The Government of Andhra Pradesh has entered into a Memorandum of Understanding (MoU) with the National Mineral Development Corporation (NMDC) here on Wednesday for supplying iron ore to the proposed Kadapa Steel Plant.
The MoU was signed by NDMC Director (Commercial) Alok Kumar Mehta and AP High Grade Steel Limited’s Chairman and Managing Director (CMD) P. Madhusudhan in the presence of Chief Minister Y. S. Jagan Mohan Reddy.
Global search for partners
It may be recalled that Union Minister for Petroleum, Natural Gas and Steel Dharmendra Pradhan, during his visit to the State in early November responded positively to Mr. Jaganmohan Reddy’s request for the supply of iron ore from NMDC to the proposed steel plant. The Chief Minister explained that the government was making efforts to rope in globally acclaimed companies to set up the steel plant. Mr. Pradhan had directed officials to have an MoU signed between the State government and NMDC shortly.
Moreover, the A.P. Cabinet recently approved a proposal for the construction of the steel plant. Over 3,000 acres of land has been identified in Jammalamadugu mandal of the district. The foundation stone for the plant will be laid on December 26.
Bifurcation promise
Interestingly, former Chief Minister N. Chandrababu Naidu had also laid a foundation stone for the Kadapa Steel Plant, but at a different location in December 2018. The previous government had planned to construct the steel plant at Kambaladinne village of Mylavaram mandal in the district. It was expected that the plant would cost ₹ 18,000 crore, and was likely to generate direct and indirect employment to about one lakh people. Kadapa Steel Plant was one of the promises made to the residuary State during bifurcation of the combined Andhra Pradesh in 2014.
