Swiss major IMR Metallurgical Resources-AG has proposed to set up a steel plant in Kadapa district of Andhra Pradesh at an investment of over Rs 12,000 crore and an annual production capacity of 10 million tonnes.
IMR chief and other officials came up with the proposal during a meeting with the Chief Minister YS Jagan Mohan Reddy here on Thursday, a press release said.
This would be the second steel plant that has been proposed in Kadapa district in the Rayalaseema region of the state.
As the Centre allegedly did not come forward to set up the steel plant in Kadapa as per the AP Reorganisation Act, 2014, the state government decided to establish one on its own and the Chief Minister laid the foundation stone for it on December 23 last.
The state government also entered into an agreement with National Mineral Development Corporation for supply of iron ore for the proposed steel plant, with a capacity of three million tonnes.
Now, the Swiss firm has come up with a new proposal for setting up the steel plant that could be the second in the district, official sources said.
The Chief Minister told the visiting industrialists that the steel plants could spur industrial growth in Kadapa district and increase employment opportunities.
The state government was ready to provide all the basic infrastructure for the plant, he said, adding that connectivity to Krishnapatnam port, railway and highways was readily available.
IMR officials said their activities in iron ore, coal and gold mining extended to Indonesia, South Africa, Mexico, Columbia, Italy, Ukraine, besides India.
The company was into power and steel production as well. Chief Secretary Nilam Sawhney, Industries Special Chief Secretary Rajat Bhargava, IMR-AG chairman Hans Radolf Weld, director Anirudh Misra, project president Arindam De and other officials attended the meeting.