The Andhra Pradesh Government has selected Essar Steel as a partner for the development of the proposed 3 million tonnes per annum high-grade steel Kadapa greenfield plant.
The state cabinet chaired by YS Jagan Mohan Reddy today decided to mandate Essar Steel to develop the steel plant on the basis of recommendations made by SBICAP. This means the earlier selection of Liberty Steel India as a joint venture partner will be cancelled.
The state government has already signed up with the iron ore mining major NMDC Limited for supplying about 4.5 million tonnes of ore per annum.
The project with a total outlay of about Rs 11,000 crore will generate over 25,000 jobs directly and indirectly. The State has already made necessary arrangement for land for the Special Purpose Vehicle YSR Steel Corporation.
In January bids of Essar Steel Limited, Liberty Steel Limited and Nalwa Steel Limited were filed and the bid of the Liberty Steel was selected. However, due to developments regarding Liberty Steel, the State government mandated SBICAP to reconsider the bids and Essar Steel was selected as the joint venture partner.
During the cabinet meeting, the State Government has also approved funding of Rs 1,448 crore for the development of infrastructure at the Krishnapatnam Port industrial corridor connecting Chennai and the development of an eight-lane highway from Kailasagiri near Vizag to connect the greenfield airport proposed at Bhogapuram.
The cabinet also approved other key decisions including crediting ₹4,050 crore support for farmers.
Syndicated news from The Hindu Business Line