VIJAYAWADA: Kadapa Steel Plant (KSP) will have Rs 500 crore equity, and negotiations are underway with big ticket companies for a joint venture with the State-owned Andhra Pradesh High Grade Steels Limited.
This was revealed during a review meeting on KSP chaired by Chief Minister YS Jagan Mohan Reddy here on Monday.
The Chief Minister was briefed about the developments and the big companies showing interest to be part of the steel plant project.
Officials informed that during their discussions with Hyundai Motors, Tata Steels and Essar Steels, among others, they envisaged interest in partnering with the AP High Grade Steels Limited to execute the steel plant with a production capacity of 3 million tonnes per annum.
The meeting discussed proposals of the companies for joining the venture.Further negotiations with the companies should be completed soon and after finalising the partner, other formalities with the selected company would be completed within two months, the officials told the Chief Minister.Jagan directed the officials to allocate Rs 500 crore as equity for KSP.
It was decided to enter into a Memorandum of Understanding with the partner, who will be finalised in two months, and develop a township and allied infrastructure at the project site within two years.
By June end, soil testing and geo technical survey will be completed. Roads, power supply, main compound wall and other infrastructure will be developed expeditiously, the officials added.
Industries and Commerce Minister M Goutham Reddy, Industries Department Special Chief Secretary R Karikal Valaven and other officials attended the review meeting.
Project’s progress
3 million tonnes per annum: Production capacity of the proposed steel plant
2 months: The partner company will be finalised in 2 months and MoU will be signed
2 years: Township and allied infrastructure at the project site will come up in 2 years
June-end: Soil testing and geo technical survey will be completed