Andhra Pradesh government on Tuesday chose Liberty Steel India Limited as the joint venture partner for construction and development of YSR Steel Plant in Kadapa district. The state Cabinet, which met here under the chairmanship of Chief Minister YS Jagan Mohan Reddy, also approved the alienation of 3,148.68 acres of land in Jammalamadugu mandal for the integrated steel plant at the rate of Rs 1.65 lakh per acre, according to Information and Public Relations Minister Perni Venkataramaiah (Nani).
The AP government established the YSR Steel Corporation Limited for the development and operation of a new steel plant in the Kadapa district and invited proposals in November last from renowned companies for inducting as a joint venture partner.
The proposed steel plant will have a capacity of up to three million tonnes per annum for producing high-grade steel products.
The state government already signed a memorandum of understanding with NMDC for supplying the required 4.5 million tonnes of iron ore every year for the proposed steel plant.
The Minister told reporters after the Cabinet meeting that Liberty would spend Rs 10,802 crore on building the steel plant.
According to the government, the plant would provide direct and indirect employment to about 25,000 people.
The state government pooled 3,148.68 acres of land spread over two villages for the integrated steel plant, which would now be alienated to the YSR Steel Corporation for Rs 1.65 lakh an acre.
The YSR Steel Corporation set March 31, 2024 as the commercial operation date for phase-1 of the project, in which it has been targeted to produce one MTPA of crude steel finished products.
The plant would use the latest green technologies in steelmaking to enable sustainable production, an official of the YSRSCL said.
“Linkages for other raw materials like limestone, dolomite, quartzite, ferroalloys, are under progress and we will enter into contracts with suppliers before the scheduled commissioning of the project,” the official added.
