Centre drops Kadapa Steel plant and Dugarajapatnam port as they are not profitable

In the ongoing parliament session, which began on Tuesday, Vijayawada TDP MP Kesineni Nani sought a clarification from the central government on the implementation of the assurances set out in the Andhra Pradesh bifurcation act 2014 including the Kadapa Steel Plant and Dugarajapatnam Port.

Home Minister Nityanandarayi replied to Kesineni's question. As stated in the AP Partition Act, Kadapa Steel Plant and Dugarajatnam Port are not profitable. He also said that there would be an increase in constituencies in 2026. Also, he reminded that with the recommendations of the 14th Finance Commission of sanctioning Rs. 22,113 crore to the State under the Revenue Deficit 2015-2020, the union govt has sanctioned Rs. 19, 613 crores.

The Union Minister of Petroleum, Natural Gas and Steel Dharmendra Pradhan recently visited the AP. On this occasion, the Center agreed to supply iron ore to the Kadapa Steel Plant. Dharmendra Pradhan has decided to provide Iron Ore with the required raw material from the NMDC.

On the other hand, the AP MPs are demanding the establishment of a steel plant in Kadapa from 2016, but the Center denied. However, the then Chief Minister Chandrababu decided to set up a steel plant at the state government's expense. But it was stalled due to the elections in Andhra Pradesh.

After Jagan becoming CM, he said that the steel plant would be set up in January next year. But the centre assured that the Iron ore and other materials would be submitted once the plant is established.