Amaravati: Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy on Monday laid the foundation stone for establishing a high-grade steel plant at Sunnapurallapalli village in his native Kadapa district.
The Rs 15,000-crore plant with a three-million-tonne capacity per annum would provide jobs to about 25,000 people, and would be completed in three years, he said while speaking on the occasion.
Noting that there was a huge gap between demand and availability of steel in the country, Jagan said the Kadapa plant would be a great contribution to the sector.
“Normally, steel factories are set up by Centre and it is not in the purview of the state. But, we will go ahead negotiating concurrently with those interested, and our goal is to see the plant commissioned within three years, he added.
The state government had last week signed a memorandum of understanding with the NMDC for supply of about five million tonnes of iron ore for the steel plant every year.
A total of 3,295 acres of land has to be acquired in Jammalamadugu area of Kadapa district for the plant to be set up with private investment.
“If need arises, the state government itself will establish the steel plant. An initial provision of Rs 250 crore has been made in the 2019-20 budget for the establishment of the plant, Industries and Investments Department principal secretary Rajat Bhargava said in a recent order.
Deputy Chief Minister Amzath Basha, ministers A Suresh and P R Reddy, and district Collector Ch Hari Kiran and other officials were present.