Reddy drops steel plant plan in Bellary

Reddy drops steel plant plan in Bellary

Sources said that Reddy, after his aborted efforts to operationalise the Brahmani steel plant in Kadapa, Andhra Pradesh, decided against investing in Bellary. He is reportedly finding it tough to run his mining business after the death of Y S Rajasekara Reddy, who the AP chief minister who died in a plane crash. But he has not closed the Brahmani steel plant unit in Kadapa.

At the Global Investors Meet in Bangalore last year, his wife Lakshmi Aruna had signed an MoU with the KIADB to establish a steel plant with an investment of Rs 36,000 crore.

The company had made an initial deposit of about Rs 300 crore, with the KIADB. It is learnt that the government, when Brahmani Steels expressed its intention of not pursuing the project, asked it to find a replacement. Hence, Reddy and his wife, transferred their shares to Uttam Galva. The agreement between the two companies was signed a couple of weeks ago, it is said.