Chief minister YS Jaganmohan Reddy announced that a steel plant would be set up in Kadapa district.
The CM also mentioned that he would lay the foundation stone for the steel plant on 26th December, six months from now, and the project would be completed in three years. The project is expected to create employment for over 10,000 people.
The announcement was made by the chief minister at his first public meeting at Jammalamadugu in Kadapa district, as part of the Farmers’ Day celebrations marking YS Rajasekhar Reddy’s birth anniversary.
Addressing the meeting, Jagan said, “The previous government lacked true will to expedite the project as it only wished to garner votes. But, as a son of the soil, I can understand the impact that the Kadapa steel plant can have on the lives of the people in the district. I promise you all today that I will lay the foundation stone for the steel plant on 26th December and will ensure that the project is completed three years from then.”
Jagan would be the third chief minister to lay the foundation stone for the steel plant, following his father Rajasekhar Reddy who laid the foundation stone in 2007 and his predecessor, Chandrababu Naidu, who did the same in 2018. The promise of a steel plant in the state was part of the Andhra Pradesh Reorganisation Act, 2014, which is yet to be fulfilled by the central government.
According to reports, the central government had found the project unviable and was thereby delaying it.
After his rift with the BJP, the TDP chief, Chandrababu Naidu had proposed the project to be constructed by the state government in a private partnership.
The Naidu-led government had also floated a special purpose vehicle (SPV) called, Rayalaseema Steel Corporation (RSC) and appointed former chairman and managing director of Vizag Steel Plant, P Madhusudan as it managing director.
Meanwhile, the Andhra Pradesh Mineral Development Corporation had prepared a report on the steel plant proposing for alternatives. The first proposal was to make the central government set up the steel plant as per the AP Reorganisation Act. The second option was the make the Centre fund the construction which would be executed by the state government.
The third option was to have a public-private-partnership venture in which both the central and state governments would also be partners. The fourth option was the leave the entire project in the hands of the state government which could go for a public-private partnership. The central government would then reimburse the project cost.
I will lay foundation stone for Kadapa steel plant on December 26 : CM YS Jaganmohan Reddy
