIE that it is a good sign to attract the attention of the reputed organizations, particularly in the time of the COVID pandemic. Stating that the companies are requested to keep their names confidential, he, however, said that all the seven are world-famous companies.
“As of now, we are in the process of preparing the bid documents. At the same time, we are focusing on the infrastructure development activities at the project site. Whoever is the bidder, we (State government) have to arrange the infrastructure and we have started the same. We are trying to get environmental clearances, complete compound wall construction, road works, preparing the Detailed Project Report (DPR) for power and water supply and railway connectivity from Muddanur railway station,” he explained.
Industries and Commerce Minister Mekapati Goutham Reddy told TNIE that the government will soon go for qualification and bidding. Meanwhile, officials learnt to have briefed Chief Minister YS Jagan Mohan Reddy about the developments related to the steel plant during a meeting held a few days ago.
The State government had decided to set up an integrated steel plant at Sunnapurallapalli and Peddanandluru villages in Jammalamadugu Mandal of Kadapa district and allotted land to an extent of 3,295 acres. The government incorporated a company in the name of M/s A.P High-Grade Steels Limited for establishing the integrated steel plant. Later, the ‘Certificate of Incorporation’ was issued by the Ministry of Corporate Affairs.
The State government also signed an MoU with the National Mineral Development Corporation (NMDC) for the supply of iron ore to the AP High-Grade Steel Limited. The State government also made an initial provision of `250 crore in the Budget towards the establishment of the steel plant.