In a major development, the state government has given green signal for JSW Steel to set up an integrated plant in Andhra Pradesh’s Kadapa district.
The State Investment Promotion Board (SIPB) chaired by chief minister YS Jagan Mohan Reddy cleared the JSW proposal to set up the steel plant with an investment of Rs 8,800 crore.
Initially, the state government wanted to set up the plants from its own resources. Taking the financial constraints into consideration, the state government has roped in the steel giant JSW to set up the plant.
The company will invest nearly Rs 3,300 crore to complete the first phase to produce 1 million tonnes of steel.
The new steel plant is coming up at Sunnapurallapalle village of YSR Kadapa district.
The JSW would take up the project in three phases and it would produce 3 million tonnes of steel at the end of the final phase of the project.
In fact, the Centre promised to set up a steel plant in Rayalaseema during the bifurcation of the state.
The SIPB had also cleared the proposals to attract investment to the tune of Rs 23,000 crore in different projects. It had granted its nod to Adani Green Energy and Shirdi Sai Pumped Hydro Storage Project (PHSP).
The chief minister directed the officials to take measures to ensure that JSW launches the steel plant operations at the earliest possible.
“This steel plant is going to be the game-changer to the economic growth of the entire Rayalaseema region, particularly YSR Kadapa. It will create huge employment directly and indirectly,” said the chief minister.
He said the steel plant would help attract several ancillary units in the region and create massive employment.
He said the steel plant would completely change the fortunes of Rayalaseema region.
JSW is a 22 billion dollar company which has a presence in the steel, energy, cement and paint sectors.
It has steel plants in Tamil Nadu, Karnataka, Maharashtra, Chhattisgarh and Odisha and produces about 27 million tonnes of steel annually.
SIPB had also cleared Adani group’s proposal to set up a PHSP plant with Rs.6330 crore.
The group intends to produce 1600 MW of power from two plants to be located in Alluri Sitaramaraju, Anakapalli and Vizianagaram districts.
“One plant is coming up at Peda Kota of ASR district with 1,000MW capacity and another plant near Raivada between Anakapalli-Vizianagaram districts with 600mw capacity,” said a senior official.
The project works will be started by December, 2024 and completed within four years.
The PHSP plants will generate about 4,196 million units annually and generate about 4,000 jobs.
SIPB had stamped its nod for two more PHSP plants promoted by Shirdi Sai electricals. The plants are coming up at Yerravaram and Somasila to generate about 2100MW. While the Yerravaram plant is targeted to produce 1200MW, the plant at Somasila project will produce 900MW.
Shirdi Sai Electricals Limited is making an investment of Rs 8,855 crore in two plants.
The company has been directed to launch works by next July and complete them within five years. It would generate about 2,100 direct jobs.