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Kadapa Steel Plant to produce high grade rolling steel in PPP mode
The State government is contemplating entering into a Memorandum of Understanding with the Korean company Hyundai Steel to establish the Steel plant in Kadapa district.
Amaravati: The State government is contemplating entering into a Memorandum of Understanding with the Korean company Hyundai Steel to establish the Steel plant in Kadapa district.
Kadapa steel plant will be established in Public-Private Partnership, in which AP High-Grade Steel Corporation, AP Mineral Development Corporation and Hyundai Steel as the private partner. It is worth mentioning that, Chief Minister YS Jagan Mohan Reddy already laid a foundation stone for the plant.
Though the talks are reached to enter the MoU, even the date for the entering the MoU was finalized, it was delayed due to the Covid19, according to the sources at the Chief Minister's office.
It was learnt that the Hyundai Steel company expressed willingness to establish the plant with an estimated investment of more than Rs 15,000 cr.
The location of the plant has many advantages including proximity to the Krishnapatnam Sea Port, 10,000 acres of land is available at a throw-away price and most importantly water from the Gandikota River and electricity from the RTPP.
Taking into consideration all these factors, Hyundai Steel has been planning to come and establish the greenfield steel plant in Kadapa.
It is proposed to import high-quality iron ore from Australia, Indonesia and other countries and produce fine quality steel. In fact, one of the most valuable byproducts of the industry is hot rolled steel.
Hot rolled products are widely used in different industries including automotive, structures and steel pipes for construction. At present, most of the hot rolled steel products are being imported from various countries. Now, the steel plant at the Kadapa district will have the advantage to catch the market in the entire Southern region of the Country and it could supply to the automobile industries located in Tamil Nadu, Karnataka, Kerala and Telangana apart from Andhra Pradesh, according to the sources. Once the plant is established here in the State, the profits will be a windfall, inf
Initially, the company will establish the unit with a production capacity of 3 Million Metric Tons per annum and will be increased to 10 million metric tons per annum in a phased manner. In the first phase itself, the steel plant will be able to provide direct employment to more than 20,000 youth. As the State government already enacted legislation mandating the companies to employ at least 75 per cent of the local youth into the newly established companies, it is expected that at least 14,000 people in the state will get employment with this industry.
