AP to set up 15K cr steel plant

AP to set up 15K cr steel plant

The Telugu Desam Government in Andhra Pradesh has decided to set up a Rayalaseema Steel Corporation to build and run a steel plant with an investment of Rs 15,000 crores to Rs 18,000 crores in Kadapa without the Centre’s help. The state government proposes to bear 100 percent of the investment through loans.

The AP cabinet decided to set up the corporation on public-private partnership mode. The AP Mineral Development Corporation will extend financial assistance. Chief Minister N Chandrababu Naidu will lay the foundation for Kadapa steel plant in a month. It was also decided to appoint P. Madhusudan as temporary CMD of Rayalaseema steel corporation.

AP state cabinet also decided to develop yet another neglected project, the Visakha metro on public-private partnership at a stretch of 42.55 km in three corridors. The cabinet decided to get financial assistance from different organisations for the 8,300 cr metro project.

The cabinet also decided to write three letters to Prime Minister Narendra Modi on the non-implementation of commitments made in the bifurcation Act.
The steel plant in Rayalaseema was one the several assurances given by the centre to the residual state of AP at the time of bifurcation including special category status (SCS). TDP severed ties with the BJP led NDA protesting the injustice meted out by the Narendra Modi government at the centre.

The BJP, in its attack on Naidu, has accused him of concentrating only on Amaravati and ignoring Rayalaseema comprising of four districts Kurnool, Anantapur, Kadapa and Chittoor. BJP spokesperson GVL Narasimha Rao has even demanded that High Court should be set up in Rayalaseema. Chandrababu Naidu turned down the demand saying High Court should be in the administrative area in Amaravati.

Naidu who saw that IIT and Kia Motors and Isuzu set shop in Rayalaseema hopes that the Rayalaseema Steel Corporation will bring identity to the region at the national level. Naidu told the cabinet that raising funds would be possible because of the availability of iron ore. With no positive indications from the steel ministry, the state cabinet on Tuesday took the crucial decision to set up the plant on its own.