MoU for Kadapa steel plant project signed

The Andhra Pradesh government on Monday signed an MoU with Bramhani Industries Limited, which has proposed to set up a 2-million tonne integrated steel plant in the first phase at an initial investment of Rs 4,500 crore in Kadapa district.

The company plans to expand it to 10 million tonne later.

The government has already identified 8000-10,000 acres government barren land besides allocating 2 tmc of water, which is considered to be sufficient for a 4-million tonne capacity,in Jammalamadugu mandal for the proposed project.

The foundation stone laying ceremony for the project is scheduled to be held on June 10, 2007, according to G Janardhana Reddy, chairman, Obulapuram Mining Company Private Limited, and the key promoter of the steel plant project.

Speaking on the occasion, chief minister YS Rajasekhra Reddy said it was an important day in the history of the state's industrial progress as a steel project of this scale was coming to the state after Vizag Steel.

While 24,000 acres of farm land was acquired for the Vizag steel project 25 years back, promoters of the private steel plant have sought just 8,000-10,000 acres for the entire 10 million tonne capacity.

This also requires no acquisition or rehabilitation of land losers as the entire extent is a government land.The state government is currently exploring various options for securing the remaining 3 tmc water required for the entire 10 million tonne capacity, according to the chief minister.