AP CM lays stone of controversial Kadapa steel plant.

Andhra Pradesh Chief Minister N Chandrababau Naidu has laid the foundation stone at Maremma Kambaladinne village in Mylavaram mandal of Kadapa district, for the construction of a steel plant.

The laying of the foundation for the plant assumes importance not only because it is being taken up by the State government instead of the Centre, but also due to the friction between both the governments over the unkept assurance regarding ‘special status’ for the State.

The construction of the the steel plant was part of the promises made post the bifurcation of the State in 2014.

Naidu said that this move and the commencement of work at Amaravati earlier today for the State Secretariat buildings are two landmarks of his tenure. While seeking cooperation from local leaders for land acquisition, he said work at the plant will commence within three months.

Telugu Desam Party (TDP) MP CM Ramesh had gone on a ‘fast unto death’ demanding that the Centre set up the steel plant, as promised during the bifurcation. Earlier the State Cabinet had approved the setting up of the steel plant, named Rayalaseema Steels, as the Centre did not respond to the State’s request.

To be part of the Andhra Pradesh Mineral development Corporation, Rayalaseema Steels would have to be built on a 3,500-acre government site and require an outlay of Rs. 18,000-20,000 crore for a unit that has a capacity of three million tonnes per annum.

Meanwhile, the Centre has expressed its support to integrated steel plant project but said it was awaiting a final feasibility report and State inputs for its preparation.

Even as Naidu was laying the foundation, the Centre, in a statement, sought to make it clear that the Andhra Pradesh government has to furnish the details of type of mine, quantity and quality of iron ore reserves to back the setting up of the project.

The Centre reiterated that once the State furnishes the information, the feasibility report will be prepared by Mecon within shortest possible time. And once this is done, then the modalities of investment will be finalised in the interest of the State.

While SAIL had prepared a feasibility study, which maintained it was not feasible. Yet to fulfil the commitment, Mecon was asked to prepare a feasibility report by a task force set up. It sought information from State which has not been forthcoming, the Centre said.

Naidu stated that the first car from the greenfield plant of the Korean major Kia Motors’ plant in Anantapur, will roll out in early 2019.

HBL