Kadapa: Chief Minister YS Jaganmohan Reddy on Monday laid the foundation stone for the Kadapa Steel Plant AP High-Grade Steel Corporation at Sunnapurallapalle village under Jammalamadugu Mandal in Kadapa district.
Speaking at the occasion, Jaganmohan Reddy said that the steel plant will address the unemployment problem in Rayalaseema region to significant levels as it will create 25, 000 direct and indirect employment.
The plant is expected to start production in three years with an investment of Rs 15,000 crore. It will produce 30 lakh tonnes of steel per annum and may be helpful for establishing auxiliary units. And boost Rayalaseema region’s growth potential, he added.
The signing of a MoU with National Mineral Development Corporation (NMDC) for the supply of iron ore to the proposed steel plant comes as a morale-booster for growth of the steel plant. As per the agreement, NMDC will supply five million tonnes of iron ore to the plant every year.
The YSRC government had allocated 3,146 acres and the possession certificate was handed over to AP High-Grade Steel Corporation CMD Madhusudhan Reddy on December 17. The steel plant will draw 2 tmcft of water from the Gandikota reservoir.
The steel plant will come up between Sunnapurallapalle and Peddanandaluru villages in Jammalamadugu mandal. This is the third time that the foundation stone for a steel plant is being laid. Former Chief Ministers YS Rajasekhara Reddy and N Chandrababu Naidu laid the foundation stones at two different locations in Kadapa district. Neither could take it forward. Now, the locals are hoping that Jaganmohan Reddy will make it operational in the next three years.
Incidentally, establishing a steel plant in Kadapa district is one of the provisions of the AP Reorganisation Act, 2014.