The Andhra Pradesh government has decided to select Essar Steel as the joint venture (JV) partner for setting up a three million tpa capacity steel plant in Kadapa district.
The State Cabinet cancelled its previous resolution, made on 23 February 2021, selecting Liberty Steel India as the JV partner for construction and development of the YSR Steel Plant.
The SBICAP asked the YSR Steel Corporation, the special purpose vehicle (SPV) of the state government, that its earlier recommendation be reviewed and proceed with the next qualifying applicant Essar Steel.
The Cabinet considered the proposal and accepted SBICAP's recommendation to select Essar as the JV partner. The project capex of the project is Rs 11,606 crore.
The government established the YSR Steel Corporation for development and operation of a new steel plant in Kadapa district and invited proposals in November 2020 from renowned companies for inducting as a JV partner.
The proposed steel plant will have a capacity of up to three million tpa for producing high grade steel products. The state government already signed a memorandum of understanding (MoU) with NMDC for supplying the required 4.5 million tonne of iron ore every year for the proposed steel plant.
According to the government claim, the plant will provide direct and indirect employment to about 25,000 people. The state government pooled 3,148.68 acre 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.
