Kadapa steel plant: Govt.trying to rope in Hyundai

Korean major likely to invest ₹15,000 cr. in it, says official

The State government is trying to rope in Hyundai Steel Company of South Korea to become a partner with the A.P. Mineral Development Corporation and A.P. High Grade Steels Limited for the establishment of an integrated steel plant in Kadapa district.

Talks for taking the project forward in the Public-Private Partnership mode are in advanced stages and an MoU is likely to be signed soon if everything goes well, according to a top official in the A.P. government, who said there was a plan to augment the capacity (of KSP) from 3 MTPA to 10 MTPA in a phased manner.

He told The Hindu that the Korean auto-to-steel giant was likely to invest about ₹15,000 crore in KSP. Hyundai is said to be keen on importing quality iron ore from Austalia and Indonesia through Krishnapatnam port and supplying a part of it to the Kadapa Steel Plant (KSP) and the balance mostly to the fledgling automobile manufacturing units in Chennai.

It may be noted that the National Mineral Development Corporation has committed to providing iron ore from within Kadapa district in the initial stages. The A.P. government official said the KSP has water available in the Gandikota reservoir and power is to be sourced from the Rayalaseema Thermal Power Plant while there is a government land bank of nearly 10,000 acres.

KSP will be initially making rolled steel products which have diverse applications, particularly in the automobile sector.

The steel plant in Kadapa is to be set up as per the A.P. Reorganisation Act.

The feasibility report, which had been prepared by the Steel Authority of India Limited, is being re-worked as iron ore availability and other issues came in the way.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Apr 8, 2020 2:09:20 AM |

Next Story